Kernel (KER) Q1 2026 earnings summary

Executive summary

• Revenue increased 4% year-over-year to $826 million, driven by higher edible oil prices and volumes, offsetting a temporary grain export slowdown due to delayed harvests in Ukraine.

• Gross profit declined 3% year-over-year to $160 million as cost of sales rose 7% amid intensified competition for feedstock and tighter supply.

• Net profit attributable to shareholders fell 21% year-over-year to $95 million, with EBITDA down 15% to $144 million.

• Operating profit before working capital changes dropped 23% year-over-year to $115 million, and net cash from operating activities fell sharply to $14 million.

Financial highlights

• Revenue: $826 million (+4% year-over-year).

• EBITDA: $144 million (-15% year-over-year); EBITDA margin 17% (down 4pp).

• Net profit: $95 million (-21% year-over-year); EPS $0.33 (-21%).

• Net cash from operating activities: $14 million (down from $56 million year-over-year).

• Net debt: $133 million (down 49% year-over-year); Net debt/EBITDA: 0.3x.

Outlook and guidance

• Sunflower seed harvest in Ukraine forecast at 11.4 million tons, lowest in a decade, leading to underutilized processing capacity and intense competition for feedstock.

• Market expects continued margin pressure in oilseed processing due to supply deficit and challenging weather conditions.