Phibro Animal Health Corporation

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fibro Animal Health Corporation third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Glenn David, Chief Financial Officer. Please go ahead.

Thank you, Regina. Good day, and welcome to the Fibro Animal Health Corporation earnings call for our third quarter ended March 31st, 2025. My name is Glenn David, and I'm the Chief Financial Officer of Fibro Animal Health Corporation. I'm joined on today's call by Jack Bentime, Fibro's Chairman, President, and Chief Executive Officer. Donnie Bentime. and Larry Miller, our Chief Operating Officer. Today, we will cover our financial performance for our third quarter and provide updated financial guidance for our fiscal year ending June 30th, 2025. At the conclusion of our remarks, we will open the lines for your questions. I would like to remind you that we are providing a simultaneous webcast of this call on our website, pahc.com. Also, on the investor section of our website, You will find copies of the earnings press release and quarterly Form 10-Q, as well as the transcript and slides discussed and presented on this call. Our remarks today will include forward-looking statements, and actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statement section in our earnings press release. Our remarks include references to certain financial measures which were not prepared in accordance with generally accepted accounting principles or U.S. GAAP. I refer you to the non-GAAP financial information section in our earnings press release for a discussion of these measures. Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the earnings press release. We present our results on a GAAP basis and on an adjusted basis. Our adjusted results exclude acquisition-related items, unusual non-operational or non-recurring items, including stock-based compensation, other income expense as separately reported in the consolidated statements of operations, including foreign currency losses gains net, and income taxes related to pre-tax income adjustments and unusual or non-recurring income tax items. Now, let me introduce our Chairman, President, and Chief Executive Officer, Jack Bensheim, to share his opening remarks. Jack? Thanks, Glenn.

Good morning, everyone. I'm pleased to report another solid quarter for Friber Animal Health Corporation. Our performance this quarter reflects continued strength across the business, supported by the integration of the Zoetis MFA portfolio and steady execution across our teams. Total sales increased 32% year-over-year, while adjusted EBITDA rose 85%, and adjusted diluted EPS more than doubled. These results reflect both top-line growth and improved operating leverage. By segment, Animal Health led the way with 42% revenue growth. Within that, the sales of newly integrated MSA and other products increased 68%. Our legacy MSA and other sales had a slight decline, and vaccines grew 1%, largely due to the timing of customer orders. Overall, the segment continues to perform well. The nutritional specialties maintain its positive momentum with 8% revenue growth. while minimum nutrition and performance products poses strong gains of 4% and 28%, respectively, highlighting the strength of our diversified portfolio. Across all segments, this quarter's results demonstrate how our focus on execution and operational excellence, central themes of our FIBO Forward strategy is helping drive meaningful progress. Our FIBO Forward is a long-term initiative Its emphasis on disciplined operations and continuous improvement is already contributing to our performance. The same focus is helping us navigate external challenges like the evolving care of environment. While the situation remains fluid, we do not expect any material impact on our financial results for the remainder of fiscal 2025. Through Fiber Forward, we've made targeted investments in procurement and supply chain resilience that are already helping us manage potential disruptions. Looking ahead to fiscal 2026, based on currently announced tariffs, we anticipate some pressure on certain inputs and markets in the range of $5 to $10 million, but we believe we're well-positioned to manage these impacts effectively and still deliver growth. Now turning to guidance. Based on our strong third-quarter results and improved visibility into the remainder of the year, we are narrowing our full-year guidance ranges and, in most cases, raising the midpoints. We now expect net sales between $1.26 billion and $1.29 billion, adjusted EBITDA of $177 million to $183 million, and adjusted EPS of $1.96 to $2.09. GAAP EPS is projected to be in the range of $0.98 to $1.11. This updated guidance reflects solid execution across our businesses and continued momentum as we close out the fiscal year. I'll now turn it back to Glenn for additional color on the quarter's performance. I look forward to your questions at the end. Glenn.