Maple Leaf Foods Reports Second Quarter 2025 Financial Results

Executive Summary

• Maple Leaf Foods reported strong second-quarter 2025 financial results, with revenue increasing 8.5% year-over-year to $1,362 million and Adjusted EBITDA growing 28.9% to $182 million.
• The company increased its full-year 2025 Adjusted EBITDA outlook to a range of $680 million to $700 million, up from the previous guidance of $634 million or greater, citing improved profitability in the pork complex and brand-led consumer packaged goods.
• The company announced a quarterly dividend of $0.24 per share and provided an update on the planned spin-off of its Pork Operations into a standalone public company, Canada Packers, which remains on track for completion in the second half of 2025.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $1,362.1 million (up 8.5% from $1,255.2 million in Q2 2024).
  • Adjusted EBITDA: $181.6 million (up 28.9% from $140.9 million), with an Adjusted EBITDA margin of 13.3% (up from 11.2%).
  • Net Earnings: $57.8 million ($0.47 basic EPS), compared to a loss of $26.2 million ($0.21 basic EPS) in Q2 2024.
  • Adjusted Earnings Per Share: $0.56 (up from $0.18).
  • Free Cash Flow: $216.0 million (up from $27.0 million).
  • Net Debt: $1,344.2 million, with Net Debt to Trailing Twelve Months Adjusted EBITDA at 2.1x.
• Segment Performance (Q2 2025):
  • Prepared Foods: Sales increased 7.5%, driven by pricing, improved mix, and volume growth.
  • Poultry: Sales increased 8.5%, driven by improved channel mix (retail and foodservice) and pricing.
  • Pork: Sales increased 10.7%, driven by an increase in the number of hogs processed and higher average hog weights.
• Year-to-Date Performance (Six Months Ended June 30, 2025):
  • Revenue: $2,603.4 million (up 8.4%).
  • Adjusted EBITDA: $348.0 million (up 35.3%).
  • Net Earnings: $107.3 million ($0.87 basic EPS).
  • Free Cash Flow: $202.4 million.
• 2025 Full-Year Outlook:
  • Revenue: Mid-single-digit growth expected.
  • Adjusted EBITDA: $680 million to $700 million (increased from previous outlook of $634 million+).
  • Capital Expenditures: $160 million to $180 million (decreased from previous outlook of $175 million to $200 million due to timing of projects).
  • Balance Sheet: Maintain investment-grade status.
• Spin-off Update (Canada Packers):
  • The spin-off of Pork Operations into Canada Packers Inc. is approved by shareholders and on track for completion in the second half of 2025, subject to final TSX approval and an advance tax ruling from the Canada Revenue Agency.
  • Pro Forma Estimates (Quarter Ended June 30, 2025):
    • Canada Packers Pro Forma Sales: ~$456 million; Pro Forma Adjusted EBITDA: ~$45 million.
    • Maple Leaf Foods (Retained) Pro Forma Sales: ~$1,019 million; Pro Forma Adjusted EBITDA: ~$134 million.
  • Pro Forma Estimates (Last Twelve Months Ended June 30, 2025):
    • Canada Packers Pro Forma Sales: ~$1,692 million; Pro Forma Adjusted EBITDA: ~$170 million.
    • Maple Leaf Foods (Retained) Pro Forma Sales: ~$3,822 million; Pro Forma Adjusted EBITDA: ~$463 million.
• Dividend:
  • Board approved a quarterly dividend of $0.24 per share ($0.96 annualized).
  • Payable September 29, 2025, to shareholders of record on September 5, 2025.
  • Dividend Reinvestment Plan (DRIP) discount eliminated; shares issued at 100% of weighted average closing price.

Notable Quotes

• "The momentum in our business continued in the second quarter, delivering strong results with sales growth of over 8% and Adjusted EBITDA of $182 million, an increase of $41 million or 29% from the prior year... With a strong first half now behind us, we are well-positioned to deliver on our increased full-year 2025 Adjusted EBITDA outlook," said Curtis Frank, President and Chief Executive Officer.
• "In parallel, we continue to make excellent progress toward completing the spin-off of Canada Packers, supported by resounding shareholder approval and accelerating operational readiness... This historic transaction will unlock significant shareholder value and establish two focused, market-leading companies. We remain firmly on track to complete the transaction in the second half of the year," added Mr. Frank.