Saputo (SAP) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter adjusted EBITDA, driven by strong operational execution, commercial initiatives, and efficiency gains across all regions and sectors.

• Canada Sector exceeded expectations with robust sales, favorable mix, and cost efficiencies; USA Sector improved despite commodity headwinds.

• International and Europe Sectors delivered solid year-over-year gains, supported by operational efficiencies, cost optimization, and favorable market fundamentals.

• Strong operating cash flow and balance sheet enabled significant returns to shareholders via share repurchases and dividends, as well as continued investment.

• Returned $123 million in share repurchases and $79 million in dividends during the quarter.

Financial highlights

• Consolidated revenues reached $4.631 billion, up 0.5% year-over-year, driven by higher selling prices and volumes, offset by lower U.S. dairy commodity pricing.

• Adjusted EBITDA was $426 million, up 11.2% from last year, with margin improving to 9.2% from 8.3%.

• Net earnings totaled $165 million ($0.40 per share), up $23 million year-over-year; adjusted net earnings were $184 million ($0.44 per share), up $17 million.

• Operating cash flow was $317 million, up 66% year-over-year.

• Net debt-to-adjusted EBITDA ratio improved to 2.03, indicating a strong balance sheet.

Outlook and guidance

• Confident in long-term outlook, expecting organic sales growth, especially in the USA Sector, with balanced volume and price contributions.

• Continued investment in innovation, data-driven decision-making, and customer engagement to support scalable growth.

• Ongoing optimization and capacity expansion initiatives to drive margin expansion, particularly in the USA Sector.

• Anticipate continued strong performance in Canada, margin recovery in Europe, and product mix optimization in International.

• Plan capital expenditures of approximately $360 million for fiscal 2026 and continued share repurchases.