Phibro Animal Health's Q3 2025: Navigating Contradictions in Tariffs, MFA Performance, and Strategic Initiatives

Tariff exposures and mitigation strategies, medicated feed additive business performance, Phibro Forward initiative impact, and differing explanations for MFA business performance are the key contradictions discussed in Phibro Animal Health Corporation's latest 2025Q3 earnings call.



Strong Financial Performance Across Segments:
- Phibro Animal Health Corporation reported a 32% increase in total sales to $347.8 million for Q3, with the Animal Health segment growing by 42% and the Nutritional Specialties segment posting an 8% revenue increase.
- The growth was driven by the integration of the Zoetis MFA portfolio, steady execution across teams, and improved operating leverage.

Medicated Feed Additives and Other Products Growth:
- The Animal Health segment's reported a full quarter of sales of $77 million for the new MFA business, resulting in a 68% increase in total MFA and other products sales.
- This growth was primarily due to the successful integration of the Zoetis MFA portfolio and a strong performance in the newly integrated segment.

Updated Financial Guidance:
- Phibro Animal Health revised its fiscal year 2025 guidance to include net sales between $1.26 billion to $1.29 billion, adjusted EBITDA of $177 million to $183 million, and adjusted EPS of $1.96 to $2.09.
- The increase in guidance was attributed to strong third-quarter results, improved visibility for the remainder of the year, and the positive impact of the Phibro Forward income growth initiative.

Tariff Management and Impact:
- Phibro Animal Health acknowledged potential impacts from tariffs but emphasized its ability to mitigate them through built inventory, switching suppliers, renegotiating contracts, and price increases.
- The company anticipates limited impact from tariffs on fiscal year 2025 results and is confident in managing impacts for fiscal year 2026.