Maple Leaf Foods (MFI) Q2 2025 earnings summary

Executive summary

• Revenue grew 8.5% year-over-year in Q2 2025 to $1,362 million, driven by strong performance across all operating units and segments.

• Adjusted EBITDA increased by 28.9% to $182 million, with margin expanding to 13.3% from 11.2% year-over-year.

• Net income was $58 million versus a loss of $26 million last year; adjusted EPS was $0.56, up from $0.18.

• The Canada Packers spin-off is on track for completion in H2 2025, with strong shareholder approval and operational readiness advanced.

• 2025 Adjusted EBITDA outlook raised to $680–$700 million, up from at least $634 million previously.

Financial highlights

• Q2 2025 sales were $1,362.1 million, up 8.5% year-over-year; YTD sales reached $2,603.4 million, up 8.4%.

• Q2 gross profit was $235.7 million (gross margin 17.3%), up from $131.2 million (10.4%) last year.

• Q2 Adjusted Operating Earnings were $122.8 million, up 57.2% year-over-year.

• Free Cash Flow in Q2 was $216 million, with LTM Free Cash Flow at $487 million.

• Net Debt reduced to $1,344 million as of June 30, 2025, down $379 million year-over-year; leverage ratio improved to 2.1x trailing 12-month adjusted EBITDA.

Outlook and guidance

• 2025 Adjusted EBITDA guidance raised to $680–$700 million, with mid-single-digit revenue growth expected.

• Capital expenditures for 2025 guided to $160–$180 million, focused on maintenance and efficiency.

• Free Cash Flow expected to moderate in the second half due to capital spend and working capital investments.

• Maintaining investment-grade leverage, with Net Debt to LTM Adjusted EBITDA below 3.0x.

• Spin-off of pork business (Canada Packers) expected to close in H2 2025.