Rogers Sugar (RSI) Q2 2026 earnings summary

Executive summary

• Delivered strong financial performance in Q2 2026, with adjusted net income up 15% year-over-year to nearly CAD 19 million and consolidated Adjusted EBITDA up 10% to CAD 38 million, driven by the Sugar segment despite lower volumes and revenues.

• Maple segment Adjusted EBITDA was just under CAD 5 million, down CAD 2 million year-over-year, mainly due to higher production costs and product mix.

• Strategic focus remains on margin and execution rather than volume, with a philosophy of consistent, sustainable profitability.

• Maintained a consistent quarterly dividend of 9 cents per share, reflecting ongoing free cash flow generation and a healthy balance sheet.

• Continued progress on the LEAP Project to expand production capacity, with completion targeted for the first half of 2027 and $178.2 million capitalized to date.

Financial highlights

• Adjusted net earnings for Q2 were CAD 19 million (CAD 0.14/share), up from CAD 16 million (CAD 0.13/share) last year; adjusted net earnings per share grew by 8%.

• First six months adjusted net earnings were CAD 43 million (CAD 0.34/share), up 22% year-over-year.

• Revenues for Q2 were CAD 281 million, down from CAD 338 million last year, mainly due to lower Raw #11 prices and reduced sugar export volumes.

• Consolidated adjusted gross margin increased by 14% to $54 million compared to the same quarter last year.

• Free cash flow for the trailing 12 months was about CAD 93 million, up 11% year-over-year.

Outlook and guidance

• Revised sugar volume forecast for fiscal 2026 to 735,000 metric tons, a 6% reduction from 2025, mainly due to lower export sales.

• Domestic sugar business remains healthy with stable margins expected.

• Maple volume forecast for 2026 is 56 million pounds, up 5% year-over-year, with sufficient supply secured.

• Capital spending for 2026 (excluding LEAP) expected at CAD 27 million; LEAP project spending anticipated at CAD 115 million.

• Second half of 2026 expected to align closely with first half performance, with stable profitability.