US Foods (USFD) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA grew 11% to $1.93 billion and adjusted EPS rose 26.3% to $3.98, with record margin expansion and strong share gains in independent restaurants, healthcare, and hospitality.

• Net sales increased 4.1% to $39.4 billion for fiscal 2025, with net income up 36.8% to $676 million.

• Operational excellence and productivity initiatives delivered over $150 million in cost of goods savings and significant margin expansion.

• Generated $1.4 billion in operating cash flow, repurchased $934 million in shares, completed two tuck-in acquisitions, and reduced net leverage to 2.7x.

• Technology leadership advanced with new AI capabilities and digital platform enhancements.

Financial highlights

• FY 2025 net sales rose 4.1% to $39.4 billion; adjusted EBITDA increased 11% to $1.93 billion; adjusted EPS grew 26.3% to $3.98.

• Q4 2025 net sales up 3.3% to $9.8 billion; adjusted EBITDA up 11.1% to $490 million; adjusted EPS up 24% to $1.04.

• Gross profit margin improved to 17.6% for the year; adjusted EBITDA margin expanded 30 basis points to 4.9%.

• Operating cash flow reached $1.37 billion, supporting significant capital returns and investments.

• 11.9 million shares repurchased for $934 million; two tuck-in acquisitions completed for $131 million.

Outlook and guidance

• Fiscal 2026 guidance: net sales growth of 4%-6%, adjusted EBITDA growth of 9%-13%, and adjusted EPS growth of 18%-24%.

• Total case growth expected at 2.5%-4.5%, with independent case growth projected at 4%-7%.

• Guidance includes a 53rd week, expected to add about 1% to case and adjusted EBITDA growth.

• Cash CapEx projected at $400M–$440M; net leverage target range maintained at 2.0x–3.0x.

• First quarter 2026 EBITDA growth expected in the upper single digits due to weather disruptions, but full-year guidance reaffirmed.