Premium Brands (PBH) investor relations material

Executive summary

• Achieved record Q4 and full-year 2025 revenue and adjusted EBITDA, driven by strong organic growth, U.S.-focused initiatives, and acquisitions, including Stampede Culinary Partners.

• Completed the largest new product launch in company history, contributing to sales momentum.

• Divested a 74% interest in Shaw Bakers, with proceeds of CAD 114 million, and issued 2026 guidance reflecting this sale.

• Declared a Q1 2026 dividend of $0.85 per share and appointed a new independent director.

• Consumer trends favor cleaner, protein-rich foods, supporting ongoing growth in core categories.

Financial highlights

• Q4 2025 revenue rose 15.7% year-over-year to $1.9 billion; full-year revenue up 15.6% to $7.5 billion, with a 2018–2025 CAGR of 13.8%.

• Q4 sales growth driven by $151.3m organic volume, $75.7m acquisitions, and $39.3m price inflation.

• Q4 adjusted EBITDA up 20.7% to $179.5 million; full-year adjusted EBITDA up 13.2% to $672.2 million.

• Free cash flow for the trailing four quarters was $294.8 million, with a payout ratio of 51.8%.

• Gross margin declined in Q4 due to commodity costs and new facility overhead, partially offset by organic growth.

Outlook and guidance

• 2026 revenue guidance is $9.25–$9.55 billion (CAD 9.4 billion midpoint), targeting 26% year-over-year growth, with strongest gains in Q2 and Q3.

• 2026 adjusted EBITDA guidance is $870–$910 million, targeting a 10% margin.

• Guidance reflects the Stampede acquisition and Shaw Bakers divestiture, and assumes stable economic and commodity conditions.

• Leverage targeted to fall to low threes by end of 2026 or early 2027, driven by EBITDA growth, free cash flow, and divestitures.

• Five-year targets reaffirmed: $10 billion revenue and $1 billion adjusted EBITDA by 2027.