16. Business Segments

We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products reporting segments. The Chief Executive Officer is the chief operating decision-maker (“CODM”) for the Company. We evaluate performance of our segments based on Adjusted EBITDA. Included in the segment Adjusted EBITDA analyses provided to the CODM is information on segment cost of sales and selling, general and administrative expenses. There are no other significant segment expense categories regularly provided to the CODM.

We calculate Adjusted EBITDA as net income plus (a) interest expense, net, (b) provision for income taxes or less benefit for income taxes, (c) depreciation and amortization, (d) other non-operating expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency (gains) losses, net and (e) certain items that we consider to be unusual, non-operational or non-recurring. However, some of these items may not be applicable to the calculation of Adjusted EBITDA for our segments, as we do not typically include interest, other non-operating items, or income tax-related items in our segment results.

Certain of our costs and assets are not directly attributable to a segment or segments, and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the other segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, information technology, legal, finance, human resources and business development. The accounting policies of our segments are the same as those described in the summary of significant accounting policies included in Note 2 — Summary of Significant Accounting Policies and New Accounting Standards.

For all segments, the CODM uses segment Adjusted EBITDA in the annual budgeting and quarterly forecasting process and considers budget-to-actual and current period to prior period variances to evaluate performance and allocated resources for each segment.



For the Year Ended June 30	2025		2024		2023
Net sales
Animal Health	$	962,796	$	706,482	$	659,851
Mineral Nutrition		253,240		243,663		242,656
Performance Products		80,179		67,534		75,382
Total segments	$	1,296,215	$	1,017,679	$	977,889


For the Year Ended June 30	2025		2024		2023
Animal Health
Net sales	$	962,796	$	706,482	$	659,851
Cost of sales		607,069		428,683		399,016
Selling, general and administrative expenses ⁽¹⁾		182,310		162,009		152,410
Add: Depreciation and amortization		40,475		30,194		27,714
Add: Acquisition-related cost of goods sold ⁽²⁾		5,679		521		—
Add: Phibro Forward income growth initiatives implementation costs - cost of goods sold ⁽³⁾		3,798		—		—
Add: Phibro Forward income growth initiatives implementation costs - SG&A ⁽³⁾		1,771		—		—
Subtract: Insurance proceeds ⁽⁴⁾		(2,880)		(899)		—
Adjusted EBITDA		222,260		145,606		136,139
Mineral Nutrition
Net sales		253,240		243,663		242,656
Cost of sales		226,864		222,363		221,014
Selling, general and administrative expenses ⁽¹⁾		7,642		7,278		6,863
Add: Depreciation and amortization		2,102		2,427		2,638
Adjusted EBITDA		20,836		16,449		17,417
Performance Products
Net sales		80,179		67,534		75,382
Cost of sales		62,364		53,519		59,631
Selling, general and administrative expenses ⁽¹⁾		8,405		8,041		15,079
Add: Depreciation and amortization		1,137		1,688		1,780
Add: Environmental remediation costs ⁽⁵⁾		—		—		6,894
Adjusted EBITDA		10,547		7,662		9,346
Adjusted EBITDA – Total segments	$	253,643	$	169,717	$	162,902
Reconciliation of Adjusted EBITDA to income before income taxes:
Less:
Interest expense, net		34,602		18,536		15,321
Depreciation and amortization – Total segments		43,714		34,309		32,132
Depreciation and amortization – Corporate		1,891		1,869		1,880
Corporate costs		69,959		58,480		50,149
Acquisition-related cost of goods sold		5,679		521		—
Acquisition-related transaction costs		13,322		6,405		—
Pension settlement cost		—		10,674		—
Brazil employment taxes		—		4,202		—
Stock-based compensation		717		475		—
Phibro Forward income growth initiatives implementation costs - cost of goods sold ⁽³⁾		3,798		—		—
Phibro Forward income growth initiatives implementation costs - SG&A ⁽³⁾		6,978		366		—
Insurance proceeds		(2,880)		(899)		—
Environmental remediation costs		—		—		6,894
Foreign currency losses, net		7,870		23,863		2,455
Income before income taxes	$	67,993	$	10,916	$	54,071

(1)

Selling, general, and administrative expenses primarily include compensation-related expenses for employees not directly involved in the production and sale of inventory, rent expense, research and development costs, marketing expenses, and other general and administrative expenses.

(2)

Represents cost of goods sold related to the stepped up value of inventory obtained in acquisitions.

(3)

Phibro Forward is a company-wide initiative focused on unlocking additional areas of revenue growth and cost savings. For the year ended June 30, 2025, this included charges of $5.6 million related to the closure of an immaterial business within the Animal Health segment, of which $5.3 million was related to non-cash asset write-offs. $3.8 million of the non-cash asset write-offs was recorded within cost of goods sold and $1.5 million was recorded within selling, general, and administrative expenses. For the year ended June 30, 2025, charges related to Phibro Forward also include $5.2 million for Corporate consulting and other costs recorded within selling, general, and administrative expenses. For the year ended June 30, 2024, this included $0.4 million for Corporate consulting costs recorded within selling, general, and administrative expenses.

(4)

Represents insurance settlement gains.

(5)

Represents remediation costs mostly related to the definitive settlement agreement related to the Omega Chemical Corporation Superfund Site.

The geographic location of property, plant and equipment, net and operating lease ROU assets was:


As of June 30	2025		2024
Property, plant and equipment, net and operating lease ROU assets
United States	$	239,874	$	103,086
Israel		74,403		78,264
Brazil		34,504		32,266
Ireland		25,141		19,066
Other		22,107		8,222
	$	396,029	$	240,904

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

PHIBRO ANIMAL HEALTH CORP Segments Disclosure

About Segments Disclosures

Other Available Disclosures