Premium Brands (PBH) Q3 2025 Prepared Remarks earnings summary

Executive summary

• Achieved record Q3 2025 sales of $2.0 billion, up 19.1% year-over-year, with industry-leading organic volume growth over 24% in the U.S. and strong results from protein, sandwich, and bakery initiatives.

• Completed the largest new product launch in company history post-quarter, expanding meat snack offerings and supporting distribution across the U.S. and Canada.

• Investments in capacity and automation have positioned the business to capitalize on trends in protein consumption, premiumization, and convenience.

• Increased 2025 sales guidance due to U.S. momentum, but lowered adjusted EBITDA guidance due to temporary beef cost inflation.

Financial highlights

• Q3 2025 sales reached $1,986.0 million, up 19.1% year-over-year, with organic volume growth contributing $171.5 million (10.3%), acquisitions $73.3 million, and price inflation $61.9 million.

• Adjusted EBITDA was $179.1 million, up 12.4% year-over-year; normalized for beef cost inflation, adjusted EBITDA was $188.1 million (9.5% margin).

• Adjusted earnings were $56.8 million ($1.27 per share), both up 14.4% year-over-year.

• Free cash flow hit a record $85 million in Q3, with a trailing four-quarter free cash flow per share of $6.19 and a payout ratio of 55.2%.

Outlook and guidance

• 2025 sales guidance raised to $7.4–$7.5 billion on strong U.S. growth; adjusted EBITDA guidance narrowed and reduced to $670–$680 million due to beef cost inflation.

• Five-year targets reaffirmed: $10 billion revenue and $1 billion adjusted EBITDA by 2027, with a new five-year plan to be presented in early 2027.

• Expect continued improvement in organic volume growth, especially in the U.S., and a steady decrease in startup and restructuring costs.