The Marzetti (MZTI) Q2 2026 earnings summary

Executive summary

• Consolidated net sales rose 1.7% year-over-year to $518.0 million; adjusted for non-core TSA sales, net sales increased 0.1% to $509.8 million.

• Gross profit reached a record $137.3 million, up 3.4% year-over-year, with gross margin improving 40 basis points to 26.5%.

• Net income rose 20.6% to $59.1 million, with diluted EPS up $0.37 (20.8%) to $2.15, aided by the absence of prior year pension settlement charge.

• Announced definitive agreement to acquire Bachan’s, Inc., a Japanese-American barbecue sauce brand, for $400 million in cash, expected to be accretive to growth and margins.

• Operating income for the quarter was $75.2 million, down 0.6% due to higher SG&A and restructuring charges; adjusted operating income was $76.9 million.

Financial highlights

• Adjusted consolidated net sales (excluding TSA) were $509.8 million, up 0.1% year-over-year.

• Gross margin improved to 26.5% reported and 26.9% adjusted, driven by cost savings and inflationary pricing.

• SG&A expenses rose $3.3 million (5.8%) to $60.4 million, mainly from higher marketing spend and new product launches.

• Adjusted operating income declined by $0.4 million to $76.9 million, excluding restructuring and prior-year acquisition costs.

• Cash from operating activities for the six months was $158.1 million, up from $127.5 million year-over-year.

Outlook and guidance

• Projecting continued low single-digit revenue growth in retail for the second half, with even cadence by quarter.

• Retail segment sales are expected to benefit from licensing, innovation, and earlier Easter holiday shifting some sales to Q3.

• Foodservice segment expected to see continued growth from select national accounts and national chain restaurant customers.

• Modest input cost inflation is expected, to be offset by contractual pricing and cost savings programs.

• The Bachan's acquisition will be funded with cash and additional financing; details to be provided in a future filing.