Phibro Animal Health Corporation Reports First Quarter Results, Updates Financial Guidance
Highlights for the three months ended September 30, 2025 (compared to the three months ended September 30, 2024)
-
Net sales of
$363.9 million $103.5 million 40% -
Net income of
$26.5 million $19.6 million -
Diluted income per share of
$0.65 $0.48 -
Adjusted EBITDA of
$61.9 million $31.2 million -
Adjusted net income of
$29.8 million $15.8 million -
Adjusted diluted EPS of
$0.73 $0.38
We have raised our fiscal year 2026 Adjusted EBITDA guidance, while maintaining our Net sales guidance, as follows:
-
Net sales of
$1.43 billion $1.48 billion -
Adjusted EBITDA of
$230 million $240 million
COMMENTARY
“Phibro delivered an outstanding start to fiscal 2026, with net sales up
“Our customers are performing well, supported by resilient protein markets – sound poultry fundamentals, steady beef demand, disciplined pork supply, and robust dairy performance.”
“Our strong operational performance, disciplined execution, and the impact of our Phibro Forward initiatives are giving us the flexibility to invest strategically in animal health innovation. Last week, we announced the national launch of Restoris™, a breakthrough dental gel for dogs with periodontal disease. Together with our recently licensed therapeutic proprietary compound for canine periodontal care, it forms the foundation of a promising new portfolio in companion animal oral health. Reflecting our momentum and outlook, we are raising our full-year earnings guidance and reaffirming our commitment to delivering long-term value.”
QUARTERLY RESULTS
Net sales
Net sales of
Animal Health
Net sales of
Net sales of nutritional specialty products increased
Net sales of vaccines increased
Mineral Nutrition
Net sales of
Performance Products
Net sales of
Gross profit
Gross profit of
Animal Health gross profit, excluding the purchase accounting item discussed above, increased
Selling, general and administrative expenses
Selling, general and administrative expenses (“SG&A”) of
Animal Health SG&A increased
Interest expense, net
Interest expense, net of
Foreign currency losses, net
Foreign currency losses, net for the three months ended September 30, 2025, were
Provision for income taxes
The provision for income taxes was
The effective income tax rate in the current year was higher than our federal statutory rate of
The effective income tax rate in the current period included among other items (i) a
On July 4, 2025, the
Net income
Net income of
Adjusted EBITDA
Adjusted EBITDA of
Adjusted provision for income taxes
The adjusted provision for income taxes was
Adjusted net income
Adjusted net income of
Adjusted diluted earnings per share
Adjusted diluted earnings per share was
BALANCE SHEET AND CASH FLOWS
-
Free cash flow was
$34.3 million -
3.3x gross leverage ratio as of September 30, 2025
-
$749.1 million -
$226.9
-
-
Cash and short-term investments of
$85.3 million
FISCAL YEAR 2026 FINANCIAL GUIDANCE
Our updated fiscal year 2026 financial guidance is as shown below, with our Net sales and adjusted effective tax rate guidance maintained from the previous quarter. Year-over-year percentages are calculated using the midpoint of the guidance ranges.
-
Net sales of
$1.43 billion $1.48 billion 12% growth -
Net income of
$75 million $85 million 66% growth -
Diluted EPS of
$1.83 $2.08 65% growth -
Adjusted EBITDA of
$230 million $240 million 28% growth -
Adjusted net income of
$108 million $115 million 31% growth -
Adjusted diluted EPS of
$2.64 $2.81 31% growth -
Adjusted effective income tax rate of ~
25%
Guidance for GAAP measures assumes no additional foreign exchange (gains) losses for the year ending June 30, 2026.
(1) – Includes Adjusted EBITDA for the one month ended October 31, 2024 from the Zoetis Medicated Feed Additive portfolio, certain water-soluble products and related assets from Zoetis, Inc acquired on October 31, 2024.
WEBCAST & CONFERENCE CALL DETAILS
Phibro Animal Health Corporation will host a webcast and conference call during which the Company will review its financial results and respond to questions.
Date: |
Thursday, November 6, 2025 |
||||
Time: |
9:00 AM Eastern |
||||
Location: |
|||||
|
+1 (888) 330-2022 |
||||
International Toll: |
+1 (365) 977-0051 |
||||
Conference ID: |
3927884 |
NOTE: To join this conference call, all participants will be required to provide the Conference ID number.
A replay of the webcast will be archived and made available on Phibro’s website.
DISCLOSURE NOTICES
Forward-Looking Statements: This communication contains forward-looking statements that are subject to risks and uncertainties, including with respect to any future debt and leverage levels. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. These statements are not guarantees of future performance or actions. If one or more of these risks or uncertainties materialize, or if management’s underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Phibro expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Quarterly Report on Form 10-Q and Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements” and “Risk Factors.” These filings and subsequent filings are available online at www.sec.gov, www.pahc.com, or on request from Phibro.
Non-GAAP Financial Information: We use non-GAAP financial measures, such as adjusted EBITDA, adjusted net income, adjusted diluted EPS and free cash flow to assess and analyze our operational results and trends and to make financial and operational decisions. Management uses adjusted EBITDA as its primary operating measure. We report adjusted net income to portray the results of our operations prior to considering certain income statement elements. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this communication should not be considered alternatives to measurements required by GAAP, such as net income, operating income and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures may not be comparable with non-GAAP information provided by other companies. Reconciliation of non-GAAP financial measures and GAAP financial measures are included in the tables accompanying this communication and/or our Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
We are not providing a reconciliation of forward-looking guidance of non-GAAP financial measures to the most directly comparable GAAP financial measures because of the uncertainty regarding, and the potential variability of, certain of the items required for a reconciliation; accordingly, a reconciliation of the non-GAAP financial measure to the corresponding GAAP financial measure is not available without unreasonable effort. These items are uncertain, depend on various factors and may have a material impact on our future GAAP results.
Internet Posting of Information: We routinely post information that may be important to investors in the “Investors” section of our website at www.pahc.com. We encourage investors and potential investors to consult our website regularly for important information about us.
Phibro Animal Health Corporation Consolidated Results of Operations |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|||||||||
For the Periods Ended September 30 |
|
2025 |
|
2024 |
|
Change |
|
|||||
|
|
(in millions, except per share amounts and percentages) |
||||||||||
Net sales |
|
$ |
363.9 |
|
$ |
260.4 |
|
$ |
103.5 |
|
40 |
% |
Cost of goods sold |
|
|
244.1 |
|
|
176.9 |
|
|
67.2 |
|
38 |
% |
Gross profit |
|
|
119.8 |
|
|
83.5 |
|
|
36.3 |
|
43 |
% |
Selling, general and administrative expenses |
|
|
68.5 |
|
|
65.8 |
|
|
2.7 |
|
4 |
% |
Operating income |
|
|
51.3 |
|
|
17.7 |
|
|
33.6 |
|
* |
|
Interest expense, net |
|
|
12.1 |
|
|
7.6 |
|
|
4.4 |
|
58 |
% |
Foreign currency losses, net |
|
|
2.9 |
|
|
0.4 |
|
|
2.5 |
|
* |
|
Income before income taxes |
|
|
36.3 |
|
|
9.6 |
|
|
26.6 |
|
* |
|
Provision for income taxes |
|
|
9.7 |
|
|
2.6 |
|
|
7.1 |
|
* |
|
Net income |
|
$ |
26.5 |
|
$ |
7.0 |
|
$ |
19.6 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
$ |
0.65 |
|
$ |
0.17 |
|
$ |
0.48 |
|
* |
|
diluted |
|
$ |
0.65 |
|
$ |
0.17 |
|
$ |
0.48 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
|
40.5 |
|
|
40.5 |
|
|
|
|
|
|
diluted |
|
|
40.9 |
|
|
40.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
32.9 |
% |
|
32.1 |
% |
|
|
|
|
|
Selling, general and administrative expenses |
|
|
18.8 |
% |
|
25.3 |
% |
|
|
|
|
|
Operating income |
|
|
14.1 |
% |
|
6.8 |
% |
|
|
|
|
|
Income before income taxes |
|
|
10.0 |
% |
|
3.7 |
% |
|
|
|
|
|
Net income |
|
|
7.3 |
% |
|
2.7 |
% |
|
|
|
|
|
Effective tax rate |
|
|
26.9 |
% |
|
27.5 |
% |
|
|
|
|
|
Amounts and percentages may reflect rounding adjustments. |
||||||||||||
* Calculation not meaningful |
||||||||||||
Phibro Animal Health Corporation Segment Net Sales and Adjusted EBITDA |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|||||||||
For the Periods Ended September 30 |
|
2025 |
|
2024 |
|
Change |
|
|||||
|
|
(in millions, except percentages) |
||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
MFAs and other |
|
$ |
195.2 |
|
$ |
107.8 |
|
$ |
87.4 |
|
81 |
% |
Nutritional specialties |
|
|
48.2 |
|
|
42.6 |
|
|
5.5 |
|
13 |
% |
Vaccines |
|
|
40.1 |
|
|
32.0 |
|
|
8.1 |
|
25 |
% |
Animal Health |
|
|
283.5 |
|
|
182.5 |
|
|
100.9 |
|
55 |
% |
Mineral Nutrition |
|
|
63.0 |
|
|
59.1 |
|
|
3.9 |
|
7 |
% |
Performance Products |
|
|
17.4 |
|
|
18.8 |
|
|
(1.4) |
|
(7) |
% |
Total |
|
$ |
363.9 |
|
$ |
260.4 |
|
$ |
103.5 |
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health |
|
$ |
74.9 |
|
$ |
40.4 |
|
$ |
34.5 |
|
85 |
% |
Mineral Nutrition |
|
|
4.5 |
|
|
3.8 |
|
|
0.8 |
|
20 |
% |
Performance Products |
|
|
1.6 |
|
|
2.3 |
|
|
(0.7) |
|
(30) |
% |
Corporate |
|
|
(19.1) |
|
|
(15.8) |
|
|
(3.4) |
|
21 |
% |
Total |
|
$ |
61.9 |
|
$ |
30.7 |
|
$ |
31.2 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to segment net sales |
|
|
|
|
|
|
|
|
|
|
|
|
Animal Health |
|
|
26.4 |
% |
|
22.1 |
% |
|
|
|
|
|
Mineral Nutrition |
|
|
7.2 |
% |
|
6.4 |
% |
|
|
|
|
|
Performance Products |
|
|
9.2 |
% |
|
12.1 |
% |
|
|
|
|
|
Corporate (1) |
|
|
(5.3) |
% |
|
(6.1) |
% |
|
|
|
|
|
Total (1) |
|
|
17.0 |
% |
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
26.5 |
|
$ |
7.0 |
|
$ |
19.6 |
|
* |
|
Interest expense, net |
|
|
12.1 |
|
|
7.6 |
|
|
4.4 |
|
58 |
% |
Provision for income taxes |
|
|
9.7 |
|
|
2.6 |
|
|
7.1 |
|
* |
% |
Depreciation and amortization |
|
|
12.8 |
|
|
9.0 |
|
|
3.8 |
|
42 |
% |
EBITDA |
|
|
61.2 |
|
|
26.3 |
|
|
34.9 |
|
* |
|
Acquisition-related cost of goods sold |
|
|
1.1 |
|
|
— |
|
|
1.1 |
|
* |
|
Acquisition-related transaction costs |
|
|
0.3 |
|
|
3.4 |
|
|
(3.2) |
|
(92) |
% |
Phibro Forward income growth initiatives - SG&A (2) |
|
|
— |
|
|
0.4 |
|
|
(0.4) |
|
* |
|
Stock-based compensation expense - named executive officer awards granted in fiscal year 2024 |
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
— |
% |
Insurance proceeds |
|
|
(3.8) |
|
|
— |
|
|
(3.8) |
|
* |
|
Foreign currency losses, net |
|
|
2.9 |
|
|
0.4 |
|
|
2.5 |
|
* |
|
Adjusted EBITDA |
|
$ |
61.9 |
|
$ |
30.7 |
|
$ |
31.2 |
|
* |
|
| Amounts and percentages may reflect rounding adjustments. | ||
* |
Calculation not meaningful |
|
(1) |
Reflects ratio to total net sales |
|
(2) |
Phibro Forward is a company-wide initiative focused on unlocking additional areas of revenue growth and cost savings. |
|
| Phibro Animal Health Corporation
Adjusted Net Income |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|||||||||
For the Periods Ended September 30 |
|
2025 |
|
2024 |
|
Change |
|
|||||
|
|
|
(in millions, except per share amounts and percentages) |
|||||||||
Reconciliation of GAAP Net Income to Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
26.5 |
|
$ |
7.0 |
|
$ |
19.6 |
|
* |
|
Acquisition-related depreciation (1) |
|
|
1.6 |
|
|
— |
|
|
1.6 |
|
* |
|
Acquisition-related intangible amortization (1) |
|
|
1.1 |
|
|
1.7 |
|
|
(0.5) |
|
(33) |
% |
Acquisition-related intangible amortization (2) |
|
|
0.6 |
|
|
0.6 |
|
|
(0.0) |
|
(2) |
% |
Acquisition-related cost of goods sold (1) |
|
|
1.1 |
|
|
— |
|
|
1.1 |
|
* |
|
Acquisition-related transaction costs (2) |
|
|
0.3 |
|
|
3.4 |
|
|
(3.2) |
|
(92) |
% |
Insurance proceeds (2) |
|
|
(3.8) |
|
|
— |
|
|
(3.8) |
|
* |
|
Stock-based compensation expense - named executive officer awards granted in fiscal year 2024 (2) |
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
— |
% |
Phibro Forward income growth initiatives - SG&A (2) |
|
|
— |
|
|
0.4 |
|
|
(0.4) |
|
* |
|
Refinancing expense (3) |
|
|
— |
|
|
2.0 |
|
|
(2.0) |
|
* |
|
Foreign currency losses, net (4) |
|
|
2.9 |
|
|
0.4 |
|
|
2.5 |
|
* |
|
Adjustments to income taxes (5) |
|
|
(0.7) |
|
|
(1.5) |
|
|
(0.8) |
|
54 |
% |
Adjusted net income |
|
$ |
29.8 |
|
$ |
14.1 |
|
$ |
15.8 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations Line Items - adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted cost of goods sold (1) |
|
$ |
240.3 |
|
$ |
175.3 |
|
$ |
65.0 |
|
37 |
% |
Adjusted gross profit |
|
|
123.6 |
|
|
85.1 |
|
|
38.5 |
|
45 |
% |
Adjusted selling, general and administrative (2) |
|
|
71.3 |
|
|
61.2 |
|
|
10.1 |
|
16 |
% |
Adjusted interest expense, net (3) |
|
|
12.1 |
|
|
5.7 |
|
|
6.4 |
|
* |
|
Adjusted income before income taxes |
|
|
40.3 |
|
|
18.2 |
|
|
22.1 |
|
* |
|
Adjusted provision for income taxes (5) |
|
|
10.4 |
|
|
4.2 |
|
|
6.2 |
|
* |
|
Adjusted net income |
|
$ |
29.8 |
|
$ |
14.1 |
|
$ |
15.8 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
diluted |
|
$ |
0.73 |
|
$ |
0.35 |
|
$ |
0.38 |
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
diluted |
|
|
40.9 |
|
|
40.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to net sales |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross profit |
|
|
34.0 |
% |
|
32.7 |
% |
|
|
|
|
|
Adjusted selling, general and administrative |
|
|
19.6 |
% |
|
23.5 |
% |
|
|
|
|
|
Adjusted income before income taxes |
|
|
11.1 |
% |
|
7.0 |
% |
|
|
|
|
|
Adjusted net income |
|
|
8.2 |
% |
|
5.4 |
% |
|
|
|
|
|
Adjusted effective tax rate |
|
|
25.9 |
% |
|
22.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts and percentages may reflect rounding adjustments. |
||
* |
Calculation not meaningful |
|
(1) |
Adjusted cost of goods sold excludes acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets, acquisition-related intangible amortization and acquisition-related cost of goods sold. |
|
(2) |
Adjusted selling, general and administrative excludes acquisition-related intangible amortization, acquisition-related transaction costs, stock-based compensation related to awards granted to certain named executive officers in fiscal year 2024, costs associated with Phibro Forward income growth initiatives, and insurance proceeds. |
|
(3) |
Refinancing expense includes third-party costs and the write-off of unamortized debt issuance costs related to the refinancing of the Company’s credit facility in July 2024. Adjusted interest expense, net excludes refinancing expense. |
|
(4) |
Foreign currency losses, net, are excluded from adjusted net income. |
|
(5) |
Adjusted provision for income taxes excludes the income tax effect of pre-tax income adjustments and certain income tax items. |
|
About Phibro Animal Health Corporation
Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. We strive to be a trusted partner with livestock producers, farmers, veterinarians and consumers who raise or care for farm and companion animals by providing solutions to help them maintain and enhance the health of their animals. For further information, please visit www.pahc.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105384904/en/
Phibro Animal Health Corporation
Glenn C. David
Chief Financial Officer
+1-201-329-7300
Or
investor.relations@pahc.com
Source: Phibro Animal Health Corporation
