Ingles Markets (IMKTA) investor relations material

Executive summary

• Net sales for the quarter ended June 27, 2026, increased 1.6% year-over-year to $1.37 billion, with net income of $25.9 million, slightly down from $26.2 million in the prior year quarter.

• For the nine months ended June 27, 2026, net sales rose 2.1% to $4.05 billion, and net income increased to $78.3 million from $57.9 million year-over-year.

• Gross profit margin remained stable at 24.3% for the quarter and improved to 24.5% for the nine-month period.

• Insurance proceeds of $5.8 million related to Hurricane Helene were recognized in gross profit.

Financial highlights

• Quarterly operating income was $34.5 million, down from $37.3 million year-over-year.

• Quarterly EPS for Class A shares was $1.39 basic and $1.36 diluted; for Class B, $1.27 for both.

• Nine-month EPS for Class A shares was $4.21 basic and $4.12 diluted; for Class B, $3.83 for both.

• Operating cash flow for the nine months was $189.2 million, up from $94.2 million year-over-year.

• Capital expenditures for the nine months totaled $76.4 million, down from $91.4 million year-over-year.

Outlook and guidance

• Capital expenditures for fiscal 2026 are projected at $120–$130 million, focused on store improvements and reopening hurricane-impacted locations.

• Management expects annual capital expenditures to remain in this range to maintain and modernize the store base.

• The company anticipates sufficient liquidity from operations and credit facilities to meet future needs, including debt service and working capital.