Pyxus International, Inc. Reports Solid Second Quarter Fiscal 2026 Results
— Achieves year-over-year gross margin expansion and
— Updates full-year sales and adjusted EBITDA guidance —
"During the quarter, we delivered healthy sales, strong gross profit per kilo and improved gross margin versus last year. We continued the acceleration of crop purchasing and processing in key markets, leveraging our global scale, footprint and customer base to maximize the value of larger crop volumes, particularly in
"As we enter the second half of the year, we are focused on finalizing the processing and shipping of our inventory, optimizing our operating cycle and accelerating the repayment of our seasonal financing, further strengthening our balance sheet and improving our leverage profile. Supported by our experienced teams, robust global infrastructure and disciplined execution, we are confident in our ability to achieve our updated targets as we work to drive sustainable, profitable growth well into the future."
Second Quarter and Year-to-Date Fiscal 2026 Results
Second quarter sales and other operating revenues increased to
Sales and other operating revenues for the first half of fiscal 2026 decreased
Gross profit as a percent of sales was 15.4% in the second quarter of fiscal 2026 compared to 13.3% for the same period in the prior year. This gross margin expansion was driven by improved product mix, higher current crop returns, and increased third-party processing volumes.
Gross profit as a percent of sales was 14.2% for the first half of fiscal 2026 compared to 13.3% for the same period in the prior year. This was a result of product mix that was positively weighted by current crop sales in the recent quarter.
Selling, general and administrative expenses in the second quarter of fiscal 2026 remained well managed and increased slightly to
The Company's operating income was
Select Balance Sheet and Liquidity Information
As of
Tobacco inventory at the end of the end of the second quarter was
Uncommitted levels of processed tobacco remain low due to steady customer demand. While undersupply conditions have persisted in the global tobacco market in recent periods, more favorable weather conditions have resulted in larger crops harvested in the first half of fiscal 2026, particularly in
The Company continued to improve its cash conversion, reducing its average operating cycle time to 167 days in the second quarter compared to 179 days in the same period last fiscal year, contributing to improved efficiency and availability. Our liquidity remains strong with no outstanding borrowings on our
Updates Guidance for Fiscal Year
The Company's year-to-date performance combined with improved near-term visibility supports its decision to increase its sales guidance to
Financial Results Investor Call
The Company will hold an earnings conference call and webcast on
This release, as well as the Company's second quarter results presentation, will be available on the Company's investor relations webpage prior to the call. For those unable to join the live audio webcast, an archived recording will be available on the Company's investor relations webpage shortly after the call.
Any replay, rebroadcast, transcript, or other reproduction of this conference call, other than the replay accessible by calling the number above, has not been authorized by Pyxus International and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents.
Cautionary Statement Regarding Forward-Looking Statements
Readers are cautioned that the statements contained in this report regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are based on current expectations of future events, may be identified by the use of words such as "guidance", "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets," and other words of similar meaning. These statements also may be identified by the fact that they do not relate strictly to historical or current facts. If underlying assumptions prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. These risks and uncertainties include those discussed in our Annual Report on Form 10-K for the year ended
Non-GAAP Financial Information
This press release contains financial measures that have not been prepared in accordance with generally accepted accounting principles in
About Pyxus International, Inc.
Pyxus International, Inc. is a global agricultural company with more than 150 years of experience delivering value-added products and services to businesses and customers. Driven by a united purpose—to transform people's lives, so that together we can grow a better world—Pyxus International, its subsidiaries and affiliates, are trusted providers of responsibly sourced, independently verified, sustainable and traceable products and ingredients.
|
Condensed Consolidated Statements of Operations
|
||||
|
|
Three Months Ended |
Six Months Ended |
||
|
|
|
|
||
|
(in thousands, except per share data) |
2025 |
2024 |
2025 |
2024 |
|
Sales and other operating revenues |
$ 570,210 |
$ 566,383 |
|
|
|
Cost of goods and services sold |
482,421 |
490,914 |
925,610 |
1,041,917 |
|
Gross profit |
87,789 |
75,469 |
153,415 |
159,321 |
|
Selling, general, and administrative expenses |
40,142 |
38,875 |
80,511 |
79,537 |
|
Other expense, net |
879 |
3,292 |
5,055 |
5,922 |
|
Restructuring and asset impairment charges |
40 |
224 |
121 |
327 |
|
Operating income |
46,728 |
33,078 |
67,728 |
73,535 |
|
Gain on debt retirement |
— |
6,855 |
— |
8,178 |
|
Interest expense, net |
37,922 |
35,750 |
67,689 |
69,022 |
|
Income before income taxes and other items |
8,806 |
4,183 |
39 |
12,691 |
|
Income tax expense |
10,305 |
8,041 |
15,532 |
14,160 |
|
Income (loss) from unconsolidated affiliates, net |
597 |
585 |
(672) |
3,148 |
|
Net (loss) income |
(902) |
(3,273) |
(16,165) |
1,679 |
|
Net (loss) income attributable to noncontrolling interests |
(23) |
(46) |
539 |
264 |
|
Net (loss) income attributable to Pyxus International, Inc. |
$ (879) |
$ (3,227) |
$ (16,704) |
$ 1,415 |
|
|
|
|
|
|
|
(Loss) earnings per share: |
|
|
|
|
|
Basic |
$ (0.03) |
$ (0.12) |
$ (0.65) |
$ 0.06 |
|
Diluted |
$ (0.03) |
$ (0.12) |
$ (0.65) |
$ 0.06 |
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
Basic |
25,806 |
25,825 |
25,739 |
25,683 |
|
Diluted |
25,806 |
25,825 |
25,739 |
25,683 |
|
Condensed Consolidated Balance Sheets
|
|||||
|
(in thousands) |
|
|
|||
|
Assets |
|
|
|||
|
Current assets |
|
|
|||
|
Cash and cash equivalents |
$ 99,237 |
$ 123,486 |
|||
|
Restricted cash |
7,211 |
7,446 |
|||
|
Trade receivables, net |
195,364 |
226,376 |
|||
|
Other receivables |
18,878 |
11,125 |
|||
|
Inventories, net |
1,135,183 |
974,570 |
|||
|
Advances to tobacco suppliers, net |
86,559 |
77,999 |
|||
|
Recoverable income taxes |
13,058 |
2,988 |
|||
|
Prepaid expenses |
51,577 |
43,095 |
|||
|
Other current assets |
19,788 |
18,988 |
|||
|
Total current assets |
1,626,855 |
1,486,073 |
|||
|
Investments in unconsolidated affiliates |
96,256 |
104,403 |
|||
|
Intangible assets, net |
26,274 |
31,587 |
|||
|
Deferred income taxes, net |
12,341 |
7,121 |
|||
|
Long-term recoverable income taxes |
5,118 |
4,008 |
|||
|
Other noncurrent assets |
41,552 |
34,916 |
|||
|
Right-of-use assets |
29,573 |
32,420 |
|||
|
Property, plant, and equipment, net |
139,015 |
136,146 |
|||
|
Total assets |
$ 1,976,984 |
$ 1,836,674 |
|||
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|||
|
Current liabilities |
|
|
|||
|
Notes payable |
$ 908,037 |
$ 744,779 |
|||
|
Accounts payable |
134,157 |
152,594 |
|||
|
Advances from customers |
82,346 |
75,796 |
|||
|
Accrued expenses and other current liabilities |
109,242 |
103,393 |
|||
|
Income taxes payable |
12,425 |
13,589 |
|||
|
Operating leases payable |
9,136 |
8,279 |
|||
|
Current portion of long-term debt |
— |
89 |
|||
|
Total current liabilities |
1,255,343 |
1,098,519 |
|||
|
Long-term taxes payable |
5,823 |
2,573 |
|||
|
Long-term debt |
455,311 |
489,470 |
|||
|
Deferred income taxes |
8,128 |
6,303 |
|||
|
Liability for unrecognized tax benefits |
24,546 |
12,510 |
|||
|
Long-term leases |
18,302 |
21,617 |
|||
|
Pension, postretirement, and other long-term liabilities |
57,565 |
54,923 |
|||
|
Total liabilities |
$ 1,825,018 |
$ 1,685,915 |
|||
|
Commitments and contingencies |
|
|
|||
|
Stockholders' equity |
|
|
|||
|
Common Stock—no par value: |
|
|
|||
|
Authorized shares (250,000 for all periods) |
|
|
|||
|
Issued and outstanding shares (24,608 for all periods) |
$ 393,392 |
$ 392,421 |
|||
|
Retained deficit |
(256,829) |
(253,876) |
|||
|
Accumulated other comprehensive income |
9,318 |
7,636 |
|||
|
Total stockholders' equity of Pyxus International, Inc. |
145,881 |
146,181 |
|||
|
Noncontrolling interests |
6,085 |
4,578 |
|||
|
Total stockholders' equity |
151,966 |
150,759 |
|||
|
Total liabilities and stockholders' equity |
$ 1,976,984 |
$ 1,836,674 |
|||
|
Segment Results
|
||||
|
Three Months Ended |
||||
|
|
Three Months Ended |
|||
|
|
|
|
Change |
|
|
(in millions, except per kilo amounts) |
2025 |
2024 |
$ |
% |
|
Leaf: |
|
|
|
|
|
Product revenues |
$ 511.2 |
$ 515.8 |
(4.6) |
(0.9) |
|
Tobacco costs |
418.3 |
428.9 |
(10.6) |
(2.5) |
|
Transportation, storage, and other period costs |
19.1 |
18.0 |
1.1 |
6.1 |
|
Total product cost of goods sold |
437.4 |
446.9 |
(9.5) |
(2.1) |
|
Product gross profit |
73.8 |
68.9 |
4.9 |
7.1 |
|
Product gross profit as a percent of sales |
14.4 % |
13.4 % |
|
|
|
|
|
|
|
|
|
Kilos sold |
91.4 |
86.0 |
5.4 |
6.3 |
|
Average price per kilo |
$ 5.59 |
$ 6.00 |
(0.41) |
(6.8) |
|
Average cost per kilo |
4.79 |
5.20 |
(0.41) |
(7.9) |
|
Average gross profit per kilo |
0.80 |
0.80 |
— |
— |
|
|
|
|
|
|
|
Processing and other revenues |
$ 55.5 |
$ 48.3 |
7.2 |
14.9 |
|
Processing and other costs of services sold |
41.2 |
40.1 |
1.1 |
2.7 |
|
Processing and other gross profit |
14.3 |
8.2 |
6.1 |
74.4 |
|
Processing and other gross profit as a percent of sales |
25.8 % |
17.0 % |
|
|
|
|
|
|
|
|
|
All Other: |
|
|
|
|
|
Sales and other operating revenues |
$ 3.6 |
$ 2.2 |
1.4 |
63.6 |
|
Cost of goods and services sold |
3.9 |
3.9 |
— |
— |
|
Gross loss |
(0.3) |
(1.7) |
(1.4) |
(82.4) |
|
Gross loss as a percent of sales |
(8.3) % |
(77.3) % |
|
|
|
Segment Results
|
||||
|
Six Months Ended |
||||
|
|
Six Months Ended |
|||
|
|
|
|
Change |
|
|
(in millions, except per kilo amounts) |
2025 |
2024 |
$ |
% |
|
Leaf: |
|
|
|
|
|
Product revenue |
$ 969.4 |
$ 1,105.0 |
(135.6) |
(12.3) |
|
Tobacco costs |
794.0 |
912.9 |
(118.9) |
(13.0) |
|
Transportation, storage, and other period costs |
44.2 |
42.8 |
1.4 |
3.3 |
|
Total cost of goods sold |
838.2 |
955.7 |
(117.5) |
(12.3) |
|
Product revenue gross profit |
131.2 |
149.3 |
(18.1) |
(12.1) |
|
Product revenue gross profit as a percent of sales |
13.5 % |
13.5 % |
|
|
|
|
|
|
|
|
|
Kilos sold |
158.3 |
181.7 |
(23.4) |
(12.9) |
|
Average price per kilo |
$ 6.12 |
$ 6.08 |
0.04 |
0.7 |
|
Average cost per kilo |
5.30 |
5.26 |
0.04 |
0.8 |
|
Average gross profit per kilo |
0.82 |
0.82 |
— |
— |
|
|
|
|
|
|
|
Processing and other revenues |
$ 105.6 |
$ 90.1 |
15.5 |
17.2 |
|
Processing and other revenues costs of services sold |
83.8 |
77.5 |
6.3 |
8.1 |
|
Processing and other gross profit |
21.8 |
12.6 |
9.2 |
73.0 |
|
Processing and other gross profit as a percent of sales |
20.6 % |
14.0 % |
|
|
|
|
|
|
|
|
|
All Other: |
|
|
|
|
|
Sales and other operating revenues |
$ 4.0 |
$ 6.1 |
(2.1) |
(34.4) |
|
Cost of goods and services sold |
3.7 |
8.7 |
(5.0) |
(57.5) |
|
Gross profit (loss) |
0.3 |
(2.6) |
2.9 |
** |
|
Gross profit (loss) as a percent of sales |
7.5 % |
(42.6) % |
|
|
|
Reconciliation of Certain Non-GAAP Financial Measures (1) (Unaudited)
|
||||||||||
|
|
Three Months Ended |
Six Months Ended |
Fiscal Year Ended |
Last Twelve Months (6) |
||||||
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Pyxus International, Inc. |
$ (879) |
$ (3,227) |
$ 8,095 |
$ (16,704) |
$ 1,415 |
$ 8,899 |
$ 15,166 |
$ 2,663 |
(2,953) |
$ (4,821) |
|
Plus: Interest expense |
39,002 |
37,180 |
34,034 |
69,625 |
71,655 |
66,400 |
133,108 |
132,174 |
131,078 |
137,429 |
|
Plus: Income tax expense |
10,305 |
8,041 |
7,558 |
15,532 |
14,160 |
10,204 |
25,053 |
27,281 |
26,425 |
31,237 |
|
Plus: Depreciation and amortization expense |
5,198 |
5,065 |
4,713 |
10,367 |
10,192 |
9,319 |
20,334 |
19,250 |
20,509 |
20,123 |
|
EBITDA (1) |
53,626 |
47,059 |
54,400 |
78,820 |
97,422 |
94,822 |
193,661 |
181,368 |
175,059 |
183,968 |
|
Plus: (Recoveries) reserves for doubtful customer receivables |
(40) |
(35) |
116 |
(266) |
122 |
251 |
103 |
640 |
(285) |
511 |
|
Plus: Noncash equity-based compensation |
256 |
601 |
— |
493 |
3,632 |
— |
4,110 |
— |
971 |
3,632 |
|
Plus: Other expense, net |
879 |
3,292 |
1,089 |
5,055 |
5,922 |
3,713 |
16,410 |
9,439 |
15,543 |
11,648 |
|
Plus: Restructuring and asset impairment charges (2) |
40 |
224 |
1,254 |
121 |
327 |
1,294 |
2,259 |
4,799 |
2,053 |
3,832 |
|
Less: Gain on debt retirement |
— |
6,855 |
— |
— |
8,178 |
— |
8,178 |
15,914 |
— |
24,092 |
|
Plus: Debt restructuring |
— |
— |
35 |
— |
— |
175 |
— |
330 |
— |
155 |
|
Plus: Pension retirement expense (3) |
— |
— |
— |
— |
— |
— |
— |
12,008 |
— |
12,008 |
|
Plus: Other adjustments (4) |
— |
6 |
219 |
(11) |
15 |
511 |
45 |
1,247 |
19 |
751 |
|
Adjusted EBITDA (1) |
$ 54,761 |
$ 44,292 |
$ 57,113 |
$ 84,212 |
$ 99,262 |
$ 100,766 |
$ 208,410 |
$ 193,917 |
$ 193,360 |
$ 192,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
|
|
|
$ 849,892 |
$ 1,017,340 |
$ 1,363,348 |
$ 1,234,338 |
|
Less: Cash and cash equivalents |
|
|
|
|
|
|
78,254 |
92,569 |
99,237 |
123,486 |
|
Net Debt (1) |
|
|
|
|
|
|
$ 771,638 |
$ 924,771 |
$ 1,264,111 |
$ 1,110,852 |
|
Net Debt /Adjusted EBITDA (1) |
|
|
|
|
|
|
3.70x |
4.77x |
6.54x |
5.77x |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1) |
|
|
|
|
|
|
$ 208,410 |
$ 193,917 |
$ 193,360 |
$ 192,413 |
|
Interest expense |
|
|
|
|
|
|
133,108 |
132,174 |
131,078 |
137,429 |
|
Interest coverage |
|
|
|
|
|
|
1.57x |
1.47x |
1.48x |
1.40x |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
$ (85,641) |
$ (28,093) |
$ 30,254 |
$ (580,928) |
$ (280,269) |
|
$ (13,386) |
$ (214,970) |
$ (314,045) |
$ (239,819) |
|
Capital expenditures |
(5,451) |
(4,687) |
(5,564) |
(9,730) |
(9,784) |
(9,225) |
(23,028) |
(21,043) |
(22,974) |
(21,602) |
|
Collections from beneficial interests in securitized trade receivables (5) |
67,804 |
69,856 |
48,877 |
108,811 |
101,597 |
79,296 |
188,312 |
175,911 |
195,526 |
198,212 |
|
Adjusted Free Cash Flow (1) |
$ (23,288) |
$ 37,076 |
$ 73,567 |
$ (481,847) |
$ (188,456) |
|
$ 151,898 |
$ (60,102) |
$ (141,493) |
$ (63,209) |
|
|
|
(1) Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), Adjusted Free Cash Flow, and Net Debt are not measures of results of operations, cash flows from operations or indebtedness under generally accepted accounting principles in |
|
|
|
(2) Amounts incurred during the fiscal year ended |
|
|
|
(3) During the fiscal year ended |
|
|
|
(4) Includes the following items: (i) the addition of amortization of basis difference related to a former Brazilian subsidiary that is now deconsolidated following the completion of a joint venture in |
|
|
|
(5) Represents cash receipts from the beneficial interest on sold receivables under the Company's accounts receivable securitization programs and are classified as investing activities within the condensed consolidated statements of cash flows. |
|
|
|
(6) Items for the twelve months ended |
View original content to download multimedia:https://www.prnewswire.com/news-releases/pyxus-international-inc-reports-solid-second-quarter-fiscal-2026-results-302612207.html
SOURCE Pyxus International, Inc.
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