Table of Contents OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36410 Phibro Animal Health Corporation (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 Delaware 13- ...

Industry Overview - The Zacks Medical - Products industry is facing challenges due to tariffs imposed by the U.S. on trading partners, impacting margins for companies like GE HealthCare, Baxter, and Abbott [1] - Medical device makers are experiencing rising commodity and manufacturing costs post-COVID-19, particularly in consumer-facing areas like Nutrition, leading to price hikes that may constrain volume due to increased price sensitivity among consumers [2] - The industry's profitability is under strain from tariff-related expenses and persistent component shortages, which create inefficiencies and constrain output [7] Trends and Innovations - Industry players are mitigating challenges through product innovation and the adoption of AI and digital services, with the rise of GLP-1 medication acting as a tailwind for certain medical device areas [3] - The market for remote patient monitoring platforms is projected to reach $57 billion by 2030, driving margin expansion and shifting profit pools from hardware to data-driven services [9] - The U.S. market is shifting from inpatient hospital settings to Ambulatory Surgery Centers (ASCs) and home-based monitoring, with the ASC market expected to reach $205 billion by 2030 [10] Company Performance - Boston Scientific (BSX) is positioned for strong growth driven by demand across its diversified product portfolio, with a commitment to over 10% growth over the next three years [29] - ResMed is experiencing strong momentum with 11% top-line growth in Q2 fiscal 2026, driven by rising demand for CPAP therapy and the adoption of GLP-1 drugs [35][36] - Phibro Animal Health Corporation (PAHC) is benefiting from the integration of the Zoetis Medicated Feed Additive portfolio, contributing $80.5 million in sales in Q1 fiscal 2026, and expects favorable net price impacts to improve profitability [42] Financial Outlook - The Zacks Consensus Estimate for BioLife Solutions (BLFS) indicates a 16.4% revenue growth for 2026, with earnings expected to grow by 38.1% [27] - Boston Scientific's revenue for 2026 is estimated at $22.32 billion, projecting an 11.3% growth, with EPS expected to improve by 13.5% [32] - ResMed's revenue for fiscal 2026 is pegged at $5.58 billion, indicating an 8.5% growth, with EPS expected to rise by 15% [39] - PAHC's revenue for fiscal 2026 is estimated at $1.47 billion, projecting a 13.1% growth, with EPS expected to improve by 32.1% [46]

Core Viewpoint - Phibro Animal Health Corporation is set to announce its second quarter financial results on February 4, 2026, after market close, followed by a conference call on February 5, 2026, at 9:00 AM Eastern Time [1]. Group 1 - The conference call will be accessible via a dedicated website and phone numbers for both U.S. and international participants, with a conference ID provided for access [2]. - A replay of the conference call will be available approximately two hours after the live event [2]. Group 2 - Phibro Animal Health Corporation is recognized as a leading global diversified animal health and mineral nutrition company, aiming to support livestock producers, farmers, veterinarians, and consumers in maintaining animal health [3]. - The company provides solutions designed to enhance the health of both farm and companion animals [3].

Core Insights - Phibro Animal Health Corp. (PAHC) is set to announce its second-quarter fiscal 2026 results, with expectations of continued strong performance based on previous earnings trends [1][3]. Group 1: Financial Performance - In the last reported quarter, PAHC achieved adjusted earnings per share (EPS) of 73 cents, exceeding the Zacks Consensus Estimate by 23.7% [1]. - The Zacks Consensus Estimate for second-quarter revenues is $357 million, reflecting a 15.4% increase year-over-year, while the EPS estimate stands at 69 cents, indicating a 27.8% growth from the previous year [2][7]. Group 2: Business Segments - The Animal Health segment is expected to maintain momentum, driven by the strong performance of the Medicated Feed Additives (MFA) portfolio, along with gains in Nutritional specialties and Vaccines [4]. - Nutritional Specialties are anticipated to see increased net sales due to higher demand for microbial and companion animal products, bolstered by the launch of Restoris piezoelectric dental gel [5]. - Vaccine sales are projected to benefit from growth in poultry products in Latin America and increased international demand, with an overall expected increase of 21.4% in Animal Health sales year-over-year [6]. - The Mineral Nutrition segment may experience an 8.7% decline in sales year-over-year, influenced by fluctuating customer buying patterns and seasonal variability [8]. - Performance Products are forecasted to grow by 20.2% year-over-year, driven by higher demand for ingredients used in personal care products [9]. Group 3: Strategic Initiatives - Phibro's company-wide initiative, Phibro Forward, aims to unlock additional revenue growth and cost savings, enhancing operational discipline and innovation [10].

Company Overview - Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company headquartered in New Jersey, providing a broad range of products for food animals including poultry, swine, beef, dairy cattle, and aquaculture [11] - The company markets nearly 770 product lines in over 80 countries to approximately 4,000 customers, also manufacturing specific ingredients for personal care, automotive, industrial chemical, and chemical catalyst industries [11] Investment Potential - Phibro Animal Health is rated 1 (Strong Buy) on the Zacks Rank, with a VGM Score of A, indicating strong investment potential [12] - The company has a Growth Style Score of B, forecasting year-over-year earnings growth of 32.1% for the current fiscal year [12] - Recent upward revisions in earnings estimates by four analysts in the last 60 days have increased the Zacks Consensus Estimate by $0.23 to $2.76 per share [12] - Phibro Animal Health boasts an average earnings surprise of +20.8%, further enhancing its attractiveness to investors [12] Summary - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Phibro Animal Health should be considered a top pick for growth investors [13]

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Group 1: Micron Technology, Inc. (MU) - Micron Technology has a Zacks Rank of 1 and a PEG ratio of 0.33, significantly lower than the industry average of 1.26 [1] - The Zacks Consensus Estimate for Micron's current year earnings has increased by 22.4% over the last 60 days [1] - The company possesses a Growth Score of A, indicating strong growth characteristics [1] Group 2: Sanmina Corporation (SANM) - Sanmina Corporation also holds a Zacks Rank of 1 and has a PEG ratio of 0.61, compared to the industry average of 1.75 [2] - The Zacks Consensus Estimate for Sanmina's current year earnings has risen by 38.9% over the last 60 days [2] - The company has a Growth Score of A, reflecting its strong growth potential [2] Group 3: Phibro Animal Health Corporation (PAHC) - Phibro Animal Health Corporation carries a Zacks Rank of 1 and has a PEG ratio of 1.14, which is lower than the industry average of 1.65 [3] - The Zacks Consensus Estimate for Phibro's current year earnings has increased by 9.1% over the last 60 days [3] - The company possesses a Growth Score of B, indicating solid growth characteristics [3]

Core Insights - Phibro Animal Health (PAHC) shares have increased by 59.6% this year, significantly outperforming the industry and the S&P 500 [1][2] Company Performance - The company holds a Zacks Rank 1 (Strong Buy) and is benefiting from the strong performance of its Animal Health portfolio, particularly in vaccines and emerging markets [2][4] - Phibro markets around 800 product lines across approximately 90 countries, focusing on food and companion animals, and is expanding its product offerings in the companion animal sector [3][4] Revenue Growth - The surge in share price is attributed to strong traction in the Animal Health business, with medicated feed additives (MFA) revenues growing by 81% in Q1 of fiscal 2026, bolstered by the integration of Zoetis' MFA business [4][9] - Vaccine sales increased by 25% year over year in Q1 of fiscal 2026, with management identifying vaccines as a key growth driver [5][9] Global Expansion - Phibro's sales in Europe, the Middle East, and Africa rose by 44.4%, while Asia Pacific sales surged by 101.1% in Q1 of fiscal 2026, reflecting the company's successful global expansion strategy [6][9] Financial Estimates - The Zacks Consensus Estimate predicts a 32.1% increase in earnings per share (EPS) for fiscal 2026, reaching $2.76, and a 6.2% increase for fiscal 2027, reaching $2.93 [11] - Revenues for fiscal 2026 are projected to grow by 13.1% to $1.47 billion, with fiscal 2027 revenues expected to reach $1.51 billion, indicating a 2.8% increase [11]

Core Insights - The U.S. equity markets experienced significant volatility recently, with a five-day winning streak interrupted by a decline in cryptocurrencies, particularly Bitcoin, which struggled to maintain a value above $90,000 [1][2] - Concerns regarding the high valuations of AI firms are prevalent, with expectations of a market correction due to growth not matching substantial investments [2] - The likelihood of the Federal Reserve reducing its benchmark borrowing rate has increased, with markets pricing in an approximately 89% chance of a rate cut at the upcoming meeting [2] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," capitalizing on established trends in stock prices [3] - This investment approach is based on the human tendency to project current trends into the future, allowing investors to profit before prices revert to their mean [3][4] - Momentum strategies have historically generated alpha across various market conditions, although identifying trends can be challenging [4] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the highest percentage price change over the past 52 weeks, ensuring selection of stocks with consistent appreciation [5] - From these, the 10 worst performers over the past week are chosen to identify those experiencing short-term pullbacks [6] - Stocks are further filtered by Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better, indicating strong potential for success [7] Selected Momentum Stocks - Phibro Animal Health Corporation (PAHC) has seen a 74.9% increase over the past year but a recent decline of 8.2%, holding a Momentum Score of B [11] - Argan, Inc. (AGX) has surged 138.5% in the past year with a recent drop of 4.2%, achieving a Momentum Score of A [13] - Ubiquiti Inc. (UI) has increased by 56.6% over the past year but lost 2% in the last week, also holding a Momentum Score of A [15]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Phibro Animal Health, Seanergy Maritime Holdings, and California BanCorp Company Summaries - **Phibro Animal Health (PAHC)**: A leading global diversified animal health and mineral nutrition company, providing a wide range of products for food animals. The Zacks Consensus Estimate for its current year earnings increased by 7.4% over the last 60 days. The stock gained 33.3% over the last three months, outperforming the S&P 500's gain of 3.8%. The company has a Momentum Score of A [1][2]. - **Seanergy Maritime Holdings (SHIP)**: A prominent pure-play Capesize ship-owner providing marine dry bulk transportation services through a modern fleet. The Zacks Consensus Estimate for its current year earnings increased by 66.7% over the last 60 days. The stock gained 25.9% over the last three months, also outperforming the S&P 500's gain of 3.8%. The company has a Momentum Score of A [2][3]. - **California BanCorp (BCAL)**: A registered bank holding company offering a range of financial products and services to individuals and small to medium-sized businesses. The Zacks Consensus Estimate for its current year earnings increased by 6.3% over the last 60 days. The stock gained 12.7% over the last three months, again outperforming the S&P 500's gain of 3.8%. The company has a Momentum Score of B [3][4].