US Foods (USFD) Q1 2025 earnings summary

Executive summary

• Net sales grew 4.5% year-over-year to $9.4 billion, with Adjusted EBITDA up 9.3% to $389 million and Adjusted Diluted EPS up 26% to $0.68, despite severe weather and a challenging macro environment.

• Net income increased 40.2% to $115 million, reflecting higher operating income and improved gross margin.

• Achieved 16 consecutive quarters of share gains with independent restaurants and 18 with healthcare.

• Board authorized a new $1 billion share repurchase program, building on $1.3 billion in buybacks since late 2022.

• Completed acquisition of Jake's Finer Foods for $92 million in Q1.

Financial highlights

• Gross profit rose 8.0% to $1.6 billion, with gross margin improving to 17.3% from 16.7% year-over-year.

• Adjusted EBITDA margin expanded by 18 bps to 4.2%; Adjusted gross profit per case up 4% to $7.89.

• Operating cash flow increased to $391 million, up $252 million year-over-year.

• Net income margin improved to 1.2% from 0.9% in the prior year.

• Adjusted net income up 18.7% to $159 million.

Outlook and guidance

• FY2025 guidance reaffirmed: net sales growth of 4–6%, Adjusted EBITDA growth of 8–12%, Adjusted Diluted EPS growth of 17–23%.

• Total case growth expected at 1–3%, with independent restaurant case growth of 2–5%.

• Capital expenditures for fiscal 2025 projected at $375–$425 million.

• Long-range plan targets: 5% sales CAGR, 10% Adjusted EBITDA CAGR, 20+ bps annual margin expansion, and 20% Adjusted EPS CAGR through 2027.