Nomad Foods (NOMD) Q4 2025 [Q&A] earnings summary

Executive summary

• Full year 2025 results met guidance, with organic revenue declines moderating in Q4 and retail sell-out accelerating to +0.7% year-over-year.

• Strong cash flow enabled €44 million in share repurchases in Q4 and €195.6 million for the year, with €287 million returned to shareholders via dividends and buybacks, up 38% from 2024.

• Management expects 2026 to be a transition year with negative net sales guidance due to ongoing pricing negotiations, cost inflation in fish, and temporary disruptions, but remains optimistic about returning to growth in 2027 and beyond.

• Leadership is demonstrating confidence in the long-term outlook by planning substantial share purchases in the coming weeks.

• Initiated changes aimed at laying the foundation for future value creation and organizational improvements.

Financial highlights

• Full year 2025 revenue was €3,033m, down 2.2% year-over-year; organic revenue declined 1.9% with a 1.4% volume decline.

• Adjusted gross margin for the year was 27.5%, down 210 bps YoY; adjusted EBITDA was €523m, down 7.5%.

• Adjusted EPS for the year was €1.66, a 6.7% decrease YoY.

• Q4 2025 revenue was €773m, down 2.6% YoY; organic revenue declined 1.3% with a 1.1% volume decline.

• Q4 adjusted gross margin was 26.1%, down 240 bps YoY; adjusted EBITDA was €131m, down 4.7%.

Outlook and guidance

• 2026 guidance projects organic revenue to decline 2–5%, adjusted EBITDA to decline 5–10%, and adjusted EPS of €1.45–€1.60 (down 4–13%).

• Adjusted free cash flow conversion expected to be 90% or greater.

• Net sales guidance for 2026 is negative, primarily due to delayed and disrupted annual negotiations and cost inflation in fish, with price increases expected in that segment.

• Price is expected to contribute positively, but negative volume is anticipated, especially in fish, due to price increases and competitive lag.

• Growth is expected to resume in 2027 and 2028, with more specific multi-year targets to be shared at Analyst Day later in the year.