Executive Summary

Strong Q1 FY26 with 40% revenue growth to $363.9M, Adjusted EBITDA +102% YoY to $61.9M, and adjusted EPS of $0.73; management raised FY26 Adjusted EBITDA and adjusted EPS guidance while holding revenue guidance flat .
Outperformance was led by Animal Health (+55% YoY) with MFAs and Other up 81% (including ~$80.5M from the October 2024 Zoetis MFA acquisition), plus double-digit growth in Nutritional Specialties and Vaccines; gross margin expanded ~80 bps to 32.9% (33.2% ex purchase accounting) .
Beats vs S&P Global consensus on revenue, adjusted EPS, and EBITDA; management expects margins to moderate in coming quarters as mix normalizes and investments ramp (e.g., Restoris launch), explaining why revenue guidance was unchanged despite the top-line beat .
Headwinds are higher interest expense from acquisition financing and swap expiration and larger FX losses; leverage remains elevated (3.3x gross, 2.9x net) but improving with positive LTM FCF and Q1 profitability .

What Went Well and What Went Wrong

What Went Well

Animal Health momentum: segment sales +55% YoY to $283.5M; MFAs and other +81% with ~$80.5M from acquired portfolio; Nutritional Specialties +13%; Vaccines +25% . CEO: “Phibro delivered an outstanding start…Animal Health was the clear growth engine” .
Margin expansion: gross margin up to 32.9% (33.2% ex purchase accounting), aided by favorable mix and pricing; segment-level EBITDA margin improved (Total adjusted EBITDA margin 17.0% vs 11.8% LY) .
Guidance raised for FY26 Adjusted EBITDA ($230–$240M) and adjusted EPS ($2.64–$2.81), reflecting stronger mix and expense favorability; management confident in protein market fundamentals .

What Went Wrong

Higher financing costs: interest expense +$4.4M YoY to $12.1M from acquisition debt and swap expiration; FX losses rose to $2.9M vs $0.4M LY .
Performance Products softness: segment sales -7% YoY to $17.4M on lower personal care ingredients demand .
Revenue guidance unchanged despite beat; management cited only one quarter in, mix-driven gross margin favorability, and anticipated investment ramp (Restoris) leading to some margin moderation later in the year .

Financial Results

Actual vs S&P Global Consensus – Q1 FY26

Metric	Q1 2026 Actual	Q1 2026 S&P Consensus
Revenue ($USD)	$363.9M	$345.4M*
Adjusted EBITDA ($USD)	$61.9M	$49.8M*
Adjusted Diluted EPS ($USD)	$0.73	$0.603*

Values with asterisks are from S&P Global consensus via GetEstimates; Values retrieved from S&P Global.

Trend vs prior two quarters

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD)	$347.8M	$378.7M	$363.9M
GAAP Diluted EPS ($)	$0.51	$0.42	$0.65
Adjusted Diluted EPS ($)	$0.63	$0.57	$0.73
Adjusted EBITDA ($USD)	$54.9M	$50.0M	$61.9M
Gross Margin % (GAAP)	30.1%	29.0%	32.9%
Operating Margin % (GAAP)	9.6%	8.9%	14.1%
Net Income Margin % (GAAP)	6.0%	4.5%	7.3%
Adjusted EBITDA Margin %	15.8%	13.2%	17.0%

Segment Breakdown (Net Sales)

Segment ($USD)	Q3 2025	Q4 2025	Q1 2026
MFAs & Other	$181.6M	$206.5M	$195.2M
Nutritional Specialties	$43.4M	$47.4M	$48.2M
Vaccines	$33.4M	$38.6M	$40.1M
Animal Health (Total)	$258.4M	$292.5M	$283.5M
Mineral Nutrition	$66.8M	$64.2M	$63.0M
Performance Products	$22.7M	$22.1M	$17.4M
Total	$347.8M	$378.7M	$363.9M

KPIs and Balance Sheet Highlights (LTM where specified)

KPI	Q3 2025	Q4 2025	Q1 2026
Free Cash Flow (LTM)	$49.1M	$41.8M	$34.3M
Total Debt	$734.2M	$725.1M	$749.1M
Cash & ST Investments	$70.4M	$77.0M	$85.3M
Gross Leverage	3.0x	3.1x	3.3x
Net Leverage	—	—	2.9x
LTM Adjusted EBITDA	$245.2M	$230.8M	$226.9M (incl. 1-mo pre-close Zoetis)

Guidance Changes

Metric	Period	Previous Guidance (8/27/25)	Current Guidance (11/5/25)	Change
Net Sales	FY2026	$1.43B–$1.48B	$1.43B–$1.48B	Maintained
Adjusted EBITDA	FY2026	$225M–$235M	$230M–$240M	Raised
Adjusted Net Income	FY2026	$103M–$110M	$108M–$115M	Raised
Adjusted Diluted EPS	FY2026	$2.52–$2.70	$2.64–$2.81	Raised
GAAP Net Income	FY2026	$73M–$83M	$75M–$85M	Raised
GAAP Diluted EPS	FY2026	$1.79–$2.03	$1.83–$2.08	Raised
Adjusted Effective Tax Rate	FY2026	~25%	~25%	Maintained
Dividend	Q1 FY26	—	$0.12/sh payable Dec 17, 2025 (record Nov 26, 2025)	Declared

Earnings Call Themes & Trends

Topic	Q-2 (Q3 2025)	Q-1 (Q4 2025)	Current (Q1 2026)	Trend
Animal Health/MFA growth	AH +42% YoY; MFA & Other +68% (Zoetis MFA contribution)	AH +53% YoY; MFA & Other +77%	AH +55% YoY; MFA & Other +81%; legacy MFA +6%	Improving scale; sustained demand
Margins/mix	Adj gross margin 32.0%	Adj gross profit ratio 30.0%	Gross margin 32.9% (33.2% ex PA); CFO expects some moderation as investments ramp	Favorable mix; modest moderation ahead
Guidance posture	FY25 raised intra-year; FY26 set to 25–30% Adj EBITDA growth narrative	Introduced FY26: Adj EBITDA $225–$235M	Raised FY26 Adj EBITDA to $230–$240M; left revenue flat	Upward bias on earnings
FX and interest	FX gains in Q3’25 (+$5.5M) offset prior-year losses; interest higher YoY	FX losses narrowed vs prior year; interest higher on debt	FX losses ($2.9M) and higher interest expense (+$4.4M)	Continued headwind
Phibro Forward	Early benefits from SKU rationalization, procurement, manufacturing	Ongoing, with charges and consulting costs	Cited as driver of execution and margin; included in guidance	Structural efficiency
Tariffs/macro	Monitoring; not material in FY25; mitigation for FY26 underway	—	Management cites resilient protein markets; poultry, beef, pork, dairy supportive	Macro supportive for protein
Companion animal strategy	—	—	Launch of Restoris dental gel; licensed periodontal therapeutic; rationale and clinic workflow benefits	New growth vector

Management Commentary

CEO Jack Bendheim: “Phibro delivered an outstanding start to fiscal 2026…Animal Health was the clear growth engine, rising 55%…driven by strong demand for MFAs, nutritional specialties, and vaccines.” He highlighted resilient protein markets and confidence to invest behind innovation (e.g., Restoris) while raising full-year earnings guidance .
CFO Glenn David on margins and guidance: “We saw good favorability in Q1…driven by mix…we would expect margins to drop a little bit as we move through the year,” explaining the decision to raise earnings guidance but not revenue guidance after one quarter .
EVP Corporate Strategy (Dani/Donny Bendheim) on Restoris and licensing: Dental is an unmet need (only ~15% of owners do annual dental; ~4% brush daily). Restoris enables non-surgical clinic procedures and better utilization (vet tech application), while the licensed drug is a longer-term daily/weekly prophylactic opportunity .

Q&A Highlights

MFA sustainability and pricing: Demand remains strong across poultry, swine, and beef; legacy and acquired portfolios show synergies. Pricing impact for the acquired MFAs will become more visible in Q2–Q4; Q1 growth largely volume as there was no prior-year comparator for the acquired portfolio .
Margin trajectory: Q1 benefited from mix (strong vaccines and nutritional specialties) and expense timing; expect some margin moderation as launch investments (e.g., Restoris) ramp through the year .
Guidance philosophy: Revenue guidance unchanged given early in the year; earnings guidance raised to reflect mix and expense favorability .
End-market demand: Management cited structural support for animal proteins (consumer preference shifts, lower feed costs, positive livestock profitability) and Phibro’s expanded global footprint post-MFA acquisition .

Estimates Context

PAHC beat S&P Global consensus on revenue ($363.9M vs $345.4M*), adjusted EBITDA ($61.9M vs $49.8M*), and adjusted EPS ($0.73 vs $0.603*) for Q1 FY26 . Values retrieved from S&P Global.
Implied upside drivers: stronger mix (vaccines, nutritional specialties), rapid MFA integration, pricing initiatives on acquired portfolio to contribute in Q2–Q4 per management .
Estimate revisions: Street models likely to lift FY26 EBITDA/EPS to reflect raised guidance; revenue likely unchanged near term given company’s maintained sales outlook .

Key Takeaways for Investors

Broad-based top-line strength with high-quality mix drove a clean beat and upward earnings guidance revision; focus on sustainability of margin mix and the pacing of investment spend .
MFA acquisition synergies and pricing actions should support gross profit trajectory into Q2–Q4; watch for price realization commentary next quarter .
Balance sheet levered but manageable: gross leverage 3.3x (net 2.9x) with positive LTM FCF; continued EBITDA growth supports deleveraging path, though higher interest expense remains a headwind .
Companion animal dental portfolio (Restoris now, licensed drug longer-term) opens a differentiated growth vertical with attractive clinic workflow economics; execution milestones (adoption, distribution, early sales) are near-term proof points .
Near-term trading catalysts: Q2 update on MFA pricing and mix, margin cadence vs guidance, Restoris uptake metrics, and any shifts in FX/interest expense; potential for further earnings guidance tightening if mix holds .
Risk checks: FX volatility (Argentina, Israel), personal care demand softness in Performance Products, and cost of debt; revenue guidance conservatism suggests prudence on top-line run-rate .

Additional details and source documents:

Q1 FY26 8-K press release with results and guidance .
Q1 FY26 earnings call transcript (prepared remarks and Q&A) .
Dividend declaration ($0.12 per share) .
Companion animal licensing press release (Lighthouse Pharmaceuticals) .
Prior quarters for trend context: Q3 FY25 press release ; Q4 FY25 8-K press release and guidance .

Footnote: Values with asterisks (*) are S&P Global consensus estimates or actuals from the S&P dataset and are provided without document citations. Values retrieved from S&P Global.

PHIBRO ANIMAL HEALTH CORP (PAHC)·Q1 2026 Earnings Summary