UTZ Brands (UTZ) Q1 2026 Prepared remarks earnings summary

Executive summary

• Achieved Q1 net sales growth of 2.6% to $361.3 million, led by branded salty snacks organic net sales growth of 5.2% and retail sales outpacing the category at 4.6%.

• Adjusted EBITDA increased 6.2% to $47.9 million, driven by margin expansion and productivity gains, while adjusted EPS declined 6.3% due to higher depreciation and amortization.

• Free cash flow improved by $32.3 million year-over-year, though remained negative at -$25.9 million; net leverage ratio improved to 3.6x, the lowest Q1 ratio since going public.

• Reaffirmed full-year 2026 guidance for organic net sales growth of 2–3%, adjusted EBITDA growth of 5–8%, and adjusted free cash flow of $60–$80 million.

• Continued strategic focus on branded portfolio, innovation, and geographic expansion.

Financial highlights

• Q1 2026 organic net sales: $361.3 million (+2.6% YoY); adjusted gross profit: $111.4 million (+10.1% YoY); adjusted gross margin: 30.8% (+210bps YoY).

• Adjusted SG&A expense rose 13.2% YoY to $63.5 million, reflecting increased marketing and investments in growth and expansion.

• Adjusted EBITDA: $47.9 million (+6.2% YoY); adjusted EBITDA margin: 13.3% (+50bps YoY).

• Adjusted net income: $21.3 million (-4.5% YoY); adjusted EPS: $0.15 (-6.3% YoY).

• Cash and equivalents: $73.7 million; total liquidity at $196.1 million; net debt: $780.3 million.

Outlook and guidance

• Reaffirmed 2026 guidance: organic net sales growth of 2–3%, adjusted EBITDA growth of 5–8%, and adjusted EPS decline of 3–6%.

• Adjusted free cash flow guidance maintained at $60–$80 million; capital expenditures expected at $60–$65 million.

• Net leverage ratio targeted at 3.0x–3.2x by year-end.

• 53rd week in Q4 2026 expected to benefit reported net sales by ~$20 million, adjusted EBITDA by ~$3 million, and adjusted EPS by ~2¢.

• Category growth assumed flat for the year, with uncertainty in consumer environment and tougher comparisons in H2.