Maple Leaf Foods (MFI) Q3 2025 earnings summary

Executive summary

• Completed the spin-off of pork operations (Canada Packers) on October 1, 2025, transforming the company into a focused CPG protein business and retaining a 16% stake in the new entity, with shareholders receiving shares in both companies.

• Achieved 8% year-over-year revenue growth to $1,356.3 million in Q3 2025, with strong performance across Prepared Foods, Poultry, and Pork segments.

• Adjusted EBITDA rose 21.7% to $171.4 million, with margin up 140 bps to 12.6% year-over-year.

• Launched two new brands, Mighty Protein and Musafir, expanding into high-protein snacks and South Asian-inspired frozen meals.

• Initiated price increases in the CPG business, effective Q1 2026, to offset raw material cost inflation.

Financial highlights

• Q3 2025 sales: $1,356.3 million (+8.0% YoY); Prepared Foods +4.4%, Poultry +15.7%, Pork +10.4%.

• Q3 2025 Adjusted EBITDA: $171.4 million (+21.7% YoY), margin 12.6%; continuing operations Adjusted EBITDA: $111.7 million (+19.1%), margin 11.1%.

• Net earnings for Q3 2025 were $43.1 million ($0.35 per share), up from $17.7 million ($0.14 per share) year-over-year.

• Free cash flow for Q3 2025 was $46.2 million, with net debt reduced by $242.4 million year-over-year to $1,354.9 million; leverage ratio at 2.0x trailing 12-month Adjusted EBITDA.

• Annual dividend per share increased 9% to $0.96 for 2025; board approved quarterly dividend of $0.19 per share, payable December 31, 2025.

Outlook and guidance

• No updated guidance for the remainder of 2025 due to the spin-off; long-term guidance framework to be provided in coming months.

• On track to deliver full-year 2025 Adjusted EBITDA guidance of $680M–$700M.

• Price increases in CPG business to take effect in Q1 2026 to address margin pressures; expect continued margin pressure in Q4 due to input cost inflation.

• SG&A reduction initiatives and cost discipline expected to drive further efficiencies in 2026.

• IFRS 18 will be adopted for annual periods beginning January 1, 2027, with retrospective restatement.