Key Takeaways
- Q2 net sales rose 21% year over year to $373.9 million, fueled primarily by growth in the Animal Health segment.
- Integration of the MFA portfolio continues to exceed expectations, contributing significantly to revenue and profitability.
- Adjusted EBITDA increased 41% to $68.1 million, reflecting higher sales, favorable product mix, and pricing.
- Phibro raised its FY 2026 outlook, now projecting net sales of $1.45–$1.50 billion and adjusted EBITDA of $245–$255 million.
Phibro Animal Health Corporation reported financial results for its second quarter ended December 31, 2025, highlighting strong operational execution and accelerating momentum following the integration of its MFA portfolio acquired in late 2024.
Net sales for the quarter reached $373.9 million, an increase of 21% compared with the prior-year period. Growth was driven primarily by the Animal Health segment, where sales rose 26% to $290.0 million. The increase reflects incremental revenues from the MFA portfolio, continued demand for nutritional specialty products—particularly in North American dairy—and expanding vaccine sales, led by poultry products in Latin America and increased international demand in Southeast Asia.
Profitability and Operating Performance
Gross profit increased 30% year over year to $132.7 million, with gross margin expanding 260 basis points to 35.5%. Excluding acquisition-related purchase accounting impacts, margin expansion was supported by higher sales volumes, favorable product mix, and pricing improvements, partially offset by higher input, distribution, and foreign exchange costs.
Net income for the quarter rose to $27.5 million, compared with $3.2 million in the prior year. Adjusted net income increased 60% to $35.7 million, while adjusted EBITDA climbed 41% to $68.1 million. Adjusted diluted earnings per share increased to $0.87 from $0.55 in the prior-year period.
Updated Fiscal 2026 Outlook
Based on its second-quarter performance and continued momentum across the business, Phibro raised its fiscal year 2026 financial guidance. The company now expects net sales of $1.45 billion to $1.50 billion, representing approximately 14% growth year over year. Adjusted EBITDA is projected to range from $245 million to $255 million, with adjusted diluted EPS of $2.93 to $3.10.
Information sourced from the company’s press release.
