United Natural Foods (UNFI) Q4 2026 earnings summary

Executive summary

• Delivered Q4 adjusted EBITDA of $172M, up 48.3%, and full-year adjusted EBITDA of $701M, a 27% increase, with free cash flow rising 35.1% to $323M and net leverage reduced to 2.2x, the lowest since 2018.

• Achieved strong operational improvements and value creation through technology, supply chain, and Lean investments, supporting customer and supplier value.

• Strengthened leadership and operating model, including new CFO and expanded COO role, to align with strategic priorities for continued momentum into fiscal 2027.

• Net income was $35M for Q4 and $84M for the year, with EPS of $0.57 and $1.34, respectively.

Financial highlights

• Q4 net sales were $7.6B, down 0.7% year-over-year; full-year sales reached $31.2B, in line with guidance.

• Gross margin in Q4 was 13.7%, up 30 bps year-over-year; operating expenses were 12.9% of net sales.

• Adjusted EPS was $0.69 in Q4 and $2.65 for the year, both above guidance.

• Free cash flow for the year was $323M, the highest to date, supporting net debt reduction below $1.6B.

• Interest expense in Q4 fell to $29M from $36M year-over-year.

Outlook and guidance

• Fiscal 2027 net sales expected at $31.2B–$31.8B, up 1% at midpoint, with growth resuming in the second half as optimization headwinds subside.

• Adjusted EBITDA guidance of $730M–$780M, up high single digits; adjusted EPS expected at $3–$3.50, a 23% increase at midpoint.

• Free cash flow targeted at $275M–$325M; capital and cloud expenditures around $300M.

• Net leverage targeted below 2x by end of 2027; capital allocation prioritizes organic investment and deleveraging, with opportunistic share repurchases.

• Net income guidance for 2027 is $105M–$145M; EPS $1.70–$2.30.