Flowers Foods (FLO) investor relations material

Executive summary

• Delivered Q4 2025 results at the high end of guidance, with strong brand performance and efficiency initiatives, despite a challenging consumer environment and traditional loaf bread weakness.

• Comprehensive, multi-year review of brand portfolio, supply chain, and financial strategy underway to reignite growth and expand margins.

• Facing ongoing category challenges, inflationary pressures, and one fewer week in 2026, but planning additional investments in leading brands.

• Simple Mills acquisition contributed to sales growth but resulted in net losses in Q4 and FY 2025.

Financial highlights

• Q4 2025 net sales rose 11.0% year-over-year to $1.233B, aided by an extra week, Simple Mills acquisition, and improved price/mix, partially offset by volume declines.

• Q4 net loss of $67.1M, down $110.2M from prior year, mainly due to a $136M non-cash intangible asset impairment, higher interest expense, and tax rate.

• Adjusted EBITDA for Q4 2025 increased 14.7% to $117.4M (9.5% margin); full-year adjusted EBITDA was $535.2M (10.2% margin).

• FY 2025 cash from operations was $446.2M; capex $127.1M; dividends $209.3M; acquisition spend $791.9M.

• Long-term debt increased to $1.76B from $1.02B year-over-year; net debt/adjusted EBITDA at 3.3x–3.75x, near covenant limits.

Outlook and guidance

• Fiscal 2026 net sales guidance: $5.163B to $5.267B; adjusted EBITDA: $465M to $495M; adjusted diluted EPS: $0.80 to $0.90.

• 2026 guidance reflects ongoing category headwinds, inflation, loss of extra week, and continued promotional activity.

• Dividend payout ratio projected to exceed 100% of 2026 EPS guidance.

• No material financial impact expected from the upcoming Supreme Court case.

• Anticipates refinancing $400M in debt at higher rates, but confident in execution.