Pyxus International, Inc. reported its second‑quarter 2026 results on November 12, 2025, showing sales and other operating revenues of $570.2 million, a 0.7% year‑over‑year increase from $566.3 million in Q2 2025. Gross profit as a percentage of sales expanded to 15.4 % from 13.3 % a year earlier, and operating income rose to $46.7 million from $33.0 million. Net loss attributable to the company narrowed to $0.9 million versus a $3.2 million loss in the prior year, while adjusted EBITDA climbed to $54.8 million from $44.3 million. Inventory grew to $1,135.2 million, up from $943.3 million, and net debt increased by $153.2 million during the quarter.
The modest revenue growth reflects a 0.7% increase driven by higher crop volumes in Africa and South America, improved product mix favoring higher‑margin pharmaceutical‑grade nicotine, and a 26 % rise in third‑party processing volumes. The 10.2% year‑to‑date decline in sales to $1,078.9 million (down $122.2 million from $1,201.2 million a year earlier) is largely attributable to a weaker carry‑over from the previous year’s larger crop, while the current quarter’s stronger demand offsets that headwind.
Gross margin expansion to 15.4 % from 13.3 % is largely a result of the company’s ability to capture higher pricing on its premium nicotine products and to control input costs amid volatile commodity prices. The 1.1‑percentage‑point lift in gross margin translates into a 41.5 % jump in operating income, underscoring the effectiveness of the company’s cost‑control initiatives and operational leverage as sales scale.
Management raised full‑year sales guidance to $2.4 billion–$2.6 billion from the prior $2.3 billion–$2.5 billion range, while tightening adjusted EBITDA guidance to $215 million–$235 million from $205 million–$235 million. The upward revision in sales reflects confidence in the acceleration of crop purchasing and processing in key markets, whereas the narrowed EBITDA range signals a focus on maintaining margin discipline amid rising inventory levels.
CEO Pieter Sikkel highlighted the company’s “accelerated crop purchasing and processing” in Africa and South America, noting that the inventory build is “consistent with larger crops and balanced customer demand.” He added that the firm’s global footprint and diversified product mix position it to “maximize the value of larger crop volumes and deliver continued performance regardless of market dynamics.”
While no market‑reaction data are available, the results align with industry tailwinds such as higher demand for specialty nicotine products and headwinds including potential oversupply in future crop seasons. The company’s focus on working‑capital management and cost discipline positions it to navigate these dynamics while pursuing growth in the second half of fiscal 2026.
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