Pyxus International, Inc. Reports First Quarter Fiscal 2026 Results; Reiterates Full-Year Guidance

MORRISVILLE, N.C., Aug. 6, 2025 /PRNewswire/ -- Pyxus International, Inc. (OTCID: PYYX) ("Pyxus," the "Company," "we," or "our"), a global value-added agricultural company, today announced results for its first quarter ended June 30, 2025.

Pieter Sikkel, Pyxus' President and Chief Executive Officer, said, "We are pleased to report first quarter results that align with our financial expectations and position the business to achieve our full-year guidance for fiscal 2026. These results reflect a more normalized cycle—buying in the first half of the fiscal year and selling in the second half—improving our alignment with customer requirements and generating further efficiencies for the business.

"During the quarter, we effectively navigated a highly dynamic and competitive market to capture buying opportunities generated by record crop sizes in South America and Africa. The additional volumes purchased support our ability to satisfy continued strong customer demand and deliver shareholder value. We expect this impact to be increasingly visible in the second half, reinforcing our outlook for another strong fiscal year."

First Quarter Fiscal 2026 Results

First quarter sales and other operating revenues were $508.8 million compared to $634.9 million for the prior year's first quarter. This result was expected and largely related to the acceleration of certain customer shipments into the fourth quarter of fiscal year 2025. This was partially offset by higher pricing per kilogram.

Cost of goods and services sold was $443.2 million for the three months ended June 30, 2025, compared to $551.0 million for the same quarter in fiscal year 2025. This reduction was consistent with the change in sales and other operating revenues.

Gross profit as a percent of sales was 12.9% in the first quarter of fiscal year 2026 compared to 13.2% for the same period in the prior year. This was driven by regional and customer mix for leaf sales, which was partially offset by an increase in processing and other gross profit.  

Selling, general, and administrative expenses in the first quarter remained well managed and improved slightly to $40.4 million compared to $40.7 million in the first quarter of fiscal 2025. 

The Company's operating income was $21.0 million as compared to $40.5 million in the first quarter of fiscal 2025. Net (loss) income attributable to Pyxus International, Inc. in the first quarter was $(15.8) million as compared to $4.6 million in the first quarter of the prior fiscal year. Adjusted EBITDA in the first quarter was $29.5 million compared to $55.0 million in the same quarter of the prior fiscal year. Each of these fluctuations was driven by factors consistent with lower sales and gross profit.

Select Balance Sheet and Liquidity Information

As of June 30, 2025, the balance sheet reflected a more normalized cadence in the business compared to the short-crop conditions experienced in the prior fiscal year, particularly with respect to larger crop purchases, mainly in Africa. Additionally, the Company's total net debt, which increased by $90.3 million versus the prior year, compared favorably with the year-over-year inventory increase of $107.3 million.

Tobacco inventory at the end of the first quarter was $1,089.8 million compared to $980.6 million at the same time last year, which reflects larger crop availability in the market. Uncommitted inventory at June 30, 2025 was $13.6 million, or 2.4% of the $575.9 million in total processed inventory, compared to $14.7 million of uncommitted inventory and total processed inventory of $605.5 million held at June 30, 2024.

Uncommitted levels of processed tobacco remain low due to strong demand from our customers. While undersupply conditions have persisted in the global tobacco market in recent periods, the larger crops experienced in Africa and South America this buying season are anticipated to provide a more balanced global leaf market.

The Company continued to improve its cash conversion, reducing average operating cycle time to 160 days in the first quarter compared to 172 days in the same period last fiscal year, contributing to improved efficiency and availability.

Reiterated Guidance for Fiscal Year

The Company's first quarter results were in-line with its internal expectations, and it continues to anticipate for the full fiscal year that it will report sales in the range of $2.3 billion to $2.5 billion and adjusted EBITDA in the range of $205 million to $235 million.

Financial Results Investor Call

The Company will hold an earnings conference call and webcast on August 6, 2025, at 9 a.m. EDT. Investors and analysts interested in participating in the call are invited to dial (929) 477-0448 or (888) 254-3590 and use conference ID 8412361. The webcast can be accessed at http://investors.pyxus.com.

This release, as well as the Company's first 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 March 31, 2025, our most recent Quarterly Report on Form 10-Q, and in our other filings with the Securities and Exchange Commission. These risks and uncertainties include: our reliance on a small number of significant customers; continued vertical integration by our customers; global shifts in sourcing customer requirements, the imposition of tariffs and other changes in international trade policies; shifts in the global supply and demand position for tobacco products; variation in our financial results due to growing conditions, customer indications and other factors; loss of confidence in us by our customers, farmers and other suppliers; migration of suppliers who have historically grown tobacco and from whom we have purchased tobacco toward growing other crops; risks related to our advancement of inputs to tobacco suppliers to be settled upon the suppliers delivering us unprocessed tobacco at the end of the growing season; risks that the tobacco we purchase directly from suppliers will not meet our customers' quality and quantity requirements; weather and other environmental conditions that can affect the quantity and marketability of our inventory; international business risks, including unsettled political conditions, uncertainty in the enforcement of legal obligations, including the collection of accounts receivable, fraud risks, expropriation, import and export restrictions, exchange controls, inflationary economies, currency risks and risks related to the restrictions on repatriation of earnings or proceeds from liquidated assets of foreign subsidiaries; many of our operations are located in jurisdictions that pose a high risk of potential violations of the Foreign Corrupt Practices Act; risks and uncertainties related to geopolitical conflicts, including the conflicts in the Middle East and disruptions affecting shipping in that area; impacts of international sanctions on our ability to sell or source tobacco in certain regions; exposure to foreign tax regimes in which the rules are not clear, are not consistently applied and are subject to sudden change; fluctuations in foreign currency exchange and interest rates; competition with the other primary global independent leaf tobacco merchant and independent leaf merchants; disruption, failure or security breaches of our information technology systems and other cybersecurity risks; continued high inflation; regulations regarding environmental matters; risks related to our capital structure, including risks related to our significant debt and our ability to continue to finance our non-U.S. local operations with uncommitted short-term operating credit lines at the local level; our ability to continue to access capital markets to obtain long-term and short-term financing; potential failure of foreign banks in which our subsidiaries maintain deposits or the failure by such banks to transfer funds or honor withdrawals; the risk that, because our ability to generate cash depends on many factors beyond our control, we may be unable to generate the significant amount of cash required to service our indebtedness; our ability to refinance our current credit facilities at the same availability or at similar or reduced interest rates; failure to achieve our stated goals, which may adversely affect our liquidity; developments with respect to our liquidity needs and sources of liquidity; the volatility and disruption of global credit markets; failure by counterparties to derivative transactions to perform their obligations; increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our environmental, social and governance policies, including sustainability policies; inherent risk of exposure to product liability claims, regulatory action and litigation facing our e-liquids business if its products are alleged to have caused significant loss, injury, or death; certain shareholders have the ability to exercise controlling influence on various corporate matters; reductions in demand for consumer tobacco products; risks and uncertainties related to pandemics or other widespread health crises and any related shipping constraints, labor shortages and supply-chain impacts; legislative and regulatory initiatives that may reduce consumption of consumer tobacco products and demand for our services and increase regulatory burdens on us or our customers; government actions that significantly affect the sourcing of tobacco, including governmental actions to identify and assess crop diversification initiatives and alternatives to leaf tobacco growing in countries whose economies depend upon tobacco production; governmental investigations into the Company's business activities, including but not limited to, leaf tobacco industry buying and other payment practices; and impact of proposed regulations to prohibit the sale of cigarettes and certain other tobacco products in the United States other than low-nicotine versions of those products.  The Company does not undertake to update any forward-looking statements that we may make from time to time except to the extent required by law.

Non-GAAP Financial Information

This press release contains financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). They include EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, and Net Debt. Tables showing the reconciliation of historical non-GAAP financial measures are attached to the release. The range of Adjusted EBITDA anticipated for the fiscal year ending March 31, 2026 is calculated in a manner consistent with the presentation of Adjusted EBITDA in the attached tables. Because of the forward-looking nature of the estimated range of Adjusted EBITDA, it is impractical to present a quantitative reconciliation of such measure to a comparable GAAP measure, and accordingly no such GAAP measure is being presented.

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.

SOURCE Pyxus International, Inc.