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 second quarter 2026 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'd now like to turn the conference over to Glen David, Chief Financial Officer. Please go ahead.

Thank you, Regina. Good day, and welcome to the Fibro Animal Health Corporation earnings call for our fiscal second quarter ending December 31st, 2025. My name is Glen David, and I am the Chief Financial Officer of Fibro Animal Health Corporation. I am joined on today's call by Jack Bentime, Fibro's Chairman. Donnie Van Thyme, Director and Executive Vice President of Corporate Strategy, and as recently announced, our CEO designate, and Larry Miller, Chief Operating Officer. Today, we will cover financial performance for our second quarter and provide updated financial guidance for our fiscal year ending June 30th, 2026. 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 transcripts 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 US 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 So the most directly comparable U.S. GAAP measures are included in the financial tables that accompany the earnings precedent. 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 gained 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 Bentime, to share his opening remarks.

Thanks, Clayton. In the second quarter, we delivered 26% growth in animal health sales and a 41% increase in animal health adjusted EBITDA. A clear sign our strategy is working. Medicaid pre-added is led with 34% growth supported by strong gains in nutritional specialties and vaccines. This reflects our continued success integrating the MFA portfolio into our operations. While our total legacy business continues to perform with a 3% growth. Beyond animal health, we saw continued growth in minerals with decline in our performance product segment. Consolidated sales were up 21% in the second quarter While EBITDA was up 41%. As Glenn will discuss in more detail, we're raising both our full-year sales and earnings guidance. These results are encouraging, but what's impressed me just as much is what I've seen firsthand from our people and our customers in the past few weeks. It's one thing to see performance in the numbers. It's another to hear directly from the teams and customers who are living this momentum every day. Earlier this month, more than 150 of our global leaders came together in Barcelona, our largest meeting of this kind in over a decade. The energy and alignment were outstanding. We heard a consistent message across regions. Our teams remained deeply focused on customer partnerships. We're sharpening our innovation agenda with stronger global coordination. We're executing better and more consistently across the business. And the unity across our leadership team has never been stronger. I left Barcelona feeling incredibly proud of our people and confident in the direction we're heading. When you see the level of alignment and enthusiasm from long-tenured leaders to newer faces, it tells you that the culture is strong and the strategy is working. Last week, I was in Atlanta for the IPPE, the annual poultry show. While it was a very cold Atlanta, the conversations there were warm and optimistic. IPPE is always a great pulse check on the protein sector. And this year, the tone was upbeat. Producers across poultry and broader protein markets are seeing more stability. The demand remains strong. Customers are prioritizing performance, reliability, and cost efficiency, all areas where we're delivering real value. And we heard a lot of positive feedback about the MFA integration and the strength of our technical support. It's clear that the work our teams have done over the past year is resonating where it matters most with customers. Taking together with our financial performance, Barcelona and my PPE, make it clear that FIBO has real sustainable momentum. And as I looked at that momentum, the strength of our business, the alignment of our people, and the opportunities ahead, it's also clear that this is an opportune moment for a leadership transition. And with that, I turn it over to Donnie.