Earnings

Phibro Keeps Fiscal 2027 Outlook After First-Quarter Beat

The Tip Desk · November 11, 2026 · 3 min read

Net sales were $386.8 million in the three months ended September 30, 2026, and the company held full-year sales guidance of $1.55 billion to $1.60 billion.

Phibro Animal Health Corporation (PAHC), a diversified animal health and mineral nutrition company, reported first-quarter net sales of $386.8 million for the three months ended September 30, 2026, up $22.9 million, or 6%, from a year earlier, and maintained its fiscal 2027 outlook.

Net income was $29.5 million, or $0.72 a share, up 11% from a year earlier. Adjusted EBITDA was $64.3 million, up 4%. Adjusted net income was $32.4 million, or $0.79 a share.

President and Chief Executive Officer Dani Bendheim said first-quarter results exceeded the company’s expectations and grew on top of a strong year-ago start, with outperformance led largely by Mineral Nutrition and Performance Products. He said the core Animal Health business delivered sales in line with plan and Adjusted EBITDA ahead of plan, including the benefit of certain costs that shifted into the second quarter.

Animal Health net sales were $293.0 million, up 3%. MFAs and other rose $11.3 million, or 6%, on higher demand in North America and Asia and ethanol processing aids, partly offset by a $5.2 million decrease in virginiamycin sales in Brazil tied to regulatory developments. Nutritional specialty products fell $1.1 million, or 2%, and vaccines fell $0.6 million, or 2%.

Mineral Nutrition net sales were $73.6 million, up 17%, on higher demand and average selling prices for zinc oxide, copper and trace minerals. Performance Products net sales were $20.2 million, up 16%, on copper-based and fluoride products.

Gross profit was $128.5 million, up 7%, and gross margin rose 30 basis points to 33.2%. Excluding prior-period Zoetis MFA purchase-accounting items, gross profit rose $7.8 million, or 6%, and the margin held at 34.0%. The company said the increase reflected higher volume and prices, partly offset by higher input and distribution costs.

Selling, general and administrative expenses were $78.9 million, up 15%. Excluding non-recurring items, SG&A rose $5.9 million, or 8%. The quarter included $0.6 million of severance and exit costs related to the planned Chicago Heights plant closure. Operating income was $49.6 million, down 3%, as higher SG&A more than offset higher gross profit.

Animal Health Adjusted EBITDA was $73.9 million, down 1%. Mineral Nutrition Adjusted EBITDA was $6.2 million, up 36%. Performance Products Adjusted EBITDA was $2.8 million, up 75%.

Bendheim said the company generated positive cash flow in the first quarter and that improving working capital and cash conversion is a top priority. Free cash flow was $21.7 million for the twelve months ended September 30, 2026. Cash and short-term investments were $83.1 million. Total debt was $739.6 million, and the gross leverage ratio was 2.9 times.

Fiscal 2027 guidance is unchanged: net sales of $1.55 billion to $1.60 billion, Adjusted EBITDA of $258 million to $268 million, and adjusted net income of $140 million to $147 million. GAAP net income is guided at $122 million to $132 million, or $2.98 to $3.22 a share.

The company said fiscal 2027 guidance continues to assume no additional virginiamycin sales in Brazil for the remainder of the year. Bendheim said Phibro is working toward regulatory approvals for therapeutic claims in Brazil and that any approval would represent potential upside.

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