YETI (YETI) Q4 2025 earnings summary

Executive summary

• Q4 2025 adjusted net sales rose 5% year-over-year to $583.7M, with Drinkware up 6% and international sales up 25%, marking the strongest quarter for both categories.

• Full-year 2025 net sales increased 2% to $1.87B, driven by 16% international growth and 7% growth in coolers & equipment.

• Free cash flow for FY25 reached $212.1M, exceeding adjusted net income, and $297.6M in share repurchases were executed.

• International sales mix grew to 21% of adjusted net sales in FY25, reflecting ongoing global expansion.

• Leadership transition announced: Mike McMullen to step down as CFO, succeeded by Scott Bomar from The Home Depot.

Financial highlights

• Q4 adjusted net sales were $583.7M, up 5% year-over-year; Drinkware sales grew 6% to $380M, and Coolers & Equipment grew up to 7% to $192M.

• Q4 adjusted gross profit was $341M (58.4% of sales), down 180 bps due to tariffs; adjusted operating income declined 14% to $94.7M.

• Adjusted net income for Q4 was $71.8M, with adjusted EPS at $0.92, down from $1, impacted by $0.15 per share in tariffs.

• Ended Q4 with $188.3M in cash and $74M in debt; inventory down 6% year-over-year.

• $297.6M in share repurchases for FY25, totaling 8.2M shares.

Outlook and guidance

• FY26 adjusted net sales expected to grow 6–8% year-over-year, with high single- to low double-digit growth in Coolers & Equipment and mid-single-digit growth in Drinkware.

• International sales projected to grow high teens to 20%; US growth expected in low to mid-single digits.

• Gross margin guidance for 2026 is 56%–57%, down ~90 bps year-over-year due to tariffs; operating income margin expected at 14.4%.

• Adjusted EPS for 2026 expected between $2.77 and $2.83, up 12%–14%; $100M in share repurchases planned.

• Free cash flow projected at $200M–$225M; capex of $60M–$70M focused on technology, innovation, and supply chain.