Phibro Animal Health Corporation Reports First Quarter Results, Maintains Financial Guidance
PHIBRO ANIMAL HEALTH CORP (PAHC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 For Immediate Release Phibro Animal Health Corporation Reports First Quarter Results, Maintains Financial Guidance TEANECK, N.J., November 4, 2026 (Business Wire) – Phibro Animal Health Corporation (Nasdaq: PAHC) (“Phibro” or the “Company”) today announced
How this was made
The 30-second read
Why it matters
The earnings beat and stable guidance suggest the stock may trade sideways, with investors awaiting any future regulatory developments.
Market read
Company‑specific earnings release with modest materiality; limited broader market effect.
What to watch
Potential upside from future regulatory approval of virginiamycin in Brazil is not reflected in current guidance.
Phibro Animal Health Corporation Reports First Quarter Results, Maintains Financial Guidance
Net sales increased 6%, net income increased 11%, and adjusted EBITDA increased 4%, while fiscal year 2027 guidance was maintained. Growth in Mineral Nutrition and Performance Products offset slower Animal Health growth and Animal Health adjusted EBITDA declined 1%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $386.8M | – | $22.9 million, or 6% |
| Cost of goods soldGAAP | $258.2M | – | $14.1 million, or 6% |
| Gross profitGAAP | $128.5M | – | $8.8 million, or 7% |
| Gross marginGAAP | 33.2% | – | increased 30 basis points |
| Selling, general and administrative expensesGAAP | $78.9M | – | $10.4 million, or 15% |
| Selling, general and administrative expenses as a ratio to net salesGAAP | 20.4% | – | – |
| Operating incomeGAAP | $49.6M | – | $(1.6) million, or (3)% |
| Operating income as a ratio to net salesGAAP | 12.8% | – | – |
| Interest expense, netGAAP | $11.3M | – | $(0.8) million, or (6)% |
| Foreign currency (gains) losses, netGAAP | −$400K | – | $(3.4) million |
| Income before income taxesGAAP | $38.8M | – | $2.5 million, or 7% |
| Income before income taxes as a ratio to net salesGAAP | 10.0% | – | – |
| Provision for income taxesGAAP | $9.3M | – | $(0.5) million, or (5)% |
| Effective tax rateGAAP | 23.9% | – | – |
| Net incomeGAAP | $29.5M | – | $3.0 million, or 11% |
| Net income as a ratio to net salesGAAP | 7.6% | – | – |
| Basic net income per shareGAAP | $0.73 | – | $0.08, or 12% |
| Diluted income per shareGAAP | $0.72 | – | $0.07, or 11% |
| Weighted average common shares outstanding, basicGAAP | 40.6M | – | – |
| Weighted average common shares outstanding, dilutedGAAP | 41M | – | – |
| Depreciation and amortizationGAAP | $13.6M | – | $0.7 million, or 6% |
| EBITDAnon-GAAP | $63.6M | – | $2.5 million, or 4% |
| Restructuring charges - SG&Anon-GAAP | $600K | – | $0.6 million |
| Acquisition-related cost of goods soldnon-GAAP | — | – | $(1.1) million |
| Acquisition-related transaction costsnon-GAAP | — | – | $(0.3) million |
| Phibro Forward income growth initiatives - SG&Anon-GAAP | $0.0 million | – | $0.0 million |
| Stock-based compensation expense - named executive officer performance awardsnon-GAAP | $400K | – | $0.2 million |
| Insurance settlementnon-GAAP | $0.0 million | – | $3.8 million |
| Adjusted EBITDAnon-GAAP | $64.3M | – | $2.4 million, or 4% |
| Adjusted EBITDA as a ratio to net salesnon-GAAP | 16.6% | – | – |
| Adjusted cost of goods soldnon-GAAP | $255.4M | – | $15.1 million, or 6% |
| Adjusted gross profitnon-GAAP | $131.4M | – | $7.8 million, or 6% |
| Adjusted gross marginnon-GAAP | 34.0% | – | – |
| Adjusted selling, general and administrative expensesnon-GAAP | $77.2M | – | $5.9 million, or 8% |
| Adjusted selling, general and administrative expenses as a ratio to net salesnon-GAAP | 20.0% | – | – |
| Adjusted income before income taxesnon-GAAP | $42.9M | – | $2.6 million, or 6% |
| Adjusted income before income taxes as a ratio to net salesnon-GAAP | 11.1% | – | – |
| Adjusted provision for income taxesnon-GAAP | $10.5M | – | $0.1 million, or 1% |
| Adjusted effective tax ratenon-GAAP | 24.5% | – | – |
| Adjusted net incomenon-GAAP | $32.4M | – | $2.5 million, or 9% |
| Adjusted net income as a ratio to net salesnon-GAAP | 8.4% | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $0.79 | – | $0.06, or 8% |
| Free cash flow for the twelve months ended September 30, 2026non-GAAP | $21.7M | – | – |
| Gross leverage ratio as of September 30, 2026other | 2.9x | – | – |
| Total debt as of September 30, 2026other | $739.6M | – | – |
| Adjusted EBITDA for the twelve months ended September 30, 2026non-GAAP | $257.4M | – | – |
| Cash and short-term investments as of September 30, 2026other | $83.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| MFAs and otherIncreased demand for certain MFAs in North America and Asia and higher sales of ethanol processing aids, partially offset by a decrease of $5.2 million in virginiamycin sales in Brazil attributable to regulatory developments in the country. | $206.5M | – | $11.3 million, or 6% |
| Nutritional specialtiesLower poultry demand in North America and decreased aquaculture demand in South America, partially offset by higher overall demand in China and higher companion animal sales. | $47.1M | – | $(1.1) million, or (2)% |
| VaccinesLower demand for poultry products in Brazil and lower sales in Asia, partly due to timing, substantially offset by higher swine demand in North America and higher sales of adjuvant products. | $39.5M | – | $(0.6) million, or (2)% |
| Animal HealthNet sales of MFAs and other increased $11.3 million, while nutritional specialty products and vaccines declined. | $293M | – | $9.6 million, or 3% |
| Mineral NutritionIncrease in demand and average selling prices for zinc oxide, copper and trace minerals. | $73.6M | – | $10.6 million, or 17% |
| Performance ProductsIncrease in demand for copper-based and fluoride products. | $20.2M | – | $2.7 million, or 16% |
fiscal year 2027, year ending June 30, 2027 outlook
- RevenueNet sales of $1.55 billion to $1.60 billion, 4% growth
- Tax rateAdjusted effective income tax rate of ~20%
- NoteNet income of $122 million to $132 million, 27% growth
- NoteDiluted EPS of $2.98 to $3.22, 27% growth
- NoteAdjusted EBITDA of $258 million to $268 million, 3% growth
- NoteAdjusted net income of $140 million to $147 million, 9% growth
- NoteAdjusted diluted EPS of $3.41 to $3.59, 9% growth
- NoteGuidance for GAAP measures assumes no additional foreign exchange (gains) losses for the year ending June 30, 2027.
What drove it
- Animal Health net sales increased $9.6 million, or 3%, led by MFAs and other, which increased $11.3 million, or 6%.
- Mineral Nutrition net sales increased $10.6 million, or 17%, due to increased demand and average selling prices for zinc oxide, copper and trace minerals.
- Performance Products net sales increased $2.7 million, or 16%, due to increased demand for copper-based and fluoride products.
- Gross profit increased $8.8 million, or 7%, due to increased sales volume and higher average selling prices, partially offset by higher input and distribution costs.
- Adjusted EBITDA growth reflected higher Mineral Nutrition and Performance Products results and lower corporate expenses, partly offset by a $1.0 million decline in Animal Health adjusted EBITDA.
- Net income benefited from lower interest expense, foreign currency gains of $0.4 million versus $2.9 million of losses, and lower income tax expense.
Concerns
- Animal Health adjusted EBITDA decreased $1.0 million, or 1%, as higher SG&A offset higher gross profit from increased sales.
- SG&A increased $10.4 million, or 15%; excluding specified items, adjusted SG&A increased $5.9 million, or 8%, primarily due to higher employee-related costs.
- Virginiamycin sales in Brazil decreased $5.2 million due to regulatory developments.
- Nutritional specialties net sales decreased $1.1 million, or 2%, and vaccine net sales decreased $0.6 million, or 2%.
- Management said fiscal year 2027 guidance assumes no additional virginiamycin sales in Brazil for the remainder of the fiscal year.
- The company said improving working capital and cash conversion is a top priority, particularly through managing inventory.
What to watch
- Progress toward regulatory approvals to make therapeutic claims for virginiamycin in Brazil.
- Whether Mineral Nutrition demand and average selling prices for zinc oxide, copper and trace minerals remain supportive.
- Animal Health SG&A and the timing of certain costs that management said shifted into the second quarter.
- Working capital, inventory management and cash conversion during fiscal 2027.
- Resolution of a foreign tax audit that may have a favorable impact on the income tax rate.
Balance sheet and cash flow
- Free cash flow was $21.7 million for the twelve months ended September 30, 2026.
- 2.9x gross leverage ratio as of September 30, 2026.
- $739.6 million total debt.
- $257.4 million Adjusted EBITDA for the twelve months ended September 30, 2026.
- Cash and short-term investments of $83.1 million as of September 30, 2026.
Analysis
Phibro opened fiscal 2027 with net sales of $386.8 million, up $22.9 million, or 6%, and net income of $29.5 million, up $3.0 million, or 11%. Diluted income per share was $0.72, up $0.07, or 11%. The sales advance was broad across the three reported operating segments, with Mineral Nutrition up 17% and Performance Products up 16%, while Animal Health increased 3%.
Animal Health growth was concentrated in MFAs and other, where sales increased $11.3 million, or 6%, on demand in North America and Asia and higher ethanol processing-aid sales. That advance was partly offset by a $5.2 million reduction in virginiamycin sales in Brazil attributable to regulatory developments. Nutritional specialties declined 2% amid lower North American poultry and South American aquaculture demand, while vaccines declined 2% on lower Brazilian poultry demand and lower Asia sales. Mineral Nutrition benefited from both demand and average selling prices for zinc oxide, copper and trace minerals.
Gross profit increased $8.8 million, or 7%, and GAAP gross margin increased 30 basis points to 33.2%. Adjusted gross profit rose $7.8 million, or 6%, while adjusted gross margin was unchanged at 34.0%. Operating income nevertheless declined $1.6 million, or 3%, as SG&A increased $10.4 million, or 15%. Excluding specified items, adjusted SG&A increased $5.9 million, or 8%, primarily from higher employee-related costs. Adjusted EBITDA rose $2.4 million, or 4%, to $64.3 million, with Mineral Nutrition and Performance Products gains offsetting a $1.0 million decline in Animal Health adjusted EBITDA.
Below operating income, lower interest expense, a $0.4 million foreign currency gain compared with $2.9 million of losses, and lower income tax expense supported the increase in net income. The GAAP effective tax rate was 23.9%, compared with 26.9%, while the adjusted effective tax rate was 24.5%, compared with 25.9%. The balance-sheet disclosure reported $83.1 million of cash and short-term investments, $739.6 million of total debt, and a 2.9x gross leverage ratio as of September 30, 2026. Free cash flow was $21.7 million for the twelve months ended September 30, 2026.
Management maintained fiscal year 2027 guidance, including net sales of $1.55 billion to $1.60 billion and adjusted EBITDA of $258 million to $268 million. The outlook assumes no additional virginiamycin sales in Brazil for the remainder of the fiscal year and no additional foreign exchange gains or losses for GAAP measures. Management highlighted working capital, inventory management and cash conversion as priorities, while noting that some costs shifted into the second quarter.
Management, verbatim
We are pleased with our start to fiscal 2027. First quarter results exceeded our expectations and grew on top of a strong first quarter last year. The outperformance was led largely by a strong start to the year in Mineral Nutrition and Performance Products while our core Animal Health business delivered sales in line with our plan and Adjusted EBITDA ahead of plan, including the benefit of certain costs that shifted into the second quarter.
Dani Bendheim, President and Chief Executive Officer of Phibro Animal Health Corporation
When we set our fiscal 2027 outlook in August, we took a disciplined approach to virginiamycin sales in Brazil. We continue to work toward the regulatory approvals necessary to make therapeutic claims for virginiamycin in Brazil, and with the election now behind us, we are optimistic that progress on those approvals may be forthcoming. Our fiscal 2027 guidance continues to assume no additional virginiamycin sales in Brazil for the remainder of the fiscal year, so any approval would represent potential upside.
Dani Bendheim, President and Chief Executive Officer of Phibro Animal Health Corporation
We generated positive cash flow in the first quarter, and we see a clear opportunity to do more, particularly in managing inventory. Improving working capital and cash conversion is a top priority, and we are committed to delivering meaningful progress during fiscal 2027.
Dani Bendheim, President and Chief Executive Officer of Phibro Animal Health Corporation
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the financial metrics.
- Quarterly operating cash flow and capital expenditures were not separately reported; only free cash flow of $21.7 million for the twelve months ended September 30, 2026 was reported.
- Share repurchases and dividends were not reported.
- A prior outlook section was not provided, so reported actual results cannot be compared with prior guidance.
- Fiscal year 2027 guidance for gross margin and operating expenses was not reported.
- Debt maturities, interest rates and revolving-credit-facility availability were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Phibro Animal Health Corp (Nasdaq: PAHC) filed a Form 8‑K reporting Q1 2026 results and reaffirmed FY2027 guidance.
Ticker impact
Phibro Animal Health Corporation reaffirmed its FY2027 financial guidance while reporting Q1 2026 results.
neutral to slight downside as market prices in unchanged guidance
The company posted higher sales and earnings but did not raise guidance, so investors have little new catalyst to drive the stock higher.
Market effects
Animal health sector may see modest support from solid earnings, but no broader shift.
Limited to U.S. and North American investors tracking animal health stocks.
Low global impact; the news is company‑specific.
Counterpoint
If the market expects a guidance raise after a beat, the unchanged outlook could be a negative surprise.
Key entities
- companyPhibro Animal Health Corporation
U.S. animal health and nutrition products manufacturer.
