High Liner Foods (HLF) investor relations material

Executive summary

• Achieved year-over-year topline growth, with Q2 2026 sales up 12.4% and H1 up 18.9%, driven by higher volumes, pricing, and robust value-added product mix, despite inflation and tariffs.

• Adjusted EBITDA rose 20.3% to $30.2M in Q2 2026 and 4.0% to $59.5M for H1, but declined 11.2% to $91.7M for full-year 2025, reflecting margin pressure and acquisition costs.

• Net income dropped 40% in Q2 and 45% for H1 2026, impacted by a $10.1M inventory loss from a warehouse fire and higher costs.

• Strategic acquisition of Mrs. Paul's and Van De Kamp's expanded U.S. retail presence and is expected to deliver $11M adjusted EBITDA run-rate by 2027.

• Implemented pricing increases and disciplined promotions, with strong demand persisting even as promotions moderated.

Financial highlights

• Q2 2026 sales: $269.3M (+12.4% YoY); H1: $604.2M (+18.9% YoY); 2025 revenue: $1,026.9M (+7.1% YoY).

• Q2 Adjusted EBITDA: $30.2M (+20.3% YoY); H1: $59.5M (+4.0% YoY); 2025 Adjusted EBITDA: $91.7M (-11.2% YoY).

• Gross profit margin declined to 18.6% in Q2 and 19.3% in H1, impacted by inventory loss and tariffs.

• Net debt increased to $335.8M at July 4, 2026, with net debt to EBITDA at 3.6x.

• Standardized free cash flow was negative $28.9M in 2025, impacted by acquisition outflows.

Outlook and guidance

• Expects gradual operational improvements and margin expansion through Q3 and Q4 into next year, with low to mid-single digit organic volume growth targeted over the medium to long term.

• Confident in delivering year-over-year Adjusted EBITDA growth in 2026, excluding tariff recoveries.

• Projecting net debt to EBITDA below 3.0x by end of 2026, aided by tariff recoveries.

• Incrementally more positive full-year EBITDA outlook after Q2, driven by Q2 performance and progress on initiatives.