National Beverage (FIZZ) investor relations material

Executive summary

• Net sales for Q2 FY26 decreased 1.0% year-over-year to $288.3 million, driven by a 6.0% decline in case volume, partially offset by a 5.3% increase in average selling price per case.

• Operating income for Q2 FY26 was $58.0 million, up marginally from $57.9 million year-over-year.

• Net income for the quarter was $46.4 million, up slightly from $45.6 million in the prior year.

• Cash and cash equivalents increased to $269.3 million as of November 1, 2025, from $193.8 million at the start of the period, with a $156 million increase over the trailing twelve months.

• Fundamentals remain strong, supported by unique brands, retailer relationships, and consumer loyalty.

Financial highlights

• Gross profit was $109.2 million, with gross margin rising to 37.9% from 37.6% due to higher selling prices, despite increased costs and lower volume.

• Diluted EPS for the quarter was $0.49, unchanged from the prior year; basic EPS was $0.50.

• Trailing twelve-month net sales reached $1.2 billion, with EBITDA up 63 basis points to $258 million and EPS at $1.99.

• Working capital rose to $376.7 million, with a current ratio of 4.3:1.

• No debt outstanding under $150 million in credit facilities.

Outlook and guidance

• Management expects capital expenditures for FY26 to not exceed FY25 levels.

• Existing capital resources are considered sufficient to meet liquidity and capital requirements for the next twelve months.

• Management notes resilience despite inflation, commodity costs, tariffs, and a federal government shutdown impacting consumer behavior.

• New LaCroix Pineapple Coconut flavor to launch in early 2026, aiming to leverage health and wellness trends.