Pyxus International reported mixed results for the first quarter of fiscal 2027 as lower global leaf tobacco prices and shipment timing weighed on revenue, while improved sourcing and cost management supported margins and cash generation. Sales fell 14% year over year to $437.8 million, driven by lower average prices in South America and Africa and reduced shipment volumes, while operating income declined to $15.7 million from $21.0 million. Despite the weaker top line, the company cut its net loss to $7.3 million from $15.8 million a year earlier, aided by a tax benefit, while adjusted EBITDA slipped modestly to $27.7 million from $29.5 million.
CEO Pieter Sikkel said the company benefited from an ample-supply, lower-price market by selectively purchasing higher-quality tobacco at lower costs, improving cash generation and strengthening its balance sheet ahead of higher shipment volumes expected later in the year. Pyxus ended the quarter with net debt down $130.9 million year over year to $1.11 billion, no borrowings outstanding under its $150 million asset-backed lending facility, and lower tobacco inventories reflecting reduced green tobacco prices and a slower purchasing pace.
Looking ahead, Pyxus reaffirmed its fiscal 2027 guidance, maintaining expectations for net sales of $2.3 billion to $2.5 billion and adjusted EBITDA of $210 million to $240 million, signaling confidence that stronger shipment volumes later in the fiscal year will offset the softer first-quarter performance.
