Core Insights - Pyxus International, Inc. reported strong third-quarter results for fiscal 2026, achieving a net income of $16.9 million and adjusted EBITDA comparable to last year's record performance [1] - The company reaffirmed its full-year fiscal 2026 guidance, expecting net sales between $2.4 billion and $2.6 billion, and adjusted EBITDA in the range of $215 million to $235 million [1] Financial Performance - Third-quarter sales and other operating revenues decreased to $655.8 million from $778.3 million in the prior year's third quarter, primarily due to a decline in leaf product revenues [1] - Year-to-date sales for the first three quarters of fiscal 2026 decreased by $244.7 million, or 12.4%, compared to $1,979.5 million for the same period last year [1] - Gross profit as a percentage of sales increased slightly to 15.2% in the third quarter from 15.0% in the prior year, driven by larger crops in South America and increased third-party processing volumes [1] Operational Highlights - The company's operating income for the third quarter was $51.3 million, down from $66.1 million in the same quarter of fiscal 2025, mainly due to lower leaf product revenues [1] - Tobacco inventory at the end of the third quarter was $959.8 million, compared to $755.2 million at the same time last year, reflecting procurement of larger current crops [1] - The average operating cycle time increased to 184 days in the third quarter from 161 days in the same period last fiscal year, attributed to earlier purchasing of larger crops [1] Strategic Initiatives - The company made substantial progress in implementing state-of-the-art factory automation to drive long-term efficiencies and reduce overall cost structure [1] - Pyxus is focused on efficiently converting inventory into revenue and maximizing cash generation as it approaches its peak shipping period [1] Balance Sheet and Liquidity - As of December 31, 2025, the company's net debt increased by $199.4 million compared to the previous year, consistent with a year-over-year inventory increase of $206.7 million [1] - The company maintained strong liquidity with no outstanding borrowings on its $150.0 million asset-based lending facility at the end of the quarter [1]