Financial Performance and Key Metrics - Consolidated net sales for Q1 2026 were $363.9 million, a 40% increase year-over-year, driven by a 55% growth in the animal health segment [8][9] - Adjusted EBITDA for Q1 increased by 102% to $31.2 million, with adjusted net income rising by 112% and adjusted diluted EPS increasing by 108% [8][9] - The animal health segment's net sales reached $283.5 million, reflecting a 55% increase, while mineral nutrition grew by 7% and performance products declined by 7% [9][10] Business Line Performance - Medicated feed additives saw an 81% growth, with the new MFA business contributing $80.5 million in sales [5][9] - Nutritional specialties net sales increased by 13%, primarily due to higher demand for microbial and companion animal products [9] - Vaccine sales grew by 25%, driven by poultry products in Latin America and increased international demand [9] Market Data and Key Metrics - Strong demand for animal-based proteins is noted, supported by global population growth and changing consumer preferences towards high-quality proteins [30] - Livestock sector profitability remains positive across various regions, with lower feed costs encouraging investment in animal health products [30][31] Company Strategy and Industry Competition - The company is focused on innovation and execution, with the recent launch of Restoris, a dental gel for dogs, marking a significant step in the companion animal strategy [6][23] - The Phibro-forward initiatives aim to enhance operational discipline and drive sustainable long-term value creation [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for products globally and anticipates continued improvement in business performance [13][14] - The company raised its full-year earnings guidance, reflecting strong performance and disciplined financial management [12][13] Other Important Information - The company generated $34 million in positive free cash flow for the 12 months ending September 30, 2025, with a gross leverage ratio of 3.3 times [11] - A quarterly dividend of $0.12 per share was paid, totaling $4.9 million [12] Q&A Session Summary Question: Sustainability of growth in the MFA business - Management noted strong demand across the MFA portfolio, particularly in poultry, swine, and beef cattle segments, with limited impact on pricing in Q1 [15][16][17] Question: Margin profile for the remainder of the year - Management indicated that Q1 margins were favorable due to product mix, but expected a slight drop in margins as investments in new product launches occur [18][19] Question: Guidance update and revenue range - Management explained that while EBITDA and EPS guidance were raised, revenue guidance remained unchanged due to conservatism and being only one quarter into the fiscal year [21][22] Question: Role in the companion animal market - Management confirmed a focus on unique opportunities in the companion animal space, rather than competing directly with larger players [34][36]

Core Insights - Phibro Animal Health (PAHC) reported a revenue of $363.9 million for the quarter ended September 2025, marking a year-over-year increase of 39.8% and an EPS of $0.73 compared to $0.35 a year ago, exceeding Zacks Consensus Estimate of $354.68 million by 2.6% [1] Revenue Performance - Net Sales by Region: - United States: $202.35 million, exceeding the average estimate of $172.57 million, a year-over-year increase of 41% [3] - Asia Pacific: $29.38 million, surpassing the average estimate of $18.44 million, a year-over-year increase of 101.1% [3] - Europe, Middle East and Africa: $44.94 million, above the average estimate of $37.31 million, a year-over-year increase of 44.4% [3] - Latin America and Canada: $87.23 million, below the average estimate of $130.56 million, a year-over-year increase of 22.6% [3] - Net Sales by Segment: - Animal Health: $283.5 million, exceeding the average estimate of $277.16 million, a year-over-year increase of 55.3% [3] - Mineral Nutrition: $63 million, above the average estimate of $58.29 million, a year-over-year increase of 6.7% [3] - Animal Health - Vaccines: $40.1 million, surpassing the average estimate of $37.23 million, a year-over-year increase of 25.2% [3] - Animal Health - MFAs and other: $195.2 million, slightly above the average estimate of $194.62 million, a year-over-year increase of 81% [3] - Animal Health - Nutritional specialties: $48.2 million, exceeding the average estimate of $45.31 million, a year-over-year increase of 13% [3] - Performance Products: $17.4 million, below the average estimate of $19.23 million, a year-over-year decrease of 7.7% [3] Profitability Metrics - Adjusted EBITDA for Animal Health: $74.9 million, exceeding the average estimate of $66.19 million [3] - Adjusted EBITDA for Corporate: $-19.1 million, worse than the average estimate of $-17.6 million [3]

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2025 were $378.7 million, reflecting a 39% increase year-over-year [12] - For the full year, consolidated net sales were $1.296 billion, a 27% increase compared to the previous year [13] - Adjusted EBITDA for Q4 increased by $16.5 million or 49% year-over-year [13] - Full year adjusted EBITDA rose by $72.4 million or 65% [14] Business Line Data and Key Metrics Changes - The Animal Health segment saw net sales of $292.5 million in Q4, a 53% increase year-over-year [15] - For the full year, Animal Health segment sales reached $962.8 million, a 36% increase [16] - Nutritional specialties net sales increased by 11% in Q4 and 9% for the full year [15][20] - Vaccine net sales grew by 21% in Q4 and 13% for the full year [16][20] Market Data and Key Metrics Changes - The MFA and other portfolio grew by 77% in Q4, with the new MFA business contributing $94.5 million in sales [7][15] - Mineral Nutrition segment net sales for Q4 were $64.2 million, a 3% increase [19] - Performance Products segment net sales increased by 13% in Q4 [19] Company Strategy and Development Direction - The company is focused on scaling operations, enhancing its global footprint, and improving its innovation pipeline [10] - The "Fiber Forward" strategy aims to unlock additional revenue growth and cost savings through various initiatives [24] - The company anticipates continued growth in the Animal Health segment, particularly in vaccines and nutritional specialties [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for products globally and expects continued improvement in business performance [25] - The guidance for fiscal year 2026 includes projected net sales of $1.425 billion to $1.475 billion, reflecting a growth range of 10% to 14% [24] - Management noted that the integration of the Zoetis MFA business is progressing well, with expectations to operate independently by Q4 of the calendar year [41] Other Important Information - The company generated $42 million of positive free cash flow for the twelve months ended June 30, 2025 [21] - The gross leverage ratio was 3.1 times at the end of Q4, with total debt of $725 million [22] - A quarterly dividend of $0.12 per share was paid, totaling $4.9 million [23] Q&A Session Summary Question: What does guidance now assume in terms of the underlying organic growth? - Management indicated that the guidance reflects a mix of contributions from the Zoetis portfolio and expectations for legacy business growth [27] Question: Can you quantify expectations for the Fiber Forward initiative? - Management expects significant contributions from the Fiber Forward initiative, with anticipated EBITDA growth of $40 million to $50 million [32] Question: Where are we in terms of the Zoetis integration process? - The integration is progressing well, with major system implementations complete and expectations to operate independently by Q4 [41] Question: What is the expected growth of the legacy MFA business? - The legacy MFA business is expected to grow in the flat to low single-digit range, with no significant pull forward in sales due to tariffs [58]

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2025 were $378.7 million, reflecting a 39% increase year-over-year [12] - For the full year, consolidated net sales were $1.296 billion, a 27% increase compared to the previous year [13] - Adjusted EBITDA for Q4 increased by 49% to $50.2 million, while for the full year, it rose by 65% to $184.4 million [13][14] - GAAP net income and diluted EPS saw significant increases, driven by the integration of the new MFA business and improved gross margins [12][14] Business Line Data and Key Metrics Changes - The Animal Health segment reported Q4 net sales of $292.5 million, a 53% increase year-over-year [15] - For the full year, Animal Health net sales reached $962.8 million, a 36% increase [17] - Nutritional specialties and vaccines saw substantial growth, with nutritional specialties increasing by 11% in Q4 and 9% for the full year, while vaccines grew by 21% in Q4 and 13% for the full year [15][17] - The Mineral Nutrition segment had Q4 net sales of $64.2 million, a 3% increase, and for the full year, $253.2 million, a 4% increase [18][19] Market Data and Key Metrics Changes - The company experienced strong demand across various geographies, particularly in Latin America for poultry products and in the U.S. for swine products [16][17] - The integration of the Zoetis medicated feed additive portfolio is progressing well, with expectations to operate independently by Q4 2025 [41][42] Company Strategy and Development Direction - The company is focused on its "Fiber Forward" strategy, which aims to enhance operations, global footprint, and innovation pipeline [10][11] - Investments are being made in scaling operations and strengthening customer relationships through initiatives like global procurement [34][35] - The guidance for fiscal year 2026 reflects confidence in continued growth, with projected net sales between $1.425 billion and $1.475 billion [10][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for products globally and anticipates continued improvement in business performance [24] - The guidance for fiscal year 2026 includes expectations for organic growth driven by the full twelve months of Zoetis contributions and continued strong performance in vaccines and nutritional specialties [27][28] Other Important Information - The company generated $42 million in positive free cash flow for the twelve months ended June 30, 2025 [20] - Corporate expenses increased due to higher employee-related costs and strategic investments [19] Q&A Session Summary Question: What does guidance now assume in terms of the underlying organic growth? - Management indicated that the guidance assumes a mix of growth from the Zoetis portfolio and continued strong performance in vaccines and nutritional specialties, with legacy MFA growth expected to be flat to low single digits [27][28] Question: Can you quantify expectations for the Fiber Forward initiative? - Management expects contributions from the Fiber Forward initiative to continue driving growth, with significant earnings growth anticipated in fiscal year 2026 [31][32] Question: Where are we in terms of the Zoetis integration process? - The integration is progressing well, with major system implementations complete and expectations to operate independently by Q4 2025 [41][42] Question: What is the expected growth of the legacy MFA business? - The legacy MFA business is expected to grow flat to low single digits, with no significant pull forward in sales due to tariffs [56][58]

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]

Financial Performance - Q3 FY2025 - Consolidated net sales increased to $347.8 million, compared to $263.2 million in Q3 FY24[12] - Consolidated adjusted EBITDA increased to $45 million, an 85% increase compared to $29.7 million in Q3 FY24[12] - Animal Health sales increased by 42% to $258.4 million[10, 16] - Animal Health adjusted EBITDA increased by 73% to $63.1 million[10, 16] - Mineral Nutrition net sales increased by 4% to $66.8 million[10, 20] - Performance Products net sales increased by 28% to $22.7 million[10, 21] FY2025 Guidance - Net sales are projected to be between $1.260 billion and $1.290 billion[11] - Adjusted EBITDA is projected to be between $177 million and $183 million[11] - Adjusted EPS is projected to be between $1.96 and $2.09[11] Capitalization - Free cash flow was $49 million for the trailing twelve months[25] - The company has a gross leverage ratio of 3.0x, with $734 million in total debt[25] - The company has a net leverage ratio of 2.7x, with $664 million in net debt[25]

Core Insights - Phibro Animal Health (PAHC) reported a revenue of $347.8 million for the quarter ended March 2025, marking a year-over-year increase of 32.1% and an EPS of $0.63 compared to $0.31 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $350.54 million by 0.78%, while the EPS exceeded the consensus estimate of $0.52 by 21.15% [1] Financial Performance - The company’s net sales by region showed varied performance: - United States: $209.94 million, a 31.8% increase year-over-year, but below the estimated $221.68 million [4] - Asia Pacific: $28.22 million, a significant 65.2% increase year-over-year, exceeding the estimate of $23.44 million [4] - Europe, Middle East and Africa: $38.91 million, a 17.3% increase year-over-year, below the estimate of $48.03 million [4] - Latin America and Canada: $70.75 million, a 31.9% increase year-over-year, surpassing the estimate of $55.39 million [4] Segment Performance - Animal Health segment reported net sales of $258.40 million, a 42.5% increase year-over-year, but below the estimate of $265.65 million [4] - Mineral Nutrition segment reported net sales of $66.80 million, a 4% increase year-over-year, slightly below the estimate of $66.88 million [4] - Animal Health Vaccines reported net sales of $33.40 million, a 1.5% increase year-over-year, below the estimate of $38.78 million [4] - Animal Health MFAs and other reported net sales of $181.60 million, a substantial 67.8% increase year-over-year, exceeding the estimate of $155.57 million [4] - Performance Products reported net sales of $22.70 million, a 28.5% increase year-over-year, surpassing the estimate of $18.01 million [4] EBITDA Performance - Adjusted EBITDA for the Animal Health segment was $63.10 million, above the average estimate of $60.59 million [4] - Adjusted EBITDA for the Corporate segment was -$17.30 million, better than the estimated -$19.57 million [4] Stock Performance - Phibro's shares have returned +6.5% over the past month, compared to the Zacks S&P 500 composite's +10.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]