Phibro Animal Health (NasdaqGM:PAHC) Q2 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsDonnie Bendheim - EVP of Corporate Strategy and CEO DesignateEkaterina Knyazkova - Equity Research AssociateGlenn David - CFOJack Bendheim - Chairman, President, and CEOLarry Miller - COOLinda Bolduc - VP, Equity Research Healthcare ServicesConference Call ParticipantsNavann Ty - Lead Analyst for HealthcareNone - AnalystOperatorHello, and thank you for standing by. My name is Regina, and I will be yo ...

Phibro Animal Health (NasdaqGM:PAHC) Q2 2026 Earnings call February 05, 2026 09:00 AM ET Company ParticipantsDonnie Bendheim - EVP of Corporate Strategy and CEO DesignateEkaterina Knyazkova - Equity Research AssociateGlenn David - CFOJack Bendheim - Chairman, President, and CEOLarry Miller - COOLinda Bolduc - VP, Equity Research Healthcare ServicesConference Call ParticipantsNavann Ty - Lead Analyst for HealthcareNone - AnalystOperatorHello, and thank you for standing by. My name is Regina, and I will be yo ...

Phibro Animal Health (NasdaqGM:PAHC) Q2 2026 Earnings call February 05, 2026 09:00 AM ET Speaker4Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phibro Animal Health Corporation Second Quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during thi ...

The Zacks Medical - Products industry is grappling with a challenging operating environment due to the tariffs imposed by the United States on multiple trading partners, including China, Europe and India. The increasing tariff rates are hurting the margins of several medical device makers, including GE HealthCare, Baxter and Abbott.The medical device makers have faced a persistent rise in commodity and manufacturing costs post COVID-19, particularly in consumer-facing areas like Nutrition. Price hikes imple ...

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]