Financial Performance - Consolidated - Q4 Net Sales increased by 39% to $378.7 million compared to $273.2 million in FY24[13] - Q4 Adjusted EBITDA increased by 49% to $50.0 million compared to $33.4 million in FY24[13] - Full Year Net Sales increased by 27% to $1,296.2 million compared to $1,017.7 million in FY24[16] - Full Year Adjusted EBITDA increased by 65% to $183.7 million compared to $111.2 million in FY24[16] Financial Performance - Animal Health - Q4 Animal Health Net Sales increased by 53% to $292.5 million[11,19] - Q4 Legacy Animal Health Net Sales increased by 3% to $197.9 million[11,19] - Full Year Animal Health Net Sales increased by 36% to $962.8 million[11,22] - Full Year Legacy Animal Health Net Sales increased by 7% to $754.6 million[11,22] Financial Guidance - Fiscal Year 2026 - The company projects Net Sales between $1.425 billion and $1.475 billion[12] - The company projects Adjusted EBITDA between $225 million and $235 million[12]

[Executive Summary & Outlook](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Outlook) This section provides an overview of Phibro Animal Health Corporation's financial performance for Q4 and FY2025, along with the CEO's commentary and FY2026 financial guidance [Company Overview & Highlights (Q4 & FY25)](index=1&type=section&id=1.1.%20Company%20Overview%20%26%20Highlights%20(Q4%20%26%20FY25)) Phibro Animal Health Corporation achieved significant financial growth in Q4 and FY2025, with substantial increases in net sales, net income, and adjusted EBITDA, driven by strong animal health performance and the successful acquisition of the Zoetis MFA portfolio FY2025 Q4 Performance Highlights | Metric | Value (Millions USD) | Change YoY | | :--------------------- | :------------------- | :--------- | | Net sales | $378.7 | +39% | | Net income | $17.2 | +$16.5M | | Diluted EPS | $0.42 | +$0.40 | | Adjusted EBITDA | $50.0 | +49% | | Adjusted net income | $23.2 | +39% | | Adjusted diluted EPS | $0.57 | +39% | FY2025 Full Year Performance Highlights | Metric | Value (Millions USD) | Change YoY | | :--------------------- | :------------------- | :--------- | | Net sales | $1,296.2 | +27% | | Net income | $48.3 | +$45.8M | | Diluted EPS | $1.19 | +$1.13 | | Adjusted EBITDA | $183.7 | +65% | | Adjusted net income | $84.9 | +76% | | Adjusted diluted EPS | $2.09 | +76% | [CEO Commentary](index=1&type=section&id=1.2.%20CEO%20Commentary) CEO Jack Bendheim highlighted the company's exceptional performance in Q4 and FY2025, attributing it to the strength of the animal health portfolio, sustained demand for MFAs, nutritional specialties, and vaccines, and the successful integration of the Zoetis MFA portfolio - Phibro achieved exceptional results in Q4 and the full year, reflecting the strength and balance of its animal health portfolio[2](index=2&type=chunk) - Annual net sales grew by **27%**, and Adjusted EBITDA increased by **65%**, driven by sustained demand for MFAs, nutritional specialties, and vaccines[2](index=2&type=chunk) - The Zoetis MFA portfolio performed above expectations, contributing to a **54% year-over-year increase** in MFA and other product sales[2](index=2&type=chunk) - The FY2026 outlook reflects continued confidence in the company's trajectory, supported by product portfolio strength, disciplined execution, and positive momentum across all business segments[4](index=4&type=chunk) [Fiscal Year 2026 Financial Guidance](index=1&type=section&id=1.3.%20Fiscal%20Year%202026%20Financial%20Guidance) Phibro issued optimistic financial guidance for FY2026, anticipating continued growth across all business segments with significant increases in net sales, net income, and adjusted EBITDA FY2026 Financial Guidance | Metric | Range (Millions USD) | Growth YoY (Midpoint) | | :--------------------- | :------------------- | :-------------------- | | Net sales | $1.43B to $1.48B | 12% | | Net income | $73M to $83M | 63% | | Diluted EPS | $1.79 to $2.03 | 61% | | Adjusted EBITDA | $225M to $235M | 25% | | Adjusted net income | $103M to $110M | 25% | | Adjusted diluted EPS | $2.52 to $2.70 | 25% | | Adjusted effective income tax rate | ~25% | | - Growth is primarily driven by continued expansion in the Animal Health, Mineral Nutrition, and Performance Products businesses[43](index=43&type=chunk) [Quarterly Financial Performance (Three Months Ended June 30, 2025)](index=3&type=section&id=2.%20Quarterly%20Financial%20Performance%20(Three%20Months%20Ended%20June%2030,%202025)) This section details Phibro's financial results for the three months ended June 30, 2025, covering net sales, gross profit, operating expenses, and net income [Net Sales](index=3&type=section&id=2.1.%20Net%20Sales) Total net sales for FY2025 Q4 significantly increased by **39%** to **$378.7 million**, primarily driven by substantial growth in animal health sales, particularly from the Zoetis MFA product portfolio acquisition - Total net sales were **$378.7 million**, an increase of **$105.5 million** or **39%** year-over-year[4](index=4&type=chunk)[55](index=55&type=chunk) - Animal Health sales increased by **$101.0 million**, with Mineral Nutrition and Performance Products sales increasing by **$2.1 million** and **$2.5 million**, respectively[4](index=4&type=chunk) [Animal Health Sales](index=3&type=section&id=2.1.1.%20Animal%20Health%20Sales) Animal Health net sales for FY2025 Q4 surged **53%** to **$292.5 million**, primarily due to **$94.5 million** in incremental revenue from the Zoetis MFA product portfolio acquisition and strong international demand for MFAs - Net sales were **$292.5 million**, an increase of **$101.0 million** or **53%** year-over-year[5](index=5&type=chunk)[58](index=58&type=chunk) - MFAs and other product sales increased by **$89.8 million (77%)**, including **$94.5 million** in incremental revenue from the Zoetis MFA product portfolio acquisition[5](index=5&type=chunk)[58](index=58&type=chunk) - Nutritional specialties sales increased by **$4.6 million (11%)**, primarily due to increased sales of medicated feed additives and companion animal products[6](index=6&type=chunk)[58](index=58&type=chunk) - Vaccine sales increased by **$6.6 million (21%)**, primarily due to continued growth in Latin American poultry products and increased international demand[6](index=6&type=chunk)[58](index=58&type=chunk) [Mineral Nutrition Sales](index=3&type=section&id=2.1.2.%20Mineral%20Nutrition%20Sales) Mineral Nutrition net sales for FY2025 Q4 saw a modest **3%** increase to **$64.2 million**, driven by higher demand for copper and trace minerals - Net sales were **$64.2 million**, an increase of **$2.1 million** or **3%** year-over-year[7](index=7&type=chunk)[58](index=58&type=chunk) - Primarily due to increased demand for copper and trace minerals[7](index=7&type=chunk) [Performance Products Sales](index=3&type=section&id=2.1.3.%20Performance%20Products%20Sales) Performance Products net sales for FY2025 Q4 grew **13%** to **$22.1 million**, attributed to increased demand for personal care product ingredients - Net sales were **$22.1 million**, an increase of **$2.5 million** or **13%** year-over-year[8](index=8&type=chunk)[58](index=58&type=chunk) - Primarily due to increased demand for personal care product ingredients[8](index=8&type=chunk) [Gross Profit](index=3&type=section&id=2.2.%20Gross%20Profit) Gross profit increased by **26%** to **$110.0 million** in FY2025 Q4, despite a **290 basis point** decline in gross margin to **29.0%**, impacted by acquisition-related costs of sales, higher distribution costs, and an unfavorable product mix - Gross profit was **$110.0 million**, an increase of **$22.9 million** or **26%** year-over-year[9](index=9&type=chunk)[55](index=55&type=chunk) - Gross margin was **29.0%**, a decrease of **290 basis points** from **31.9%** in FY2024 Q4[9](index=9&type=chunk)[55](index=55&type=chunk) - Excluding **$2.3 million** in acquisition-related costs of sales, gross profit increased by **$25.2 million (28.9%)**, with gross margin decreasing by **220 basis points** to **29.7%**[9](index=9&type=chunk) - Animal Health gross profit (excluding adjustments) increased by **$24.5 million**, primarily due to higher sales volumes, improved average selling prices, and favorable foreign exchange, partially offset by higher distribution costs[10](index=10&type=chunk) [Operating Expenses](index=4&type=section&id=2.3.%20Operating%20Expenses) This section details the company's operating expenses for the quarter, focusing on selling, general, and administrative costs [Selling, General and Administrative Expenses (SG&A)](index=4&type=section&id=2.3.1.%20Selling,%20General%20and%20Administrative%20Expenses%20(SG%26A)) SG&A expenses increased by **11%** to **$76.3 million** in FY2025 Q4, mainly due to higher employee-related costs, including new hires from the Zoetis acquisition, and strategic investments - SG&A expenses were **$76.3 million**, an increase of **$7.6 million** or **11%** year-over-year[11](index=11&type=chunk)[55](index=55&type=chunk) - This includes **$0.4 million** in acquisition-related costs and **$1.0 million** for Phibro Forward income growth initiatives[11](index=11&type=chunk) - Excluding specific items, SG&A expenses increased by **$11.9 million** or **19%**[11](index=11&type=chunk) - Animal Health SG&A expenses increased by **$8.5 million**, primarily due to higher employee-related costs from the acquisition, while corporate costs increased by **$3.0 million** due to higher employee-related costs and strategic investments[12](index=12&type=chunk) [Other Income and Expenses](index=4&type=section&id=2.4.%20Other%20Income%20and%20Expenses) This section covers other non-operating income and expenses, including interest and foreign currency impacts [Interest Expense, Net](index=4&type=section&id=2.4.1.%20Interest%20Expense,%20Net) Net interest expense increased by **$3.9 million** to **$8.6 million** in FY2025 Q4, primarily due to higher debt levels incurred to finance the Zoetis acquisition - Net interest expense was **$8.6 million**, an increase of **$3.9 million** or **82%** year-over-year[13](index=13&type=chunk)[55](index=55&type=chunk) - Primarily due to higher debt levels associated with acquisition financing[13](index=13&type=chunk) [Foreign Currency Losses, Net](index=4&type=section&id=2.4.2.%20Foreign%20Currency%20Losses,%20Net) Net foreign currency losses significantly decreased to **$1.3 million** in FY2025 Q4, compared to **$7.3 million** in the prior year, mainly due to favorable Euro movements partially offset by losses in the Israeli New Shekel and Argentine Peso - Net foreign currency losses were **$1.3 million**, a decrease of **$6.0 million** from **$7.3 million** in net losses in FY2024 Q4[14](index=14&type=chunk)[55](index=55&type=chunk) - Losses in the current period were primarily impacted by fluctuations in the Israeli New Shekel and Argentine Peso against the U.S. Dollar, partially offset by favorable Euro movements[14](index=14&type=chunk) [Income Taxes & Net Income](index=4&type=section&id=2.5.%20Income%20Taxes%20%26%20Net%20Income) This section details the company's income tax provision and net income for the quarter [Provision for Income Taxes](index=4&type=section&id=2.5.1.%20Provision%20for%20Income%20Taxes) The provision for income taxes increased to **$6.6 million** in FY2025 Q4, with the effective tax rate decreasing from **88.3%** in the prior year to **27.8%**, influenced by GILTI and lower foreign-derived intangible income deductions - The provision for income taxes was **$6.6 million**, an increase of **$1.0 million** or **17%** year-over-year[15](index=15&type=chunk)[55](index=55&type=chunk) - Effective income tax rates were **27.8%** for FY2025 Q4 and **88.3%** for FY2024 Q4[15](index=15&type=chunk)[55](index=55&type=chunk) - Influenced by higher GILTI and lower foreign-derived intangible income deductions[15](index=15&type=chunk) [Net Income](index=4&type=section&id=2.5.2.%20Net%20Income) Net income for FY2025 Q4 significantly increased from **$0.8 million** in the prior year to **$17.2 million**, driven by higher operating income and reduced foreign currency losses, despite increased interest and tax expenses - Net income was **$17.2 million**, an increase of **$16.5 million** year-over-year[17](index=17&type=chunk)[55](index=55&type=chunk) - Operating income increased by **$15.3 million**, primarily driven by favorable gross profit, partially offset by higher SG&A due to increased employee-related costs[17](index=17&type=chunk) - Diluted EPS was **$0.42**, an increase of **$0.40** year-over-year[3](index=3&type=chunk)[55](index=55&type=chunk) [Non-GAAP Financial Measures (Quarterly)](index=6&type=section&id=2.6.%20Non-GAAP%20Financial%20Measures%20(Quarterly)) This section presents Phibro's non-GAAP financial metrics for the quarter, including adjusted EBITDA, adjusted provision for income taxes, adjusted net income, and adjusted diluted EPS [Adjusted EBITDA](index=6&type=section&id=2.6.1.%20Adjusted%20EBITDA) Adjusted EBITDA increased by **49%** to **$50.0 million** in FY2025 Q4, primarily due to higher gross profit from increased animal health sales, partially offset by higher SG&A and corporate expenses - Adjusted EBITDA was **$50.0 million**, an increase of **$16.5 million** or **49%** year-over-year[3](index=3&type=chunk)[18](index=18&type=chunk)[58](index=58&type=chunk) - Animal Health Adjusted EBITDA increased by **$19.3 million**, primarily due to gross profit from increased sales[18](index=18&type=chunk)[58](index=58&type=chunk) - Corporate expenses increased by **$2.9 million**, mainly due to higher employee-related costs and strategic investments[18](index=18&type=chunk)[58](index=58&type=chunk) [Adjusted Provision for Income Taxes](index=6&type=section&id=2.6.2.%20Adjusted%20Provision%20for%20Income%20Taxes) Adjusted provision for income taxes increased to **$7.4 million** in FY2025 Q4, with a slightly higher adjusted effective tax rate of **24.2%**, mainly due to a more significant impact from foreign income tax items, including GILTI - Adjusted provision for income taxes was **$7.4 million**, an increase from **$5.1 million** in FY2024 Q4[19](index=19&type=chunk)[62](index=62&type=chunk) - Adjusted effective income tax rates were **24.2%** for FY2025 Q4 and **23.5%** for FY2024 Q4[19](index=19&type=chunk)[62](index=62&type=chunk) [Adjusted Net Income](index=6&type=section&id=2.6.3.%20Adjusted%20Net%20Income) Adjusted net income grew **39%** to **$23.2 million** in FY2025 Q4, driven by increased adjusted gross profit from sales growth, partially offset by higher adjusted SG&A and interest expense - Adjusted net income was **$23.2 million**, an increase of **$6.6 million** or **39%** year-over-year[3](index=3&type=chunk)[20](index=20&type=chunk)[62](index=62&type=chunk) - Primarily driven by increased adjusted gross profit from sales growth, partially offset by higher adjusted SG&A and adjusted net interest expense[20](index=20&type=chunk) [Adjusted Diluted Earnings Per Share](index=6&type=section&id=2.6.4.%20Adjusted%20Diluted%20Earnings%20Per%20Share) Adjusted diluted EPS increased by **39%** to **$0.57** in FY2025 Q4, reflecting the strong growth in adjusted net income - Adjusted diluted EPS was **$0.57**, an increase of **$0.16** or **39%** year-over-year[3](index=3&type=chunk)[21](index=21&type=chunk)[62](index=62&type=chunk) [Annual Financial Performance (Year Ended June 30, 2025)](index=6&type=section&id=3.%20Annual%20Financial%20Performance%20(Year%20Ended%20June%2030,%202025)) This section provides a comprehensive review of Phibro's financial performance for the full fiscal year ended June 30, 2025, including detailed breakdowns of sales, profits, and expenses [Net Sales](index=6&type=section&id=3.1.%20Net%20Sales) Total net sales for FY2025 increased by **27%** to **$1.2962 billion**, primarily driven by substantial growth in animal health sales, including a significant contribution from the Zoetis MFA product portfolio acquisition - Total net sales were **$1.2962 billion**, an increase of **$278.5 million** or **27%** year-over-year[3](index=3&type=chunk)[22](index=22&type=chunk)[55](index=55&type=chunk) - Animal Health sales increased by **$256.3 million**, with Mineral Nutrition and Performance Products sales increasing by **$9.6 million** and **$12.6 million**, respectively[22](index=22&type=chunk) [Animal Health Sales](index=6&type=section&id=3.1.1.%20Animal%20Health%20Sales) Animal Health net sales for FY2025 grew **36%** to **$962.8 million**, primarily due to **$208.2 million** in incremental revenue from the Zoetis MFA product portfolio acquisition and increased international demand - Net sales were **$962.8 million**, an increase of **$256.3 million** or **36%** year-over-year[23](index=23&type=chunk)[58](index=58&type=chunk) - MFAs and other product sales increased by **$225.4 million (54%)**, including **$208.2 million** in incremental revenue from the Zoetis MFA product portfolio acquisition[23](index=23&type=chunk)[58](index=58&type=chunk) - Nutritional specialties sales increased by **$14.6 million (9%)**, primarily due to increased domestic dairy demand and higher sales of medicated feed additives and companion animal products[24](index=24&type=chunk)[58](index=58&type=chunk) - Vaccine sales increased by **$16.3 million (13%)**, primarily due to continued growth in Latin American poultry products and increased domestic swine product demand[24](index=24&type=chunk)[58](index=58&type=chunk) [Mineral Nutrition Sales](index=6&type=section&id=3.1.2.%20Mineral%20Nutrition%20Sales) Mineral Nutrition net sales for FY2025 increased by **4%** to **$253.2 million**, primarily driven by higher demand for copper and trace minerals - Net sales were **$253.2 million**, an increase of **$9.6 million** or **4%** year-over-year[25](index=25&type=chunk)[58](index=58&type=chunk) - Primarily due to increased demand for copper and trace minerals[25](index=25&type=chunk) [Performance Products Sales](index=6&type=section&id=3.1.3.%20Performance%20Products%20Sales) Performance Products net sales for FY2025 increased by **19%** to **$80.2 million**, primarily due to increased demand for personal care product ingredients - Net sales were **$80.2 million**, an increase of **$12.6 million** or **19%** year-over-year[26](index=26&type=chunk)[58](index=58&type=chunk) - Primarily due to increased demand for personal care product ingredients[26](index=26&type=chunk) [Gross Profit](index=8&type=section&id=3.2.%20Gross%20Profit) Gross profit increased by **28%** to **$399.9 million** in FY2025, with gross margin slightly up **10 basis points** to **30.9%**, despite impacts from inventory write-downs and acquisition-related costs - Gross profit was **$399.9 million**, an increase of **$86.9 million** or **28%** year-over-year[27](index=27&type=chunk)[55](index=55&type=chunk) - Gross margin was **30.9%**, an increase of **10 basis points** from **30.8%** in FY2024[27](index=27&type=chunk)[55](index=55&type=chunk) - Excluding **$3.8 million** in inventory write-downs and **$5.2 million** in acquisition-related costs of sales, gross profit increased by **$95.8 million (30.6%)**, with gross margin increasing by **80 basis points** to **31.6%**[27](index=27&type=chunk) - Animal Health gross profit (excluding adjustments) increased by **$86.9 million**, primarily due to higher sales volumes, improved average selling prices, and favorable foreign exchange, partially offset by higher distribution costs[28](index=28&type=chunk) [Operating Expenses](index=8&type=section&id=3.3.%20Operating%20Expenses) This section details the company's operating expenses for the full fiscal year, focusing on selling, general, and administrative costs [Selling, General and Administrative Expenses (SG&A)](index=8&type=section&id=3.3.1.%20Selling,%20General%20and%20Administrative%20Expenses%20(SG%26A)) SG&A expenses increased by **11%** to **$289.5 million** in FY2025, driven by higher employee-related costs, including new hires from the acquisition and new product launches in Brazil, as well as strategic investments - SG&A expenses were **$289.5 million**, an increase of **$29.7 million** or **11%** year-over-year[29](index=29&type=chunk)[55](index=55&type=chunk) - This includes **$13.3 million** in acquisition-related costs and **$7.0 million** for Phibro Forward income growth initiatives[29](index=29&type=chunk) - Excluding specific items, SG&A expenses increased by **$32.8 million** or **14%**[29](index=29&type=chunk) - Animal Health SG&A expenses increased by **$20.5 million**, primarily due to higher employee-related costs from the acquisition and new product launches in Brazil, while corporate costs increased by **$11.5 million** due to higher incentive-related employee costs and strategic investments[30](index=30&type=chunk) [Other Income and Expenses](index=8&type=section&id=3.4.%20Other%20Income%20and%20Expenses) This section covers other non-operating income and expenses for the full fiscal year, including interest and foreign currency impacts [Interest Expense, Net](index=8&type=section&id=3.4.1.%20Interest%20Expense,%20Net) Net interest expense significantly increased by **87%** to **$34.6 million** in FY2025, primarily due to higher debt levels incurred to finance the Zoetis acquisition and corporate debt refinancing costs - Net interest expense was **$34.6 million**, an increase of **$16.1 million** or **87%** year-over-year[31](index=31&type=chunk)[55](index=55&type=chunk) - Primarily due to higher debt levels associated with acquisition financing and corporate debt refinancing costs[31](index=31&type=chunk) [Foreign Currency Losses, Net](index=8&type=section&id=3.4.2.%20Foreign%20Currency%20Losses,%20Net) Net foreign currency losses significantly decreased to **$7.9 million** in FY2025, compared to **$23.9 million** in the prior year, despite currency fluctuations in the Israeli New Shekel, Brazilian Real, and Argentine Peso - Net foreign currency losses were **$7.9 million**, a decrease of **$16.0 million** from **$23.9 million** in net losses in FY2024[32](index=32&type=chunk)[55](index=55&type=chunk) - Losses in the current period were primarily impacted by fluctuations in the Israeli New Shekel, Brazilian Real, and Argentine Peso against the U.S. Dollar[32](index=32&type=chunk) [Income Taxes & Net Income](index=9&type=section&id=3.5.%20Income%20Taxes%20%26%20Net%20Income) This section details the company's income tax provision and net income for the full fiscal year [Provision for Income Taxes](index=9&type=section&id=3.5.1.%20Provision%20for%20Income%20Taxes) The provision for income taxes increased to **$19.7 million** in FY2025, with the effective tax rate decreasing from **77.9%** in the prior year to **29.0%**, influenced by planned repatriations and GILTI, partially offset by foreign tax credits - The provision for income taxes was **$19.7 million**, an increase of **$11.2 million** year-over-year[33](index=33&type=chunk)[55](index=55&type=chunk) - Effective income tax rates were **29.0%** for FY2025 and **77.9%** for FY2024[33](index=33&type=chunk)[55](index=55&type=chunk) - The primary reasons for the rate being above the statutory rate of **21%** were the impact of withholding taxes on planned repatriations and GILTI, partially offset by foreign tax credits[34](index=34&type=chunk) - Federal tax expense related to GILTI was **$3.2 million (4.7% of the effective tax rate)** in FY2025 and **$2.0 million (18.3% of the effective tax rate)** in FY2024[36](index=36&type=chunk) [Net Income](index=9&type=section&id=3.5.2.%20Net%20Income) Net income for FY2025 significantly increased from **$2.4 million** in the prior year to **$48.3 million**, driven by higher operating income and reduced foreign currency losses, despite increased interest and tax expenses - Net income was **$48.3 million**, an increase of **$45.8 million** year-over-year[3](index=3&type=chunk)[37](index=37&type=chunk)[55](index=55&type=chunk) - Operating income increased by **$57.2 million**, primarily driven by higher gross profit, partially offset by **$29.7 million** in higher SG&A, including net increases in acquisition-related costs and Phibro Forward income growth initiatives[37](index=37&type=chunk) - Diluted EPS was **$1.19**, an increase of **$1.13** year-over-year[3](index=3&type=chunk)[55](index=55&type=chunk) [Non-GAAP Financial Measures (Annual)](index=9&type=section&id=3.6.%20Non-GAAP%20Financial%20Measures%20(Annual)) This section presents Phibro's non-GAAP financial metrics for the full fiscal year, including adjusted EBITDA, adjusted provision for income taxes, adjusted net income, and adjusted diluted EPS [Adjusted EBITDA](index=9&type=section&id=3.6.1.%20Adjusted%20EBITDA) Adjusted EBITDA increased by **65%** to **$183.7 million** in FY2025, primarily due to increased animal health sales and gross profit, with contributions from mineral nutrition and performance products, partially offset by higher corporate expenses - Adjusted EBITDA was **$183.7 million**, an increase of **$72.4 million** or **65%** year-over-year[3](index=3&type=chunk)[38](index=38&type=chunk)[58](index=58&type=chunk) - Animal Health Adjusted EBITDA increased by **$76.7 million**[38](index=38&type=chunk)[58](index=58&type=chunk) - Mineral Nutrition and Performance Products Adjusted EBITDA increased by **$4.4 million** and **$2.9 million**, respectively[38](index=38&type=chunk)[58](index=58&type=chunk) - Corporate expenses increased by **$11.5 million**, primarily due to higher incentive-related employee costs and strategic investments[38](index=38&type=chunk)[58](index=58&type=chunk) [Adjusted Provision for Income Taxes](index=9&type=section&id=3.6.2.%20Adjusted%20Provision%20for%20Income%20Taxes) Adjusted provision for income taxes increased to **$28.3 million** in FY2025, with the adjusted effective tax rate decreasing from **26.9%** in the prior year to **25.0%**, mainly due to higher pre-tax income reducing the impact of GILTI - Adjusted provision for income taxes was **$28.3 million**, an increase from **$17.8 million** in FY2024[39](index=39&type=chunk)[62](index=62&type=chunk) - Adjusted effective income tax rates were **25.0%** for FY2025 and **26.9%** for FY2024[39](index=39&type=chunk)[62](index=62&type=chunk) - The decrease in rate was primarily due to higher pre-tax income, which reduced the impact of certain items like GILTI tax[39](index=39&type=chunk) [Adjusted Net Income](index=11&type=section&id=3.6.3.%20Adjusted%20Net%20Income) Adjusted net income grew **76%** to **$84.9 million** in FY2025, driven by increased adjusted gross profit from sales growth, partially offset by higher adjusted SG&A, interest expense, and provision for income taxes - Adjusted net income was **$84.9 million**, an increase of **$36.6 million** or **76%** year-over-year[3](index=3&type=chunk)[40](index=40&type=chunk)[62](index=62&type=chunk) - Growth was primarily driven by increased adjusted gross profit from sales growth, partially offset by higher adjusted SG&A, adjusted net interest expense, and adjusted provision for income taxes[40](index=40&type=chunk) [Adjusted Diluted Earnings Per Share](index=11&type=section&id=3.6.4.%20Adjusted%20Diluted%20Earnings%20Per%20Share) Adjusted diluted EPS increased by **76%** to **$2.09** in FY2025, reflecting the significant growth in adjusted net income - Adjusted diluted EPS was **$2.09**, an increase of **$0.90** or **76%** year-over-year[3](index=3&type=chunk)[41](index=41&type=chunk)[62](index=62&type=chunk) [Balance Sheet and Cash Flow Highlights](index=11&type=section&id=4.%20Balance%20Sheet%20and%20Cash%20Flow%20Highlights) As of June 30, 2025, Phibro reported **$41.8 million** in free cash flow for the trailing twelve months, a total leverage ratio of **3.1x**, total debt of **$725.1 million**, and cash and short-term investments of **$77.0 million** - Free cash flow for the twelve months ended June 30, 2025, was **$41.8 million**[46](index=46&type=chunk) - Total leverage ratio was **3.1x** as of June 30, 2025[46](index=46&type=chunk) - Total debt was **$725.1 million**[46](index=46&type=chunk) - Cash and short-term investments were **$77.0 million** as of June 30, 2025[46](index=46&type=chunk) - Adjusted EBITDA for the twelve months ended June 30, 2025, used for leverage ratio calculation, was **$230.8 million**[46](index=46&type=chunk) [Corporate Information & Disclosures](index=12&type=section&id=5.%20Corporate%20Information%20%26%20Disclosures) This section provides essential corporate details, including webcast information, legal disclaimers, non-GAAP financial information, and company contact details [Webcast & Conference Call Details](index=12&type=section&id=5.1.%20Webcast%20%26%20Conference%20Call%20Details) Phibro Animal Health Corporation will host a webcast and conference call on August 28, 2025, at 9:00 AM ET to discuss financial results, with a replay available online Webcast & Conference Call Details | Date: | Thursday, August 28, 2025 | | --- | --- | | Time: | 9:00 AM Eastern | | Location: | https://investors.pahc.com | | Conference ID: | 3927884 | - A replay of the webcast will be available on the Phibro website[49](index=49&type=chunk) [Disclosure Notices](index=12&type=section&id=5.2.%20Disclosure%20Notices) This section outlines important legal and financial disclosures, including forward-looking statements, the use and reconciliation of non-GAAP financial measures, and the company's practice of posting investor information online [Forward-Looking Statements](index=12&type=section&id=5.2.1.%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, where actual results may differ materially from projections, and Phibro expressly disclaims any obligation to update these statements - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations[50](index=50&type=chunk) - Phibro expressly disclaims any obligation to update or revise any forward-looking statements[50](index=50&type=chunk) - Additional information regarding risks and uncertainties can be found in the company's Form 10-Q and Form 10-K reports[50](index=50&type=chunk) [Non-GAAP Financial Information](index=12&type=section&id=5.2.2.%20Non-GAAP%20Financial%20Information) Phibro uses non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to assess operational performance and trends, believing they offer greater transparency to investors, but they should not be considered substitutes for GAAP measures - The company uses non-GAAP financial measures such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow to assess and analyze operating performance and trends[51](index=51&type=chunk) - These non-GAAP financial measures should not be considered substitutes for GAAP-required measures and may not be comparable to non-GAAP information provided by other companies[51](index=51&type=chunk) - Due to uncertainties and potential variability, the company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures[52](index=52&type=chunk) [Internet Posting of Information](index=13&type=section&id=5.2.3.%20Internet%20Posting%20of%20Information) Phibro regularly posts information that may be material to investors on the "Investors" section of its website, encouraging investors to review it periodically - The company regularly posts information that may be material to investors on the "Investors" section of its website at www.pahc.com[53](index=53&type=chunk) [About Phibro Animal Health Corporation](index=21&type=section&id=5.3.%20About%20Phibro%20Animal%20Health%20Corporation) Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company dedicated to partnering with livestock producers, farmers, veterinarians, and consumers to provide solutions that maintain and enhance animal health - Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company[67](index=67&type=chunk) - Dedicated to partnering with livestock producers, farmers, veterinarians, and consumers to provide solutions that maintain and enhance animal health[67](index=67&type=chunk) [Contacts](index=21&type=section&id=5.4.%20Contacts) Contact information for Glenn C. David, Chief Financial Officer of Phibro Animal Health Corporation, and the Investor Relations department - Chief Financial Officer: Glenn C. David, Phone: +1-201-329-7300[68](index=68&type=chunk) - Investor Relations email: investor.relations@pahc.com[68](index=68&type=chunk) [Consolidated Financial Statements](index=14&type=section&id=6.%20Consolidated%20Financial%20Statements) This section presents the consolidated financial statements, including results of operations, segment net sales, adjusted EBITDA, and adjusted net income reconciliations [Consolidated Results of Operations](index=14&type=section&id=6.1.%20Consolidated%20Results%20of%20Operations) This table presents the consolidated results of operations for the three and twelve months ended June 30, 2025, and 2024, detailing net sales, cost of goods sold, gross profit, operating expenses, and net income Consolidated Results of Operations | Metric (Millions USD) | Q4 2025 | Q4 2024 | Change Q4 | FY 2025 | FY 2024 | Change FY | | :-------------------- | :------ | :------ | :-------- | :------ | :------ | :-------- | | Net sales | $378.7 | $273.2 | +39% | $1,296.2 | $1,017.7 | +27% | | Cost of goods sold | $268.7 | $186.0 | +44% | $896.3 | $704.6 | +27% | | Gross profit | $110.0 | $87.2 | +26% | $399.9 | $313.1 | +28% | | SG&A | $76.3 | $68.7 | +11% | $289.5 | $259.8 | +11% | | Operating income | $33.7 | $18.4 | +83% | $110.5 | $53.3 | * | | Interest expense, net | $8.6 | $4.7 | +82% | $34.6 | $18.5 | +87% | | Foreign currency losses, net | $1.3 | $7.3 | * | $7.9 | $23.9 | * | | Income before income taxes | $23.8 | $6.4 | * | $68.0 | $10.9 | * | | Provision for income taxes | $6.6 | $5.7 | +17% | $19.7 | $8.5 | * | | Net income | $17.2 | $0.8 | * | $48.3 | $2.4 | * | | Diluted EPS | $0.42 | $0.02 | * | $1.19 | $0.06 | * | [Segment Net Sales and Adjusted EBITDA](index=15&type=section&id=6.2.%20Segment%20Net%20Sales%20and%20Adjusted%20EBITDA) This table details segment net sales and adjusted EBITDA for the three and twelve months ended June 30, 2025, and 2024, by segment (Animal Health, Mineral Nutrition, Performance Products, and Corporate), and provides a reconciliation of GAAP net income to adjusted EBITDA Segment Net Sales and Adjusted EBITDA | Metric (Millions USD) | Q4 2025 | Q4 2024 | Change Q4 | FY 2025 | FY 2024 | Change FY | | :-------------------- | :------ | :------ | :-------- | :------ | :------ | :-------- | | **Net Sales** | | | | | | | | MFAs and other | $206.5 | $116.7 | +77% | $646.4 | $421.0 | +54% | | Nutritional specialties | $47.4 | $42.8 | +11% | $179.3 | $164.7 | +9% | | Vaccines | $38.6 | $32.0 | +21% | $137.2 | $120.9 | +13% | | **Animal Health Total** | $292.5 | $191.5 | +53% | $962.8 | $706.5 | +36% | | Mineral Nutrition | $64.2 | $62.1 | +3% | $253.2 | $243.7 | +4% | | Performance Products | $22.1 | $19.6 | +13% | $80.2 | $67.5 | +19% | | **Total Net Sales** | $378.7 | $273.2 | +39% | $1,296.2 | $1,017.7 | +27% | | **Adjusted EBITDA** | | | | | | | | Animal Health | $60.6 | $41.3 | +47% | $222.3 | $145.6 | +53% | | Mineral Nutrition | $5.6 | $5.4 | +4% | $20.8 | $16.4 | +27% | | Performance Products | $3.0 | $3.1 | (1)% | $10.5 | $7.7 | +38% | | Corporate | ($19.3) | ($16.3) | +18% | ($70.0) | ($58.5) | +20% | | **Total Adjusted EBITDA** | $50.0 | $33.4 | +49% | $183.7 | $111.2 | +65% | Reconciliation of GAAP Net Income to Adjusted EBITDA | Metric (Millions USD) | Q4 2025 | Q4 2024 | Change Q4 | FY 2025 | FY 2024 | Change FY | | :-------------------- | :------ | :------ | :-------- | :------ | :------ | :-------- | | Net income | $17.2 | $0.8 | * | $48.3 | $2.4 | * | | Interest expense, net | $8.6 | $4.7 | +82% | $34.6 | $18.5 | +87% | | Provision for income taxes | $6.6 | $5.7 | +17% | $19.7 | $8.5 | * | | Depreciation and amortization | $12.4 | $9.2 | +35% | $45.6 | $36.2 | +26% | | **EBITDA** | $44.9 | $20.3 | * | $148.2 | $65.6 | * | | Acquisition-related cost of goods sold | $2.3 | — | * | $5.7 | $0.5 | * | | Acquisition-related transaction costs | $0.4 | $5.9 | (92)% | $13.3 | $6.4 | * | | Phibro Forward income growth initiatives - SG&A | $1.0 | $0.4 | * | $7.0 | $0.4 | * | | Foreign currency losses, net | $1.3 | $7.3 | (83)% | $7.9 | $23.9 | (67)% | | **Adjusted EBITDA** | $50.0 | $33.4 | +49% | $183.7 | $111.2 | +65% | [Adjusted Net Income Reconciliation](index=18&type=section&id=6.3.%20Adjusted%20Net%20Income%20Reconciliation) This section provides a detailed reconciliation of GAAP net income to adjusted net income for the three and twelve months ended June 30, 2025, and 2024, listing adjustments for non-recurring or non-operating items Reconciliation of GAAP Net Income to Adjusted Net Income | Metric (Millions USD) | Q4 2025 | Q4 2024 | Change Q4 | FY 2025 | FY 2024 | Change FY | | :-------------------- | :------ | :------ | :-------- | :------ | :------ | :-------- | | Net income | $17.2 | $0.8 | * | $48.3 | $2.4 | * | | Acquisition-related intangible amortization | $1.1 | $1.7 | (33)% | $5.5 | $6.7 | (18)% | | Acquisition-related intangible amortization (2) | $0.6 | $0.7 | (11)% | $2.4 | $3.0 | (20)% | | Acquisition-related cost of goods sold | $2.3 | — | * | $5.7 | $0.5 | * | | Acquisition-related transaction costs | $0.4 | $5.9 | (92)% | $13.3 | $6.4 | * | | Insurance settlement gain | ($0.1) | ($0.6) | (88)% | ($2.9) | ($0.9) | * | | Stock-based compensation | $0.2 | $0.2 | 0% | $0.7 | $0.5 | +51% | | Phibro Forward income growth initiatives - cost of goods sold | — | — | * | $3.8 | — | * | | Phibro Forward income growth initiatives - SG&A | $1.0 | $0.4 | * | $7.0 | $0.4 | * | | Refinancing expense | — | — | * | $2.0 | — | * | | Foreign currency losses, net | $1.3 | $7.3 | (83)% | $7.9 | $23.9 | (67)% | | Adjustments to income taxes | ($0.8) | $0.5 | * | ($8.6) | ($9.3) | (8)% | | **Adjusted net income** | $23.2 | $16.7 | +39% | $84.9 | $48.4 | +76% | | Adjusted diluted EPS | $0.57 | $0.41 | +39% | $2.09 | $1.19 | +76% |

Financial Performance - Phibro Animal Health Corporation reported total net sales of $1,296 million for the year ended June 30, 2025, representing a 27% increase from $1,018 million in 2024[27]. - The Animal Health segment generated $963 million in sales for 2025, a 36% increase from $706 million in 2024, accounting for 74% of total sales[27]. - Adjusted EBITDA for the Animal Health segment increased by 53% to $222 million in 2025, compared to $146 million in 2024[29]. - The United States accounted for $740 million of total sales in 2025, a 27% increase from $585 million in 2024, representing 57% of total sales[27]. - Poultry sales reached $465 million in 2025, up 26% from $370 million in 2024, contributing 36% to total sales[27]. - Mineral Nutrition segment sales increased by 4% to $253 million in 2025, compared to $244 million in 2024[27]. - The Performance Products segment saw a 19% increase in sales to $80 million in 2025, up from $68 million in 2024[27]. - Global sales of antibacterials, anticoccidials, and other products were $646 million, $421 million, and $387 million for the years ended June 30, 2025, 2024, and 2023, respectively[175]. Acquisitions and Product Development - The acquisition of Zoetis's medicated feed additive portfolio was completed for approximately $297.5 million, expected to contribute $208.2 million to net sales in the year ending June 30, 2025[25]. - The newly acquired product portfolio from Zoetis expands the range of antibacterial solutions, now including Aureomycin®, LincoSpectin®, and BMD®[41]. - The company is focusing on expanding its companion animal product line, including a joint care supplement and potential treatments for various conditions[35]. - The company focuses on innovation, developing new vaccines such as inactivated subunit Infectious Bursal Disease Virus and Egg Drop Syndrome vaccines[77]. Regulatory Environment - The FDA may deny NADA or ANADA approvals if regulatory criteria are not met, which could delay product introduction and revenue generation[100]. - The FDA's compliance with cGMP standards is critical, as failure to comply could result in ineligibility for future approvals and negatively impact financial results[111]. - The company is subject to ongoing regulatory scrutiny in the EU, where veterinary medicinal products must meet specific quality, safety, and efficacy criteria for marketing authorization[112]. - The company must navigate complex regulatory environments in various countries, which can affect the approval process for animal drugs and impact financial performance[117]. - The company is evaluating permissible promotional strategies in the E.U. due to stringent regulations on antibiotic product advertising[122]. - The FDA's recent guidance aims to define durations of use for medically important antimicrobial drugs, which may lead to shorter usage periods for the company's products[108]. Product Offerings and Market Position - The company has developed and markets approximately 50 product lines for disease prevention in poultry, including vaccines for Infectious Bursal Disease and Salmonella[46]. - The company manufactures and markets approximately 380 formulations of trace minerals, focusing on North American customers[51]. - The company produces and markets decoquinate under the trademarks Deccox® and Avi-Deccox® for poultry and cattle, and robenidine under Cycostat® and Robenz®[65]. - The company has approximately 1,575 Animal Health product registrations globally, including 880 MFA registrations and 335 vaccine registrations[89]. - The company offers over 720 product lines, supported by a sales and technical support team of approximately 520 employees[130]. Manufacturing and Operations - The company completed construction of a new vaccine production facility in Guarulhos, Brazil in fiscal year 2023, now marketing autogenous vaccines for the Brazilian market[50]. - Ongoing investment in the vaccine production facility in Sligo, Ireland, is enabling expanded capacity and machinery upgrades for poultry vaccine manufacturing[49]. - The company has established manufacturing facilities in multiple countries, including Brazil, the United States, Italy, and China, to produce active pharmaceutical ingredients and vaccines[143]. - The company’s manufacturing facilities are critical to operations, and any operational problems could materially impact financial results[205]. Environmental and Safety Compliance - The company emphasizes employee safety through its Road to Zero initiative, promoting a culture of safety and quality[138]. - The company maintains compliance with Environmental Laws and has developed programs to manage environmental liabilities[150]. - Capital expenditures related to environmental, health, and safety regulations were $2.6 million for the fiscal year ended June 30, 2025[159]. - Environmental liabilities accruals totaled $4.3 million as of June 30, 2025, consistent with the previous year[163]. - The company is subject to extensive compliance reviews under the Resource Conservation and Recovery Act (RCRA) for its subsidiaries involved in recycling hazardous materials[155]. Risks and Challenges - The company faces risks from outbreaks of animal diseases that could significantly reduce demand for its products[169]. - Restrictions on the use of antibacterials in food-producing animals may become more prevalent, impacting product demand[172]. - The company faces risks related to foreign currency exchange rate fluctuations, which could adversely affect results of operations and the ability to meet debt obligations[216]. - The company is exposed to risks associated with public health crises, such as the COVID-19 pandemic, which could disrupt operations and negatively impact financial results[185]. - Increased competition from generic products may adversely affect the company's financial condition and results of operations[196]. International Operations - The company has a direct presence in approximately 90 countries, contributing about 55% of its Animal Health net sales for the year ended June 30, 2025[127]. - The company’s international operations accounted for 49% of consolidated assets and 43% of consolidated net sales for the year ended June 30, 2025[214]. - A substantial portion of production from Israeli facilities is exported to major world markets[218]. - Ongoing conflicts, such as the situation between Israel and Hamas, may adversely affect international trade and business operations[218].

Core Insights - Phibro Animal Health (PAHC) shares have increased by 76.4% over the past year, significantly outperforming the industry growth of 4.9% and the S&P 500's 16% gain [1][8] - The company is currently ranked 2 (Buy) by Zacks, indicating strong fundamentals and growth potential [1] Company Overview - Phibro, based in New Jersey, offers a wide range of products for food animals, including poultry, swine, beef, dairy cattle, and aquaculture, as well as ingredients for personal care and industrial sectors [2] - The company is focusing on expanding its product offerings in the companion animal sector [2] Growth Drivers - The surge in PAHC's share price is attributed to a strong sales recovery in its Mineral Nutrition and Performance Products segments, with Mineral Nutrition growing by 4% year over year and Performance Products increasing by 28% year over year [3] - The recent acquisition of medicated feed additive products and certain water-soluble products from Zoetis Inc. has expanded Phibro's Animal Health product portfolio [3] International Market Contribution - Approximately 40% of Phibro's total revenues come from international markets, including high-growth regions such as Brazil, China, India, and Southeast Asia [4] Financial Health - Phibro has a solid financial position, with a low short-term payable debt of $16 million compared to total cash and short-term investments of $70.4 million [5] - The company reported an operating profit of $33.4 million for the fiscal third quarter, reflecting a 67.8% year-over-year increase and an expansion of the operating margin by 204 basis points [5] Earnings Estimates - Phibro's earnings per share (EPS) are projected to increase by 71.4% to $2.04 for fiscal 2025 and by 12.7% to $2.30 for fiscal 2026 [9] - Revenues are expected to grow by 25.7% to $1.28 billion in fiscal 2025 and reach $1.41 billion in fiscal 2026, indicating a 10.1% increase [9]

Core Insights - The article compares two medical product stocks, Phibro Animal Health (PAHC) and LeMaitre Vascular (LMAT), to determine which offers better value for investors [1] Valuation Metrics - PAHC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while LMAT has a Zacks Rank of 3 (Hold) [3] - PAHC's forward P/E ratio is 11.38, significantly lower than LMAT's forward P/E of 37.42 [5] - PAHC has a PEG ratio of 0.44, compared to LMAT's PEG ratio of 2.14, suggesting PAHC is more favorably valued in terms of expected earnings growth [5] - PAHC's P/B ratio is 3.98, while LMAT's P/B ratio is 5.27, further indicating that PAHC is undervalued relative to its book value [6] - Overall, PAHC earns a Value grade of A, while LMAT receives a Value grade of D, highlighting the superior valuation metrics of PAHC [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, PAHC is positioned as the superior investment option for value investors at this time [7]

Market Overview - The S&P 500 rose by 5% in June, driven by optimism regarding trade deals, a ceasefire in the Middle East, and potential interest rate cuts in 2025 [1] - Positive economic indicators, including strong manufacturing data, increased factory orders, and a favorable jobs report for June, alleviated recession fears [1] July Market Conditions - As July begins, the job market remains robust, inflation is cooling, and companies are set to announce earnings [2] - Trade disagreements may cause short-term market fluctuations, but new trade agreements could provide additional momentum [2] Stock Recommendations - Recommended stocks based on relative price strength include Dell Technologies Inc. (DELL), Jabil Inc. (JBL), Phibro Animal Health Corporation (PAHC), and Hudbay Minerals Inc. (HBM) [3][9] Relative Price Strength Strategy - Investors should assess stocks based on earnings growth and valuation multiples, while also considering their performance relative to industry peers [4] - Underperforming stocks should be avoided, while those outperforming their sectors in price should be prioritized for potential returns [5] Investment Criteria - Stocks that have outperformed the S&P 500 over the past 1, 4, and 12 weeks, along with positive earnings estimate revisions, indicate growth potential [6][8] - A focus on analyst optimism regarding upcoming earnings is crucial, as upward revisions can lead to price gains [7] Screening Parameters - Stocks must show positive relative price changes over 1, 4, and 12 weeks, and have positive current-quarter estimate revisions [8] - Stocks must have a minimum price of $5 and an average 20-day volume of at least 50,000 for adequate liquidity [10] Company Profiles - **Dell Technologies Inc. (DELL)**: Market cap of $84.7 billion, expected EPS growth of 16% year-over-year for fiscal 2026, with a trailing earnings surprise of 2.3% [11][12] - **Jabil Inc. (JBL)**: Expected EPS growth rate of 16.6% over three to five years, with a 102% share price increase in the past year [13][14] - **Phibro Animal Health Corporation (PAHC)**: Market cap of $1.2 billion, expected EPS growth of 71.4% for fiscal 2025, with a 75.7% share price increase in the past year [14][15] - **Hudbay Minerals Inc. (HBM)**: Expected EPS growth rate of 51.7% over three to five years, with a 43.8% year-over-year growth estimate for 2025 and a 17.6% share price increase in the past year [16][17]

Company Overview - JPMorgan upgraded Phibro Animal Health Corporation (PAHC) due to strong execution following its $350 million acquisition of Zoetis' medicated feed additive and water-soluble product portfolio, which includes 37 product lines sold in about 80 countries and six manufacturing sites across the U.S., Italy, and China [1] - The acquisition is expected to enhance Phibro's profitability, improve EBITDA margins, and be accretive to adjusted earnings per share [1] Financial Performance - In Q3 2025, Phibro's sales reached $347.8 million, an increase of $84.6 million, or 32% year over year, although it missed the consensus estimate of $352.40 million [3] - Adjusted earnings for the same period were 63 cents, surpassing the consensus of 52 cents [3] Guidance and Market Outlook - Phibro raised its fiscal 2025 adjusted earnings per share guidance from $1.87-$2.01 to $1.96-$2.09, compared to the consensus of $1.94 [4] - The company revised its sales guidance from $1.25 billion-$1.30 billion to $1.26 billion-$1.29 billion, against a consensus of $1.28 billion [4] - Analyst Knyazkova noted that despite a strong performance in PAHC shares this year, there remains a favorable setup for further upside to estimates and attractive valuation [4] Industry Insights - The animal health performance is expected to exceed expectations for 2025, driven by strong demand, price increases, and healthy growth across medicated feed additives, nutritional specialties, and vaccines for 2026 [2] - While growth in livestock is slower than in companion animals, the livestock sector maintains strong fundamentals, including population growth, rising meat consumption, and limited impact from economic shifts [3]

Company Performance - Phibro Animal Health (PAHC) shares have increased by 9.5% over the past month, reaching a new 52-week high of $26.77 [1] - Year-to-date, Phibro has gained 26.8%, outperforming the Zacks Medical sector, which saw a decline of 2.7%, and the Zacks Medical - Products industry, which returned 7.6% [1] Earnings and Revenue - Phibro has consistently exceeded earnings consensus estimates, reporting EPS of $0.63 against a consensus of $0.52 in its last earnings report [2] - For the current fiscal year, Phibro is projected to earn $2.29 per share on revenues of $1.28 billion, with a year-over-year earnings growth of 12.5% [3] - The next fiscal year earnings are expected to be $2.52 per share on revenues of $1.41 billion, reflecting a growth of 10.35% [3] Valuation Metrics - Phibro's current trading valuation is at 11.6X current fiscal year EPS estimates, significantly lower than the peer industry average of 19.5X [7] - The stock has a trailing cash flow valuation of 12.6X compared to the peer group's average of 10.9X, and a PEG ratio of 0.45, indicating strong value potential [7] Zacks Rank and Style Scores - Phibro holds a Zacks Rank of 1 (Strong Buy) due to favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of A, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6][8] Industry Comparison - In comparison, Perrigo Company plc (PRGO) has a Zacks Rank of 2 (Buy) and a Value Score of A, with earnings expected to be $3.03 per share on revenues of $4.44 billion for the current fiscal year [9][10] - PRGO shares have gained 3.4% over the past month, trading at a forward P/E of 9.06X and a P/CF of 5.43X [11]

Core Insights - Phibro Animal Health (PAHC) shares have increased by 52.8% over the past year, significantly outperforming the industry growth of 14.3% and the S&P 500's 11.7% gain, indicating strong momentum and solid fundamentals for investors [1][8] Company Overview - Phibro, based in New Jersey, provides a wide range of products for food animals, including poultry, swine, beef, dairy cattle, and aquaculture, while also manufacturing ingredients for personal care, automotive, industrial chemicals, and chemical catalysts [2] Key Growth Drivers - The surge in Phibro's share price is attributed to robust demand for its Animal Health products, with a reported 42% sales growth year over year in the Animal Health segment, driven by a 68% increase in Medicated Feed Additives (MFA) [3][8] - The acquisition of Zoetis' MFA product portfolio has expanded Phibro's offerings by adding over 37 product lines across 80 countries, enhancing its global presence [3][8] - The company has also invested in expanding vaccine manufacturing capacity, including a new facility in Brazil, which has contributed to a 1% revenue increase in the vaccine business for the third quarter of fiscal 2025 [4] Financial Performance - Phibro reported an operating profit of $33.4 million for the fiscal third quarter, marking a 67.8% increase year over year, with an operating margin expansion of 204 basis points [6] - The Mineral Nutrition business grew by 4% year over year, supported by increased sales volume and pricing, while the Performance Products segment benefited from strong demand for personal care ingredients [5] Future Outlook - Earnings per share (EPS) for fiscal 2025 and 2026 are projected to increase by 71.4% and 12.5%, reaching $2.04 and $2.29, respectively, with revenues expected to grow by 25.7% to $1.28 billion in fiscal 2025 [10]

Group 1 - Phibro Animal Health (NASDAQ: PAHC) announced a significant acquisition from Zoetis (ZTS) aimed at driving business momentum [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation [1] - The service covers approximately 10 major events monthly to find optimal investment opportunities [1]