Pyxus International (PYYX) Q4 2026 earnings summary

Executive summary

• Achieved record full-year adjusted EBITDA of $226.7 million, up 8.8%–9% year-over-year, marking the fourth consecutive year of growth.

• Fourth quarter net sales rose 35.2% year-over-year to $678.2 million, driven by higher shipment volumes from South America, Africa, and North America.

• Full-year operating income reached $162.7 million, up $9.4 million from the prior year, reflecting strong execution and cost discipline.

• Q4 adjusted free cash flow was $352 million, up 80% over the prior year, driven by inventory release.

• Demonstrated operational resilience and disciplined execution, overcoming logistics and tariff challenges.

Financial highlights

• Full-year revenue was $2.41 billion, down 2.8% year-over-year, but within guidance.

• Q4 gross profit was $94.4 million, up 40.4% year-over-year; gross margin rose to 13.9% in Q4 and 14.4% for the year.

• Net income attributable to shareholders was $14.6 million for the year and $14.4 million for Q4; diluted EPS was $0.56 for the year.

• SG&A expenses for the year were $162.9 million, down 4.7%–5% year-over-year.

• Net debt at year-end was $798.6 million; leverage ratio improved to 3.52x, a multi-year low.

Outlook and guidance

• Fiscal 2027 revenue expected between $2.3 billion and $2.5 billion; adjusted EBITDA guidance of $210–$240 million.

• Anticipates continued strong demand, ample global supply, and lower leaf prices supporting margin stability.

• Expects positive adjusted free cash flow and further debt reduction in fiscal 2027.

• Actively preparing to address December 2027 long-term debt maturities.