The Marzetti (MZTI) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 ended with record highs in net sales, gross profit, and operating income, marking four consecutive years of record net sales and gross profit, and three years for operating income.

• Fourth quarter consolidated net sales declined 2.2% to $465.0 million; adjusted net sales increased 0.4% due to the Bachan's acquisition and excluding TSA sales.

• Record Q4 gross profit of $114.0 million, with gross margin up 220 basis points year-over-year, driven by cost savings programs.

• Operating income reached a Q4 record of $57.7 million, up $18.8 million, aided by a gain on the Milpitas property sale.

• EPS (diluted) improved by $0.58 to $1.76, a 49.2% increase year-over-year.

Financial highlights

• Fiscal year net sales increased 1.1% to $1.93 billion; net income rose to $191.6 million ($6.98 per diluted share) from $167.3 million ($6.07 per diluted share) year-over-year.

• Adjusted net sales for Q4 grew 0.4% excluding TSA; Bachan's contributed $15.4 million in Q4 sales.

• Gross profit increased $7.9 million (7.4%) to $114 million; gross margin expanded by 220 basis points (reported) and 160 basis points (adjusted).

• Operating cash flow for FY26 rose 8.5% to $283.8 million.

• Regular cash dividend increased for the 63rd consecutive year, totaling $108.8 million; $36.3 million in share repurchases.

Outlook and guidance

• FY27 guidance calls for mid-single-digit revenue growth, driven by Bachan's and new product launches.

• Retail revenue to grow mid-single digits, with modest base decline due to Cyclospora impact; foodservice to grow low to mid-single digits.

• Forecasting 100 basis points of gross margin growth in FY27, half from Bachan's accretion and half from cost savings and commodity management.

• SG&A expected to grow 10%-15%, mainly from Bachan's addition.

• Monitoring external factors, including U.S. economic performance and Cyclospora outbreak impact.