HIGH LINER FOODS REPORTS OPERATING RESULTS FOR THE FOURTH QUARTER OF 2025

Executive Summary

• High Liner Foods reported Q4 2025 sales of $270.2 M (+15.0% YoY) and FY 2025 sales of $1.027 B (+7.1% YoY).
• Adjusted EBITDA fell to $19.3 M in Q4 (‑18.9%) and $91.7 M for the year (‑11.2%), with margins dropping to 7.1% and 8.9% of sales respectively.
• Net income rose to $8.0 M in Q4 (+35.6%) but fell to $36.6 M for the full year (‑39.2%). Diluted EPS was $0.27 (Q4) and $1.22 (FY).
• Net debt increased to $322.4 M, raising the net‑debt/EBITDA leverage to 3.5×.

Key Details

• Sales & Volume – Q4 volume up 0.9 M lb (+1.5%) to 61.3 M lb; FY volume up 2.1 M lb (+0.9%) to 237.9 M lb.
• Margins – Adjusted EBITDA margin declined to 7.1% (Q4) and 8.9% (FY); gross profit margin fell to 18.4% (Q4) and 20.7% (FY).
• Profitability – Q4 net income $8.0 M (EPS $0.27); FY net income $36.6 M (EPS $1.22). Adjusted Net Income dropped sharply to $2.7 M (Q4) and $34.8 M (FY).
• Cash Flow – Operating cash flow Q4 +$30.0 M (up $9.4 M YoY); capex $38.7 M (vs $23.8 M prior year).
• Debt & Leverage – Net debt $322.4 M; leverage 3.5× vs 2.3× end‑2024. Incremental term‑loan and ABL extensions noted.
• Dividend – Board approved quarterly dividend CAD $0.175 per share, payable March 15, 2026.
• Outlook – Management expects adjusted EBITDA growth starting Q1 2026; aims to bring leverage near long‑term target of 3.0× by FY 2026.
• Conference Call – Scheduled for Feb 26 2026, 10:00 a.m. ET; webcast available on company website.

Notable Quotes

“We delivered sales and volume growth in the fourth quarter… we remain confident in our ability to deliver year‑over‑year adjusted EBITDA growth, starting in the first quarter of 2026.” – Paul Jewer, President & CEO

Materiality: Material – Neutral (significant financial results affecting investors).