The Hershey Company (HSY) Q4 2025 Prepared Remarks earnings summary

Executive summary

• Entering 2026 with strong momentum, focusing on sustainable sales growth, margin restoration, and long-term strategic execution.

• 2025 marked by agility in navigating cocoa inflation and macroeconomic volatility, driving top-line growth and market share gains in North American Confection and salty snacks.

• Fourth-quarter 2025 net sales rose 7.0% to $3,091.0 million, with organic constant currency sales up 5.7%.

• Full-year 2025 net sales increased 4.4% to $11,692.6 million, with organic constant currency sales up 4.2%.

• Strategic priorities for 2026 include top-line growth, margin and earnings improvement, and evolving organizational capabilities.

Financial highlights

• Full-year 2025 consolidated net sales reached $11.7 billion, up 4.4% year-over-year; Q4 net sales rose 7% to $3.1 billion.

• Organic constant currency growth was 4.2% for the year and 5.7% in Q4.

• Adjusted gross margin in Q4 was 38.3%, down 650 basis points year-over-year due to commodity inflation and tariffs.

• Q4 2025 operating profit was $444.9 million (down 52.6%), with an operating margin of 14.4% (down 18.1 points).

• No share repurchases in Q4; $470 million remains authorized.

Outlook and guidance

• 2026 net sales growth expected between 4%-5%, with acquisitions contributing 150 basis points.

• Organic net sales projected to grow 2.5%-3.5%; adjusted gross margin recovery of ~400 basis points anticipated.

• 2026 reported EPS projected at $7.77–$8.19 (up 79–89%); adjusted EPS at $8.20–$8.52 (up 30–35%).

• Capital expenditure guidance for 2026 is $425-$475 million; dividend to increase by 6%.

• Advancing Agility & Automation Initiative to deliver ~$100 million in savings in 2026.