The Campbell’s Company (CPB) Q4 2026 Prepared Remarks earnings summary

Executive summary

• Net sales declined 8% in Q4 to $2.1 billion and 5% for the year to $9.7 billion, with organic sales down 1% in Q4 and 2% for the year, as Meals & Beverages growth was offset by Snacks weakness and the absence of an extra week in the prior year.

• Adjusted EBIT fell 25% in Q4 and 21% for the year, with adjusted EPS down 37% in Q4 and 27% for the year, pressured by inflation, supply chain costs, and tough comps.

• Management launched a $500 million enterprise-wide cost savings program and reset the dividend to accelerate deleveraging and restore margins.

• The La Regina acquisition was completed in May 2026 and is now fully consolidated, impacting leverage and financials.

• Leadership and operating model changes, including plant closures and workforce reductions, aim to drive agility and consumer focus.

Financial highlights

• Q4 FY26 net sales were $2.1 billion (down 8%); organic net sales down 1%; adjusted EBIT $242 million (down 25%); adjusted EPS $0.39 (down 37%).

• Gross profit margin declined 310 bps in Q4 to 27.3% and 230 bps for the year to 28.1%, mainly due to cost inflation and tariffs.

• Operating cash flow was $1.0 billion for the year, down from $1.1 billion; capital expenditures were $361 million.

• $496 million was returned to shareholders, mainly via dividends; dividend reset to $0.25 per share quarterly, a 36% reduction.

• Year-end cash and equivalents were $394 million, with $7.1 billion in debt and a net leverage ratio of 4.3x.

Outlook and guidance

• Fiscal 2027 net sales expected to decline 2%-4%, adjusted EBIT to decline 7%-12%, and adjusted EPS to fall 17%-24% to $1.65-$1.80.

• Organic net sales projected to decline 2%-4%, with net pricing a low single-digit benefit.

• Raw material and packaging inflation of 5%-6% and double-digit logistics inflation anticipated.

• Over $100 million in cost reductions expected in fiscal 2027 under the new savings program.

• Q1 2027 expected to be the weakest quarter, with improvement anticipated as the year progresses.