TEANECK, N.J.--(BUSINESS WIRE)--Phibro Animal Health Corporation (Nasdaq: PAHC) announced today it will participate in the Bank of America 2026 Virtual Animal Health Summit. Chief Financial Officer, Glenn David; Chief Operating Officer, Larry Miller and Executive Vice President, Corporate Strategy and CEO designate Daniel Bendheim will address financial analysts and investors on Thursday, February 26, 2026, at 10:45 AM ET. The live audio presentation will be available on the Phibro Animal Healt. ...

Core Viewpoint - Phibro Animal Health Corporation (NASDAQ:PAHC) is recognized as one of the seven cheap pharmaceutical stocks to consider for investment, particularly noted for its strong operational performance and positive financial outlook [1][2]. Financial Performance - For the fiscal second quarter ending December 31, 2025, Phibro reported a 21% increase in net sales to $373.9 million and a rise in net income to $27.5 million [4]. - Adjusted EBITDA increased by 41% to $68.1 million, while adjusted diluted EPS rose by 58% to $0.87 [4]. - The company has updated its fiscal 2026 net sales estimates to between $1.45 billion and $1.50 billion, with adjusted EBITDA projected between $245 million and $255 million, reflecting improved operating momentum [5]. Analyst Ratings - Morgan Stanley raised its price target for PAHC from $45 to $49, maintaining an Equal Weight rating, citing strong operational performance and effective execution in the Animal Health segment [3]. - The upgrade was influenced by significant margin expansion, a favorable fiscal 2026 forecast, and a profit beat in the second quarter [3].

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Company Overview - Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company headquartered in New Jersey, providing a broad range of products for food animals including poultry, swine, beef, dairy cattle, and aquaculture [11] - The company markets nearly 770 product lines in over 80 countries to approximately 4,000 customers, also manufacturing specific ingredients for personal care, automotive, industrial chemical, and chemical catalyst industries [11] Investment Rating - Phibro Animal Health is rated 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [12] - The company has a VGM Score of A, suggesting strong overall performance across value, growth, and momentum metrics [12] Momentum and Earnings Estimates - The Momentum Style Score for Phibro Animal Health is B, with shares having increased by 25.9% over the past four weeks, indicating strong upward price momentum [12] - For fiscal 2026, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.07 to $2.83 per share [12] - The company boasts an average earnings surprise of +20.2%, reflecting its ability to exceed earnings expectations [12] Conclusion - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Phibro Animal Health is positioned as a strong candidate for investors' short lists [13]

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Financial Performance - Consolidated net sales for Q2 2026 were $373.9 million, reflecting a 21% increase year-over-year [12] - Animal health segment sales grew by 26%, while Mineral Nutrition increased by 9%, and Performance Products declined by 10% [12][14] - Adjusted EBITDA increased by 41% to $82.2 million, driven by the new MFA business and improved gross profit [15][18] - Adjusted net income rose by 60%, and adjusted diluted EPS increased by 58% [14] Business Segment Performance - Animal health segment net sales reached $290 million, a 26% increase, with the new MFA business contributing $94.1 million [14][15] - Nutritional specialties saw a 9% increase in net sales due to higher North American demand for dairy [15] - Vaccine net sales grew by 13%, driven by poultry products in Latin America and higher international demand [15] - Mineral nutrition segment net sales were $68.9 million, a 9% increase, while Performance Products segment sales decreased by 10% to $15 million [15][16] Market Insights - The protein markets are experiencing strong demand, particularly in beef, chicken, pork, turkey, dairy, and eggs [32] - Favorable feed costs are helping maintain margins, with expectations of some shifts in trade due to tariffs and disease outbreaks [32] - The company is well-diversified across livestock species and geographic markets, enhancing its competitive position [33] Company Strategy and Direction - The company is focused on sustainability and profitability, emphasizing better gut health and improved feed conversion [11] - The Phibro Forward strategy aims to drive future growth through R&D and digital capabilities [11][50] - The leadership transition is seen as an opportune moment, with continuity in management and a strong cultural foundation [10] Management Commentary - Management expressed confidence in the company's direction and the strength of its business, citing positive feedback from customers and strong alignment among leadership [7][9] - The integration of the MFA portfolio is yielding positive results, with management noting strong performance and customer partnerships [5][8] Other Important Information - The company raised its full-year guidance for fiscal year 2026, with net sales expected to be between $1.45 billion and $1.5 billion [18] - The gross leverage ratio was 3.1x, and net leverage ratio was 2.8x at the end of the quarter [17] Q&A Session Summary Question: What are the main drivers of gross margins this quarter? - Management highlighted successful pricing strategies, positive product mix, and internal focus on higher-margin products as key drivers [22][23] Question: Can you elaborate on the guidance update and what is performing better than expected? - Management noted strong revenue performance, effective integration of the acquired portfolio, and improved mix as factors contributing to the positive outlook [24][25] Question: What impact did customer timing have on the MFA business? - Management explained that fluctuations in customer inventory levels affected sales, but improvements are expected in the next quarter [28][29] Question: How sustainable is the current demand in livestock markets? - Management expressed confidence in the sustainability of demand due to diversification and favorable feed costs [32][33] Question: Are there share gains from the stronger combined portfolio? - Management confirmed strong performance in poultry and swine segments, indicating share gains due to a more complete product offering [35][41] Question: Update on the Phibro Forward initiative? - Management stated that Phibro Forward continues to be a significant growth driver, with expected contributions accelerating through fiscal year 2026 [48][50]

Financial Performance - Consolidated net sales for Q2 2026 were $373.9 million, reflecting a 21% increase year-over-year [12] - Animal health segment sales grew by 26%, while mineral nutrition increased by 9%, and performance products declined by 10% [12][14] - Adjusted EBITDA increased by 41% to $82.2 million, driven by the new MFA business and improved gross profit [15] - Adjusted net income rose by 60%, and adjusted diluted EPS increased by 58% [14] Business Segment Performance - Animal health segment net sales reached $290 million, a 26% increase, with the new MFA business contributing $94.1 million [14][15] - Nutritional specialties net sales increased by 9% due to higher demand in North America [15] - Vaccine net sales grew by 13%, driven by poultry products in Latin America [15] - Mineral nutrition segment net sales were $68.9 million, a 9% increase, while performance products segment sales decreased by 10% [15][16] Market Insights - The protein markets are experiencing strong demand, particularly in beef, poultry, pork, turkey, dairy, and eggs [32] - Favorable feed costs are helping maintain margins, with expectations of some shifts in trade due to tariffs and disease outbreaks [32] - The company is well-diversified across livestock species and geographic markets, enhancing its competitive position [33] Company Strategy and Direction - The company is focused on sustainability and profitability, emphasizing better gut health and improved feed conversion [11] - The Phibro Forward strategy aims to drive future growth through R&D and digital capabilities [11][50] - The leadership transition is seen as an opportune moment to capitalize on current momentum and operational excellence [10][11] Management Commentary - Management expressed confidence in the company's direction and the strength of its business, citing positive feedback from customers and strong alignment within the leadership team [7][9] - The integration of the MFA portfolio is yielding positive results, with management noting a strong performance in the acquired business [24][40] Other Important Information - The company raised its full-year guidance for fiscal year 2026, with net sales expected to be between $1.45 billion and $1.5 billion [18] - Adjusted EBITDA guidance was increased to a range of $245 million to $255 million, reflecting a growth range of 33%-39% [18] - Cash and cash equivalents were reported at $74.5 million, with a gross leverage ratio of 3.1 times [17] Q&A Session Summary Question: What are the main drivers of the strong gross margins this quarter? - Management highlighted successful pricing strategies, positive product mix, and internal focus on higher-margin products as key drivers [23][24] Question: Can you elaborate on the guidance update and what is performing better than expected? - Management noted strong revenue performance, effective integration of the acquired portfolio, and improved mix as factors contributing to the positive outlook [25] Question: What impact did customer timing have on the MFA business? - Management explained that fluctuations in customer inventory levels affected sales, but improvements are expected in the next quarter [29] Question: How sustainable is the current demand in livestock markets? - Management expressed confidence in the sustainability of demand due to strong consumer interest and favorable feed costs [32] Question: Are you gaining market share with the combined portfolio? - Management confirmed strong performance in poultry and swine segments, indicating share gains due to a more comprehensive product offering [35][40]

Financial Performance - Consolidated net sales for Q2 2026 were $373.9 million, reflecting a 21% increase year-over-year [11] - Animal health segment sales grew by 26%, while mineral nutrition increased by 9%, and performance products declined by 10% [12] - Adjusted EBITDA increased by 41% to $82.2 million, driven by the new MFA business and improved gross profit [13] - Adjusted net income rose by 60%, and adjusted diluted EPS increased by 58% [12] Business Segment Performance - The animal health segment reported net sales of $290 million, a 26% increase, with the new MFA business contributing $94.1 million [12][13] - Nutritional specialties net sales increased by 9% due to higher demand in North America [13] - Vaccine net sales grew by 13%, driven by poultry products in Latin America [13] - Mineral nutrition segment net sales were $68.9 million, a 9% increase, while performance products declined to $15 million, a 10% decrease [13][14] Market Insights - Demand for high-quality proteins remains strong across various livestock sectors, including beef, poultry, and dairy [30][31] - Favorable feed costs are helping maintain margins, with expectations of some shifts in trade due to tariffs and disease outbreaks [30] - The company is well-diversified across livestock species and geographic markets, enhancing its competitive position [31] Company Strategy and Direction - The company is focused on sustainability and profitability, emphasizing better gut health and improved feed conversion [10] - The Phibro Forward strategy aims to drive future growth through R&D and digital capabilities [10][48] - Leadership transition is positioned to occur from a place of momentum and operational excellence [9] Management Commentary - Management expressed confidence in the company's direction and the strength of its business, citing positive feedback from customers and strong performance metrics [6][8] - The integration of the MFA portfolio is seen as a significant contributor to current success [5][12] - Management anticipates continued strong performance and demand for products globally [17] Other Important Information - The company raised its fiscal year 2026 guidance for net sales to a range of $1.45 billion to $1.5 billion, representing a growth range of 12%-16% [16] - Adjusted EBITDA guidance was increased to a range of $245 million to $255 million, reflecting a growth range of 33%-39% [16] - Cash and cash equivalents were reported at $74.5 million, with a gross leverage ratio of 3.1 times [15] Q&A Session Summary Question: What are the main drivers of gross margins this quarter? - Management highlighted strong pricing, positive product mix, and effective internal growth strategies as key drivers of gross margins [20][21] Question: Can you elaborate on the guidance update and what is performing better than expected? - Management noted strong revenue performance, effective integration of the acquired portfolio, and improved mix as factors contributing to the positive outlook [22][23] Question: What impact did customer timing have on the MFA business? - Management explained that customer inventory levels caused fluctuations, with expectations for improvement in the next quarter [27] Question: How sustainable is the current demand in livestock markets? - Management expressed confidence in the sustainability of demand due to strong consumer interest and favorable feed costs [30] Question: Are there share gains from the stronger combined portfolio? - Management confirmed that the company has seen strong performance and share gains in poultry and swine segments due to a more complete product offering [33][40]

Phibro Animal Health Corporation Financial Results Fiscal Year 2026 Second Quarter Ended December 31, 2025 Webcast and Conference Call February 5, 2026 February 5, 2026 Webcast and Conference Call Cautionary Statement Regarding Forward-Looking Statements U.S. toll-free +1.888.330.2022 International toll +1.365.977.0051 Conference ID: 3927884 Important Information Internet Posting of Information This communication contains forward-looking statements that are subject to risks and uncertainties, including with ...

Exhibit 99.1 COMMENTARY "This was a strong quarter for us, and I'm really proud of how our teams are executing around the world," stated Jack Bendheim, President and Chief Executive Officer. "We're seeing faster than expected uptake of our newly integrated MFA portfolio, which is already giving our results a real lift. At the same time, our nutritional specialty and vaccine offerings continue to deliver strong, sustained growth across key markets. With this momentum and the progress we're making across the ...