Ingles Markets (IMKTA) investor relations material

Executive summary

• Net income for Q2 2026 was $24.3M, up from $15.1M in Q2 2025, driven by higher gross profit and vendor income despite lower sales and increased expenses.

• Net sales for Q2 2026 decreased 1.8% year-over-year to $1.31B, impacted by Medicare drug price changes and ongoing store closures from Hurricane Helene; first half sales rose 2.4% to $2.68B.

• For the six months ended March 28, 2026, net income rose to $52.4M from $31.7M year-over-year.

• Basic EPS for Class A shares was $1.31 in Q2 2026, up from $0.81 in Q2 2025; six-month EPS was $2.82 vs. $1.70 year-over-year.

Financial highlights

• Q2 2026 gross profit increased 4.6% to $325.3M, with gross margin rising to 24.9% from 23.4% year-over-year.

• Operating and administrative expenses for Q2 2026 were $291.2M, nearly flat year-over-year.

• Interest expense decreased to $4.5M in Q2 2026 from $4.9M in Q2 2025; first half interest expense was $9.1M, down from $9.9M.

• Cash from operations for the six months ended March 28, 2026 was $122.2M, up from $19.4M year-over-year.

• Capital expenditures for the first half were $53.0M, down from $62.0M year-over-year.

Outlook and guidance

• Capital expenditures for fiscal 2026 are planned at $120–$140M, focusing on store improvements, reopening hurricane-damaged stores, and technology upgrades.

• Three stores remain temporarily closed due to hurricane damage but are expected to reopen during 2026 and 2027.

• Management expects current liquidity and financing resources to be sufficient for foreseeable capital and working capital needs.

• Forward-looking statements highlight expectations for continued operational and financial performance, subject to economic and industry risks.