US Foods (USFD) Q3 2025 earnings summary

Executive summary

• Delivered strong Q3 and year-to-date results, with net sales up 4.8% to $10.2 billion for the quarter and 4.4% to $29.6 billion for the nine months, driven by case volume growth and food cost inflation.

• Achieved double-digit adjusted EBITDA growth (up 11% to $505 million in Q3), margin expansion, and Adjusted Diluted EPS growth of 25.9% to $1.07, with consistent market share gains in independent, healthcare, and hospitality segments.

• Focused on long-term shareholder value through disciplined capital allocation, targeted M&A (including Shetakis acquisition), and investments in technology, automation, and salesforce initiatives.

• Operating cash flow increased by $185 million to $1.08 billion year-to-date, supporting ongoing investment and share repurchases.

• Continued to outperform in key customer segments, with independent restaurant case volume up 3.9% and healthcare up 3.9%.

Financial highlights

• Net sales increased 4.8% to $10.2 billion in Q3; year-to-date net sales up 4.4% to $29.6 billion.

• Adjusted EBITDA rose 11% to $505 million in Q3; year-to-date Adjusted EBITDA up 10.9% to $1.44 billion.

• Adjusted Diluted EPS grew 25.9% to $1.07 in Q3; year-to-date up 26.7% to $2.94.

• Gross profit increased 5.2% to $1.8 billion; Adjusted EBITDA margin expanded by 28 basis points to 5.0%.

• Operating cash flow YTD at $1.08 billion, with free cash flow for the nine months at $806 million.

Outlook and guidance

• Fiscal 2025 guidance: net sales growth of 4%-5%, Adjusted EBITDA growth of 10%-12%, Adjusted Diluted EPS growth of 24%-26%.

• Total case volume growth expected at 1%-2%; sales inflation and mix at ~3%.

• Cash CapEx projected at $395M–$410M; tax rate ~26%.

• Long-range plan targets: 5% sales CAGR, 10% adjusted EBITDA CAGR, at least 20 bps annual adjusted EBITDA margin expansion, 20% adjusted EPS CAGR through 2027.

• Management believes liquidity and borrowing capacity are sufficient to meet obligations and capital needs for the next 12 months.