Phibro Animal Health completed its first full fiscal year following a significant acquisition of a medicated feed additive portfolio, with results released on August 27. The company reported full-year net sales of $1.5 billion, adjusted EBITDA that rose 39% to $255 million, and adjusted diluted earnings per share that increased 48% to $3.22 for the year ended June 30.
The acquired feed additive business contributed $354.3 million in sales and grew 70% during the full year. Beyond the acquisition, the Animal Health segment expanded 21% to $1.162 billion, Mineral Nutrition climbed 11% to $282.3 million driven by stronger demand for zinc and copper, and vaccine sales rose 14% to $156.4 million supported by poultry demand in Latin America and Israel. Nutritional Specialties also grew, bolstered by North American dairy customers. Management highlighted that the companion animal joint health product Rejensa showed improvement through expanded distribution channels, and noted that elevated livestock values are encouraging customers to increase animal health spending.
The company’s three-year efficiency initiative formally concluded in June and is expected to contribute roughly $50 million in cumulative EBITDA benefits during fiscal 2027. Additionally, a planned closure of the Chicago Heights facility is projected to generate $15 million to $20 million in annual savings beginning in fiscal 2028. However, free cash flow for fiscal 2026 totaled just $9.9 million, constrained by an $86.3 million inventory buildup associated with the acquired portfolio. Total debt reached $737.9 million with a gross leverage ratio of 2.9 times EBITDA.
Guidance for fiscal 2027 projects net sales of $1.55 billion to $1.6 billion and adjusted EBITDA of $258 million to $268 million, representing approximately 3% to 4% growth at the midpoint compared to this year’s performance. Management attributed the moderation partly to difficult year-over-year comparisons and anticipated negative EBIT growth in the first quarter due to an expanded selling, general and administrative cost base. The company also flagged that virginiamycin sales in Brazil are expected to decline sharply from $27 million in fiscal 2026, which will disproportionately impact EBITDA given the product’s high margins.
Hedge fund ownership declined from 24 funds to 17 funds over recent quarters, while short interest stood at 6.96% of float, suggesting mixed institutional sentiment despite improved financial performance. The results demonstrate the integration worked, but fiscal 2027 guidance indicates that stronger growth rates may not resume without sustained expansion from legacy operations and newer product initiatives.
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