Premium Brands (PBH) Q4 2025 Prepared Remarks earnings summary

Executive summary

• Achieved record annual and Q4 2025 sales, adjusted EBITDA, and adjusted EPS, driven by organic growth, U.S.-focused initiatives, and acquisitions, despite significant commodity inflation and high beef and chicken costs.

• Completed the largest acquisition in company history with Stampede Culinary Partners and agreed to sell 74% interest in Shaw Bakers as part of a non-core asset monetization strategy.

• Commissioned, expanded, or acquired substantial new plant capacity across North America, positioning for continued industry-leading growth and executed the largest new product launch in company history.

• Declared a Q1 2026 dividend of $0.85 per share and appointed a new independent director.

• Issued 2026 sales and adjusted EBITDA guidance reflecting recent divestitures and acquisitions.

Financial highlights

• Full-year 2025 sales increased by 15.6% to $7.5 billion, with Q4 sales reaching a record $1.9 billion, up 15.7% year-over-year.

• Q4 adjusted EBITDA was $179.5 million, up 20.7% year-over-year; full-year adjusted EBITDA was $672.2 million, up 13.2%.

• Q4 adjusted EPS was $1.29, up 22.9% year-over-year; full-year adjusted EPS was $4.57, up 14.8%.

• Free cash flow for Q4 was $82.9 million, up 28.9% year-over-year; trailing four quarters free cash flow was $294.8 million with a payout ratio of 51.8%.

• Gross margin declined to 18.0% in Q4 and 18.6% for the year, reflecting cost inflation and sales mix changes.

Outlook and guidance

• 2026 revenue guidance is $9.25–$9.55 billion; adjusted EBITDA guidance is $870–$910 million, reflecting the Stampede acquisition and Shaw Bakers divestiture.

• Five-year targets reaffirmed: $10 billion revenue and $1 billion adjusted EBITDA by 2027.

• Expect U.S. sales to comprise 70–80% of specialty food segment sales in 2026.

• Guidance assumes stable economic conditions, moderating inflation, and stable commodity costs except for moderately inflationary beef.

• Improvement in adjusted earnings and EPS expected to accelerate as new capacity is leveraged.