Phibro Animal Health Corporation (PAHC) reported its second‑quarter 2026 financial results on February 5 2026, showing net sales of $373.9 million, a 21% year‑over‑year increase. The company’s adjusted EBITDA rose to $68.1 million, up 41% from the same period a year earlier, and adjusted diluted earnings per share reached $0.87, beating the consensus estimate of $0.69 by $0.18 or 26%.
Net income surged to $27.5 million, a 715% increase from $3.2 million in the prior year, reflecting the impact of the Zoetis Medicated Feed Additive (MFA) portfolio integration and the company’s disciplined cost management. The strong earnings beat was driven by higher gross margins, a favorable product mix, and the MFA portfolio’s contribution of $57.5 million in incremental revenue.
Adjusted EBITDA growth was supported by a 41% rise in operating income, largely attributable to the MFA portfolio’s $57.5 million incremental sales and the company’s ability to maintain pricing power in its core animal‑health products. The MFA integration also helped lift the overall margin profile, as the higher‑margin feed additives offset lower‑margin legacy products.
Segment performance was led by the Animal Health division, which delivered the largest share of the revenue growth. Mineral Nutrition also experienced growth, while the Performance Products segment saw a decline, underscoring the company’s focus on high‑margin animal‑health solutions.
Management raised its fiscal‑year 2026 guidance, projecting net sales of $1.45 billion to $1.50 billion and adjusted EBITDA of $245 million to $255 million—an upward revision from the previous $1.425 billion to $1.475 billion and $230 million to $240 million. The guidance increase reflects confidence in continued demand for the MFA portfolio, the Phibro Forward operational program, and the normalization of working‑capital needs.
CEO Jack Bendheim said, “Phibro has achieved exceptional results this quarter, fueled by robust demand in our Animal Health segment and the successful integration of the Zoetis Medicated Feed Additive portfolio. The momentum we’ve established positions us favorably for the remainder of fiscal 2025 and beyond.”
The company noted that the increased interest expense from MFA financing and the expiration of a favorable interest‑rate swap will be offset by higher operating cash flow as working‑capital needs normalize. Foreign‑currency losses, particularly in the Brazilian real, remain a headwind but are expected to be mitigated by the company’s hedging strategy.
Overall, the results demonstrate strong execution, margin improvement, and a clear path to sustained growth, reinforcing Phibro’s position as a leading provider of animal‑health solutions.
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