Pyxus International reported solid results for the second quarter 2026 ended September 30, with sales rising to $570.2 million from $566.3 million a year earlier. CEO Pieter Sikkel said the performance reflects strong execution and positions the company for a robust second half of fiscal 2026. Gross margin improved to 15.4% from 13.3%, “driven by a better product mix and higher returns on current crops.” Operating income rose to $46.7 million from $33 million, while adjusted EBITDA increased to $54.8 million from $44.3 million. Net loss narrowed to $900,000, compared to $3.2 million a year ago.
Sales and other operating revenues for the first half of fiscal 2026 decreased $122.2 million, or 10.2%, when compared to $1.2 billion for the same period last year. “The decrease was due to the impact of lower carry-over sales from the prior fiscal year not being fully offset by the acceleration of shipments from the current crop.”
Tobacco inventory rose to $1.1 billion, reflecting larger crops in Africa and South America, while uncommitted inventory remained low at 2.7% of total processed stock, signaling steady demand. The company reduced its operating cycle to 167 days from 179 days last year and reported strong liquidity with no borrowings on its $150 million credit line.
Based on its performance and improved visibility, Pyxus raised its full-year sales guidance to $2.4–$2.6 billion (from $2.3–$2.5 billion) and tightened its adjusted EBITDA range to $215–$235 million.