Phibro Animal Health profit jumps 43% in strong start to fiscal 2026

USA – Phibro Animal Health Corp. has reported a 43% surge in profit for the first quarter of its fiscal year 2026, crediting robust performance in its animal health division for the stellar results. 

The New Jersey-based company posted net income of US$26.5 million for the three months ended September 30, up by US$19.6 million from the same period last year.

Total net sales for the quarter rose 40% to US$363.9 million, exceeding analyst estimates of about US$347 million. 

President and CEO Jack Bendheim described the period as an “outstanding start to fiscal 2026,” noting that “animal health was the clear growth engine, rising 55% to US$283.5 million, driven by strong demand for MFAs (medicated feed additives), nutritional specialities and vaccines.”

Growth fueled by acquisitions and market demand

A major contributor to the gains was Phibro’s acquisition of a medicated feed additive (MFA) portfolio from Zoetis Inc. on October 31, 2024, which added approximately US$80.5 million in incremental revenue. 

Overall, MFA and related product sales jumped 81%, or US$87.4 million, aided by increased demand across North and South America.

Sales of nutritional speciality products rose 13% to US$5.5 million, boosted by higher demand for dairy and microbial products in North America. 

The mineral nutrition segment also grew by 7%, or US$3.9 million, thanks to strong demand for copper and trace minerals.

“Our customers are performing well, supported by resilient protein markets – sound poultry fundamentals, steady beef demand, disciplined pork supply, and robust dairy performance,” Bendheim said.

Phibro’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached US$61.9 million, surpassing forecasts and prompting the company to raise its full-year EBITDA guidance to as high as US$240 million.

Market performance and outlook

The strong results pushed Phibro’s stock near a 52-week high of US$46.42, representing a 121% return year-to-date and an 83% gain over the past 12 months. 

Despite this rally, analysts remain cautious, with most rating the stock as a “hold” and setting a median price target about 24% below current trading levels.

Following the results, analysts projected the company’s fiscal 2026 revenues to reach about US$1.46 billion, a 4.4% year-on-year increase, with earnings per share expected to rise 18% to US$1.98. 

However, forecasts have been slightly trimmed from prior expectations of US$2.04 per share, reflecting mild caution on near-term growth.

Meanwhile, filings show that Bendheim and BFI Co., LLC, a 10% shareholder, recently sold a combined 32,043 shares valued at roughly US$1.88 million. 

The transactions, executed under a prearranged trading plan, came as the company’s market capitalisation hit US$1.86 billion.

Despite the insider sales, Phibro maintains strong fundamentals, including a current ratio of 3.09, underscoring its liquidity position. 

With sustained momentum in animal health and new product innovation, such as the launch of Restoris, a dental gel for dogs, the company appears poised for continued growth in the year ahead.

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