Phibro Animal Health Corp (PAHC) · Aug 26, 2026 · Earnings

Phibro Animal Health beats Q4 estimates, but FY27 growth slows and plant closure looms

Beat — Adjusted EPS $0.85 vs ~$0.72 consensus

Phibro delivered a clear Q4 earnings beat and margin expansion, while modest FY27 growth, weak free cash flow and a plant closure temper the read.

The quarter beat a fairly modest market bar. Published estimates called for roughly $0.72-$0.73 of adjusted EPS and about $388.9 million of revenue; Phibro delivered $0.85 and $396.7 million, respectively, making the earnings upside more meaningful than the revenue beat.

MetricQ4 FY26Q4 FY25FY26FY27 guidancePublished expectation
Revenue$396.7M$378.7M$1,518.1M$1.55B-$1.60B~$388.9M Q4
Adjusted EPS$0.85$0.63$3.22$3.41-$3.59~$0.72-$0.73 Q4; ~$3.28 FY27
Adjusted EBITDA$64.2M$50.0M$255.0M$258M-$268M~$265M FY27
Adjusted net income$35.0M$25.6M$131.7M$140M-$147M—
Gross margin33.9%29.0%33.8%——
Free cash flow——$9.9M——

The quality of the earnings improvement was strong, but not entirely clean. Gross profit rose 22% in the quarter and adjusted gross margin expanded to 34.6%, helped by volume, product mix and a $4.3 million tariff-recovery benefit. Animal Health drove the operating leverage, with quarterly adjusted EBITDA up 25%, while Mineral Nutrition EBITDA was flat.

The underlying trend is better than the headline revenue growth suggests, but the base is changing. Full-year sales increased 17%, largely because the MFA acquisition contributed $146.1 million of incremental revenue; however, fourth-quarter Animal Health sales grew only 2%, and MFA portfolio sales declined year over year. Performance Products also fell 8% for the full year.

FY27 guidance implies continued profit growth, but sharply less acceleration. The midpoint calls for about 4% revenue growth, 3% adjusted EBITDA growth and 9% adjusted net income growth, versus FY26 growth of 17%, 39% and 49%, respectively. The adjusted EPS midpoint of $3.50 is above the roughly $3.28 published estimate, while the EBITDA midpoint of $263 million is slightly below the roughly $265 million expectation—suggesting the outlook is solid but not a broad-based upside reset. 〔0〕

The main offset is execution and cash conversion. Free cash flow was only $9.9 million against $255.0 million of adjusted EBITDA, while total debt stood at $737.9 million and gross leverage at 2.9x. The planned Chicago Heights closure may improve the manufacturing footprint over time, but it affects roughly 100 employees and could create one-time charges excluded from GAAP guidance. 〔1〕

Net read: a genuine earnings beat, with a respectable but more measured outlook. The quarter lands clearly above expectations, and margin expansion supports the result; the slower FY27 growth profile, weak free-cash-flow conversion, higher interest expense and Brazil regulatory uncertainty keep this from being an unqualified upside reset.

What to watch next

Conference call, August 27, 2026

Original filing on SEC EDGAR

More Phibro Animal Health Corp news

Phibro Animal Health beats Q4 estimates, but FY27 growth slows and plant closure looms | PAHC Stock News
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