Pyxus International (PYYX) investor relations material

Executive summary

• H1 sales were $972.2M and Adjusted EBITDA was $70.8M, down YoY as crop-purchasing and shipping delays shifted shipments into H2; customer commitments remained strong and underlying demand was unchanged.

• Nearly 95% of processed inventory was committed; FY27 sales guidance was reaffirmed and Adjusted EBITDA guidance narrowed, with management expecting stronger H2 shipments.

Financial highlights

• Q2 sales and other operating revenues were $534.4M versus $570.2M; gross profit was $78.9M versus $87.8M, and operating income was $40.0M versus $46.7M.

• Q2 net income was $4.1M versus a $0.9M loss; diluted EPS was $0.16 versus a $0.03 loss, and Adjusted EBITDA was $43.0M versus $54.8M.

• H1 revenue was $972.2M, down 9.9%; gross profit was $140.3M, operating income was $55.6M versus $67.7M, and Adjusted EBITDA was $70.8M versus $84.2M.

• H1 net loss narrowed to $3.1M from $16.7M; income tax was a $4.2M benefit versus $15.5M expense, and diluted EPS was a $0.12 loss versus a $0.64 loss.

• Q2 net income included a $9.1M gain on the Brazil facility sale and lower income tax expense.

Outlook and guidance

• FY27 sales guidance remained $2.3B–$2.5B; Adjusted EBITDA guidance narrowed to $215M–$235M from $210M–$240M.

• Strong customer commitments and lower-cost committed inventory support the heavier H2 shipment cadence; priorities include shipment execution and working-capital conversion.

• Liquidity sources are expected to cover anticipated operating needs for 12 months, though needs may approach available cash and permitted borrowings; failure to renew or refinance seasonal lines could create a shortfall.

• H1 capital expenditures were $11.8M, with a further $26.1M expected in H2 for efficiency, replacement, operational effectiveness and sustainability projects.