Pyxus International reports first quarter fiscal 2027 results

Revenue fell on lower leaf tobacco prices and shipment timing, but the agricultural supplier narrowed its net loss, cut net debt and maintained full-year sales and adjusted EBITDA guidance.

Summary

Pyxus International reported fiscal first-quarter 2027 sales and other operating revenues of $437.8 million, down from $508.8 million a year earlier, as lower average leaf tobacco prices in South America and Africa and a slight decline in volumes, largely tied to North American shipment timing, weighed on results. Gross profit fell to $61.4 million from $65.6 million, while operating income slipped to $15.7 million from $21.0 million and adjusted EBITDA edged down to $27.7 million from $29.5 million; net loss attributable to Pyxus narrowed to $7.3 million from $15.8 million after the company recorded a $5.7 million income tax benefit versus a $5.2 million tax expense a year earlier. The company said it maintained margin performance in a lower-price, ample-supply market, reduced total leaf inventories, lowered net debt to $1.1087 billion, had no outstanding borrowings on its $150.0 million ABL at quarter-end, and kept fiscal 2027 guidance for net sales of $2.3 billion to $2.5 billion and adjusted EBITDA of $210 million to $240 million.

Terms & Concepts
  • Adjusted EBITDA: A profit measure that excludes interest, taxes, depreciation, amortization and certain other items to highlight underlying operating performance.
  • net debt: A measure of indebtedness calculated as total debt minus cash and cash equivalents.
  • ABL: An asset-based lending facility, or credit line secured by company assets such as inventory or receivables.