B&G Foods (BGS) Q1 2026 earnings summary

Executive summary

• Completed divestiture of Green Giant U.S. frozen business and acquisition of College Inn and Kitchen Basics, reshaping the portfolio for higher margins and stability.

• Q1 2026 net sales decreased 3.9% year-over-year to $408.9 million, mainly due to divestitures, partially offset by acquisitions and co-manufacturing agreements.

• Base business net sales grew 2.8% year-over-year, with strong performance in Spices & Flavor Solutions (+9.1% net sales, +13.1% segment EBITDA).

• Adjusted EBITDA for Q1 2026 was $57.6 million (14.1% of net sales); adjusted net income was $6.8 million ($0.08 per share), nearly doubling year-over-year.

• Net loss of $32.5 million, primarily from a $36.3 million loss on asset sales and impairments related to divestitures.

Financial highlights

• Adjusted gross profit: $84.6 million (20.7% of net sales), down from $90.6 million (21.3%) in Q1 2025; gross profit margin declined to 19.5%.

• SG&A expenses rose 2.2% to $50.2 million, mainly from acquisition/divestiture costs.

• Net interest expense decreased by $2 million to $35.8 million due to lower average long-term debt.

• Net cash provided by operating activities was $23.6 million, down from $52.7 million in Q1 2025.

• Long-term debt (including current portion) was $2,021.9 million as of April 4, 2026; stockholders’ equity was $403.4 million.

Outlook and guidance

• FY 2026 net sales guidance: $1.735–$1.775 billion; adjusted EBITDA: $275–$290 million (15.8–16.3% margin); adjusted diluted EPS expected at $0.575–$0.675.

• Guidance reflects impacts from recent acquisitions/divestitures, one fewer reporting week, and assumes no major changes in inflation, tariffs, or geopolitical risks.

• Interest expense for 2026: $152.5–$157.5 million; CapEx at $30–$35 million, focused on asset sustainability, cost savings, IT, and compliance.

• Dividend rate halved to $0.38 per share per annum, reducing expected aggregate payments to $46 million in 2026.