Saputo Reports Financial Results for the Third Quarter of Fiscal 2026 Ended December 31, 2025

Executive Summary

• Saputo reported Q3 FY 2026 revenue of C$4.888 bn (down 2.1% YoY) but delivered a strong profit rebound with net earnings of C$220 m and adjusted EBITDA of C$492 m, up 18 % YoY.
• Adjusted EBITDA margin improved to 10.1 % from 8.4 % in Q3 2025, reflecting higher sales volumes, price‑mix benefits and cost‑optimization initiatives across all sectors.
• The company returned C$403 m to shareholders via share repurchases (≈12.6 m shares) and paid a dividend of C$0.20 per share; it also announced a renewed NCIB for up to 5 % of outstanding shares.

Key Details

• Financial Highlights (Q3 FY 2026 vs Q3 2025)
• Revenue: C$4,888 m vs C$4,994 m (‑2.1 %).
• Adjusted EBITDA: C$492 m (+C$75 m, +18 %) – margin 10.1 % vs 8.4 %.
• Net earnings: C$220 m (+C$738 m) – EPS $0.54 (basic), $0.53 (diluted).
• Adjusted net earnings: C$235 m (+C$68 m) – adjusted EPS $0.57.

• Operating cash flow (9‑mo): C$1.090 bn (+48.3 %).

• Segment Performance

• Canada: Revenue +4.2 % YoY to C$1.416 bn; Adjusted EBITDA +8 % to C$189 m, margin 13.3 %.
• USA: Revenue –7.1 % to C$2.142 bn (commodity price headwinds); Adjusted EBITDA +15.6 % to C$185 m, margin 8.6 %.
• International (Australia/Argentina): Revenue –2.5 % to C$994 m; Adjusted EBITDA +60.8 % to C$82 m, margin 8.2 %.

• Europe (UK): Revenue +8.0 % to C$336 m; Adjusted EBITDA +16.1 % to C$36 m, margin 10.7 %.

• Capital Allocation & Shareholder Returns

• Share repurchase program: ~12.6 m shares for C$403 m.
• Dividend declared: C$0.20 per share (payable March 13, 2026).

• NCIB renewal (Nov 19 2025) to purchase up to 5 % of outstanding shares; expires no later than Nov 18 2026.

• Operational Updates

• Closed Green Bay, WI facility permanently; production transferred to Franklin, WI.
• New Midwest consolidated warehousing facility commissioned in Q2 FY 2026.

• Ongoing network optimization and automation investments driving efficiency gains.

• Outlook (FY 2026)

• Expected capital expenditures ≈ C$360 m.
• Anticipated continued organic sales growth, especially in the USA sector, supported by pricing formula changes, brand investment and capacity expansions.
• Guidance assumes persistent US dairy commodity volatility through Q4 FY 2026.

Notable Quotes

• “Our third‑quarter results underscore the momentum building across our global platform… robust cash generation … meaningful margin expansion.” – Carl Colizza, President & CEO.