Phibro Animal Health holds fiscal 2027 outlook after first-quarter beat

Phibro Animal Health Corporation reported results for the quarter that ended September 30, 2026, and kept its financial guidance in place for the fiscal year that ends June 30, 2027, as announced on November 4, 2026.

Net sales reached $386.8 million, up $22.9 million or 6%, net income rose to $29.5 million, up 11%, diluted earnings per share increased to $0.72, and adjusted EBITDA grew to $64.3 million, up 4%.¹

On the regulatory front, Phibro said it continues to seek approvals needed to make therapeutic claims for virginiamycin in Brazil. The company said that with the Brazilian election now concluded, it is optimistic that movement on those approvals could follow.¹ The company's guidance has not changed to reflect any benefit from a future approval. Within the Animal Health segment, sales of MFAs and other products grew 6%, aided by demand in North America and Asia, though this was partly offset by lower virginiamycin sales in Brazil tied to the regulatory situation there.¹

On capital allocation, CEO Dani Bendheim said the company generated positive cash flow in the first quarter and sees room to do more, especially around inventory management, calling improved working capital and cash conversion a top priority for fiscal 2027.¹

Phibro reported free cash flow of $21.7 million for the twelve months ended September 30, 2026, a gross leverage ratio of 2.9x, total debt of $739.6 million, and cash and short-term investments of $83.1 million as of that date.¹

For fiscal 2027, Phibro's guidance calls for net sales of $1.55 billion to $1.60 billion, net income of $122 million to $132 million, and adjusted EBITDA of $258 million to $268 million.¹ The company will discuss results on a conference call scheduled for November 5, 2026, at 9:00 AM Eastern.