Executive Summary
Seneca Foods reported QQ1 2026 revenue of 297.46 million, down 3.42 percent year over year and 40.85 percent quarter over quarter. Despite a negative operating result of 0.14 million, gross profit rose 101.2 percent year over year to 41.81 million, lifting the gross margin to 14.06 percent. The quarter delivered a positive net income of 14.89 million driven primarily by total other income of 19.85 million, which more than offset the operating shortfall. This underscores that the quarter benefited from non-operating items and tax effects rather than core operating strength.
Free cash flow generation remained robust, underpinned by strong operating cash flow of 53.70 million and free cash flow of 42.41 million after a modest capital outlay of 11.28 million. Working capital dynamics contributed a substantial cash inflow of 38.93 million, while debt repayment activity reflected a deliberate balance-sheet discipline with net debt at 286.40 million and cash on hand of 12.07 million at period end. The balance sheet remains solid with total assets of 1.159 billion and shareholders equity of 644.17 million, supporting liquidity and flexibility to navigate a seasonally uneven revenue profile.
From a forward-looking perspective, the earnings mix signals that underlying operating leverage and margin recovery will be critical to sustaining earnings momentum. Investors should monitor the durability of operating margin improvements, the sustainability of non-operating income contributions, commodity cost dynamics, and the company’s progress in balance-sheet optimization and working capital management. While the near-term quarterly volatility is evident, the combination of positive net income, strong cash flow, and a prudent capital plan supports a cautiously constructive investment stance for Seneca in the context of a volatile packaging foods landscape.
Key Performance Indicators
QoQ: -40.85% | YoY:-3.42%
QoQ: -14.86% | YoY:101.23%
QoQ: -100.55% | YoY:-104.95%
Key Insights
Revenue performance: QQ1 2026 revenue of 297.46 million, down 3.42 YoY and 40.85 QoQ. Gross profit rose to 41.81 million, up 101.23% YoY but down 14.86% QoQ, resulting in a gross margin of 14.06% (vs 0.1406 in the prior period).
Profitability: Operating income recorded a negative 0.14 million, with an EBITDAR ratio of -0.0005 and an operating margin of -0.0005, reflecting a weak operating base in the quarter. Net income was 14.89 million, a YoY uplift of 762.73% and QoQ increase of 1.54%, drive...
Financial Highlights
Revenue performance: QQ1 2026 revenue of 297.46 million, down 3.42 YoY and 40.85 QoQ. Gross profit rose to 41.81 million, up 101.23% YoY but down 14.86% QoQ, resulting in a gross margin of 14.06% (vs 0.1406 in the prior period).
Profitability: Operating income recorded a negative 0.14 million, with an EBITDAR ratio of -0.0005 and an operating margin of -0.0005, reflecting a weak operating base in the quarter. Net income was 14.89 million, a YoY uplift of 762.73% and QoQ increase of 1.54%, driven mainly by 19.85 million of total other income and a favorable tax outcome; diluted EPS was 2.14, while basic EPS stood at 2.16. The substantial swing between operating performance and reported net income highlights non-operating gains rather than core earnings power in QQ1 2026.
Cash flow and capital allocation: Net cash provided by operating activities was 53.70 million; capital expenditures were 11.28 million; free cash flow stood at 42.41 million. Change in working capital contributed 38.93 million in cash, with accounts receivable at 101.32 million and inventories at 614.44 million. Net debt ended at 286.40 million, and cash and cash equivalents were 12.07 million. Debt repayments of 77.06 million were matched by a net financing outflow of 80.84 million, reflecting a deliberate deleveraging and capital management stance.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
297.46M |
-3.42% |
-40.85% |
| Gross Profit |
41.81M |
101.23% |
-14.86% |
| Operating Income |
-142.00K |
-104.95% |
-100.55% |
| Net Income |
14.89M |
762.73% |
1.54% |
| EPS |
2.16 |
775.00% |
1.89% |
Management Commentary
Transcript highlights not available in the supplied data. Earning call transcript was not provided; no management quotes are available to extract verbatim insight from the QQ1 2026 call. When the transcript is available, this section should summarize themes such as strategy focus, operational execution, market conditions, and guidance with corresponding quotes.
Forward Guidance
Explicit forward guidance for QQ2 2026 and beyond is not provided in the data. Based on QQ1 2026 results, the near-term outlook hinges on three factors: (1) whether gross margin can sustain mid-teen levels amid input-cost volatility, (2) the degree to which non-operating income can be replaced or moderated, and (3) ongoing working-capital efficiency to support cash generation. Management commentary, if available, should address expectations for seasonal demand, cost-reduction initiatives, SKU optimization, and any capital-allocation plans including debt-reduction cadence. Investors should monitor commodity costs, price/mix dynamics in core categories, supply chain resilience, and the company’s leverage trajectory as catalysts for the investment thesis.