Short answer
PHIBRO ANIMAL HEALTH CORP (PAHC) filed its fiscal 2026 10-K annual report with the SEC on Aug 26, 2026. It reported revenue of $1.5B (+17.1% year over year) and net income of $100M.
- Top risk flagged: FDA final order revoking carbadox (Mecadox) residue detection method, sales $21M FY2026; ongoing litigation to prevent loss of product approval
FY2026 key financial metrics · XBRL
- Revenue
- $1.5B
- +17.1% YoY
- Net income
- $100M
- +106.6% YoY
- Operating margin
- 12.8%
- +4.3 pp YoY
- Gross margin
- 33.8%
- +2.9 pp YoY
- EPS (diluted)
- $2.43
- +104.2% YoY
- ROE
- 25.9%
- +9.0 pp YoY
- Operating cash flow
- $69M
- −13.9% YoY
Source: XBRL data from the PHIBRO ANIMAL HEALTH CORP (PAHC) FY2026 10-K on SEC EDGAR. USD.
PHIBRO ANIMAL HEALTH CORP FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core animal health and mineral nutrition business expanded via $297.5M Zoetis medicated feed additive acquisition, adding $358.2M sales in FY26
- Launched new canine dental device, Restoris®, in Oct 2025; Rejensa® joint care supplement gained market traction in FY26
- Strategic shift includes planned closure of Chicago Heights manufacturing facility by summer 2027 to consolidate production
- Employee count grew to approximately 2,605 across 37 countries, up from prior years, supporting expanded global footprint
- Regulatory challenges: navigating FDA review of carbadox residue detection, with $21M Mecadox sales at risk pending outcome
Management Discussion & Analysis
- Revenue $1.52B, up 17% YoY; Animal Health $1.16B (+21%), Mineral Nutrition $282M (+11%), Performance Products $73.5M (-8%)
- Operating margin 12.8% vs 8.5%; gross margin 33.8% vs 30.9%; net income $99.7M vs $48.3M; adjusted EBITDA margin 16.8% vs 14.2% of sales
- Best segment Animal Health: net sales $1.16B (+$199M), adjusted EBITDA $303.6M (+$81.3M); worst segment Performance Products: net sales $73.5M (-$6.6M), adjusted EBITDA $8.1M (-$2.5M)
- Operating cash flow $69.0M; Capex $59.1M; dividends paid $19.5M; term loan borrowings increased for $297.5M acquisition; $6.6M net cash used in financing
- Management notes risks from Middle East conflicts affecting 16% sales/assets; regulatory headwinds on antimicrobials; expects strong demand driven by global protein consumption growth
Risk Factors
- FDA final order revoking carbadox (Mecadox) residue detection method, sales $21M FY2026; ongoing litigation to prevent loss of product approval
- Middle East conflicts pose risk to Israeli manufacturing producing 16% of net sales; potential export disruption from regional hostilities
- Supply chain reliant on sole source suppliers for active pharmaceutical ingredients; regulatory changes or supplier issues could interrupt product availability
- Competition from Merck Animal Health, Zoetis, Elanco and increasing generic products pressuring pricing and market share
- Total debt $739M (term loans $622M, revolver $116M) with restrictive covenants limiting operational flexibility and requiring significant cash flow for interest and principal payments
Generated from the filing text; verify against the original. How to read a 10-K
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