Phibro Animal Health (PAHC) investor relations material

Executive summary

• Net sales rose 40% year-over-year to $363.9 million for the quarter ended September 30, 2025, led by a 55% increase in the Animal Health segment and strong integration of the acquired Zoetis MFA portfolio, which contributed $80.5 million in incremental revenues.

• Adjusted EBITDA more than doubled to $61.9 million, up 102% year-over-year, and adjusted net income increased 112% to $29.8 million, with adjusted diluted EPS up 108% to $0.73.

• Net income increased to $26.5 million from $7.0 million in the prior year, with diluted EPS rising to $0.65 from $0.17.

• Strategic investments included the launch of Restoris, a proprietary dental gel for dogs, and licensing of a new therapeutic for canine periodontal disease, expanding the companion animal portfolio.

Financial highlights

• Gross profit increased 43% to $119.8 million, with gross margin improving to 32.9% from 32.1% year-over-year.

• Q1 consolidated net sales reached $363.9 million, up $103.5 million (40%) year-over-year.

• Adjusted EBITDA for Q1 was $61.9 million, up from $30.7 million in the prior year.

• Adjusted net income was $29.8 million, with adjusted diluted EPS of $0.73.

• Free cash flow for the trailing 12 months was $34.3 million; cash and equivalents at $85.3 million.

Outlook and guidance

• Fiscal 2026 net sales guidance maintained at $1,425–$1,475 million (10–14% growth, midpoint 12%).

• Adjusted EBITDA guidance raised to $230–$240 million (25–30% growth, midpoint 28%).

• Adjusted net income guidance increased to $108–$115 million (26–34% growth, midpoint 31%).

• Adjusted diluted EPS forecasted at $2.64–$2.81 (31% growth); adjusted effective tax rate expected at ~25%.

• Guidance includes full-year Zoetis MFA portfolio and one-time costs for Phibro-forward initiatives.