Pyxus International reported results for its fourth quarter and fiscal year ended March 31, 2026, highlighting a 35.2% year-over-year increase in fourth-quarter net sales, full-year operating income of $162.7 million and net income of $14.6 million, record full-year adjusted EBITDA of $226.7 million, and a leverage ratio improved to a multi-year low of 3.52x. Fourth-quarter sales rose $176.5 million to $678.2 million, driven by higher leaf sales volumes from Africa and North America on larger crops and shipment timing. Full-year sales, however, slipped 2.8% to $2.41 billion, reflecting a 3.8% decline in average price per kilo (primarily in Africa, with pricing tied to lower South American crop costs) and lower value-added tobacco product volumes, partially offset by growth in third-party processing.
President and CEO Pieter Sikkel described fiscal 2026 as another year of outstanding results, crediting global teams with navigating a shift to an oversupply market while meeting sustained customer demand and achieving record adjusted EBITDA, strong margins, and improved credit metrics. Full-year gross profit rose 1.4% to $347.7 million, with gross margin improving to 14.4% on higher third-party processing volumes and increased South American leaf sales, while SG&A fell $8.1 million to $162.9 million. Full-year operating income increased 6.1% to $162.7 million. The company noted the global tobacco market has turned to oversupply on higher African and South American production, with total tobacco inventory rising to $786.7 million and uncommitted inventory at $45.2 million (about 9% of processed inventory); higher inventory is expected to produce more carry-over sales in fiscal 2027.
On the balance sheet, strong sales and cash collections lifted cash and equivalents by $56.1 million year-over-year, generating fourth-quarter operating cash flow of $310.1 million and adjusted free cash flow of $352.1 million, with no outstanding borrowings on the company’s $150 million ABL at year-end. Leverage improved from 3.70x to 3.52x and interest coverage rose to 1.63x from 1.57x. Looking ahead, Pyxus guided fiscal 2027 sales of $2.3–$2.5 billion and adjusted EBITDA of $210–$240 million, with Sikkel citing a disciplined, demand-led operating model, anticipated steady demand and sufficient supply, and expectations of decreased crop costs and improved working capital.
