Phibro Animal Health (PAHC) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY26 rose 21% year-over-year to $373.9 million, driven by strong Animal Health segment growth and the integration of the MFA portfolio, including the Zoetis acquisition.

• Adjusted EBITDA grew 41% to $68.1 million, and adjusted net income rose 60% to $35.7 million.

• Net income increased to $27.5 million from $3.2 million, with diluted EPS up to $0.67 from $0.08.

• Leadership transition announced, with Donnie Bendheim to become CEO in July, ensuring continuity and momentum.

• Full-year guidance was raised, reflecting continued momentum in core businesses and successful portfolio integration.

Financial highlights

• Gross profit increased 30% to $132.7 million, with gross margin up to 35.5% from 32.9% year-over-year.

• Operating income nearly doubled to $50.3 million, up $24.8 million year-over-year.

• Free cash flow for the trailing twelve months was $47.3 million; cash and equivalents stood at $74.5 million.

• Quarterly dividend of $0.12 per share, totaling $4.9 million paid.

• Interest expense increased to $11.8 million due to higher debt from the acquisition financing.

Outlook and guidance

• Fiscal 2026 net sales guidance raised to $1.45–$1.5 billion (12–16% growth, midpoint 14%).

• Adjusted EBITDA guidance increased to $245–$255 million (33–39% growth, midpoint 36%).

• Adjusted net income guidance raised to $120–$127 million (41–49% growth, midpoint 45%).

• Adjusted diluted EPS projected at $2.93–$3.10, up 44%.

• Adjusted effective tax rate expected to remain at 25%.