10-Q · May 6, 2026
Phibro Animal Health Corporation's Q3 2026 results reflected a revenue of $365.5 million, slightly short of consensus estimates of $365.8 million. The diluted EPS was reported at $0.68, missing projections of $0.71,…
Earnings analysis · 10-K
PAHC earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
Phibro delivered a strong fiscal 2026, with revenue up 17% to $1.518 billion, diluted EPS rising to $2.43 from $1.19, and operating margin expanding to 12.8% from 8.5%. Growth was led by the Zoetis MFA portfolio and…
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Phibro delivered a strong fiscal 2026, with revenue up 17% to $1.518 billion, diluted EPS rising to $2.43 from $1.19, and operating margin expanding to 12.8% from 8.5%. Growth was led by the Zoetis MFA portfolio and broader Animal Health demand, while Mineral Nutrition also grew and Performance Products declined. The company is investing in vaccine capacity, microbial products and companion-animal offerings, but Brazil’s antimicrobial restrictions, Israel exposure and the planned Chicago Heights closure create meaningful execution and regulatory risks.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $2.43
What stood out
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Strong three-year growth and margin expansion
Net sales increased from $1,017.7 million in fiscal 2024 to $1,296.2 million in fiscal 2025 and $1,518.1 million in fiscal 2026. Gross margin expanded from 30.8% to 30.9% and then 33.8%, while operating margin improved from 5.2% to 8.5% and 12.8%.
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Animal Health drove earnings growth
Animal Health was the primary growth engine, with sales rising $199.4 million, or 21%, to $1,162.2 million. Animal Health Adjusted EBITDA increased to $303.6 million from $222.3 million, and its margin expanded to 26.1% from 23.1%.
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Zoetis acquisition integration is scaling
The Zoetis MFA portfolio contributed $358.2 million of revenue in fiscal 2026 versus $208.2 million in fiscal 2025. The acquisition added more than 37 product lines, six manufacturing sites and approximately 80 countries to the company’s portfolio.
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Broad portfolio supports global positioning
Phibro markets approximately 790 product lines in approximately 90 countries to approximately 4,800 customers. Its roadmap includes next-generation vaccine technologies, microbial and bioproduct programs, expanded product claims and species indications, and companion-animal launches including Restoris in October 2025.
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Growth was broad by geography
Revenue growth was broad outside Performance Products: United States sales increased to $877.1 million, Latin America and Canada to $340.7 million, EMEA to $187.9 million and Asia Pacific to $112.4 million. Performance Products declined $6.6 million, or 8%, due to lower personal-care ingredient demand.
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Capacity investment continued amid deleveraging
Operating cash flow was $69.0 million in fiscal 2026 versus $80.1 million in fiscal 2025 and $87.6 million in fiscal 2024, while capital expenditures increased to $59.1 million from $38.3 million. The company paid $19.5 million of dividends and $16.3 million of scheduled long-term debt principal in fiscal 2026.
What to watch
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Brazil antimicrobial restriction
On April 27, 2026, Brazil’s MAPA prohibited antimicrobial feed additives classified as important in human or veterinary medicine, including virginiamycin, for performance enhancement, subject to a 180-day transition period. Brazil virginiamycin sales were approximately $27 million in fiscal 2026, although the company said therapeutic registrations were in the final stages of review.
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Israeli operations face conflict exposure
The company has three manufacturing sites in Israel and approximately 525 employees there. Israeli operations represented 18% of consolidated assets and 16% of consolidated net sales for the twelve months ended June 30, 2026; escalation of regional conflicts could disrupt facilities, supply chains, personnel and raw-material availability.
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Manufacturing consolidation execution risk
In August 2026, management decided to close the Chicago Heights manufacturing facility, with production shutdown expected in summer 2027. Production will be relocated to other facilities and third-party manufacturers, but the company stated it cannot yet reasonably estimate all financial impacts.
Management's outlook
The 10-K does not provide new forward revenue or EPS guidance. Prior fiscal 2026 guidance of $1.46-$1.50 billion revenue and $2.25-$2.44 EPS was superseded by reported fiscal 2026 results.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.