US Foods (USFD) Q3 2025 earnings summary

Executive summary

• Delivered strong Q3 and year-to-date results, with net sales up 4.8% to $10.2 billion and consistent market share gains in independent restaurants, healthcare, and hospitality.

• Achieved double-digit adjusted EBITDA growth (up 11% to $505 million) and Adjusted Diluted EPS growth (up 25.9% to $1.07), supported by disciplined capital allocation and targeted M&A, including the acquisition of Shetakis.

• Maintained momentum in key segments, with 18 consecutive quarters of share gains in independents and 20 in healthcare.

• Launched operational and salesforce changes, including a transition to 100% variable compensation for local sellers and a streamlined team-based selling model.

• Continued investment in technology, automation, and digital platforms to drive customer experience and operational efficiency.

Financial highlights

• Net sales increased 4.8% to $10.2 billion in Q3, driven by 1.1% case volume growth and 3.7% food cost inflation/mix impact.

• Adjusted EBITDA rose 11% to $505 million, with margin expanding 28 basis points year-over-year to 5.0%.

• Adjusted Diluted EPS grew 25.9% to $1.07 per share.

• Adjusted gross profit per case improved 5.2% to $8.30, while adjusted operating expense per case increased 3.8% to $5.97.

• Operating cash flow year-to-date increased by $185 million to $1.08 billion.

Outlook and guidance

• Fiscal 2025 guidance: net sales growth of 4%-5%, total case volume growth of 1%-2%, Adjusted EBITDA growth of 10%-12%, and Adjusted Diluted EPS growth of 24%-26%.

• Cash CapEx projected at $395M–$410M; tax rate ~26%.

• Long-range plan targets reaffirmed: 5% sales CAGR, 10% adjusted EBITDA CAGR, at least 20 bps annual adjusted EBITDA margin expansion, 20% adjusted EPS CAGR through 2027.