UTZ Brands (UTZ) Q4 2025 Prepared Remarks earnings summary

Executive summary

• Achieved 2.4% organic net sales growth in FY 2025, with branded salty snacks up 4.7% and expansion geographies growing retail sales by 7.8%, outperforming a category decline of 0.5%.

• Q4 2025 net sales grew 0.4% year-over-year, led by 2.5% organic growth in branded salty snacks, despite inventory destocking impacts.

• Adjusted EBITDA increased 17.5% in Q4 and 8.1% for FY 2025, with margin expansion driven by productivity savings and improved product mix.

• Adjusted EPS rose 18.2% in Q4 and 6.5% for FY 2025, while reported net income turned negative due to transformation and one-time costs.

• Completed major supply chain transformation, reducing facilities from 16 to 7 since 2022, and announced California market entry via acquisition of Insignia's DSD routes.

Financial highlights

• FY 2025 net sales: $1,438.8M (+2.1% YoY); Q4 net sales: $342.2M (+0.4% YoY).

• Adjusted gross profit margin expanded by 560bps in Q4 to 36.5% and by 260bps for the year to 32.3%.

• Adjusted EBITDA margin: 18.2% in Q4 (+260bps YoY); FY 2025: 15.0% (+80bps YoY).

• Net debt at year-end was $741.8M, with a net leverage ratio of 3.4x trailing 12-month Adjusted EBITDA.

• Cash provided by operations was $112.2M; capital expenditures totaled $102.8M; dividends/distributions paid: $37.7M.

Outlook and guidance

• FY 2026 organic net sales growth expected at 2%-3%, with reported sales to benefit by ~$20M from a 53rd week.

• Adjusted EBITDA growth projected at 5%-8%, including a $3M benefit from the 53rd week.

• Adjusted EPS expected to decline 3%-6% due to higher depreciation, interest, and tax rate.

• Adjusted free cash flow guidance: $60M–$80M for 2026, with >$100M expected in 2027 and beyond; capital expenditures to decline to $60M–$65M.

• Net leverage ratio targeted at 3.0x–3.2x by end of 2026, with deleveraging as a top priority.