SUPPLEMENTARY INFORMATION
November 25, 2025
EXECUTIVE SUMMARY
Net sales increased 3%.
Comparable net sales (A) increased 5%.
Net income per diluted share was $2.26.
Adjusted earnings per share was $2.10, a decrease of 24%.
Free cash flow was $280.2 million, compared to $317.2 million in the prior year.
Updated full-year fiscal 2026 financial outlook.
(A) Excludes the noncomparable impact to net sales of divestitures and foreign currency exchange.
CONSOLIDATED RESULTS
FY26 Q2 | FY25 Q2 | YoY Change | |
Net Sales | $2,330.1 | $2,271.2 | 3% |
Adjusted Gross Profit | $789.9 | $879.7 | (10%) |
Adjusted Gross Profit Margin | 33.9% | 38.7% | -480bps |
Adjusted Operating Income | $394.3 | $490.6 | (20%) |
Adjusted Operating Income Margin | 16.9% | 21.6% | -470bps |
Adjusted Effective Income Tax Rate | 24.0% | 24.1% | -10bps |
Adjusted EPS - Assuming Dilution | $2.10 | $2.76 | (24%) |
(Dollars in millions, except per share data)
CONSOLIDATED RESULTS
3%
YoY
Reported Net Sales Analysis
$2,271
$(127)
$238
$2,330
$(51) $(2)
YoY Change
(6%) 10% (2%) (0%)
Net Sales FY25 Q2
Volume/Mix(A)
Net Price Realization
Divestitures Foreign Currency Exchange
Net Sales FY26 Q2
Note: Amounts may not add due to rounding
(A) The prior year includes $15.3 of contract manufacturing sales related to the divested pet food brands.
(Dollars in millions)
CONSOLIDATED RESULTS
5%
YoY
Comparable Net Sales Analysis
$2,271
$(51)
$2,221
$(127)
$238
$2,332
YoY Change
(6%) 11%
Net Sales FY25 Q2
Divestitures Comparable Net Sales
FY25 Q2
Volume/Mix(A)
Net Price Realization
Comparable Net Sales FY26 Q2(B)
Note: . Amounts may not add due to rounding
(A) The prior year includes $15.3 of contract manufacturing sales related to the divested pet food brands..
(B) Excludes the noncomparable impact to net sales of divestitures and foreign currency exchange.
(Dollars in millions)
BALANCE SHEET & CASH FLOW HIGHLIGHTS
FY26 Q2 | FY25 Q2 | |
Cash Provided by (Used for) Operations | $346.5 | $404.2 |
Capital Expenditures | (66.3) | (87.0) |
Free Cash Flow | $280.2 | $317.2 |
October 31, 2025 | April 30, 2025 | |
Total Debt (Gross) | $7,788.0 | $7,677.6 |
Cash and Cash Equivalents | (62.8) | (69.9) |
Total Debt (Net) | $7,725.2 | $7,607.7 |
EBITDA (as adjusted, TTM) (A) | $1,846.5 | $2,137.0 |
Net Debt/EBITDA (TTM) (A) | 4.2x | 3.6x |
(A) Reflects amounts as reported, including acquired and divested businesses while under Company ownership.
(Dollars in millions)
SEGMENT RESULTS
U.S. Retail Coffee | U.S. Retail FH&S | U.S. Retail Pet Foods (A) | Sweet Baked Snacks | Int'l & AFH |
Net Sales | |||||
Net Sales YoY Change | $848.9 21% | $461.1 (5%) | $413.2 (7%) | $256.1 (19%) | $350.8 9% |
YoY Net Sales Change Summary: | |||||
Divestitures | - | - | - | (16%) | - |
Foreign Currency Exchange | - | - | - | - | (0%) |
Net Sales Excluding Divestitures & Foreign Currency Exchange | 21% | (5%) | (7%) | (3%) | 10% |
Volume/Mix | (6%) | (8%) | (8%) | (2%) | 1% |
Net Price Realization | 27% | 3% | 1% | (1%) | 9% |
Segment Profit | |||||
Segment Profit YoY Change | $154.3 (24%) | $102.1 (12%) | $124.4 2% | $21.8 (69%) | $76.4 12% |
Segment Profit Margin YoY Change | 18.2% -1,060bps | 22.1% -180bps | 30.1% +280bps | 8.5% -1,390bps | 21.8% +60bps |
Note: Amounts may not add due to rounding
(A) The prior year includes $15.3 of contract manufacturing sales related to the divested pet food brands.
(Dollars in millions)
FULL-YEAR FISCAL 2026 OUTLOOK
Current | Previous | |
Net Sales Increase vs. Prior Year | 3.5% to 4.5% | 3.0% to 5.0% |
Adjusted EPS | $8.75 - $9.25 | $8.50 - $9.50 |
Free Cash Flow | $975.0 | $975.0 |
Capital Expenditures | $325.0 | $325.0 |
Adjusted Effective Income Tax Rate | 23.8% | 23.8% |
(Dollars in millions, except per share data)
+4%
at mid-point
FY26 REPORTED NET SALESReported Net Sales Outlook Analysis
9%
(0%)
(2%)
(3%)
BASE BUSINESS GROWTH
$8,726
Net Sales FY25
Volume/Mix Net Price Realization
Pet Contract Manufacturing (A)
Divestitures (B)
Net Sales FY26 Guidance
Note: Amounts may not add due to rounding
(A) Represents a decline of approximately $38.0 in contract manufacturing sales related to the divested pet food brands.
(B) Adjusted for $134.7 of net sales related to the divestitures of the Voortman® business and certain Sweet Baked Snacks value brands.
(Dollars in millions)
+5.5%
at mid-point
FY26 COMPARABLE NET SALESComparable Net Sales Outlook Analysis
(0%)
(2%)
(3%)
COMPARABLE BUSINESS GROWTH (B)
$8,591
$8,726
9%
Net Sales FY25
Divestitures Comparable Net Sales FY25 (A)
Volume/Mix Net Price Realization
Pet Contract Manufacturing
Comparable Net Sales FY26 Guidance
Note: Amounts may not add due to rounding
(A) Adjusted for $134.7 of net sales related to the divestitures of the Voortman® business and certain Sweet Baked Snacks value brands.
(B) Represents comparable net sales growth, which includes a decline of approximately $38.0 in contract manufacturing sales related to the divested pet food brands.
(Dollars in millions)
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this presentation, which could cause actual results to differ materially from those expressed, include: the Company's ability to successfully integrate Hostess Brands' operations and employees and to implement plans and achieve financial forecasts with respect to the Hostess Brands' business; disruption from the acquisition of Hostess Brands by diverting the attention of the Company's management and making it more difficult to maintain business and operational relationships; the negative effects of the acquisition of Hostess Brands on the market price of the Company's common shares; the amount of the costs, fees, expenses, and charges and the risk of litigation related to the acquisition of Hostess Brands; the effect of the acquisition of Hostess Brands on the Company's business relationships, operating results, ability to hire and retain key talent, and business generally; disruptions or inefficiencies in the Company's operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages, or other calamities; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company's products or its competitors' products, changes in consumer preferences, consumer or other litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; risks associated with derivative and purchasing strategies the Company employs to manage commodity pricing and interest rate risks; the availability of reliable transportation on acceptable terms; the ability to achieve cost savings related to the Company's restructuring and cost management programs in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to continue operating under the Company's capital deployment model, including capital expenditures, debt repayment to meet the Company's deleveraging objectives, dividend payments, and share repurchases; a change in outlook or downgrade in the Company's public credit ratings by a rating agency below investment grade; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the Company's businesses, including product innovation; general competitive activity in the market, including competitors' pricing practices and promotional spending levels; the Company's ability to attract and retain key talent; the concentration of certain of the Company's businesses with key customers and suppliers, including primary or single-source suppliers of certain key raw materials and finished goods, and the Company's ability to manage and maintain key relationships; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in the useful lives of other intangible assets or other long-lived assets; the impact of new or changes to existing governmental laws and regulations and their application, including tariffs, food ingredients, food labeling, and food accessibility; the outcome of tax examinations, changes in tax laws, and other tax matters; a disruption, failure, or security breach of the Company or its suppliers' information technology systems, including, but not limited to, ransomware attacks; foreign currency exchange rate and interest rate fluctuations; and risks related to other factors described under "Risk Factors" in other reports and statements filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.
NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortization expense, impairment charges related to intangible assets, and gains and losses on divestitures ("EBITDA (as adjusted)"); and free cash flow, as key measures for purposes of evaluating performance internally. The Company believes that investors' understanding of its performance is enhanced by disclosing these performance measures. Furthermore, these non-GAAP financial measures are used by management in preparation of the annual budget and for the monthly analyses of its operating results. The Board of Directors also utilizes certain non-GAAP financial measures as components for measuring performance for incentive compensation purposes.
Non-GAAP financial measures exclude certain items affecting comparability that can significantly affect the year-over-year assessment of operating results, which include amortization expense and impairment charges related to intangible assets; certain divestiture, acquisition, integration, and restructuring costs ("special project costs"); gains and losses on divestitures; the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities ("change in net cumulative unallocated derivative gains and losses"); and other infrequently occurring items that do not directly reflect ongoing operating results. Income taxes, as adjusted is calculated using an adjusted effective income tax rate that is applied to adjusted income before income taxes and reflects the exclusion of the previously discussed items, as well as any adjustments for one-time tax-related activities, when they occur. While this adjusted effective income tax rate does not generally differ materially from the GAAP effective income tax rate, certain exclusions from non-GAAP results can significantly impact the adjusted effective income tax rate.
These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with U.S. GAAP. Rather, the presentation of these non-GAAP financial measures supplements other metrics used by management to internally evaluate its businesses and facilitate the comparison of past and present operations and liquidity. These non-GAAP financial measures may not be comparable to similar measures used by other companies and may exclude certain nondiscretionary expenses and cash payments. A reconciliation of certain non-GAAP financial measures to the comparable GAAP financial measure for the current and prior year periods is included in the "Unaudited Non-GAAP Financial Measures" tables. The Company has also provided a reconciliation of non-GAAP financial measures for its fiscal year 2026 outlook.
UNAUDITED NON-GAAP FINANCIAL MEASURES
(Dollars in millions) | Three Months Ended October 31, | |||
2025 | 2024 | Increase (Decrease) | % | |
Net sales reconciliation: | ||||
Net sales | $2,330.1 | $2,271.2 | $58.9 | 3% |
Sweet Baked Snacks value brands divestiture | - | (14.2) | 14.2 | 1 |
Voortman® divestiture | - | (36.3) | 36.3 | 2 |
Foreign currency exchange | 1.6 | - | 1.6 | - |
Net sales excluding divestitures and foreign currency exchange | $2,331.7 | $2,220.7 | $111.0 | 5% |
Note: Amounts may not add due to rounding
UNAUDITED NON-GAAP FINANCIAL MEASURES
(Dollars in millions) | Three Months Ended October 31, | |
2025 | 2024 | |
Gross profit reconciliation: | ||
Gross profit | $869.9 | $886.1 |
Change in net cumulative unallocated derivative gains and losses | (103.0) | (11.7) |
Cost of products sold - special project costs | 23.0 | 5.3 |
Adjusted gross profit | $789.9 | $879.7 |
Operating income reconciliation: | ||
Operating income | $418.5 | $169.7 |
Amortization | 50.2 | 55.8 |
Loss (gain) on divestitures - net | - | 260.8 |
Change in net cumulative unallocated derivative gains and losses | (103.0) | (11.7) |
Cost of products sold - special project costs | 23.0 | 5.3 |
Other special project costs | 5.6 | 10.7 |
Adjusted operating income | $394.3 | $490.6 |
UNAUDITED NON-GAAP FINANCIAL MEASURES
(Dollars and shares in millions, except per share data) Three Months Ended October 31,
2025 2024
Net income (loss) reconciliation:
Net income (loss) | $241.3 | ($24.5) |
Income tax expense | 77.1 | 91.3 |
Amortization | 50.2 | 55.8 |
Loss (gain) on divestitures - net | - | 260.8 |
Change in net cumulative unallocated derivative gains and losses | (103.0) | (11.7) |
Cost of products sold - special project costs | 23.0 | 5.3 |
Other special project costs | 5.6 | 10.7 |
Other expense - special project costs | 0.9 | - |
Adjusted income before income taxes | $295.1 | $387.7 |
Income taxes, as adjusted | 70.8 | 93.5 |
Adjusted income | $224.3 | $294.2 |
Weighted-average shares outstanding - assuming dilution | 106.9 | 106.7 |
Adjusted earnings per share - assuming dilution | $2.10 | $2.76 |
UNAUDITED NON-GAAP FINANCIAL MEASURES
(Dollars in millions) Three Months Ended TTM Ended Year Ended
January 31,
April 30,
July 31,
October 31,
October 31,
April 30,
EBITDA (as adjusted) reconciliation:
2025 2025 2025 2025
2025
2025
Net income (loss) | ($662.3) | ($729.0) | ($43.9) | $241.3 | ($1,193.9) | ($1,230.8) |
Income tax expense (benefit) | (0.2) | 31.9 | (12.6) | 77.1 | 96.2 | 184.0 |
Interest expense - net | 95.4 | 94.2 | 100.2 | 98.6 | 388.4 | 388.7 |
Depreciation | 68.2 | 69.8 | 85.0 | 93.1 | 316.1 | 283.2 |
Amortization | 53.9 | 53.6 | 50.2 | 50.2 | 207.9 | 219.3 |
Goodwill impairment charges | 794.3 | 867.3 | - | - | 1,661.6 | 1,661.6 |
Other intangible assets impairment charges | 208.2 | 112.7 | - | - | 320.9 | 320.9 |
Loss (gain) on divestitures - net | 50.2 (0.9) - - | 49.3 | 310.1 | |||
EBITDA (as adjusted) (A) | $607.7 $499.6 $178.9 $560.3 | $1,846.5 | $2,137.0 | |||
Note: Amounts may not add due to rounding
(A) Reflects amounts as reported, including acquired and divested businesses while under Company ownership.
NON-GAAP RECONCILIATION
Company Guidance | ||
Year Ending April 30, 2026 | ||
Low | High | |
Net income per common share - assuming dilution reconciliation: | ||
Net income per common share - assuming dilution | $5.66 | $6.16 |
Change in net cumulative unallocated derivative gains and losses (A) | 0.72 | 0.72 |
Amortization | 1.42 | 1.42 |
Special project costs | 0.58 | 0.58 |
Pension plan termination settlement charge (B) | 0.32 | 0.32 |
Adjusted effective income tax rate impact | 0.05 | 0.05 |
Adjusted earnings per share | $8.75 | $9.25 |
(A) We are unable to project derivative gains and losses on a forward-looking basis as these will vary each quarter based on market conditions and derivative positions taken. The change in unallocated derivative gains and losses in the table above reflects the net impact of the gains and losses that have been recognized in our GAAP results and excluded from non-GAAP results as of October 31, 2025, that are expected to be allocated to non-GAAP results in future periods.
(B) Represents a non-recurring pre-tax settlement charge related to the termination of one of the Company's U.S. defined benefit pension plans anticipated to be realized during fiscal year 2026 upon settlement of the pension obligations.
NON-GAAP RECONCILIATION
Company Guidance | |
(Dollars in millions) Free cash flow reconciliation: | Year Ending April 30, 2026 |
Net cash provided by operating activities | $1,300.0 |
Additions to property, plant, and equipment | (325.0) |
Free cash flow | $975.0 |
SUPPLEMENTAL SEGMENT INFORMATION
(Dollars in millions) | Three Months Ended October 31, 2025 | |||||
U.S. Retail Coffee | U.S. Retail Frozen Handheld and Spreads | U.S. Retail Pet Foods | Sweet Baked Snacks | International and Away From Home | Total | |
Net sales | $848.9 | $461.1 | $413.2 | $256.1 | $350.8 | $2,330.1 |
Segment cost of products sold (A) | 602.1 | 286.4 | 224.5 | 190.3 | 236.9 | |
Segment selling and distribution expenses (B) | 92.1 | 71.9 | 67.8 | 43.2 | 38.5 | |
Other segment items (C) | 0.4 | 0.7 | (3.5) | 0.8 | (1.0) | |
Segment profit | $154.3 | $102.1 | $124.4 | $21.8 | $76.4 | $479.0 |
SUPPLEMENTAL SEGMENT INFORMATION
(Dollars in millions) | Three Months Ended October 31, 2024 | |||||
U.S. Retail Coffee | U.S. Retail Frozen Handheld and Spreads | U.S. Retail Pet Foods | Sweet Baked Snacks | International and Away From Home | Total | |
Net sales | $704.0 | $485.2 | $445.4 | $315.5 | $321.1 | $2,271.2 |
Segment cost of products sold (A) | 422.8 | 296.3 | 257.9 | 200.6 | 213.9 | |
Segment selling and distribution expenses (B) | 78.0 | 71.9 | 67.8 | 43.8 | 40.9 | |
Other segment items (C) | 0.5 | 0.9 | (1.7) | 0.5 | (1.7) | |
Segment profit | $202.7 | $116.1 | $121.4 | $70.6 | $68.0 | $578.8 |
ADDITIONAL INFORMATION Crystal Beiting
Vice President, Investor Relations & FP&A ir.team@jmsmucker.com
Phone: (330) 682-3000
Investor Relations Website:https://investors.jmsmucker.com/
Attachments
- Original document
- Permalink
Disclaimer
The J. M. Smucker Company published this content on November 25, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 25, 2025 at 12:03 UTC.
