Phibro(PAHC) - 2025 Q4 - Annual Results

Executive Summary & Outlook 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) 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 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] - Annual net sales grew by 27%, and Adjusted EBITDA increased by 65%, driven by sustained demand for MFAs, nutritional specialties, and vaccines[2] - The Zoetis MFA portfolio performed above expectations, contributing to a 54% year-over-year increase in MFA and other product sales[2] - 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] Fiscal Year 2026 Financial Guidance 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] Quarterly Financial Performance (Three Months Ended June 30, 2025) 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 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][55] - 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] Animal Health Sales 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][58] - 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][58] - Nutritional specialties sales increased by $4.6 million (11%), primarily due to increased sales of medicated feed additives and companion animal products[6][58] - Vaccine sales increased by $6.6 million (21%), primarily due to continued growth in Latin American poultry products and increased international demand[6][58] Mineral Nutrition Sales 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][58] - Primarily due to increased demand for copper and trace minerals[7] Performance Products Sales 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][58] - Primarily due to increased demand for personal care product ingredients[8] Gross Profit 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][55] - Gross margin was 29.0%, a decrease of 290 basis points from 31.9% in FY2024 Q4[9][55] - 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] - 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] Operating Expenses 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) 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][55] - This includes $0.4 million in acquisition-related costs and $1.0 million for Phibro Forward income growth initiatives[11] - Excluding specific items, SG&A expenses increased by $11.9 million or 19%[11] - 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] Other Income and Expenses This section covers other non-operating income and expenses, including interest and foreign currency impacts Interest Expense, Net 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][55] - Primarily due to higher debt levels associated with acquisition financing[13] Foreign Currency Losses, Net 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][55] - 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] Income Taxes & Net Income This section details the company's income tax provision and net income for the quarter Provision for Income Taxes 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][55] - Effective income tax rates were 27.8% for FY2025 Q4 and 88.3% for FY2024 Q4[15][55] - Influenced by higher GILTI and lower foreign-derived intangible income deductions[15] Net Income 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][55] - 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] - Diluted EPS was $0.42, an increase of $0.40 year-over-year[3][55] Non-GAAP Financial Measures (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 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][18][58] - Animal Health Adjusted EBITDA increased by $19.3 million, primarily due to gross profit from increased sales[18][58] - Corporate expenses increased by $2.9 million, mainly due to higher employee-related costs and strategic investments[18][58] Adjusted Provision for Income Taxes 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][62] - Adjusted effective income tax rates were 24.2% for FY2025 Q4 and 23.5% for FY2024 Q4[19][62] Adjusted Net Income 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][20][62] - Primarily driven by increased adjusted gross profit from sales growth, partially offset by higher adjusted SG&A and adjusted net interest expense[20] Adjusted Diluted Earnings Per Share 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][21][62] Annual Financial Performance (Year Ended June 30, 2025) 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 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][22][55] - 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] Animal Health Sales 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][58] - 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][58] - 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][58] - 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][58] Mineral Nutrition Sales 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][58] - Primarily due to increased demand for copper and trace minerals[25] Performance Products Sales 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][58] - Primarily due to increased demand for personal care product ingredients[26] Gross Profit 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][55] - Gross margin was 30.9%, an increase of 10 basis points from 30.8% in FY2024[27][55] - 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] - 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] Operating Expenses 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) 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][55] - This includes $13.3 million in acquisition-related costs and $7.0 million for Phibro Forward income growth initiatives[29] - Excluding specific items, SG&A expenses increased by $32.8 million or 14%[29] - 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] Other Income and Expenses This section covers other non-operating income and expenses for the full fiscal year, including interest and foreign currency impacts Interest Expense, Net 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][55] - Primarily due to higher debt levels associated with acquisition financing and corporate debt refinancing costs[31] Foreign Currency Losses, Net 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][55] - 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] Income Taxes & Net Income This section details the company's income tax provision and net income for the full fiscal year Provision for Income Taxes 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][55] - Effective income tax rates were 29.0% for FY2025 and 77.9% for FY2024[33][55] - 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] - 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] Net Income 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][37][55] - 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] - Diluted EPS was $1.19, an increase of $1.13 year-over-year[3][55] Non-GAAP Financial Measures (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 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][38][58] - Animal Health Adjusted EBITDA increased by $76.7 million[38][58] - Mineral Nutrition and Performance Products Adjusted EBITDA increased by $4.4 million and $2.9 million, respectively[38][58] - Corporate expenses increased by $11.5 million, primarily due to higher incentive-related employee costs and strategic investments[38][58] Adjusted Provision for Income Taxes 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][62] - Adjusted effective income tax rates were 25.0% for FY2025 and 26.9% for FY2024[39][62] - The decrease in rate was primarily due to higher pre-tax income, which reduced the impact of certain items like GILTI tax[39] Adjusted Net Income 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][40][62] - 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] Adjusted Diluted Earnings Per Share 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][41][62] Balance Sheet and Cash Flow Highlights 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] - Total leverage ratio was 3.1x as of June 30, 2025[46] - Total debt was $725.1 million[46] - Cash and short-term investments were $77.0 million as of June 30, 2025[46] - Adjusted EBITDA for the twelve months ended June 30, 2025, used for leverage ratio calculation, was $230.8 million[46] Corporate Information & Disclosures This section provides essential corporate details, including webcast information, legal disclaimers, non-GAAP financial information, and company contact details Webcast & Conference Call Details 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] Disclosure Notices 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 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] - Phibro expressly disclaims any obligation to update or revise any forward-looking statements[50] - Additional information regarding risks and uncertainties can be found in the company's Form 10-Q and Form 10-K reports[50] Non-GAAP Financial Information 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] - 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] - 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] Internet Posting of Information 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 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] - Dedicated to partnering with livestock producers, farmers, veterinarians, and consumers to provide solutions that maintain and enhance animal health[67] Contacts 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] - Investor Relations email: investor.relations@pahc.com[68] Consolidated Financial Statements 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 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 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 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% |