Maple Leaf Foods (MFI) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales rose 6.2% year-over-year to CAD 963 million, driven by strong Poultry (up 11.7%) and Prepared Foods (up 2.3%) performance, with improved operating efficiency and margin expansion.

• Adjusted EBITDA increased 5.7% to CAD 122.4 million, with a margin of 12.7% and sequential improvement of 90 basis points from Q4.

• Earnings from continuing operations rose to CAD 46.1 million (CAD 0.37 per share), up from CAD 16 million (CAD 0.13 per share) last year; Adjusted Basic EPS grew 61.9% to CAD 0.34.

• Free cash flow turned positive at CAD 36.6 million, an improvement of CAD 50.2 million year-over-year.

• Returned CAD 36 million to shareholders via dividends (up 10.5% year-over-year) and share repurchases.

Financial highlights

• Gross profit increased 17% year-over-year to CAD 180.4 million, with gross margin improving to 18.7%.

• SG&A expenses were CAD 101.9 million, 10.6% of sales, with an 80 basis point improvement as a percentage of sales.

• Net debt-to-trailing 12-month adjusted EBITDA ratio improved to 2.1x from 2.6x a year ago, with net debt reduced by CAD 544.6 million year-over-year.

• Maintenance capital spending was CAD 17.7 million, with growth capital at CAD 3.2 million.

• Dividend increased by 10.5% to CAD 0.21 per share quarterly, marking the 11th consecutive annual increase.

Outlook and guidance

• Reaffirmed 2026 guidance: mid-single-digit revenue growth, adjusted EBITDA of CAD 520–540 million, capital investments of CAD 160–180 million, and leverage below 3x.

• Confident in delivering full-year outlook despite market volatility and inflationary pressures.

• Long-term ambition for 2030: CAD 5 billion revenue, CAD 750 million adjusted EBITDA, and cumulative free cash flow of CAD 1.7–1.8 billion.

• Annual dividend growth targeted at ~10%.

• Strategic focus on scaling core business, sustainable meats, brand leadership, innovation, and U.S. expansion.