Seneca Foods reported Q3 2025 revenue of $502.9 million, up 13.1% year over year and 18.2% quarter over quarter, reflecting continued demand for packaged fruits and vegetables and favorable pricing/mix. Despite top‑line growth, gross margin contracted to 9.77% (down YoY by 9.11% but up QoQ by 14.55%), signaling ongoing cost pressures or mix effects from product portfolio. Operating income was $25.66 million with a margin of 5.10%, down 16.6% YoY and modestly up 3.98% QoQ, while net income reached $14.66 million (net margin 2.92%), down 17.1% YoY but up 10.2% QoQ. Earnings per share stood at $2.12 basic and $2.10 diluted, reflecting a 14.2% YoY decrease and a 10.4% QoQ rise.
The company generated strong operating cash flow of $117.7 million and free cash flow of $108.7 million, supporting a debt repayment cadence and returning capital discipline over the period. Cash balance remained modest at $12.9 million at period end, with total debt of $421.0 million and net debt of $415.7 million. The balance sheet remains solid, with a current ratio of 3.38, but a low quick ratio (0.36) and very lean cash balance highlight ongoing working capital intensity, notably in inventory (average 145.9 days) and receivables dynamics. Interest coverage stood at 3.27x, and the debt-to-capitalization ratio was 0.407, underscoring a moderate leverage profile.
From a valuation perspective, SENEA traded at a price-to-earnings ratio of about 9.2x and a price-to-sales of roughly 1.07x, with an enterprise value multiple near 24.7x. Relative to select peers in the packaged foods space, Seneca’s top-line growth is solid but gross margins trail some broader food labels’ margin profiles, suggesting room for mix and cost‑of‑goods‑sold optimization. The company’s cash generation supports deleveraging and selective capex as growth levers.
Looking ahead, management did not issue formal numeric guidance within the provided data, but the earnings profile implies continued emphasis on price realization, cost containment, and working capital efficiency. The key questions for investors center on margin stabilization, inventory management, and the trajectory of commodity inputs and input-cost pass-through. Overall, the medium‑term thesis hinges on Seneca’s ability to sustain cash flow generation while gradually improving gross margins through pricing, product mix, and efficiency gains.