The J. M. Smucker Company (SJM) Q3 2026 Prepared Remarks earnings summary

Executive summary

• Net sales rose 7% year-over-year to $2.34 billion, with comparable net sales up 8%, driven by strong coffee pricing and disciplined cost management, but offset by volume declines in several categories.

• Adjusted EPS was $2.38, down 9% year-over-year, while reported net loss per diluted share was $6.79 due to $961.7 million in noncash impairment charges for Sweet Baked Snacks goodwill and Hostess brand trademark.

• Free cash flow increased sharply to $487 million from $151 million in the prior year, reflecting improved operating cash flow and lower working capital needs.

• Portfolio transformation, consumer-led innovation, and strategic focus on long-term growth and profitability are fueling momentum across key brands.

• Updated full-year outlook reflects recent operational impacts, including a fire at the Emporia, Kansas facility and recent divestitures.

Financial highlights

• Net sales reached $2,339.4 million, up from $2,186.0 million year-over-year; comparable net sales rose 8%.

• Adjusted gross profit decreased 3% to $790.8 million, with margin down to 33.8% due to higher costs and tariffs.

• Adjusted operating income fell 7% to $431.6 million; adjusted operating margin was 18.4%.

• Adjusted EPS was $2.38, down 9% year-over-year; gross margin declined to 35.4%.

• Free cash flow reached $487 million, up from $151 million in the prior year.

Outlook and guidance

• Full-year net sales expected to increase 3.5%-4% versus prior year, with comparable net sales up 5.0–5.5%.

• Adjusted EPS guidance maintained at $8.75–$9.25; midpoint $9.00.

• Free cash flow projected at $975 million; capital expenditures at $325 million.

• Guidance reflects a $25 million Q4 sales impact from a fire at the Emporia, Kansas facility.

• Adjusted effective income tax rate projected at 24%.