Phibro Animal Health Corporation

What they do

Phibro develops, manufactures and markets products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture and dogs. Offerings include antibacterials, anticoccidials, nutritional specialty products, vaccines and vaccine adjuvants, plus mineral nutrition products that fortify animal diets. It sells directly to integrated poultry, cattle and swine producers and through feed manufacturers, wholesalers, distributors and veterinarians. It also makes ingredients for the personal care, industrial chemical and chemical catalyst industries.

Revenue drivers

• Animal Health — Largest segment, with fiscal 2026 net sales of $1,162 million versus $963 million in 2025; includes antibacterials, anticoccidials, vaccines, vaccine adjuvants, and antibacterials used in ethanol fermentation.
• Zoetis MFA portfolio — Acquired October 31, 2024 for about $297.5 million; the portfolio generated $407.6 million of revenue in 2023 and contributed $358.2 million and $208.2 million to Phibro net sales in fiscal 2026 and 2025.
• Mineral Nutrition — Products that fortify animal diets; reported as a separate segment alongside Animal Health and Performance Products, with segment-level sales disclosed in the 10-K.
• Performance Products — Ingredients sold directly to the personal care, industrial chemical and chemical catalyst industries; smallest of the three reported segments.

Recent performance

Fiscal 2026 net sales were $1,518.1 million, up $221.9 million or 17% from fiscal 2025, and net income was $99.7 million versus $48.3 million. Diluted EPS was $2.43, up $1.24, and Adjusted EBITDA rose 39% to $255.0 million. Fourth-quarter net sales were $396.7 million, up 5%, with net income of $21.7 million and diluted EPS of $0.53. Operating cash flow was $69.0 million in fiscal 2026, down from $80.1 million in fiscal 2025.

Strategy

Management closed the Zoetis medicated feed additive acquisition in October 2024, adding more than 37 product lines and six manufacturing sites, and is now consolidating that network. The company will close its Chicago Heights manufacturing facility, with production expected to cease in summer 2027 and products moved to other Phibro sites and third-party contract manufacturers; about 100 employees are affected. The three-year Phibro Forward transformation program formally concluded June 30, 2026, and management credits it with improving accountability and execution. Phibro is also investing to develop products for the companion animal sector, though the business remains concentrated in livestock.

Risks

• Virginiamycin Brazil approval — Fiscal 2027 guidance assumes only minimal virginiamycin sales in Brazil pending therapeutic indications, with the current phase-out period expiring in about a month.
• Mecadox (carbadox) withdrawal — The company cites potential FDA withdrawal of approval of its Mecadox product as a risk factor.
• Antibacterial regulation and concentration — A material portion of sales and gross profits comes from antibacterials, and restrictions on antibacterial use in food-producing animals could become more prevalent under FDA Guidance 273 and similar initiatives.
• Middle East operations — Phibro has three manufacturing sites and an office in Israel, accounting for 17% of consolidated assets and 16% of net sales for the nine months ended March 31, 2026.

Outlook

For fiscal 2027 management guides net sales of $1.55 billion to $1.60 billion, Adjusted EBITDA of $258 million to $268 million, and Adjusted net income of $140 million to $147 million. The guidance assumes minimal virginiamycin sales in Brazil. Management says it expects continued growth across its businesses with a prudent view of known uncertainties.