Gruma (GRUMA) Q4 2025 earnings summary

Executive summary

• Global demand for tortillas and Better-For-You products remains strong, with resilience in wellness brands and private label, especially in the U.S. and Europe.

• Operational leverage improved in Asia and Oceania, supported by new capacity in China.

• Food service channel in the U.S. faced ongoing challenges due to weak consumer sentiment and immigration policy, but signs of recovery are emerging for 2026.

• Achieved targeted profitability for 2025 by expanding margins, with strong performance in Europe, Asia & Oceania, and Central America offsetting U.S. and GIMSA headwinds.

• Closed the year in line with expectations and entered 2026 with improving market dynamics.

Financial highlights

• Consolidated volumes were flat in Q4, with net sales up 2% year-over-year to $1.59 billion.

• EBITDA decreased 5% to $277.7 million, with a 130 basis point margin compression to 17.5%.

• Operating income fell 7% to $212.7 million; operating margin declined 140 bps to 13.4%.

• Majority net income declined 18% to $126.6 million; effective tax rate was 28.5%.

• Cost of sales increased 5% due to higher raw material costs; SG&A rose 4% mainly from logistics and marketing.

• Tortilla volumes declined 4% due to U.S. food service weakness; corn flour volumes grew 1%.

• U.S. sales fell 5% and EBITDA contracted 7%, with a 40 basis point margin decline to 20.7%.

• Mexico sales finished 1% below prior year, with EBITDA down 6% due to corn cost pressures.

• Europe saw 1% volume and 14% sales growth, but only 3% EBITDA growth due to higher costs.

• Central America volumes and sales grew 5% and 2%, respectively; EBITDA up 26% with 400 basis point margin expansion.

• Asia and Oceania volumes up 3%, sales up 8%, EBITDA up 28% with 220 basis point margin expansion.

Outlook and guidance

• U.S. expects flat to fractional volume growth, flat to slightly lower sales, and 50-70 basis point EBITDA margin contraction in 2026.

• Mexico anticipates single-digit volume and sales growth, with 10-50 basis point margin contraction due to corn price risks.

• Europe projects low single-digit volume and high single-digit sales growth, with 70-100 basis point EBITDA margin expansion.

• Central America expects high single-digit volume and low single-digit sales growth, with 20-50 basis point margin expansion.

• Asia and Oceania forecast mid-single-digit volume and high single-digit sales growth, but flat to 50 basis point margin contraction.

• Consolidated guidance: flat to fractional volume growth, low single-digit sales growth, and 40-60 basis point margin contraction.

• CapEx for 2026 estimated at $220 million.

• Expectation of improved short-term performance as temporary challenges in Mexico and the U.S. subside, with positive momentum anticipated in 2026.