Saputo (SAP) Q2 2027 earnings summary

Executive summary

• Q2 continuing-operations adjusted EBITDA rose 13.8% YoY to CAD 438 million; margin expanded to 10.3% from 9.4%, driven by high-protein ingredients, favorable mix, volume growth and operational execution.

• Strong ingredient markets and U.S. execution more than offset softer cheese markets, inflation and higher business investment; Australia also performed well.

• Divestitures are intended to simplify the footprint, increase financial flexibility and direct capital toward stronger growth opportunities.

Financial highlights

• Continuing-operations revenue was CAD 4.256 billion, up 3.6% YoY; adjusted EBITDA was CAD 438 million, versus CAD 385 million.

• Net earnings from continuing operations were CAD 213 million, or CAD 0.54 basic and CAD 0.53 diluted EPS; adjusted net earnings were CAD 221 million, or CAD 0.56 basic and CAD 0.55 diluted adjusted EPS.

• Six-month revenue was CAD 8.394 billion versus CAD 8.147 billion; adjusted EBITDA was CAD 832 million versus CAD 752 million, with margin of 9.9% versus 9.2%.

• Six-month operating cash flow from continuing operations was CAD 503 million; capital expenditures were CAD 131 million.

Outlook and guidance

• FY2027 continuing-operations capital expenditures are expected to be ~CAD 500 million, targeting high-return growth, capacity, optimization and efficiency projects.

• Strategic priorities include specialized dairy ingredients, higher-value applications, capacity, productivity, commercial execution and digital capabilities.

• Higher volumes and improved mix are expected in selected categories; high-protein and value-added dairy demand retains solid underlying momentum.

• U.S. ingredients are expected to maintain positive momentum, while greater milk supply and cheese production may pressure cheese markets; efficiencies are expected to improve as investments scale.