What’s got the market buzzing after hours? Phibro Animal Health just dropped some seriously impressive Q4 earnings, sending its stock skyrocketing! With sales up and a major acquisition paying off big, it seems like good news for animal health investors. Are these gains just the beginning of a larger trend?
Phibro Animal Health Corporation’s stock experienced a significant surge in after-hours trading, propelled by an outstanding fourth-quarter earnings report that far exceeded market expectations, signaling robust financial health and a promising outlook for investors.
The global animal health giant disclosed impressive fourth-quarter net sales, reaching $378.7 million, a remarkable 39% increase year-over-year. This strong top-line performance was complemented by a substantial leap in net income, which soared to $17.2 million from a modest $0.8 million in the corresponding period of the previous fiscal year, underscoring enhanced profitability.
Further demonstrating its operational efficiency, Phibro reported adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $50.0 million. This represented a substantial 49% increase year-over-year, while adjusted diluted earnings per share climbed by 39% to $0.57, up from $0.41, showcasing strong bottom-line growth.
A major catalyst for this exceptional performance was the significant contribution from the Animal Health segment, which saw sales surge by $101.0 million, or 53%, to $292.5 million in the fourth quarter. The strategic acquisition of the Zoetis MFA portfolio played a pivotal role, contributing an impressive $94.5 million in incremental revenues, highlighting the success of the company’s expansion strategy.
The impact of the Zoetis MFA portfolio acquisition was particularly evident in the MFAs and other product categories, which delivered exceptional growth of $89.8 million, or 77%. The CEO acknowledged the portfolio’s outperformance, noting a 54% increase in MFA and Other product sales compared to the prior year, validating the strategic move.
Looking at the broader fiscal year 2025, Phibro continued its upward trajectory, reporting net sales of $1.296 billion, marking a 27% increase from $1.018 billion in 2024. Adjusted EBITDA for the full year rose an impressive 65% to $183.7 million, and adjusted diluted EPS saw a significant 76% increase to $2.09, reflecting sustained financial momentum and strong investment returns.
Management of the New Jersey-based company also provided optimistic fiscal year 2026 guidance, projecting net sales of $1.43 billion, indicating 12% growth at the midpoint. Adjusted EBITDA is expected to range between $225 million and $235 million, suggesting a robust 25% growth at the midpoint, reinforcing confidence in the company’s future corporate growth and market performance.
With a current market capitalization of $1.31 billion and trading between $16.16 and $32.95 over the past 52 weeks, Phibro exhibits strong momentum in the 89th percentile, signaling a positive price trend across all time frames. This strong financial performance positions Phibro as a noteworthy player in the animal health industry, with significant stock market gains reflecting investor confidence following the stellar earnings report.
