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Pyxus International, Inc. Reports First Quarter Fiscal 2026 Results

On August 6, 2025, Pyxus International, Inc. (OTCID: PYYX), a global leader in value-added agriculture, disclosed its financial results for the first quarter ending on June 30, 2025. According to Pieter Sikkel, President and CEO, the results align well with the company's financial expectations and position them to meet the full-year guidance for 2026. The quarterly outcomes reflect a more normalized operational cycle, wherein buying occurs in the first half of the fiscal year and selling in the latter half. This strategy not only enhances alignment with customer demands but also fosters efficiency in the business processes.

During this quarter, the company adeptly leveraged a dynamic and competitive market environment, capitalizing on record crop sizes in regions such as South America and Africa. The volumes acquired during this period aim to fulfill enduring strong customer demand, ultimately delivering value to shareholders. Sikkel indicated that the positive impacts of these decisions would become increasingly apparent throughout the second half of the fiscal year, reinforcing their optimistic outlook.

Financial Highlights

In the first quarter, Pyxus recorded sales and other operating revenues of $508.8 million, a decrease from $634.9 million in the same period of the previous year. This decline was anticipated due to the acceleration of certain customer shipments into the fourth quarter of fiscal 2025. However, an increase in pricing per kilogram offset some of the revenue loss.

Cost of goods and services sold reached $443.2 million for the quarter, compared to $551.0 million for the same quarter last year, indicating a consistent correlation with shifts in sales and operating revenues. Notably, the gross profit margin as a percentage of sales was 12.9%, a slight dip from 13.2% in the prior year, attributed to variations in regional and customer sales mix offset by improved gross profit from processing activities.

Administrative expenses were maintained efficiently at $40.4 million, showing a marginal decline from $40.7 million a year ago. The company witnessed an operating income of $21.0 million against $40.5 million from the same quarter in fiscal 2025. A net loss of $(15.8) million marked the first quarter, while the adjusted EBITDA stood at $29.5 million compared to $55.0 million a year earlier.

Balance Sheet and Liquidity

As of June 30, 2025, Pyxus noted a return to a more regular cycle of operations, particularly highlighted by larger crop purchases from Africa. This resulted in total net debt escalating by $90.3 million compared to the previous year, which is favorable when viewed against a $107.3 million increase in inventory year-over-year.

The tobacco inventory by the quarter's end was valued at $1,089.8 million, an increase from $980.6 million a year prior. Uncommitted inventory at that date represented 2.4% of the total processed inventory, remaining low due to high customer demand. A flourishing market for larger crops in Africa and South America is projected to establish a more balanced global leaf market moving forward.

Improvements in cash conversion were evident, with the average operating cycle time reduced to 160 days from 172 days the previous fiscal year, indicating enhanced efficiency and availability.

Guidance Reaffirmation

For the full fiscal year, Pyxus maintains an optimistic forecast, expecting total sales in the range of $2.3 billion to $2.5 billion, with adjusted EBITDA projected between $205 million and $235 million. The company’s first-quarter results aligned closely with internal expectations, showcasing a solid foundation to meet these goals.

An earnings conference call is scheduled for August 6, 2025, at 9 a.m. EDT where investors and analysts will have the opportunity to engage with company management regarding these developments. The earnings release and related presentation will be available on Pyxus’ investor relations website.

Conclusion

Pyxus International, Inc. stands at a crucial juncture with its financial results feeding into a well-defined strategy aimed at fulfilling customer needs and strengthening shareholder value. As the company navigates through a competitive landscape, its commitment to operational efficiency, cost management, and fulfilling projected earnings guidance remains steadfast. Stakeholders will be keenly observing how these strategies unfold in the upcoming quarters as the agriculture market continues to evolve.