Saputo (SAP) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 FY26 results with solid commercial execution, improved efficiency, and cost optimization, resulting in margin expansion and robust cash flow generation.

• Brands gained market share through innovation, marketing, and revenue management, with new product launches and customer wins in core markets.

• Recognized with major industry awards for supplier excellence in North America and Canada, highlighting strong customer relationships.

• Strategic consolidation of the network and disciplined cost management contributed to improved results.

Financial highlights

• Revenues for Q2 FY26 were $4.721 billion, up 0.3% year-over-year, driven by higher sales volumes in North America and higher selling prices, partially offset by lower US dairy commodity prices.

• Adjusted EBITDA rose 15.7% to $450 million, with margin improving to 9.5% from 8.3% year-over-year.

• Net earnings were $185 million, up 46.8% year-over-year; adjusted net earnings were $198 million, up 26.1%.

• Adjusted EPS increased 30% to $0.48, reflecting higher net earnings and share repurchases.

• Net cash from operating activities for the first six months was $689 million, up 95.2% year-over-year.

• Capital expenditures for the first six months totaled $149 million.

Outlook and guidance

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

• Anticipate margin improvement from ongoing optimization and capacity expansion, with capital expenditures projected at ~$360 million for FY26.

• US dairy market volatility expected to moderate; global dairy prices to stabilize.

• Continued strong performance expected in Canada, with improvements in International and Europe Sectors.

• Plan to renew normal course issuer bid and continue active share repurchases.