PAHC · Phibro Animal Health Corporation

Phibro Animal Health delivered a robust third quarter for fiscal 2026, characterized by broad-based strength in its core Animal Health segment. Net sales rose 10% to $383.5 million, primarily fueled by a 13% increase in Animal Health, which benefited from the contribution of the MFA portfolio acquired in late 2024 and strong demand for nutritional specialties and vaccines. This growth offset a 17% decline in the smaller Performance Products segment, which faced lower demand for personal care ingredients. Operationally, the company demonstrated significant leverage, expanding gross margin by 270 basis points to 32.8%. This expansion was driven by increased sales volume, favorable product mix, and higher average selling prices, although these gains were partially offset by rising input and distribution costs. Consequently, Adjusted EBITDA grew 11% to $60.8 million. Selling, general, and administrative expenses increased 14%, largely due to higher employee-related costs and investments in the Phibro Forward growth initiatives. Management highlighted recent strategic actions, including a $125 million expansion of the revolving credit facility to $435 million, which strengthens liquidity. Looking forward, management raised full-year guidance, projecting Adjusted EBITDA of $247 million to $255 million, implying 37% year-over-year growth at the midpoint. This updated outlook reflects improved visibility and confidence in continued momentum despite potential regulatory headwinds in Brazil.