PYYX 10-Q

Pyxus International, Inc. (PYYX)

10-Q 2025-11-12 For: 2025-09-30

View Original

Added on April 06, 2026


Virginia		85-2386250
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

6001 Hospitality Court, Suite 100
Morrisville,	North Carolina	27560
(Address of principal executive offices)		(Zip Code)


Pyxus International, Inc. and Subsidiaries
Table of Contents

		Page Number
Part I	Financial Information
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations	3

	Condensed Consolidated Statements of Comprehensive (Loss) Income	4

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36

Part II	Other Information
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36






Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	38

	Signature	39


Pyxus International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2025		2024		2025		2024
Sales and other operating revenues	$	570,210	$	566,383	$	1,079,025	$	1,201,238
Cost of goods and services sold	482,421		490,914		925,610		1,041,917
Gross profit	87,789		75,469		153,415		159,321
Selling, general, and administrative expenses	40,142		38,875		80,511		79,537
Other expense, net	879		3,292		5,055		5,922
Restructuring and asset impairment charges	40		224		121		327

Operating income	46,728		33,078		67,728		73,535
Gain on debt retirement	—		6,855		—		8,178


Interest expense, net	37,922		35,750		67,689		69,022
Income before income taxes and other items	8,806		4,183		39		12,691
Income tax expense	10,305		8,041		15,532		14,160
Income (loss) from unconsolidated affiliates, net	597		585		(672)		3,148
Net (loss) income	(902)		(3,273)		(16,165)		1,679
Net (loss) income attributable to noncontrolling interests	(23)		(46)		539		264
Net (loss) income attributable to Pyxus International, Inc.	$	(879)	$	(3,227)	$	(16,704)	$	1,415

(Loss) earnings per share:
Basic	$	(0.03)	$	(0.12)	$	(0.65)	$	0.06
Diluted	$	(0.03)	$	(0.12)	$	(0.65)	$	0.06

Weighted average number of shares outstanding:
Basic	25,806		25,825		25,739		25,683
Diluted	25,806		25,825		25,739		25,683

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive (Loss) Income
(Unaudited)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
(in thousands)	2025		2024		2025		2024
Net (loss) income	$	(902)	$	(3,273)	$	(16,165)	$	1,679

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(477)		278		1,562		821


Cash flow hedges	(1,016)		1,266		441		(971)

Total other comprehensive (loss) income, net of tax	$	(1,493)	$	1,544	$	2,003	$	(150)
Total comprehensive (loss) income	(2,395)		(1,729)		(14,162)		1,529
Comprehensive (loss) income attributable to noncontrolling interests	(23)		(46)		539		264
Comprehensive (loss) income attributable to Pyxus International, Inc.	$	(2,372)	$	(1,683)	$	(14,701)	$	1,265

See "Notes to Condensed Consolidated Financial Statements"


Pyxus International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)


(in thousands)	September 30, 2025		September 30, 2024		March 31, 2025
Assets
Current assets
Cash and cash equivalents	$	99,237	$	123,486	$	78,254
Restricted cash	7,211		7,446		7,290
Trade receivables, net	195,364		226,376		189,239
Other receivables	18,878		11,125		15,040
Inventories, net	1,135,183		974,570		761,951
Advances to tobacco suppliers, net	86,559		77,999		30,745
Recoverable income taxes	13,058		2,988		6,616
Prepaid expenses	51,577		43,095		47,151
Other current assets	19,788		18,988		21,874
Total current assets	1,626,855		1,486,073		1,158,160
Investments in unconsolidated affiliates	96,256		104,403		96,928
Intangible assets, net	26,274		31,587		28,507
Deferred income taxes, net	12,341		7,121		13,567
Long-term recoverable income taxes	5,118		4,008		5,669
Other noncurrent assets	41,552		34,916		33,094
Right-of-use assets	29,573		32,420		29,742
Property, plant, and equipment, net	139,015		136,146		138,176
Total assets	$	1,976,984	$	1,836,674	$	1,503,843

Liabilities and Stockholders’ Equity
Current liabilities
Notes payable	$	908,037	$	744,779	$	395,030
Accounts payable	134,157		152,594		132,871
Advances from customers	82,346		75,796		135,607
Accrued expenses and other current liabilities	109,242		103,393		90,912
Income taxes payable	12,425		13,589		11,001
Operating leases payable	9,136		8,279		8,514
Current portion of long-term debt	—		89		12
Total current liabilities	1,255,343		1,098,519		773,947
Long-term taxes payable	5,823		2,573		5,187
Long-term debt	455,311		489,470		454,850
Deferred income taxes	8,128		6,303		8,818
Liability for unrecognized tax benefits	24,546		12,510		18,635
Long-term leases	18,302		21,617		19,584
Pension, postretirement, and other long-term liabilities	57,565		54,923		57,052
Total liabilities	$	1,825,018	$	1,685,915	$	1,338,073
Commitments and contingencies
Stockholders’ equity
Common Stock—no par value:
Authorized shares (250,000 for all periods)
Issued and outstanding shares (24,608 for all periods)	$	393,392	$	392,421	$	392,899
Retained deficit	(256,829)		(253,876)		(240,125)
Accumulated other comprehensive income	9,318		7,636		7,315
Total stockholders’ equity of Pyxus International, Inc.	145,881		146,181		160,089
Noncontrolling interests	6,085		4,578		5,681
Total stockholders’ equity	151,966		150,759		165,770
Total liabilities and stockholders’ equity	$	1,976,984	$	1,836,674	$	1,503,843

See "Notes to Condensed Consolidated Financial Statements"









Balance, March 31, 2024	$	389,789	$	(255,291)	$	(5,692)	$	12,766	$	712	$	4,539	$	146,823
Net income	—		4,642		—		—		—		310		4,952
Equity-based compensation	3,031		—		—		—		—		—		3,031
Other comprehensive income (loss), net of tax	—		—		543		—		(2,237)		—		(1,694)
Balance, June 30, 2024	$	392,820	$	(250,649)	$	(5,149)	$	12,766	$	(1,525)	$	4,849	$	153,112
Net loss	—		(3,227)		—		—		—		(46)		(3,273)
Dividends	—		—		—		—		—		(225)		(225)
Equity-based compensation	601		—		—		—		—		—		601
Share repurchases	(1,000)		—		—		—		—		—		(1,000)
Other comprehensive income, net of tax	—		—		278		—		1,266		—		1,544
Balance, September 30, 2024	$	392,421	$	(253,876)	$	(4,871)	$	12,766	$	(259)	$	4,578	$	150,759


	September 30, 2025
	Weighted Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Intangibles subject to amortization:
Customer relationships	6.9 years	$	26,101	$	(11,057)	$	15,044
Technology	2.9 years	11,618		(7,585)		4,033
Trade names	8.9 years	11,300		(4,103)		7,197
Total		$	49,019	$	(22,745)	$	26,274



	Interest Rate			September 30, 2025		September 30, 2024		March 31, 2025
Senior secured credit facilities:
ABL Credit Facility	7.6	%	(1)	$	—	$	35,000	$	—

Senior secured notes:
8.5% Notes Due 2027(2)	8.5	%	(1)	146,250		145,445		145,820

Senior secured term loans:
Intabex Term Loans(3)	12.7	%	(1)	187,439		186,886		187,144
Pyxus Term Loans(4)	12.7	%	(1)	121,622		122,139		121,886

Other Debt:
Other long-term debt	9.0	%	(1)	—		89		12
Notes payable(5)	8.9	%	(1)	908,037		744,779		395,030
Total debt				$	1,363,348	$	1,234,338	$	849,892

Short-term(5)				$	908,037	$	744,779	$	395,030
Long-term:
Current portion of long-term debt				$	—	$	89	$	12
Long-term debt				455,311		489,470		454,850
Total				$	455,311	$	489,559	$	454,862

Letters of credit				$	9,034	$	7,785	$	7,790

(1) Weighted average stated rate for the trailing twelve months ended September 30, 2025 or, for indebtedness outstanding only during a portion of such twelve-month period, for the portion of such period that such indebtedness was outstanding.
(2) Balance of $146,250 is net of a debt discount of $2,089. Total repayment at maturity is $148,339.
(3) Balance of $187,439 is net of a debt discount of $1,594. Total repayment at maturity is $189,033, which includes a $2,000 exit fee payable upon repayment.
(4) Balance of $121,622 is net of a debt premium of $1,417. Total repayment at maturity is $120,205.
(5) Primarily foreign seasonal lines of credit.


(in thousands, except grant date fair value)	Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share
Nonvested, March 31, 2025	1,724	$	3.46
Granted	30	5.10

Canceled or forfeited	(23)	3.50
Nonvested, September 30, 2025	1,731	$	3.49


(in thousands, except grant date fair value)	Performance-Based Stock Units	Weighted Average Grant Date Fair Value Per Share
Nonvested, March 31, 2025	553	$	4.36
Granted	23	6.79

Canceled or forfeited	(26)	4.36
Nonvested, September 30, 2025	549	$	4.46


Three Months Ended September 30, 2025 and 2024
	Three Months Ended September 30,
							Change
(in millions, except per kilo amounts)	2025			2024			$	%
Consolidated:
Sales and other operating revenues	$	570.2		$	566.3		3.9	0.7
Cost of goods and services sold	482.4			490.9			(8.5)	(1.7)
Gross profit	87.8			75.4			12.4	16.4
Gross profit as a percent of sales	15.4		%	13.3		%
Selling, general, and administrative expenses	$	40.1		$	38.8		1.3	3.4
Other expense, net	0.9			3.3			(2.4)	(72.7)
Restructuring and asset impairment charges	—			0.2			(0.2)	(100.0)
Operating income*	46.7			33.0			13.7	41.5

Gain on debt retirement	—			6.9			(6.9)	(100.0)

Interest expense, net	37.9			35.7			2.2	6.2
Income before income taxes and other items	8.8			4.2			4.6	109.5
Income tax expense	10.3			8.1			2.2	27.2
Income from unconsolidated affiliates, net	0.6			0.5			0.1	20.0

Net loss attributable to Pyxus International, Inc.	$	(0.9)		$	(3.2)		(2.3)	(71.9)

Leaf:
Product revenues	$	511.2		$	515.8		(4.6)	(0.9)
Tobacco costs	418.3			428.9			(10.6)	(2.5)
Transportation, storage, and other period costs	19.1			18.0			1.1	6.1
Total product cost of goods sold	437.4			446.9			(9.5)	(2.1)
Product gross profit	73.8			68.9			4.9	7.1
Product gross profit as a percent of sales	14.4		%	13.4		%

Kilos sold	91.4			86.0			5.4	6.3
Average price per kilo	$	5.59		$	6.00		(0.41)	(6.8)
Average cost per kilo	4.79			5.20			(0.41)	(7.9)
Average gross profit per kilo	0.80			0.80			—	—

Processing and other revenues	$	55.5		$	48.3		7.2	14.9
Processing and other costs of services sold	41.2			40.1			1.1	2.7
Processing and other gross profit	14.3			8.2			6.1	74.4
Processing and other gross profit as a percent of sales	25.8		%	17.0		%

All Other:
Sales and other operating revenues	$	3.6		$	2.2		1.4	63.6
Cost of goods and services sold	3.9			3.9			—	—
Gross loss	(0.3)			(1.7)			(1.4)	(82.4)
Gross loss as a percent of sales	(8.3)		%	(77.3)		%

* Amounts may not equal column totals due to rounding.


Six Months Ended September 30, 2025 and 2024
	Six Months Ended September 30,
							Change
(in millions, except per kilo amounts)	2025			2024			$	%
Consolidated:
Sales and other operating revenues	$	1,079.0		$	1,201.2		(122.2)	(10.2)
Cost of goods and services sold	925.6			1,041.9			(116.3)	(11.2)
Gross profit	153.4			159.3			(5.9)	(3.7)
Gross profit as a percent of sales	14.2		%	13.3		%
Selling, general, and administrative expenses	80.5			79.5			1.0	1.3
Other expense, net	5.1			5.9			(0.8)	(13.6)
Restructuring and asset impairment charges	0.1			0.3			(0.2)	(66.7)
Operating income*	67.7			73.5			(5.8)	(7.9)

Gain on debt retirement	—			8.2			(8.2)	(100.0)

Interest expense, net	67.7			69.0			(1.3)	(1.9)
Income before income taxes and other items	—			12.7			(12.7)	(100.0)
Income tax expense	15.5			14.2			1.3	9.2
(Loss) income from unconsolidated affiliates, net	(0.7)			3.1			(3.8)	**
Net income attributable to noncontrolling interests	0.5			0.3			0.2	66.7
Net (loss) income attributable to Pyxus International, Inc.	$	(16.7)		$	1.4		(18.1)	**

Leaf:
Product revenue	$	969.4		$	1,105.0		(135.6)	(12.3)
Tobacco costs	794.0			912.9			(118.9)	(13.0)
Transportation, storage, and other period costs	44.2			42.8			1.4	3.3
Total cost of goods sold	838.2			955.7			(117.5)	(12.3)
Product revenue gross profit	131.2			149.3			(18.1)	(12.1)
Product revenue gross profit as a percent of sales	13.5		%	13.5		%

Kilos sold	158.3			181.7			(23.4)	(12.9)
Average price per kilo	$	6.12		$	6.08		0.04	0.7
Average cost per kilo	5.30			5.26			0.04	0.8
Average gross profit per kilo	0.82			0.82			—	—

Processing and other revenues	$	105.6		$	90.1		15.5	17.2
Processing and other revenues costs of services sold	83.8			77.5			6.3	8.1
Processing and other gross profit	21.8			12.6			9.2	73.0
Processing and other gross profit as a percent of sales	20.6		%	14.0		%

All Other:
Sales and other operating revenues	$	4.0		$	6.1		(2.1)	(34.4)
Cost of goods and services sold	3.7			8.7			(5.0)	(57.5)
Gross profit (loss)	0.3			(2.6)			2.9	**
Gross profit (loss) as a percent of sales	7.5		%	(42.6)		%

* Amounts may not equal column totals due to rounding.
** Not meaningful for comparison purposes.


	September 30, 2025				September 30, 2024
(in millions)	Total Borrowing Capacity		Remaining Amount Available		Total Borrowing Capacity		Remaining Amount Available
Senior Secured Credit Facilities:
ABL Credit Facility	$	150.0	$	150.0	$	120.0	$	85.0
Foreign seasonal lines of credit	1,067.4		162.8		885.2		175.4
Other long-term debt	—		—		0.4		0.3
Letters of credit	12.3		3.3		10.8		3.0
Total	$	1,229.7	$	316.1	$	1,016.4	$	263.7


(in millions except for current ratio)	September 30, 2025		September 30, 2024		March 31, 2025
Cash, cash equivalents, and restricted cash	$	106.4	$	130.9	$	85.5
Trade and other receivables, net	214.2		237.5		204.3
Inventories and advances to tobacco suppliers, net	1,221.7		1,052.6		792.7
Recoverable income taxes	13.1		3.0		6.6
Prepaid expenses and other current assets	71.4		62.1		69.0
Total current assets*	$	1,626.9	$	1,486.1	$	1,158.2

Notes payable	$	908.0	$	744.8	$	395.0
Accounts payable	134.2		152.6		132.9
Advances from customers	82.3		75.8		135.6
Accrued expenses and other current liabilities	109.2		103.4		90.9
Income taxes payable	12.4		13.6		11.0
Operating leases payable	9.1		8.3		8.5
Current portion of long-term debt	—		0.1		—
Total current liabilities*	$	1,255.3	$	1,098.5	$	773.9

Current ratio	1.3 to 1		1.4 to 1		1.5 to 1
Working capital	$	371.6	$	387.6	$	384.3
* Amounts may not equal column totals due to rounding


Exhibit No.						Description
31.1						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (filed herewith)
101.SCH						Inline XBRL Taxonomy Extension Schema (filed herewith)
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith)
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


000-25734
(Commission File Number)


Pyxus International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)
	Six Months Ended
	September 30,
(in thousands)	2025		2024
Operating Activities:
Net (loss) income	$	(16,165)	$	1,679
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	10,367		10,192
Debt amortization/interest	5,440		5,755
Gain on debt retirement	—		(8,178)
Loss on foreign currency transactions	7,428		2,514





Equity-based compensation	493		3,632
Loss (income) from unconsolidated affiliates, net of dividends	672		(3,148)

Changes in operating assets and liabilities, net
Trade and other receivables	(111,137)		(150,636)
Inventories and advances to tobacco suppliers	(428,049)		(100,688)
Deferred items	6,738		(7,287)
Recoverable income taxes	(5,769)		448
Payables and accrued expenses	15,190		(20,317)
Advances from customers	(54,276)		(14,072)
Prepaid expenses	(5,151)		9,246
Income taxes	931		5,111
Other operating assets and liabilities	1,115		(6,764)
Other, net	(8,755)		(7,756)
Net cash used in operating activities	$	(580,928)	$	(280,269)

Investing Activities:
Purchases of property, plant, and equipment	$	(9,730)	$	(9,784)

Collections from beneficial interests in securitized trade receivables	108,811		101,597



	September 30, 2025		September 30, 2024		March 31, 2025
Compensating balance for short-term borrowings	$	542	$	542	$	542

Escrow	2,752		2,955		3,534
Grants	325		1,857		3,116
Other	3,592		2,092		98
Total	$	7,211	$	7,446	$	7,290



	September 30, 2025		September 30, 2024		March 31, 2025
Investments in variable interest entities	$	89,753	$	97,673	$	90,239
Receivables with variable interest entities	4,964		—		—
Guaranteed amounts to variable interest entities (not to exceed)	16,282		16,323		15,995



SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


						Pyxus International, Inc.



Date: November 11, 2025						/s/ Christopher G. Meredith
						Christopher G. Meredith
						Corporate Controller
						(Principal Accounting Officer)