Phibro Animal Health (PAHC) Q4 2026 earnings summary

Executive summary

• Achieved record net sales of $1.518 billion for fiscal 2026, up 17% year-over-year, with adjusted EBITDA up 39% to $255 million and net income rising 107% to $99.7 million.

• Fourth quarter net sales grew 5% to $396.7 million, with adjusted EBITDA up 29% to $64.2 million and net income up 26% to $21.7 million.

• Animal Health and Mineral Nutrition segments led growth, with successful integration of the Zoetis MFA portfolio and operational improvements from the Phibro Forward program.

• Announced closure of the Chicago Heights manufacturing facility as part of strategic network consolidation post-MFA acquisition.

• Updated FY2027 guidance projects continued growth in sales, adjusted EBITDA, and EPS.

Financial highlights

• Q4 net sales: $396.7 million (+5% YoY); full-year net sales: $1,518.1 million (+17% YoY); Q4 adjusted EBITDA: $64.2 million (+29% YoY); full-year adjusted EBITDA: $255 million (+39% YoY).

• Q4 adjusted net income: $35.0 million (+37% YoY); adjusted diluted EPS: $0.85 (+35% YoY); full-year adjusted net income: $131.7 million (+49% YoY); adjusted diluted EPS: $3.22 (+48% YoY).

• Full-year net income: $99.7 million (+107%); diluted EPS: $2.43 (+$1.24).

• Gross margin for FY26 increased 290 bps to 33.8%; Q4 gross margin up 490 bps to 33.9%.

• Free cash flow for FY26: $9.9–$10 million; cash and equivalents: $82 million; gross leverage ratio: 2.9x; net leverage ratio: 2.6x.

Outlook and guidance

• FY27 guidance: net sales $1.55–$1.6 billion (2–5% growth), adjusted EBITDA $258–$268 million (1–5% growth), adjusted diluted EPS $3.41–$3.59, adjusted net income $140–$147 million (up 6–11%).

• Adjusted effective tax rate expected to decrease to ~20% from 23.7%.

• Guidance assumes minimal contribution from virginiamycin sales in Brazil due to regulatory uncertainty; favorable outcome could provide upside.

• Q1 2027 EBIT growth expected to be negative, with positive growth for the remainder of the year.