Saputo Reports Financial Results for the Second Quarter of Fiscal 2026 Ended September 30, 2025

Executive Summary

• Saputo reported Q2 FY 2026 revenue of C$4.721 billion, a modest 0.3% increase YoY, and adjusted EBITDA of C$450 million, up 15.7% YoY to an 9.5% margin.
• Net earnings rose to C$185 million (C$0.45 per share) versus C$126 million a year earlier; adjusted net earnings were C$198 million (C$0.48 per share).
• The company returned C$215 million to shareholders via share repurchases and paid C$161 million in dividends, while capital expenditures for the first half totaled C$149 million.

Key Details

• Revenue: C$4.721 billion (Q2); up C$13 million YoY; driven by higher volumes in North America and price increases in cheese/dairy ingredients.
• Adjusted EBITDA: C$450 million, up C$61 million YoY; margin improved to 9.5% from 8.3%.
• Net Earnings: C$185 million, up C$59 million YoY; EPS C$0.45 (basic & diluted).
• Adjusted Net Earnings: C$198 million, up C$41 million YoY; adjusted EPS C$0.48.
• Operating Cash Flow: C$372 million for Q2 (C$689 million six‑month total), +95% YoY, mainly from lower working‑capital usage and higher EBITDA.
• Capital Expenditures: C$84 million in Q2; C$149 million for the first half, supporting automation and network optimization projects.
• Share Repurchases: ~7.7 million shares repurchased for C$215 million (NCIB).
• Dividends: Board approved C$0.20 per share payable Dec 12, 2025; total dividend paid C$161 million in the first half.
• Financing Activity: July 2, 2025 – issued $400 million Series 12 unsecured medium‑term notes (3.879% interest, due 2030); proceeds used to retire $350 million of Series 5 senior notes and for general corporate purposes.
• Segment Highlights:
• Canada sector revenue C$1.373 billion (+6.1% YoY), adjusted EBITDA C$179 million (+10.5%).
• USA sector revenue C$2.153 billion (‑3.2% YoY), adjusted EBITDA C$167 million (+15.2%).
• International sector revenue C$871 million (‑4.5% YoY), adjusted EBITDA C$79 million (+46.3%).
• Europe sector revenue C$324 million (+17.0% YoY), adjusted EBITDA C$25 million (‑10.7%).
• Operational Updates: New Midwest warehousing facility commissioned; ongoing network consolidation and cost‑optimization initiatives; anticipated closure of Green Bay, WI plant by Q3 FY 2026.
• Outlook: Expect ~C$360 million capex for FY 2026; continued share repurchases under NCIB; guidance for modest organic sales growth in the USA sector and margin improvement across all regions.

Notable Quotes

“Our second quarter results reflect solid execution across our global network…commercial investments are paying off, with strong brand activation, successful innovation launches, and new customer wins driving momentum.” – Carl Colizza, President & CEO.