SunOpta (SOY) Q4 2025 earnings summary

Executive summary

• Achieved 13.0% revenue growth to $817.7M in FY2025, driven by strong volume/mix and new product launches, despite a slight price reduction and exit from smoothie bowls.

• Gross profit rose 20.4% to $115.9M, with gross margin up 90 bps to 14.2%; adjusted gross margin was 14.8% after excluding non-recurring items.

• Operating income increased 154.6% to $39.7M, reflecting higher gross profit, lower SG&A, and reduced start-up and haul-off costs.

• Net earnings attributable to common shareholders were $15.6M (diluted EPS $0.13), compared to a loss of $17.9M in FY2024.

• Entered into an Arrangement Agreement with Refresco to be acquired for $6.50/share in cash, expected to close in Q2 2026.

Financial highlights

• Revenues: $817.7M (+13.0% YoY); gross profit: $115.9M (+20.4% YoY); operating income: $39.7M (+154.6% YoY).

• Adjusted EBITDA from continuing operations: $94.9M (+7.0% YoY).

• Adjusted earnings from continuing operations: $23.9M ($0.19/diluted share), up from $13.4M ($0.11/diluted share) in FY2024.

• Net interest expense decreased by $3.8M to $21.1M.

• Effective tax rate was 4.2% in FY2025, reflecting changes in valuation allowances.

Outlook and guidance

• Arrangement with Refresco expected to close in Q2 2026, after which shares will be delisted.

• Capital expenditures for 2026 estimated at $35–$40M, mainly for productivity and maintenance projects.

• Anticipates $60–$70M in new finance lease right-of-use assets for capacity expansion.

• Operating cash flows, credit facilities, and lease financing expected to meet foreseeable needs.