Premium Brands (PBH) Q4 2025 (Q&A) earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 revenue, adjusted EBITDA, and adjusted EPS, driven by organic growth, U.S.-focused initiatives, and acquisitions including Stampede Culinary Partners.

• Completed the largest new product launch in company history and agreed to sell a 74% interest in Shaw Bakers.

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

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

Financial highlights

• Q4 2025 sales rose 15.7% year-over-year to $1.9 billion, with full-year revenue up 15.6% to $7.5 billion; organic volume and acquisitions were key drivers.

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

• Free cash flow for the trailing four quarters 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, impacted by cost inflation and new capacity investments.

• Annual revenue CAGR from 2018–2025 was 13.8%; free cash flow CAGR was 8.7%.

Outlook and guidance

• 2026 revenue guidance is $9.25–$9.55 billion (CAD 9.4 billion midpoint), with adjusted EBITDA guidance of $870–$910 million and a 10% margin target, reflecting the Stampede acquisition and Shaw Bakers divestiture.

• Revenue growth of 26% expected for 2026, with strongest growth in Q2 and Q3 due to seasonality and new program launches.

• Organic volume growth in specialty foods projected at 10% for 2026.

• Leverage targeted to fall to 3x total debt/EBITDA by end of 2026 or early 2027.

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