# Phibro Animal Health Corp: Form 10-Q for the period ended Dec 31, 2025

- Company: [Phibro Animal Health Corp](/companies/pahc.md) (CIK 1069899)
- Form: 10-Q
- Filed: 2026-02-04
- Accepted by EDGAR: Feb 4, 2026, 16:16 ET
- Period: 2025-12-31
- Accession: 0001104659-26-010317
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1069899/000110465926010317/pahc-20251231x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1069899/000110465926010317/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-10-01 to 2025-12-31 | $373.9m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-07-01 to 2025-12-31 | $737.8m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-10-01 to 2025-12-31 | $241.3m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-07-01 to 2025-12-31 | $485.4m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-10-01 to 2025-12-31 | $132.7m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-07-01 to 2025-12-31 | $252.4m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-10-01 to 2025-12-31 | $82.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-07-01 to 2025-12-31 | $150.9m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-10-01 to 2025-12-31 | $50.3m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-07-01 to 2025-12-31 | $101.6m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-10-01 to 2025-12-31 | $12.5m | us-gaap:InterestExpenseNonoperating |
| Interest expense | 6 months, 2025-07-01 to 2025-12-31 | $25.0m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-10-01 to 2025-12-31 | $9.0m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-07-01 to 2025-12-31 | $18.7m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-10-01 to 2025-12-31 | $27.5m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-07-01 to 2025-12-31 | $54.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.67 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-07-01 to 2025-12-31 | $1.32 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.68 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-07-01 to 2025-12-31 | $1.33 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-10-01 to 2025-12-31 | 40,956,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-07-01 to 2025-12-31 | 40,916,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-07-01 to 2025-12-31 | $28.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-07-01 to 2025-12-31 | $24.9m | us-gaap:PaymentsToAcquireProductiveAssets |
| Dividends paid | 6 months, 2025-07-01 to 2025-12-31 | $9.7m | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | at 2025-12-31 | $55.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-12-31 | $862.2m | us-gaap:AssetsCurrent |
| Total assets | at 2025-12-31 | $1.41bn | us-gaap:Assets |
| Current liabilities | at 2025-12-31 | $282.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-12-31 | $1.07bn | us-gaap:Liabilities |
| Long-term debt | at 2025-12-31 | $603.6m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-12-31 | $20.6m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-12-31 | $332.4m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 64,997 characters.

### Introduction

Our management’s discussion and analysis of financial condition and results of operations (“MD&A”) is provided to assist readers in understanding our performance, as reflected in the results of our operations, our financial condition and our cash flows. The following discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and cash flows as of and for the periods presented. This MD&A should be read in conjunction with our consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Our future results could differ materially from our historical performance as a result of various factors such as those discussed in “Risk Factors” in Item 1A of our Annual Report and “Forward-Looking Statements.”

### Overview of our business

Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. We develop, manufacture and market a broad range of products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. Our products help prevent, control and treat diseases, and support nutrition to help improve animal health and well-being. In addition to animal health and mineral nutrition products, we manufacture and market specific ingredients for use in the personal care, industrial chemical and chemical catalyst industries.

### Acquisition

In April 2024, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Zoetis Inc., a Delaware corporation (“Zoetis”) to acquire Zoetis’s medicated feed additive (“MFA”) portfolio, certain water-soluble products and related assets (the “Acquisition”). On October 31, 2024, the Company completed the Acquisition at a purchase price of approximately $297.5 million ($286.5 million, as adjusted, net of cash acquired). The Acquisition was funded by term loan borrowings under the 2024 Credit Agreement. Since the Acquisition, the product portfolio acquired has contributed $382.8 million to our overall net sales, of which $94.1 million and $36.7 million were recorded in the three months ended December 31, 2025 and 2024, and $174.6 million and $36.7 million were recorded in the six months ended December 31, 2025 and 2024, respectively. Also included in the Acquisition are six manufacturing sites, comprised of four in the U.S., one in Italy and one in China. The results of operations of the Acquisition are included in our consolidated statements of operations from the date of acquisition and reported within the Animal Health segment.

### 2024 Credit Agreement

In July 2024, we entered into a Credit Agreement (the “2024 Credit Agreement”) with a group of lenders. Initial borrowings were used to refinance all our outstanding debt, to pay fees and expenses of the transaction, and for ongoing working capital requirements and general corporate purposes. Borrowings under the Delayed Draw Term A-1 and A-2 Loans were used to finance the purchase price of the Acquisition. See “Notes to Consolidated Financial Statements — Debt — 2024 Credit Agreement” for additional information.

### Armed Conflicts

#### Israel and Hamas

Since the October 2023 attack on Israel by Hamas, Israel has been engaged in ongoing hostilities along its northern and southern borders, and tensions in the broader Middle East, including with Iran, remain elevated. The situation in the region is volatile, unpredictable, and subject to rapid escalation.

We have three manufacturing sites in Israel. A manufacturing plant in Neot Hovav that produces active pharmaceutical ingredients for certain of our anticoccidial and antimicrobial products, a facility in Beit Shemesh that produces vaccines and a plant in Petah Tikvah that manufactures premix products and nutritional products. In addition, we have an office location near Tel Aviv in Airport City. As of December 31, 2025, we had approximately 500 employees located in Israel. We have confidence in our ability to meet our supply commitment to customers and maintain sufficient inventory to continue regional support. Our operations in Israel have navigated numerous challenging situations over the years.

The resumption of conflicts in this region may trigger bans, economic and other sanctions, as well as broader military conflict, which could include neighboring nations and their respective allies. The potential impact of the current conflict, or escalation thereof, on our business is unclear but may include, without limitation, the possible disruption of our operations, particularly at our facilities in Israel, supply chain and logistics disruptions, personnel and raw material shortages, and other consequences, including as a result of the actions of, or disruption of the operations of, certain regulatory and governmental authorities and of certain of our suppliers, collaborative partners, licensees, manufacturing sites, distributors and customers.

Our Israeli manufacturing facilities and local operations account for 16% of our consolidated assets as of December 31, 2025, and 16% of our consolidated net sales for the six months ended December 31, 2025.

#### Russia and Ukraine

In response to the armed conflict between Russia and Ukraine that began in February 2022, we and our employees have provided support to Ukraine in the form of monetary donations, free products and humanitarian services. Our limited intent for the Russian market is to continue to provide medicines and vaccines, and related regulatory and technical support, to help existing customers combat disease challenges in the production of food animals on their farms. We have no production or direct distribution operations and no planned investments in Russia.

Since the conflict began, the United States and other North Atlantic Treaty Organization (“NATO”) member states, as well as non-member states, announced targeted economic sanctions on Russia, including certain Russian citizens and enterprises. The continuation or escalation of the conflict may trigger additional economic and other sanctions, as well as broader military conflict. The potential impacts of any resulting bans, sanctions, boycotts or broader military conflicts on our business are uncertain. The potential impacts could include supply chain and logistics disruptions, macroeconomic impacts resulting from the exclusion of Russian financial institutions from the global banking system, volatility in foreign exchange rates and interest rates, inflationary pressures on raw materials and energy as well as heightened cybersecurity threats. Our sales to Russia and Ukraine for the twelve months ended December 31, 2025 represented approximately 1% of consolidated net sales.

We cannot know if the conflict could escalate and result in broader economic and security concerns that could adversely affect our business, financial condition, or results of operations.

### Macroeconomic developments

Macroeconomic developments, such as adverse economic conditions worldwide, international conflicts, or efforts of governments to stimulate or stabilize the economy or manage trade disputes, may adversely impact our business. For example, the U.S. government has instituted or proposed changes in trade policies that include the renegotiation or termination of existing trade agreements, the imposition of higher tariffs on imports into the United States, and other government regulations affecting trade between the United States and other countries. These measures could introduce supply chain inefficiencies, challenge current trade agreements with certain nations, and affect the cost and availability of materials critical to our products. Any such tariffs, if and when enacted, and any further legislation or actions taken by the U.S. government that restrict trade, such as additional tariffs, trade barriers, and other protectionist or retaliatory measures could adversely impact our ability to sell products and services in our markets. Countries may, in response to any U.S. actions, adopt retaliatory or other protectionist measures that could further limit our ability to offer our products and services. The ultimate impact of any tariffs will depend on various factors, including if any tariffs are ultimately implemented, the timing of implementation, and the amount, scope, and nature of the tariffs.

We believe global population growth, the growth of the global middle class and the productivity improvements needed due to limitations of arable land and water supplies have supported and will continue to support growth of the animal health industry.

### Regulatory developments

In April 2016, the Food and Drug Administration (“FDA”) began initial steps to withdraw approval of carbadox (the active ingredient in our Mecadox product) via a regulatory process known as a Notice of Opportunity for Hearing (“NOOH”), due to concerns that certain residues from the product may persist in animal tissues for longer than previously determined. In the years following, Phibro has continued an ongoing process of responding collaboratively and transparently to the FDA’s CVM inquiries and has provided extensive and meticulous research and data that confirmed the safety of carbadox. In July 2020, the FDA announced it would not proceed to a hearing on the scientific concerns raised in the 2016 NOOH, consistent with the normal regulatory procedure, but instead announced that it was withdrawing the 2016 NOOH and issuing a proposed order to review the regulatory method for carbadox. Phibro reiterated the safety of carbadox and the appropriateness of the regulatory method and offered to work with the CVM to generate additional data to support the existing regulatory method or select a suitable alternative regulatory method.

In March 2022, the FDA held a Part 15 virtual public hearing seeking data and information related to the safety of carbadox in which Phibro participated and again detailed the research and data that confirm the safety of carbadox. In November 2023, the FDA issued a final order to revoke the approved method for detecting carbadox residues. The FDA also provided notice in the Federal Register proposing to withdraw approval of all NADAs providing for use of carbadox in medicated swine feed and announcing an opportunity for Phibro to request a hearing on this proposal. This second action is based on CVM’s determination that there is no approved regulatory method to detect carbadox residues in the edible tissues of the treated swine. Phibro is continuing to defend swine producers’ ability to use Mecadox. We have requested a full evidentiary hearing on the merits before an administrative law judge. In January 2024, Phibro filed a lawsuit in the D.C. Federal District Court asking the court to invalidate the order which revoked the regulatory method for carbadox. Should we be unable to successfully defend the safety of the product, the loss of carbadox sales will have an adverse effect on our financial condition and results of operations. Sales of Mecadox (carbadox) for the twelve months ended December 31, 2025 were approximately $22 million. As of the date of the filing of this Quarterly Report on Form 10-Q, Mecadox continues to be available for use by swine producers.

In 2018, the Ministry of Agriculture in Brazil (“MAPA”), published an ordinance to ban the use of antimicrobials used at sub-therapeutic levels for growth promotion and feed efficiency in animal feed. The ordinance was in response to international pressure and scientific concerns about the potential risks of antimicrobial resistance. The Company’s virginiamycin product is currently registered and used at sub-therapeutic levels in cattle, broilers, layers and swine in Brazil. The Company and key stakeholders (trade associations) requested that MAPA allow sponsors time to shift from growth promotion claims to therapeutic claims. In 2022 and more recently in 2025, additional MAPA public consultations were held to discuss the prohibition on the use of antimicrobials as growth promoters. These discussions affect the Company’s virginiamycin product in Brazil, which is the only remaining key livestock production market where virginiamycin does not yet have therapeutic indications. The Company has been actively conducting studies to address MAPA’s requirements to obtain therapeutic indications for virginiamycin in Brazil and has submitted dossiers to MAPA for approval.

### Analysis of the consolidated statements of operations

### Summary Results of Operations

*(in thousands, except per share amounts and percentages)*

| ​ ​ For the Periods Ended December 31 ​ | ​ ​ ​ ​ ​ | ​ ​ ​ Three Months 2025 ​ ​ ​ | ​ ​ ​ 2024 ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ ​ | ​ ​ ​ ​ ​ | ​ ​ ​ Six Months 2025 ​ ​ ​ | ​ ​ ​ 2024 ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ |
| --- | --- | ---: | ---: | --- | --- | --- | --- | ---: | ---: | --- | --- | --- |
| Net sales | **​ ​** | $373,910 **​** | $309,261 **​ ​ ​** | $64,649 | **​ ​ ​** | 21% | ​ | $737,803 **​ ​ ​** | $569,693 **​ ​ ​** | $168,110 | **​ ​** | 30% |
| Gross profit | ​ | 132,656 ​ | 101,870 ​ | 30,786 | ​ | 30% | ​ | 252,439 ​ | 185,365 ​ | 67,074 | ​ | 36% |
| Selling, general and administrative expenses | ​ | 82,330 ​ | 76,337 ​ | 5,993 | ​ | 8% | ​ | 150,853 ​ | 142,133 ​ | 8,720 | ​ | 6% |
| Operating income | ​ | 50,326 ​ | 25,533 ​ | 24,793 | ​ | 97% | ​ | 101,586 ​ | 43,232 ​ | 58,354 | ​ | \* ​ |
| Interest expense, net | ​ | 11,756 ​ | 8,996 ​ | 2,760 | ​ | 31% | ​ | 23,815 ​ | 16,637 ​ | 7,178 | ​ | 43% |
| Foreign currency losses, net | ​ | 2,145 ​ | 11,699 ​ | (9,554) | ​ | (82)% | ​ | 5,079 ​ | 12,137 ​ | (7,058) | ​ | (58)% |
| Income before income taxes | ​ | 36,425 ​ | 4,838 ​ | 31,587 | ​ | \* ​ | ​ | 72,692 ​ | 14,458 ​ | 58,234 | ​ | \* ​ |
| Provision for income taxes | ​ | 8,966 ​ | 1,653 ​ | 7,313 | ​ | \* ​ | ​ | 18,706 ​ | 4,298 ​ | 14,408 | ​ | \* ​ |
| Net income | ​ | $27,459 ​ | $3,185 ​ | $24,274 | ​ | \* ​ | ​ | $53,986 ​ | $10,160 ​ | $43,826 | ​ | \* ​ |
| ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ |
| Net income per share | ​ | ​ ​ | ​ ​ | ​ |  | ​ ​ | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ |
| Basic | ​ | $0.68 ​ | $0.08 ​ | $0.60 | ​ | \* ​ | ​ | $1.33 ​ | $0.25 ​ | $1.08 | ​ | \* ​ |
| Diluted | ​ | $0.67 ​ | $0.08 ​ | $0.59 | ​ | \* ​ | ​ | $1.32 ​ | $0.25 ​ | $1.07 | ​ | \* ​ |
| ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ |
| Weighted average number of shares outstanding | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ |
| Basic | ​ | 40,534 ​ | 40,504 ​ | ​ | ​ | ​ ​ | ​ | 40,534 ​ | 40,504 ​ | ​ | ​ | ​ ​ |
| Diluted | ​ | ​ 40,956 ​ | ​ 40,715 ​ | ​ ​ | ​ | ​ ​ | ​ | ​ 40,916 ​ | ​ 40,649 ​ | ​ ​ | ​ | ​ ​ |
| ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ |
| Ratio to net sales | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ |
| Gross profit | ​ | 35.5% | 32.9% | ​ | ​ | ​ ​ | ​ | 34.2% | 32.5% | ​ | ​ | ​ ​ |
| Selling, general and administrative expenses | ​ | 22.0% | 24.7% | ​ | ​ | ​ ​ | ​ | 20.4% | 24.9% | ​ | ​ | ​ ​ |
| Operating income | ​ | 13.5% | 8.3% | ​ | ​ | ​ ​ | ​ | 13.8% | 7.6% | ​ | ​ | ​ ​ |
| Income before income taxes | ​ | 9.7% | 1.6% | ​ | ​ | ​ ​ | ​ | 9.9% | 2.5% | ​ | ​ | ​ ​ |
| Net income | ​ | 7.3% | 1.0% | ​ | ​ | ​ ​ | ​ | 7.3% | 1.8% | ​ | ​ | ​ ​ |
| Effective tax rate | ​ | 24.6% | 34.2% | ​ | ​ | ​ ​ | ​ | 25.7% | 29.7% | ​ | ​ | ​ ​ |

Certain amounts and percentages may reflect rounding adjustments.

\* Calculation not meaningful

### Net sales, Adjusted EBITDA and reconciliation of GAAP net income to Adjusted EBITDA

We report Net sales and Adjusted EBITDA by segment to understand the operating performance of each segment. This enables us to monitor changes in net sales, costs and other actionable operating metrics at the segment level. See “—General description of non-GAAP financial measures” for descriptions of EBITDA and Adjusted EBITDA.

Segment net sales and Adjusted EBITDA:

*(in thousands, except percentages)*

| ​ ​ For the Periods Ended December 31 Net sales | ​ ​ ​ ​ ​ ​ | ​ ​ ​ Three Months 2025 ​ ​ ​ | ​ ​ ​ 2024 ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ ​ | ​ ​ ​ | ​ ​ ​ Six Months 2025 ​ ​ ​ | ​ ​ ​ 2024 ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ |
| --- | --- | ---: | ---: | ---: | --- | ---: | --- | ---: | ---: | ---: | --- | ---: |
| MFAs and other | ​ | $202,111 ​ | $150,338 ​ | $51,773 |  | 34% | ​ | $397,309 ​ | $258,182 ​ | $139,127 | ​ | 54% |
| Nutritional specialties | ​ | 50,230 ​ | 45,909 ​ | 4,321 |  | 9% | ​ | 98,381 ​ | 88,558 ​ | 9,823 | ​ | 11% |
| Vaccines | ​ | 37,636 ​ | 33,171 ​ | 4,465 |  | 13% | ​ | 77,743 ​ | 65,201 ​ | 12,542 | ​ | 19% |
| Animal Health | ​ | 289,977 ​ | 229,418 ​ | 60,559 |  | 26% | ​ | 573,433 ​ | 411,941 ​ | 161,492 | ​ | 39% |
| Mineral Nutrition | ​ | 68,945 ​ | 63,250 ​ | 5,695 |  | 9% | ​ | 131,933 ​ | 122,312 ​ | 9,621 | ​ | 8% |
| Performance Products | ​ | 14,988 ​ | 16,593 ​ | (1,605) |  | (10)% | ​ | 32,437 ​ | 35,440 ​ | (3,003) | ​ | (8)% |
| Total | ​ | $373,910 ​ | $309,261 ​ | $64,649 |  | 21% | ​ | $737,803 ​ | $569,693 ​ | $168,110 | ​ | 30% |
| ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ |
| **Adjusted EBITDA** | ​ | ​ ​ | ​ ​ | ​ |  | ​ ​ | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ |
| Animal Health | ​ | $82,169 ​ | $58,177 ​ | $23,992 |  | 41% | ​ | $157,041 ​ | $98,561 ​ | $58,480 | ​ | 59% |
| Mineral Nutrition | ​ | 6,367 ​ | 5,702 ​ | 665 |  | 12% | ​ | 10,890 ​ | 9,464 ​ | 1,426 | ​ | 15% |
| Performance Products | ​ | 831 ​ | 1,888 ​ | (1,057) |  | (56)% | ​ | 2,434 ​ | 4,177 ​ | (1,743) | ​ | (42)% |
| Corporate | ​ | (21,303) ​ | (17,592) ​ | (3,711) |  | 21% | ​ | (40,443) ​ | (33,371) ​ | (7,072) | ​ | 21% |
| Total | ​ | $68,064 ​ | $48,175 ​ | $19,889 |  | 41% | ​ | $129,922 ​ | $78,831 ​ | $51,091 | ​ | 65% |
| ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ ​ | ​ ​ ​ | ​ ​ | ​ | ​ ​ |
| Adjusted EBITDA as a percentage of segment net sales | ​ | ​ ​ | ​ ​ | ​ |  | ​ ​ | ​ | ​ ​ | ​ ​ | ​ | ​ | ​ ​ |
| Animal Health | ​ | 28.3% | 25.4% | ​ |  | ​ ​ | ​ | 27.4% | 23.9% | ​ | ​ | ​ ​ |
| Mineral Nutrition | ​ | 9.2% | 9.0% | ​ |  | ​ ​ | ​ | 8.3% | 7.7% | ​ | ​ | ​ ​ |
| Performance Products | ​ | 5.5% | 11.4% | ​ |  | ​ ​ | ​ | 7.5% | 11.8% | ​ | ​ | ​ ​ |
| Corporate(1) | ​ | (5.7)% | (5.7)% | ​ |  | ​ ​ | ​ | (5.5)% | (5.9)% | ​ | ​ | ​ ​ |
| Total(1) | ​ | 18.2% | 15.6% | ​ |  | ​ ​ | ​ | 17.6% | 13.8% | ​ | ​ | ​ ​ |

(1) Reflects ratio to total net sales

The table below sets forth a reconciliation of net income, as reported under GAAP, to Adjusted EBITDA:

*(in thousands, except percentages)*

| ​ ​ For the Periods Ended December 31 ​ | ​ ​ ​ ​ ​ ​ ​ ​ | ​ ​ Three Months 2025 | ​ ​ ​ ​ | ​ ​ 2024 | ​ ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ ​ | ​ ​ ​ | ​ ​ Six Months 2025 | ​ ​ ​ ​ | ​ ​ 2024 | ​ ​ ​ ​ | ​ ​ Change | ​ | ​ ​ ​ ​ ​ |
| --- | --- | --- | --- | --- | --- | --- | --- | ---: | --- | --- | --- | --- | --- | --- | --- | ---: |
| Net income | ​ | $27,459 | ​ | $3,185 | ​ | $24,274 | **​** | \* ​ | ​ | $53,986 | ​ | $10,160 | ​ | $43,826 | **​ ​ ​** | \* ​ |
| Interest expense, net | ​ | ​ 11,756 | ​ | ​ 8,996 | ​ | ​ 2,760 | ​ | 31% | ​ | ​ 23,815 | ​ | ​ 16,637 | ​ | ​ 7,178 | ​ | 43% |
| Provision for income taxes | ​ | ​ 8,966 | ​ | ​ 1,653 | ​ | ​ 7,313 | ​ | \* ​ | ​ | ​ 18,706 | ​ | ​ 4,298 | ​ | ​ 14,408 | ​ | \* ​ |
| Depreciation and amortization | ​ | ​ 12,891 | ​ | ​ 11,574 | ​ | ​ 1,317 | ​ | 11% | ​ | ​ 25,721 | ​ | ​ 20,578 | ​ | ​ 5,143 | ​ | 25% |
| EBITDA | ​ | ​ 61,072 | ​ | ​ 25,408 | ​ | ​ 35,664 | ​ | \* ​ | ​ | ​ 122,228 | ​ | ​ 51,673 | ​ | ​ 70,555 | ​ | \* ​ |
| Acquisition-related cost of goods sold | ​ | ​ 839 | ​ | ​ 1,634 | ​ | ​ (795) | ​ | (49)% | ​ | ​ 1,956 | ​ | ​ 1,634 | ​ | ​ 322 | ​ | 20% |
| Acquisition-related other | ​ | ​ 193 | ​ | ​ 8,815 | ​ | ​ (8,622) | ​ | (98)% | ​ | ​ 451 | ​ | ​ 12,239 | ​ | ​ (11,788) | ​ | (96)% |
| Phibro Forward income growth initiatives - SG&A(1) | ​ | ​ 3,635 | ​ | ​ 1,696 | ​ | ​ 1,939 | ​ | \* ​ | ​ | ​ 3,635 | ​ | ​ 2,046 | ​ | ​ 1,589 | ​ | 78% |
| Stock-based compensation expense - named executive officer awards granted in fiscal year 2024 | ​ | ​ 180 | ​ | ​ 180 | ​ | ​ — |  | —% | ​ | ​ 359 | ​ | ​ 359 | ​ | ​ — | ​ | —% |
| Insurance proceeds | ​ | ​ — | ​ | ​ (1,257) | ​ | ​ 1,257 | ​ | \* ​ | ​ | ​ (3,786) | ​ | ​ (1,257) | ​ | ​ (2,529) | ​ | \* ​ |
| Foreign currency losses, net | ​ | ​ 2,145 |  | ​ 11,699 |  | ​ (9,554) |  | (82)% | ​ | ​ 5,079 |  | ​ 12,137 |  | ​ (7,058) | ​ | (58)% |
| Adjusted EBITDA | ​ | $68,064 | ​ | $48,175 | ​ | $19,889 |  | 41% | ​ | $129,922 | ​ | $78,831 | ​ | $51,091 | ​ | 65% |

(1) Phibro Forward is a company-wide initiative focused on unlocking additional areas of revenue growth and cost savings.

Certain amounts may reflect rounding adjustments.

\* Calculation not meaningful

### Comparison of three months ended December 31, 2025 and 2024

### Net sales

Net sales of $373.9 million for the three months ended December 31, 2025 increased $64.6 million, or 21%, as compared to the three months ended December 31, 2024. Animal Health increased $60.6 million, Mineral Nutrition increased $5.7 million, and Performance Products decreased $1.6 million.

#### Animal Health

Net sales of $290.0 million for the three months ended December 31, 2025 increased $60.6 million, or 26%. Net sales of MFAs and other increased $51.8 million, or 34%, due to incremental revenues of $57.5 million from sales of products from the MFA portfolio acquired on October 31, 2024, partially offset by the timing of purchases by a large customer.

Net sales of nutritional specialty products increased $4.3 million, or 9%, primarily due to increased North American demand for dairy.

Net sales of vaccines increased $4.5 million, or 13%, primarily due to continued growth of poultry products in Latin America and an increase in international demand, particularly in Southeast Asia.

#### Mineral Nutrition

Net sales of $68.9 million for the three months ended December 31, 2025 increased $5.7 million, or 9%, due to an increase in demand for trace minerals and zinc.

#### Performance Products

Net sales of $15.0 million for the three months ended December 31, 2025 decreased $1.6 million, or 10%, as a result of lower demand for the ingredients used in personal care products.

### Gross profit

Gross profit of $132.7 million for the three months ended December 31, 2025 increased $30.8 million, or 30%, as compared to the three months ended December 31, 2024. Gross margin increased 260 basis points to 35.5% of net sales for the three months ended December 31, 2025, as compared to 32.9% for the three months ended December 31, 2024. The comparison of gross profit to the prior year includes a net decrease of $0.8 million for acquisition-related cost of goods sold related to the purchase accounting for the Acquisition. Excluding this purchase accounting item, gross profit increased $30.0 million, or 29%, and gross margin increased 220 basis points to 35.7% of net sales due to increased sales, favorable product mix, and increases in average selling prices, partially offset by higher input and distribution costs and the unfavorable impact of changes in foreign currency exchange rates.

Animal Health gross profit, excluding the purchase accounting item discussed above, increased $29.8 million, primarily driven by increased sales, favorable product mix, and increases in average selling prices, partially offset by higher input and distribution costs and the unfavorable impact of changes in foreign currency exchange rates. Mineral Nutrition gross profit increased $0.8 million, driven by increased sales volume. Performance Products gross profit decreased $0.6 million, primarily as a result of lower demand.

### Selling, general and administrative expenses (“SG&A”)

SG&A of $82.3 million for the three months ended December 31, 2025 increased $6.0 million, or 8%, as compared to the three months ended December 31, 2024. SG&A for the three months ended December 31, 2025 included $3.6 million of costs associated with Phibro Forward income growth initiatives, $0.2 million for acquisition-related costs, and $0.2 million of stock-based compensation expense related to awards granted to certain named executive officers in fiscal year 2024. SG&A for the three months ended December 31, 2024 included $8.8 million of acquisition-related costs, $1.7 million of costs associated with Phibro Forward income growth initiatives, and $0.2 million of stock-based compensation expense, partially offset by $1.3 million related to an insurance settlement gain. Excluding these items, SG&A increased $11.4 million, or 17%.

Animal Health SG&A, excluding the non-recurring Animal Health related items discussed above, increased $7.1 million, primarily due to an increase in employee-related costs due in part to the incremental headcount added as part of the Acquisition. Mineral Nutrition SG&A increased $0.2 million, and Performance Products SG&A increased $0.4 million. Corporate costs, excluding the non-recurring Corporate related items discussed above, increased $3.7 million due to an increase in employee-related costs.

### Interest expense, net

Interest expense, net of $11.8 million for the three months ended December 31, 2025 increased $2.8 million, as compared to the three months ended December 31, 2024, due to higher average debt levels associated with the financing of the Acquisition, as well as the expiration of a favorable interest rate swap agreement on $300.0 million of notional debt principal.

### Foreign currency losses, net

Foreign currency losses, net for the three months ended December 31, 2025 were $2.1 million, as compared to $11.7 million of net losses for the three months ended December 31, 2024. Current period gains/losses were driven by fluctuations in certain currencies related to the U.S. dollar, most prominently, in the Argentine Peso and the Israeli New Shekel. Prior year period losses were driven in large part by fluctuations in the Brazil Real.

### Provision for income taxes

The provision for income taxes was $9.0 million and $1.7 million for the three months ended December 31, 2025 and 2024, respectively. The effective income tax rate was 24.6% and 34.2% for the three months ended December 31, 2025 and 2024, respectively.

The effective income tax rate in the current year was higher than the federal statutory rate of 21% due to the impact of Global Intangible Low-Tax Income tax expense and state and local income taxes. The provision for income taxes in the current year was also impacted by other taxes, primarily driven by the mix of foreign income.

The effective income tax rate in the current period included among other items (i) a $0.2 million expense from changes in uncertain tax positions related to prior years and (ii) certain other charges, including acquisition-related costs, foreign currency losses, and certain stock-based compensation, which had lower tax rates. The effective income tax rate in the prior year included (i) various exchange rate losses, (ii) changes in uncertain tax positions related to prior years, and (iii) certain other charges, including acquisition-related costs. Excluding these items, the effective income tax rate was 23.7% and 26.3% for the three months ended December 31, 2025 and 2024, respectively.

### Net income

Net income of $27.5 million for the three months ended December 31, 2025 increased $24.3 million, as compared to net income of $3.2 million for the three months ended December 31, 2024. Operating income increased $24.8 million, driven by favorable gross profit, partially offset by higher SG&A. Gross profit increased $30.8 million primarily as a result of higher sales in the Animal Health segment, driven in part by incremental revenues associated with sales from the MFA portfolio acquired on October 31, 2024. SG&A increased $6.0 million due to higher employee-related costs and a net increase of $1.9 million of costs associated with Phibro Forward income growth initiatives. Interest expense, net increased $2.8 million due to higher debt levels, due in part to the financing of the Acquisition and the expiration of an interest rate swap agreement. Foreign currency losses, net decreased $9.6 million. Income tax expense increased $7.3 million.

### Comparison of six months ended December 31, 2025 and 2024

### Net sales

Net sales of $737.8 million for the six months ended December 31, 2025 increased $168.1 million, or 30%, as compared to the six months ended December 31, 2024. Animal Health sales increased $161.5 million. Mineral Nutrition sales increased $9.6 million and Performance Products sales decreased $3.0 million.

#### Animal Health

Net sales of $573.4 million for the six months ended December 31, 2025 increased $161.5 million, or 39%. Net sales of MFAs and other increased $139.1 million, or 54%, due to incremental revenues of $137.9 million from sales of products from the MFA portfolio acquired on October 31, 2024 and increased demand for certain of our MFAs in North and South America, partially offset by the timing of purchases by a large customer.

Net sales of nutritional specialty products increased $9.8 million, or 11%, due to increased North American demand for dairy.

Net sales of vaccines increased $12.5 million, or 19%, primarily due to continued growth of poultry products in Latin America and increase in international demand, particularly in Southeast Asia.

#### Mineral Nutrition

Net sales of $131.9 million for the six months ended December 31, 2025 increased $9.6 million, or 8%, due to an increase in demand for copper, zinc and trace minerals.

#### Performance Products

Net sales of $32.4 million for the six months ended December 31, 2025 decreased $3.0 million, or 8%, as a result of lower demand for the ingredients used in personal care products.

### Gross profit

Gross profit of $252.4 million for the six months ended December 31, 2025 increased $67.1 million, or 36%, as compared to the six months ended December 31, 2024. Gross margin increased 170 basis points to 34.2% of net sales for the six months ended December 31, 2025, as compared to 32.5% for the six months ended December 31, 2024. The comparison of gross profit to the prior year includes a net increase of $0.3 million for acquisition-related cost of goods sold related to purchase accounting adjustments for the Acquisition. Excluding this purchase accounting item, gross profit increased $67.4 million, or 36%, and gross margin increased 170 basis points to 34.5% of net sales due to increased sales, favorable product mix, and increases in average selling prices, partially offset by higher input and distribution costs and the unfavorable impact of changes in foreign currency exchange rates.

Animal Health gross profit, excluding the purchase accounting item discussed above, increased $67.2 million, driven by higher sales volume, favorable product mix, and increases in average selling prices, partially offset by higher input and distribution costs and the unfavorable impact of changes in foreign currency exchange rates. Mineral Nutrition gross profit increased $1.4 million, driven by increased sales volume. Performance Products gross profit decreased $1.2 million, primarily as a result of lower demand.

### Selling, general and administrative expenses

SG&A of $150.9 million for the six months ended December 31, 2025 increased $8.7 million, or 6%, as compared to the six months ended December 31, 2024. SG&A for the six months ended December 31, 2025, included $3.6 million of costs associated with Phibro Forward income growth initiatives, $0.5 million for acquisition-related costs, and $0.4 million of stock-based compensation expense related to awards granted to certain named executive officers in fiscal year 2024, partially offset by $3.8 million related to insurance settlement gains. SG&A for the six months ended December 31, 2024, included $12.2 million for acquisition-related costs, $2.0 million of costs associated with Phibro Forward income growth initiatives, and $0.4 million of stock-based compensation expense, partially offset by a $1.3 million insurance settlement gain. Excluding these items, SG&A increased $21.4 million.

Animal Health SG&A, excluding the non-recurring Animal Health-related items discussed above, increased $13.9 million due to an increase in employee-related costs due in part to the incremental headcount added as part of the Acquisition. Mineral Nutrition SG&A was comparable to the prior year, and Performance Products SG&A increased $0.4 million. Corporate expenses, excluding the non-recurring Corporate-related items discussed above, increased $7.1 million due to an increase in employee-related costs.

### Interest expense, net

Interest expense, net of $23.8 million for the six months ended December 31, 2025 increased $7.2 million, or 43%, as compared to the six months ended December 31, 2024, due to higher average debt levels associated with the financing of the Acquisition, as well as the expiration of a favorable interest rate swap agreement on $300.0 million of notional debt principal.

### Foreign currency losses, net

Foreign currency losses, net for the six months ended December 31, 2025 were $5.1 million, as compared to net losses of $12.1 million for the six months ended December 31, 2024. Current period losses were driven by fluctuations in certain currencies related to the U.S. dollar, most prominently, in the Argentine Peso and the Israeli New Shekel. Prior year period losses were driven most prominently by fluctuations in the Brazil Real.

### Provision for income taxes

The provision for income taxes was $18.7 million and $4.3 million for the six months ended December 31, 2025 and 2024, respectively. The effective income tax rate was 25.7% and 29.7% for the six months ended December 31, 2025 and 2024, respectively.

The effective income tax rate in the current year was higher than the federal statutory rate of 21% due to the impact of Global Intangible Low-Tax Income tax expense and state and local income taxes. The provision for income taxes in the current year was also impacted by other taxes, primarily driven by the mix of foreign income.

The effective income tax rate in the current period included among other items, (i) a $0.4 million expense from changes in uncertain tax positions related to prior years, (ii) $3.8 million in insurance proceeds taxed at a lower rate, and (iii) certain other charges, including acquisition-related costs, foreign currency losses, and certain stock-based compensation, which had lower tax rates. The effective income tax rate in the prior year included (i) various exchange rate losses (ii) changes in uncertain tax positions related to prior years and (iii) certain other charges, including acquisition-related costs, which had lower tax rates. Excluding these items, the effective income tax rate was 24.7% and 25.0% for the six months ended December 31, 2025 and 2024, respectively.

On July 4, 2025, the U.S. Congress enacted “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14,” (the “OBBBA”), also known as the “One Big Beautiful Bill Act,” which includes significant amendments to the Internal Revenue Code. The impact of this legislation was immaterial on our consolidated financial statements.

### Net income

Net income was $54.0 million for the six months ended December 31, 2025, as compared to net income of $10.2 million for the six months ended December 31, 2024. Operating income increased $58.4 million driven by higher gross profit, partially offset by higher SG&A of $8.7 million due to higher employee-related costs and a net increase of $1.6 million in costs associated with Phibro Forward income growth initiatives. Interest expense, net increased $7.2 million due to higher debt levels associated with the refinancing of the Company’s debt and the expiration of an interest rate swap agreement. Foreign currency losses, net decreased $7.1 million. Income tax expense increased $14.4 million.

### Adjusted net income and adjusted diluted earnings per share

We report adjusted net income and adjusted diluted earnings per share to portray the results of our operations prior to considering certain income statement elements. See “—General description of non-GAAP financial measures” for more information.

A reconciliation of net income, as reported under GAAP, to adjusted net income, is as follows:

*(in thousands, except per share amounts and percentages)*

| ​ ​ For the Periods Ended December 31 ​ Reconciliation of GAAP Net Income to Adjusted Net Income | ​ ​ ​ ​ ​ ​ ​ | ​ ​ Three Months 2025 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ 2024 ​ | ​ ​ ​ ​ ​ | ​ ​ Change ​ | ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Six Months 2025 ​ | ​ ​ ​ ​ ​ | ​ ​ 2024 ​ | ​ ​ ​ ​ ​ | ​ ​ Change ​ | ​ ​ ​ ​ | ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| Net income | ​ | $27,459 | ​ | $3,185 | ​ | $24,274 |  | \* ​ | ​ | $53,986 | ​ | $10,160 | ​ | $43,826 |  | \* ​ |
| Adjustments | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| Acquisition-related items, net of income tax(1)(2) | ​ | 3,322 | ​ | 9,515 | ​ | (6,193) |  | (65)% | ​ | 6,830 | ​ | ​ 14,015 | ​ | (7,185) |  | (51)% |
| Certain items, net of income tax(1) | ​ | ​ 2,908 | ​ | ​ 479 | ​ | ​ 2,429 |  | \* ​ | ​ | ​ 172 | ​ | ​ 2,386 | ​ | ​ (2,214) |  | (93)% |
| Foreign currency losses, net of income tax(1) | ​ | 1,831 | ​ | 8,914 | ​ | (7,083) |  | (79)% | ​ | 4,181 | ​ | 9,270 | ​ | (5,089) |  | (55)% |
| Certain income tax items(1) | ​ | 198 | ​ | 163 | ​ | 35 |  | 21% | ​ | 396 | ​ | 501 | ​ | (105) |  | (21)% |
| Total adjustments, net of income tax(2) | ​ | ​ 8,259 | ​ | ​ 19,070 | ​ | ​ (10,811) | ​ | (57)% | ​ | ​ 11,579 | ​ | ​ 26,171 | ​ | ​ (14,592) | ​ | (56)% |
| Adjusted net income(2) | ​ | $35,718 | ​ | $22,255 | ​ | $13,463 |  | 60% | ​ | $65,565 | ​ | $36,331 | ​ | $29,234 |  | 80% |

\* Calculation not meaningful

(1) See table titled “Items Excluded from Adjusted Net Income” below for further details.

(2) Current year presentation of acquisition-related items, net of income tax includes acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets. Prior year periods have been adjusted to conform to current year presentation.

A reconciliation of reported diluted earnings per share, as reported under GAAP, to non-GAAP adjusted diluted EPS is:

*(in thousands, except per share amounts and percentages)*

| ​ ​ For the Periods Ended December 31 ​ Reconciliation of GAAP diluted EPS to Adjusted diluted EPS | ​ ​ ​ ​ ​ ​ | ​ ​ Three Months 2025 ​ ​ ​ | ​ ​ ​ ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ Change ​ ​ | ​ ​ | ​ ​ ​ ​ ​ | ​ ​ ​ ​ | ​ ​ Six Months 2025 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ Change ​ ​ | ​ ​ | ​ ​ ​ ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: | --- | ---: |
| GAAP EPS, diluted | ​ | $0.67 | ​ | $0.08 | ​ | $0.59 |  | \* ​ | ​ | $1.32 | ​ | $0.25 | ​ | $1.07 |  | \* ​ |
| Adjustments | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| Acquisition-related items, net of income tax(1) | ​ | 0.08 | ​ | 0.23 | ​ | (0.15) |  | (65)% | ​ | 0.17 | ​ | 0.34 | ​ | (0.17) |  | (51)% |
| Certain items, net of income tax | ​ | 0.07 | ​ | 0.01 | ​ | 0.06 |  | \* ​ | ​ | — | ​ | 0.06 | ​ | (0.06) |  | (100)% |
| Foreign currency losses, net of income tax | ​ | 0.04 | ​ | 0.22 | ​ | (0.18) |  | (82)% | ​ | 0.10 | ​ | 0.23 | ​ | (0.13) |  | (56)% |
| Certain income tax items | ​ | — | ​ | — | ​ | — |  | \* ​ | ​ | 0.01 | ​ | 0.01 | ​ | (0.00) |  | (19)% |
| Adjustments EPS, diluted(1) | ​ | ​ 0.19 | ​ | ​ 0.46 | ​ | ​ (0.27) | ​ | (59)% | ​ | ​ 0.28 | ​ | ​ 0.64 | ​ | ​ (0.36) | ​ | (57)% |
| Adjusted EPS, diluted(1) | ​ | $0.87 | ​ | $0.55 | ​ | $0.32 |  | 58% | ​ | $1.60 | ​ | $0.89 | ​ | $0.71 |  | 80% |

\* Calculation not meaningful

(1) Current year presentation of acquisition-related items, net of income tax includes acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets. Prior year periods have been adjusted to conform to current year presentation. ​

Items excluded from adjusted net income consisted of:

*(in thousands)*

| ​ ​ For the Periods Ended December 31 ​ Items Excluded from Adjusted Net Income Acquisition-related items | ​ ​ ​ ​ ​ ​ | ​ ​ Three Months 2025 ​ ​ ​ ​ | ​ ​ ​ ​ ​ ​ | ​ ​ 2024 ​ ​ ​ ​ | ​ ​ ​ ​ ​ | ​ ​ Six Months 2025 ​ ​ ​ ​ | ​ ​ ​ ​ ​ ​ | ​ ​ 2024 ​ ​ ​ ​ |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Acquisition-related cost of goods sold | **​** | $839 | **​** | $1,634 | ​ | $1,956 | **​** | $1,634 |
| Acquisition-related depreciation in cost of goods sold(1)(2) | **​** | ​ 1,689 | **​** | ​ 441 | ​ | ​ 3,289 | **​** | ​ 441 |
| Acquisition-related intangible amortization in cost of goods sold | ​ | ​ 1,116 | ​ | ​ 1,578 | ​ | ​ 2,229 | ​ | ​ 3,229 |
| Acquisition-related intangible amortization in SG&A | ​ | ​ 597 | ​ | 587 | ​ | ​ 1,193 | ​ | 1,198 |
| Acquisition-related transaction costs in SG&A | ​ | ​ 193 | ​ | 8,815 | ​ | ​ 451 | ​ | 12,239 |
| Acquisition-related items - income taxes | ​ | ​ (1,112) | ​ | ​ (3,540) | ​ | ​ (2,288) | ​ | ​ (4,726) |
| **Total acquisition-related items, net of income taxes(2)** | ​ | 3,322 | ​ | 9,515 | ​ | 6,830 | ​ | 14,015 |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| **Certain items** | **​** | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| Stock-based compensation expense - named executive officer awards granted in fiscal year 2024 | ​ | ​ 180 | ​ | 180 | ​ | ​ 359 | ​ | 359 |
| Phibro Forward income growth initiatives - SG&A | **​** | ​ 3,635 | ​ | ​ 1,696 | ​ | ​ 3,635 | ​ | ​ 2,046 |
| Insurance proceeds | ​ | ​ — | ​ | ​ (1,257) | ​ | ​ (3,786) | ​ | ​ (1,257) |
| Refinancing expense | **​** | ​ — | ​ | ​ — | ​ | ​ — | ​ | ​ 1,960 |
| Certain items - income taxes | ​ | ​ (907) | ​ | ​ (140) | ​ | ​ (36) | ​ | ​ (722) |
| **Total certain items, net of income taxes** | ​ | ​ 2,908 | ​ | ​ 479 | ​ | ​ 172 | ​ | ​ 2,386 |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| **Foreign currency losses, net** | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| Foreign currency losses, net | **​** | ​ 2,145 | ​ | 11,699 | ​ | ​ 5,079 | ​ | 12,137 |
| Foreign currency losses, net - income taxes | **​** | ​ (314) | ​ | ​ (2,785) | ​ | ​ (898) | ​ | ​ (2,867) |
| **Total foreign currency losses, net, net of income taxes** | **​** | ​ 1,831 | ​ | ​ 8,914 | ​ | ​ 4,181 | ​ | ​ 9,270 |
| ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| **Certain income tax items** | **​** | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| Changes in uncertain tax positions and certain other items | **​** | ​ 198 | ​ | ​ 163 | ​ | ​ 396 | ​ | ​ 501 |
| **Total certain income tax items** | **​** | ​ 198 | ​ | ​ 163 | ​ | ​ 396 | ​ | ​ 501 |
| **​** | **​** | ​ ​ | ​ | ​ ​ | ​ | ​ ​ | ​ | ​ ​ |
| **Total adjustments, net of income taxes(2)** | **​** | $8,259 | ​ | $19,070 | ​ | $11,579 | ​ | $26,171 |

(1) Represents acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets.

(2) Current year presentation of acquisition-related items, net of income tax includes acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets. Prior year periods have been adjusted to conform to current year presentation.

### Analysis of financial condition, liquidity and capital resources

The net decrease in cash and cash equivalents was as follows:

*(in thousands)*

| ​ ​ For the Periods Ended December 31 ​ Cash provided (used) by: | ​ ​ ​ ​ ​ ​ ​ ​ ​ | ​ ​ Six Months 2025 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ 2024 ​ ​ | ​ ​ ​ ​ ​ | ​ ​ Change ​ ​ |
| --- | --- | ---: | --- | ---: | --- | ---: |
| Operating activities | ​ | $28,654 | ​ | $15,698 | ​ | $12,956 |
| Investing activities | ​ | (38,198) | ​ | (263,403) | ​ | 225,205 |
| Financing activities | ​ | (2,645) | ​ | 247,123 | ​ | (249,768) |
| Effect of exchange rate changes on cash and cash equivalents | ​ | (364) | ​ | (2,957) | ​ | 2,593 |
| Net decrease in cash and cash equivalents | ​ | $(12,553) | ​ | $(3,539) | ​ | $(9,014) |

Certain amounts may reflect rounding adjustments.

#### Operating activities

Operating activities provided $28.7 million of net cash for the six months ended December 31, 2025. Cash provided by net income, adjusted for the non-cash items, including depreciation and amortization, was $87.3 million. Cash used in the ordinary course of business from changes in operating assets and liabilities was $58.6 million. Accounts receivable provided $13.7 million of cash due to the timing of collection of sales proceeds and higher sales. Inventories used $73.2 million of cash due to increased quantities on hand due to timing of inventory purchases and forecasted future demand. Accounts payable used $3.9 million of cash due to timing of purchases and payments. Accrued expenses and other liabilities used cash of $2.7 million, primarily due to timing of incurrence.

#### Investing activities

Investing activities used $38.2 million of net cash for the six months ended December 31, 2025. Capital expenditures were $24.9 million, as we continue to invest in expanding production capacity and productivity improvements. Purchases of our short-term investments used $24.0 million in cash, and maturities of our short-term investments provided $14.0 million in cash. Investing activities for the six months ended December 31, 2025 included funding of $6.5 million of investments and loans for strategic partnerships and the receipt of proceeds of $3.7 million from corporate-owned life insurance policies.

#### Financing activities

Financing activities used $2.6 million of net cash for the six months ended December 31, 2025. Net revolver borrowings on our credit facility provided $20.0 million in cash. We paid $9.7 million in dividends to holders of our Class A common stock and Class B common stock. We also paid $8.1 million in scheduled quarterly principal payments on long-term debt and $4.8 million in financed insurance premiums during the six months ended December 31, 2025.

#### Liquidity and capital resources

We believe our cash on hand, operating cash flows and financing arrangements, including the availability of borrowings under the 2024 Credit Facility, will be sufficient to support our ongoing cash needs. We have considered the current and potential future effects of the macroeconomic market conditions in the financial markets. At this time, we expect adequate liquidity for at least the next twelve months. We can provide no assurance that our liquidity and capital resources will be adequate for future funding requirements. We believe we will be able to comply with the terms of the covenants under the 2024 Credit Facilities based on our operating plan. In the event of adverse operating results and/or violation of covenants under the facilities, there can be no assurance we would be able to obtain waivers or amendments. Other risks to our meeting future funding requirements include global economic conditions and macroeconomic, business and financial disruptions that could arise, including armed conflicts between Israel and Hamas (and broader military conflict in the region) and between Russia and Ukraine. There can be no assurance that a challenging economic environment or an economic downturn would not affect our liquidity or ability to obtain future financing or fund operations or investment opportunities. In addition, our debt covenants may restrict our ability to invest.

Certain relevant measures of our liquidity and capital resources are as follows:

*(in thousands, except ratios)*

| ​ ​ As of ​ | ​ ​ ​ ​ ​ ​ ​ ​ | ​ ​ December 31, 2025 | ​ ​ ​ ​ ​ ​ ​ | ​ ​ June 30, 2025 |
| --- | --- | ---: | --- | ---: |
| Cash and cash equivalents and short-term investments | ​ | $74,508 | ​ | $77,039 |
| Working capital | ​ | 525,945 | ​ | 456,344 |
| Ratio of current assets to current liabilities | ​ | 3.01:1 | ​ | 2.65:1 |

We define working capital as total current assets (excluding cash and cash equivalents and short-term investments) less total current liabilities (excluding current portion of long-term debt). We calculate the ratio of current assets to current liabilities based on this definition.

As of December 31, 2025, we had $107.0 million in outstanding borrowings under the 2024 Revolver and outstanding letters of credit and other commitments of $2.9 million, leaving $200.1 million available for further borrowings and letters of credit, subject to restrictions in our 2024 Credit Facilities

We currently intend to pay quarterly dividends on our Class A common stock and Class B common stock, subject to approval from the Board of Directors. On February 3, 2026, our Board of Directors declared a cash dividend of $0.12 per share on Class A common stock and Class B common stock, payable on March 25, 2026, to stockholders of record at the close of business on March 4, 2026. Our future ability to pay dividends will depend upon our results of operations, financial condition, capital requirements, our ability to obtain funds from our subsidiaries and other factors that our Board of Directors deems relevant. Additionally, the terms of our current and any future agreements governing our indebtedness could limit our ability to pay dividends or make other distributions.

As of December 31, 2025, our cash and cash equivalents and short-term investments included $72.2 million held by our international subsidiaries. There are no restrictions on cash distributions to PAHC from our international subsidiaries. Distributions may be subject to taxation by U.S. or non-U.S. taxing authorities.

### Contractual obligations

As of December 31, 2025, there were no material changes in payments due under contractual obligations from those disclosed in the Annual Report.

### Off-balance sheet arrangements

We do not currently use off-balance sheet arrangements for the purpose of credit enhancement, hedging transactions, investment or other financial purposes.

In the ordinary course of business, we may indemnify our counterparties against certain liabilities that may arise. These indemnifications typically pertain to environmental matters. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we would be required to reimburse the loss. These indemnifications generally are subject to certain restrictions and limitations.

### General description of non-GAAP financial measures

### Adjusted EBITDA

Adjusted EBITDA is an alternative view of performance used by management as our primary operating measure, and we believe that investors’ understanding of our performance is enhanced by disclosing this performance measure. We report Adjusted EBITDA to reflect the results of our operations prior to considering certain income statement elements and to make financial and operating decisions. We calculate EBITDA as net income (loss) plus (i) interest expense, net, (ii) provision for income taxes or less benefit for income taxes and (iii) depreciation and amortization. We calculate Adjusted EBITDA as EBITDA plus (a) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and (b) certain items that we consider to be unusual, non-operational or non-recurring. The Adjusted EBITDA measure is not, and should not be viewed as, a substitute for GAAP reported net income (loss) and should not be viewed as a measure of liquidity.

The Adjusted EBITDA measure is an important internal measurement for us. We measure our overall performance on this basis in conjunction with other performance metrics. The following are examples of how our Adjusted EBITDA measure is utilized:

- senior management receives a monthly analysis of our operating results that is prepared on an Adjusted EBITDA basis;
- our annual budgets are prepared on an Adjusted EBITDA basis; and
- other goal-setting and performance measurements are prepared on an Adjusted EBITDA basis.

Despite the importance of this measure to management in goal setting and performance measurement, Adjusted EBITDA is a non-GAAP financial measure that has no standardized meaning prescribed by GAAP and, therefore, has limits in its usefulness to investors. Because of its non-standardized definition, Adjusted EBITDA, unlike GAAP net income (loss), may not be comparable to the calculation of similar measures of other companies. Adjusted EBITDA is presented to permit investors to more fully understand how management assesses performance.

We also recognize that, as an internal measure of performance, the Adjusted EBITDA measure has limitations, and we do not restrict our performance management process solely to this metric. A limitation of the Adjusted EBITDA measure is that it provides a view of our operations without including all events during a period, such as the depreciation of property, plant and equipment or amortization of acquired intangibles, and does not provide a comparable view of our performance to other companies.

### Adjusted net income (loss) and adjusted diluted earnings (loss) per share

Adjusted net income (loss) and adjusted diluted earnings (loss) per share represent alternative views of performance, and we believe investors’ understanding of our performance is enhanced by disclosing these performance measures. We report adjusted net income (loss) and adjusted diluted earnings (loss) per share to portray the results of our operations prior to considering certain income statement elements. We calculate adjusted net income (loss) as net income (loss) plus (i) acquisition-related depreciation associated with the step-up of fair value of the acquired fixed assets, acquisition-related intangible amortization and other acquisition-related items, (ii) certain items we consider to be unusual, non-operational or non-recurring, including certain stock-based compensation awards, (iii) foreign currency (gains) losses, as separately reported on our consolidated statements of operations, and (iv) the income tax effect of pre-tax income adjustments and certain income tax items. Adjusted diluted earnings per share is calculated using the adjusted net income (loss) divided by the diluted weighted average number of shares. The adjusted net income (loss) and adjusted diluted earnings (loss) per share measures are not, and should not be viewed as, a substitute for GAAP reported net income (loss).

Adjusted net income (loss) and adjusted diluted earnings (loss) per share are non-GAAP financial measures that have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. Because of its non-standardized definition, adjusted net income (loss) and adjusted diluted earnings (loss) per share, unlike GAAP net income (loss), may not be comparable to the calculation of similar measures of other companies. Adjusted net income (loss) and adjusted diluted earnings (loss) per share are presented to permit investors to more fully understand how management assesses performance.

### Certain significant items

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted earnings (loss) per share are calculated prior to considering acquisition-related items and certain other items, as detailed in the table titled “Items Excluded from Adjusted Net Income” above. We evaluate such items on an individual basis. Such evaluation considers both the quantitative and the qualitative aspect of their unusual or non-operational or non-recurring nature. Unusual, in this context, may represent items that are not part of our ongoing business; items that, either as a result of their nature or size, we would not expect to occur as part of our normal business on a regular basis.

We consider acquisition-related activities and business restructuring costs related to productivity and cost saving initiatives to be unusual items that we do not expect to occur as part of our normal business on a regular basis. We consider foreign currency gains and losses to be non-operational because they arise principally from intercompany transactions and are largely non-cash in nature.

### New accounting standards

For discussion of new accounting standards, see “Notes to Consolidated Financial Statements—Summary of Significant Accounting Policies and New Accounting Standards.”

### Critical Accounting Policies

Our significant accounting policies, which include management’s best estimates and judgments, are included in Note 2 to the consolidated financial statements for the year ended June 30, 2025 included in our Annual Report on Form 10-K filed with the Securities Exchange Commission on August 27, 2025. There have been no significant changes in our critical accounting estimates since June 30, 2025.

### Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected earnings, revenues, costs, expenditures, cash flows, growth rates and financial results, our plans and objectives for future operations, growth or initiatives, strategies, or the expected outcome or impact of pending or threatened litigation are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected. Examples of such risks and uncertainties include:

- outbreaks of animal diseases could significantly reduce demand for our products or availability of raw materials;
- perceived adverse effects on human health linked to the consumption of food derived from animals that utilize our products could cause a decline in the sales of those products;
- restrictions on the use of antibacterials in food-producing animals may become more prevalent, including limitation of use related to implementation and compliance with Food and Drug Administration (“FDA”) Guidance 273 (as defined below) and similar initiatives, in other larger production markets globally;
- the potential FDA withdrawal of approval of our Mecadox® (carbadox) product;
- a material portion of our sales and gross profits are generated by antibacterials and other related products;
- competition in each of our markets from a number of large and small companies, some of which have greater financial, research and development (“R&D”), production and other resources than we have;
- our business may be negatively affected by weather conditions and the availability of natural resources;
- the negative effects of a pandemic, epidemic, or outbreak of an infectious disease in humans, such as COVID-19, on our business, financial results, manufacturing facilities and supply chain, as well as our customers, protein processors and markets;
- climate change could have a material adverse impact on our operations and our customers’ businesses;
- actions of regulatory bodies, including obtaining approvals related to the testing, manufacturing and marketing of certain of our products;
- the continuing trend toward consolidation of certain customer groups as well as the emergence of large buying groups;
- our ability to control costs and expenses;
- any unforeseen material loss or casualty;
- misuse or extra-label use of our products;
- exposure relating to rising costs and reduced customer income;
- heightened competition, including those from generics and those deriving from advances in veterinary medical practices and animal health technologies;
- unanticipated safety or efficacy concerns;
- our dependence on suppliers having current regulatory approvals;
- our raw materials are subject to price fluctuations and their availability can be limited;
- natural and man-made disasters, including but not limited to fire, snow and ice storms, flood, hail, hurricanes and earthquakes;
- business interruption from political and social instability, including crime, civil disturbance, terrorist activities, outbreaks of disease and pandemics and armed conflicts, such as armed conflicts between Israel and Hamas (and potential broader military conflict in the region) and between Russia and Ukraine;
- terrorist attacks, particularly attacks on or within markets in which we operate, including terrorist attacks on Israel by Hamas or Hezbollah;
- risks related to changes in tax rates and exposure;
- our ability to successfully implement our strategic initiatives;
- our reliance on the continued operation of our manufacturing facilities and application of our intellectual property;
- adverse U.S. and international economic market conditions, including currency fluctuations;
- failure of our product approval, R&D, acquisition and licensing efforts to generate new products;
- the risks of product liability claims, legal proceedings and general litigation expenses;
- the impact of current and future laws and regulatory changes, including risks related to the protection of our customers’ privacy and risks related to environmental, health and safety laws and regulations;
- modification of foreign trade policy, including any new or increased tariffs or retaliatory measures in response to such modification, may negatively impact our profitability and may harm our food animal product customers;
- our ability to successfully integrate acquired businesses, including the medicated feed additive product portfolio, certain water-soluble products and related assets, which we acquired from Zoetis Inc.;
- our dependence on our Israeli and Brazilian operations;
- impact of increased or decreased inventory levels at our direct customers or channel distributors;
- our substantial level of indebtedness and related debt-service obligations;
- restrictions imposed by covenants in our debt agreements;
- the risk of breaches of data security and cybersecurity attacks;
- risks related to the use of artificial intelligence (“AI”) in our business;
- our dependence on sophisticated information technology and infrastructure;
- the risk of work stoppages; and
- other factors as described in “Risk Factors” in Item 1A of our Annual Report.

While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. The forward-looking statements included in this report are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

## Market risk

As filed, 1,330 characters.

In the normal course of operations, we are exposed to market risks arising from adverse changes in interest rates, foreign currency exchange rates and commodity prices. As a result, future earnings, cash flows and fair values of assets and liabilities are subject to uncertainty. We use, from time to time, foreign currency contracts, interest rate swaps, and interest rate collars as a means of hedging exposure to foreign currency risks and fluctuating interest rates, respectively. We do not utilize derivative instruments for trading or speculative purposes. We do not hedge our exposure to market risks in a manner that eliminates the effects of changing market conditions on earnings, cash flows and fair values. We monitor the financial stability and credit standing of our major counterparties.

For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Qualitative and Quantitative Disclosures about Market Risk” section in the Annual Report and to the notes to the consolidated financial statements included therein. As of the date of this report, there were no material changes in the Company’s financial market risks from the risks disclosed in the Annual Report.

## Controls and procedures

As filed, 879 characters.

### Evaluation of Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation as of December 31, 2025, our Chief Executive Officer and Chief Financial Officer each concluded that, as of the end of such period, our disclosure controls and procedures were effective.

### Changes in Internal Control over Financial Reporting

There were no changes that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended December 31, 2025.

## Risk factors

As filed, 380 characters.

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in “Risk Factors” in Item 1A of our Annual Report, which could materially affect our business, financial condition or future results.

There were no material changes in the Company’s risk factors from the risks disclosed in the Annual Report.

Filed Feb 4, 2026.
Source: SEC EDGAR, the filing index for accession 0001104659-26-010317. Last ingested by Listed: Nov 4, 2026, 17:49 ET. No prices; not investment advice.