Pyxus International (PYYX) investor relations material

Executive summary

• Second quarter results showed solid performance with sales rising to $570.2 million, improved gross margin, and higher operating income, supported by accelerated buying and processing in key markets to meet larger crop volumes.

• Year-to-date sales declined 10.2% to $1,079.0 million due to lower carry-over sales, but gross margin remained stable at 14.2%.

• Net loss attributable to the company narrowed to $0.9 million in Q2, down from $3.2 million in the prior year quarter.

• Improved near-term visibility and strong inventory position the company to fulfill second-half orders and support raised full-year guidance.

• Early achievement of sustainability goals and enhanced operational efficiency are expected from ongoing initiatives.

Financial highlights

• Q2 sales reached $570.2 million, up from $566.3 million year-over-year, driven by higher volumes at lower average prices.

• Gross margin improved to 15.4% from 13.3% in the prior year quarter.

• Q2 operating income rose to $46.7 million from $33.0 million last year; adjusted EBITDA increased to $54.8 million from $44.3 million.

• Year-to-date sales were $1,079.0 million, down $122.2 million year-over-year, with gross margin at 14.2%.

• Net loss attributable to shareholders for Q2 was $0.9 million, an improvement from $3.2 million loss in the prior year quarter.

Outlook and guidance

• Full-year sales guidance raised to $2.4–$2.6 billion, up from $2.3–$2.5 billion.

• Adjusted EBITDA guidance tightened to $215–$235 million, raising the lower end by $10 million.

• Strong sales and cash generation expected in the second half as inventory is shipped to meet demand.

• Balanced demand anticipated for the near term, with potential for market oversupply next season due to large projected crops.

• Management expects sufficient liquidity for the next twelve months, with capital expenditures projected at $16.4 million for the remainder of fiscal 2026.