Phibro Animal Health (PAHC) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 2026 rose 10% year-over-year to $383.5 million, led by Animal Health's 13% growth, supported by the acquisition of a medicated feed additive portfolio.

• Adjusted EBITDA increased 11% to $60.8 million, with net income up 15% to $24.0 million and adjusted net income up 19% to $31.2 million.

• Gross margin improved to 32.8%, and operating income rose 33% to $44.7 million.

• Launched the VERRATAIN sustainable solutions platform and upsized revolving credit facility by $125 million.

• CEO transition to Danny Bendheim effective July.

Financial highlights

• Q3 consolidated net sales reached $383.5 million, up 10% year-over-year; nine-month sales were $1,121.3 million, up 22%.

• Adjusted EBITDA for the quarter was $60.8 million, up 11%; for nine months, $190.7 million, up 43%.

• Net income for the quarter was $24.0 million, with diluted EPS up 16% to $0.59 and adjusted diluted EPS up 19% to $0.76.

• Gross profit for the quarter was $125.7 million, up 20%; gross margin rose to 32.8%.

• Free cash flow for the trailing twelve months was $12.8 million; cash and equivalents plus short-term investments totaled $77.5 million.

Outlook and guidance

• FY2026 net sales guidance raised to $1.46–$1.5 billion, representing 13–16% growth.

• Adjusted EBITDA guidance increased to $247–$255 million, up 34–39% year-over-year.

• Adjusted net income guidance raised to $122–$127 million, up 44–49% year-over-year; adjusted diluted EPS forecasted at $2.98–$3.10.

• Guidance incorporates potential impacts from Middle East conflict, regulatory changes in Brazil, and assumes no additional FX gains/losses or tariff recoveries.

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