Canada Packers (CPKR) Q2 2026 earnings summary

Executive summary

• Delivered resilient profitability and strong free cash flow in Q2 2026 despite challenging market conditions, supported by disciplined execution, a premium product portfolio, and operational improvements.

• Net loss of $28.4 million in Q2 2026, compared to net earnings of $23.4 million in Q2 2025, driven by a $48.3 million non-cash decrease in biological asset fair value.

• Leveraged untapped plant capacity and signed new supply contracts to increase hog processing volumes year-over-year.

• Maintained durable earnings through product mix optimization, whole hog optimization, and strong on-farm performance.

• Focused on capital-light growth and a multi-year plan to increase base business.

Financial highlights

• Q2 2026 sales were $431.7 million, down 8.8% year-over-year, mainly due to weaker pork cutout values and FX headwinds.

• Adjusted EBITDA for Q2 was $34.9 million (8.1% margin), down 32.2% year-over-year.

• Gross profit turned negative at -$6.2 million in Q2 2026, compared to $54.7 million in Q2 2025.

• Free cash flow for Q2 2026 was $22.9 million.

• Adjusted EPS for Q2 2026 was $0.34, down from $0.93 in Q2 2025.

Outlook and guidance

• Management expects consistent free cash flow in the second half, with some seasonality impacting Q4 meat values.

• Focus remains on executing the first phase of growth strategy, emphasizing operational improvements, premium product mix, and balance sheet strength.

• Adjusted EBITDA expected to remain within the 8%-12% target range.

• No material changes in global pork demand; Mexico remains a growth market.

• Clear pathway to profit-accretive growth by capitalizing on untapped capacity and profit expansion opportunities.