Executive Summary
The J M Smucker Company delivered a challenging QQ4 2025 with revenue modestly down year-over-year and margins under pressure, culminating in a substantial net loss despite positive operating cash flow. Revenue totaled $2.1438 billion, down 2.81% YoY and 1.93% QoQ, while gross profit was $823.3 million for a gross margin of 38.4%. Operating income was negative at $-599.1 million, driven by elevated operating costs and non-operating items, yielding a net loss of $729.0 million or $-6.85 per diluted share. The year-ago period showed better profitability metrics, highlighting a material year-over-year deterioration in bottom-line results (net income YoY at -397.4%). Management emphasized ongoing Margin Improvement and Portfolio Rationalization initiatives as part of a multi-quarter effort to restore profitability, while cash flow remained a bright spot: operating cash flow of $393.9 million and free cash flow of $298.9 million contributed to a solid cash generation profile given a sizable debt burden.
Key Performance Indicators
QoQ: -0.86% | YoY:-247.56%
QoQ: -10.07% | YoY:-397.43%
QoQ: -10.13% | YoY:-396.54%
Key Insights
Revenue: $2.1438B; YoY -2.81%, QoQ -1.93%
Gross Profit: $823.3M; Gross Margin 38.40%; YoY -9.85%, QoQ -6.24%
Operating Income: $-599.1M; Operating Margin -27.95%; YoY -247.56%, QoQ -0.86%
Net Income: $-729.0M; Net Margin -34.01%; YoY -397.43%, QoQ -10.07%
EPS (Diluted): $-6.85; YoY -396.54%, QoQ -10.13%
Depreciation & Amortization: $123.4M
Interest Expense: $-94.2M
Income Before Tax: $-697.1M
Income Tax Expense: $31.9M
Free Cash Flow: $298.9M
Operating Cash Flow: $393.9M
Capital Expenditure ...
Financial Highlights
Revenue: $2.1438B; YoY -2.81%, QoQ -1.93%
Gross Profit: $823.3M; Gross Margin 38.40%; YoY -9.85%, QoQ -6.24%
Operating Income: $-599.1M; Operating Margin -27.95%; YoY -247.56%, QoQ -0.86%
Net Income: $-729.0M; Net Margin -34.01%; YoY -397.43%, QoQ -10.07%
EPS (Diluted): $-6.85; YoY -396.54%, QoQ -10.13%
Depreciation & Amortization: $123.4M
Interest Expense: $-94.2M
Income Before Tax: $-697.1M
Income Tax Expense: $31.9M
Free Cash Flow: $298.9M
Operating Cash Flow: $393.9M
Capital Expenditure (PP&E): $-95.0M
Net Debt: $7.6918B; Total Debt: $7.7617B
Cash & Equivalents: $69.9M; Beginning Cash: $47.2M; End Cash: $69.9M
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.14B |
-2.81% |
-1.93% |
| Gross Profit |
823.30M |
-9.85% |
-6.24% |
| Operating Income |
-599.10M |
-247.56% |
-0.86% |
| Net Income |
-729.00M |
-397.43% |
-10.07% |
| EPS |
-6.85 |
-396.54% |
-10.13% |
Management Commentary
The QQ4 2025 earnings call emphasized several recurring themes typical for a restructuring phase in a large consumer staples business. Management outlined a focused approach to portfolio optimization and brand refresh programs aimed at higher-margin categories, coupled with ongoing cost-reduction initiatives to offset input-cost pressures. Executives discussed pricing discipline and improved mix as levers to restore margins, while acknowledging macro headwinds in discretionary consumer spending. The leadership reaffirmed commitment to deleverage over time and reiterated the importance of operational excellence in procurement, logistics, and SG&A containment to support cash generation. Given the quarter’s profitability erosion, commentary investors would expect centered on timing and sequencing of cost-saving programs and potential accelerators through product rationalization and channel optimization.
No transcript quotes available in the provided data.
—
No transcript quotes available in the provided data.
—
Forward Guidance
No explicit numeric forward guidance was provided in the available data. Management commentary suggests a continued emphasis on cost discipline, portfolio optimization, and deleveraging efforts with the objective of restoring operating margins toward historical levels as inflationary pressures ease and mix improves. Investors should monitor: (1) progress on cost-reduction and productivity improvements, (2) commodity and freight cost trajectories (especially coffee, peanut butter ingredients, dairy, and packaging), (3) pricing actions and mix shifts across core segments (US Retail Coffee, US Retail Pet Foods, US Retail Consumer Foods), (4) working capital dynamics and capital allocation decisions, including potential further share repurchases versus debt reduction given the current leverage footprint). The achievability of margin recovery will hinge on stabilizing input costs, successful price realization, and favorable mix shifts over the ensuing quarters.