Cal-Maine Foods (CALM) Q2 2026 earnings summary

Executive summary

• Q2 and first half of FY26 showed resilience despite lower egg prices, with a diversified business model and disciplined execution supporting momentum.

• Specialty eggs and prepared foods now represent a significantly larger share of net sales, reflecting a strategic shift toward higher-value products and supporting earnings durability.

• Prepared foods sales surged due to acquisitions and capacity expansion, despite short-term production declines from facility remodeling.

• Net income for Q2 FY26 was $102.8M, down 53.1% year-over-year; first half net income was $302.1M, down 18.1%.

Financial highlights

• Q2 net sales were $769.5M, down 19.4% year-over-year; first half net sales were $1.7B, down 2.8%.

• Q2 gross profit was $207.4M (27.0% margin), down 41.8%; first half gross profit was $518.7M (30.7% margin), down 14.0%.

• Q2 operating income was $123.9M (16.1% margin), down 55.5%; first half operating income was $373.1M (22.1% margin), down 19.8%.

• Diluted EPS for Q2 was $2.13, down 52.3%; first half diluted EPS was $6.26, down 17.0%.

• Net cash flow from operations in Q2 was $94.8M, down 22.8%; first half was $373.4M, up 55.5%.

Outlook and guidance

• Management expects continued sales mix shift toward specialty eggs and prepared foods, with ongoing investments and acquisitions supporting double-digit growth and enhanced earnings durability.

• Prepared foods capacity is expected to increase over 30% in the next 18–24 months through network optimization and joint ventures.

• SG&A expenses are expected to remain elevated due to professional fees and promotional activity as specialty volumes grow.

• Q3 prepared foods results are expected to show continued pullback due to expansion, with improvement anticipated from Q4 onward.

• Specialty eggs projected to exceed 50% of total shell egg net sales over time.