Saputo (SAP) investor relations material

Executive summary

• Achieved strong commercial execution, disciplined cost management, and robust cash generation, resulting in margin expansion and record profitability in the Canada Sector, with growth in International and Europe Sectors.

• Structural initiatives such as network modernization and advancements in the ingredients strategy remain on track.

• Continued capital returns to shareholders through dividends and share repurchases, while investing in future growth and operational efficiencies.

Financial highlights

• Q3 FY26 revenues were $4.888 billion, down 2.1% year-over-year due to lower US dairy commodity prices, but with higher sales volumes and selling prices.

• Adjusted EBITDA rose 18% to $492 million, with margin expanding to 10.1% from 8.4%.

• Net earnings were $220 million; adjusted net earnings up 41% to $235 million; adjusted EPS up 46% to $0.57.

• Net cash from operating activities for the nine months was $1.09 billion, up 48.3%.

• Net debt-to-adjusted EBITDA improved to 1.76x, below the long-term target.

Outlook and guidance

• Expect continued macroeconomic volatility, especially in US dairy markets, but confident in ability to drive sustainable value and organic sales growth, particularly in the USA Sector.

• Ongoing optimization and capacity expansion initiatives are on track to support margin improvement.

• Anticipate strong performance in Canada, margin recovery in Europe, and benefits from product mix optimization in International.

• Capital expenditures for FY26 expected to total approximately $360 million; CapEx for FY27 expected to rise above CAD 400 million.