TEANECK, N.J.--(BUSINESS WIRE)--August 26, 2026-- 

Phibro Animal Health Corporation (Nasdaq: PAHC) ("Phibro" or the "Company") today announced financial results for its fourth quarter and fiscal year ended June 30, 2026 and provided its financial guidance for the fiscal year ending June 30, 2027.

Highlights for the three months ended June 30, 2026 (compared to the three months ended June 30, 2025)

-- Net sales of $396.7 million, an increase of $18.1 million, or 5%

-- Net income of $21.7 million, an increase of $4.5 million, or 26%

-- Diluted earnings per share of $0.53, an increase of $0.11, or 26%

-- Adjusted EBITDA of $64.2 million, an increase of $14.3 million, or 29%

-- Adjusted net income of $35.0 million, an increase of $9.4 million, or 37%

-- Adjusted diluted EPS of $0.85, an increase of $0.22, or 35%

Highlights for the year ended June 30, 2026 (compared to the year ended June 30, 2025)

-- Net sales of $1,518.1 million, an increase of $221.9 million, or 17%

-- Net income of $99.7 million, an increase of $51.5 million

-- Diluted earnings per share of $2.43, an increase of $1.24

-- Adjusted EBITDA of $255.0 million, an increase of $71.3 million, or 39%

-- Adjusted net income of $131.7 million, an increase of $43.6 million, or 49%

-- Adjusted diluted EPS of $3.22, an increase of $1.05, or 48%

We are providing full fiscal year 2027 guidance, which includes:

-- Net sales of $1.55 billion to $1.60 billion

-- Adjusted EBITDA of $258 million to $268 million

-- Adjusted net income of $140 million to $147 million

MFA SITE CLOSURE

Through the MFA acquisition in 2024, Phibro added several manufacturing facilities. Since then, we have conducted a comprehensive review of our manufacturing network to ensure our production footprint is aligned with current business needs and future operational requirements. As a result, we have decided to close our Chicago Heights manufacturing facility as part of a strategic consolidation of our manufacturing network. Production at the site is expected to cease during the summer of 2027. Approximately 100 employees will be affected. Manufacturing of products currently produced at Chicago Heights will be transferred to other Phibro-owned facilities and select third-party contract manufacturers.

COMMENTARY

"Fiscal 2026 was a year of meaningful progress for Phibro," said Dani Bendheim, President and Chief Executive Officer of Phibro Animal Health Corporation. "We delivered record net sales of $1.5 billion, increased Adjusted EBITDA by 39% to $255 million, expanded margins, and continued to improve our business. These results reflect the dedication of our employees around the world and the value of our diversified portfolio."

"As I begin my tenure as Chief Executive Officer, I am focused on building on that progress while positioning the Company for long-term success."

"June 30, 2026 marked the formal conclusion of Phibro Forward, our enterprise-wide transformation program. Over the past three years, the program improved accountability, sharpened execution, and strengthened the way we operate. The benefits are already reflected in our performance today. Based on our fiscal 2027 outlook, nearly one out of every five dollars of Adjusted EBITDA can be traced to Phibro Forward initiatives realized since the start of the program. Just as importantly, the capabilities and culture established through the program remain embedded throughout the organization and will continue to drive performance going forward."

"Today, we are announcing the planned closure of our Chicago Heights manufacturing facility following a comprehensive review of our manufacturing network after the MFA acquisition. This is a strategic network decision and not a reflection of the commitment, performance, or dedication of the people who work at Chicago Heights. Their dedication and contributions are what made this such a difficult decision. However, we believe it is the right long-term decision to better align our manufacturing footprint with future needs, improve efficiency, and strengthen our competitiveness. As one would expect from Phibro, we are committed to approaching this transition with honesty, transparency, and support for our employees."

"Looking ahead to fiscal 2027, we expect continued growth across our businesses. Our guidance reflects a prudent view of known uncertainties, most notably the regulatory status of virginiamycin in Brazil. While we remain confident that we will ultimately obtain the required therapeutic indications and there remains a possibility that approval could occur before the current phase-out period expires in a little over a month, we have assumed only minimal virginiamycin sales in Brazil in our outlook. As a result, a favorable regulatory outcome would represent a modest potential upside to our current expectations."

"We remain focused on serving our customers, advancing innovation, improving operational efficiency, and creating long-term value for shareholders."

QUARTERLY RESULTS

Net sales

Net sales of $396.7 million for the three months ended June 30, 2026 increased $18.1 million, or 5%, as compared to the three months ended June 30, 2025. Animal Health sales increased $5.1 million, while Mineral Nutrition and Performance Products sales increased $12.8 million and $0.1 million, respectively.

Animal Health

Net sales of $297.6 million for the three months ended June 30, 2026 increased $5.1 million, or 2%. Net sales of MFAs and other increased $1.1 million, or 1%, due to increased demand for certain anti-microbials sold by our ethanol performance business largely offset by a decrease in sales of products from the MFA portfolio acquired on October 31, 2024.

Net sales of nutritional specialty products increased $2.5 million, or 5%, primarily due to increased dairy demand in North America.

Net sales of vaccines increased $1.5 million, or 4%, primarily due to continued growth of poultry products in Latin America and higher international demand, particularly in Israel.

Mineral Nutrition

Net sales of $77.0 million for the three months ended June 30, 2026 increased $12.8 million, or 20%, primarily due to increase in demand for zinc and trace minerals.

Performance Products

Net sales of $22.2 million for the three months ended June 30, 2026 increased $0.1 million, or 1%, primarily as a result of an increase in demand for copper-based products offset by lower demand for the ingredients used in personal care products.

Gross profit

Gross profit of $134.4 million for the three months ended June 30, 2026 increased $24.4 million, or 22%, as compared to the three months ended June 30, 2025. Gross margin increased 490 basis points to 33.9% of net sales for the three months ended June 30, 2026 as compared to 29.0% for the three months ended June 30, 2025. The comparison to the prior year includes $2.3 million for prior period acquisition-related cost of goods sold related to the purchase accounting for the Acquisition and a net $1.4 million decrease in acquisition-related depreciation expense associated with the step-up of fair value of the acquired fixed assets and intangible asset amortization. Excluding these items, gross profit increased $20.6 million, or 18%, and gross margin increased 380 basis points to 34.6% of net sales due to an increase in sales volume and favorable product mix, partially offset by higher input costs. Gross profit for the three months ended June 30, 2026 also includes a net $4.3 million benefit attributable to our tariff recovery efforts.

Animal Health gross profit, excluding the non-recurring items discussed above, increased $20.6 million, primarily driven by an increase in sales volume and favorable product mix, partially offset by higher input costs. Mineral Nutrition gross profit decreased $0.5 million, as the impact of higher unit costs exceeded the increase in sales volume. Performance Products gross profit increased $0.5 million, primarily as a result of higher demand.

Selling, general and administrative expenses

Selling, general and administrative expenses ("SG&A") of $86.2 million for the three months ended June 30, 2026 increased $10.0 million, or 13%, as compared to the three months ended June 30, 2025. SG&A for the three months ended June 30, 2026 included $0.7 million for acquisition-related costs, $1.6 million of costs associated with Phibro Forward income growth initiatives, $0.6 million for intangible asset amortization, $0.2 million related to an insurance settlement loss, and $0.2 million in stock-based compensation expense. SG&A for the three months ended June 30, 2025 included $1.0 million of costs associated with Phibro Forward income growth initiatives, $0.6 million for intangible asset amortization, and $0.2 million in stock-based compensation expense. Excluding these items, SG&A increased $8.7 million, or 12%.

Animal Health SG&A, excluding the non-recurring Animal Health related items discussed above, increased $8.0 million, primarily due to an increase in employee-related costs and the impact of unfavorable changes in foreign currency exchange rates. Mineral Nutrition SG&A decreased $0.4 million, and Performance Products SG&A was comparable to the prior year. Corporate expenses, excluding the non-recurring Corporate-related items discussed above, increased $1.1 million due to higher employee-related costs.

Interest expense, net

Interest expense, net of $10.2 million for the three months ended June 30, 2026 increased $1.6 million, as compared to the three months ended June 30, 2025, due to the expiration of a favorable interest rate swap agreement on $300.0 million of notional debt principal, partially offset by lower interest rates and higher patronage rebates received from the lenders providing the Term A-2 Loan.

Foreign currency losses, net