Phibro Animal Health (PAHC) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 2026 rose 10% year-over-year to $383.5 million, led by Animal Health segment growth and the acquisition of a medicated feed additive portfolio.

• Adjusted EBITDA increased 11% to $60.8 million, with net income up 15% to $24.0 million and adjusted net income up 19% to $31.2 million.

• Gross margin improved to 32.8% from 30.1% year-over-year, driven by higher sales volume, favorable product mix, and increased average selling prices.

• Regulatory changes in Brazil impacted certain antimicrobial products; new sustainability platform VERRATAIN launched.

• Leadership transition announced, with Danny Bendheim to become CEO in July.

Financial highlights

• Consolidated net sales for Q3 2026 were $383.5 million, up 10% year-over-year; net income rose 15% to $24.0 million; diluted EPS up 16% to $0.59; adjusted diluted EPS up 19% to $0.76.

• Gross profit for the quarter was $125.7 million, up 20% year-over-year; operating income rose 33% to $44.7 million.

• Free cash flow for the trailing twelve months was $13 million; cash and equivalents at quarter end were $77.5 million.

• Quarterly dividend paid: $0.12 per share ($4.9 million total).

Outlook and guidance

• FY2026 net sales guidance raised to $1.46–$1.5 billion (13–16% growth, midpoint 14%).

• Adjusted EBITDA guidance increased to $247–$255 million (34–39% growth, midpoint 37%).

• Adjusted net income guidance raised to $122–$127 million (44–49% growth, midpoint 47%); adjusted diluted EPS forecasted at $2.98–$3.10.

• Guidance incorporates potential impacts from Middle East conflict, regulatory changes in Brazil, and assumes no additional FX gains/losses or tariff recoveries.