Executive Summary
Seneca Foods’ QQ2 2025 results reflect a cautious operating backdrop: topline rose modestly year-over-year, while gross and operating margins remained under pressure, culminating in a net income decline versus the prior-year quarter. Despite margin softness, the company generated robust operating cash flow and free cash flow, underscoring strong working capital efficiency and capital discipline in a seasonally complex business. The balance sheet shows meaningful leverage, but liquidity remains adequate to fund ongoing operations and modest capex, with inventory and payable dynamics driving a substantial cash conversion cycle. The near-term implication for investors centers on margin realization versus input costs, price realization, and working capital management, against a backdrop of ongoing competitive intensity in the packaged foods space.
Key Performance Indicators
QoQ: -3.74% | YoY:-35.77%
Key Insights
Revenue: 425.47m; YoY +4.41%, QoQ +39.62%
Gross Profit: 42.87m; Margin 10.08%; YoY -26.23%, QoQ +0.42%
Operating Income: 24.68m; Margin 5.80%; YoY -35.77%, QoQ -3.74%
Net Income: 13.30m; Margin 3.13%; YoY -46.31%, QoQ +5.07%
EPS (GAAP/Diluted): 1.92 / 1.90; YoY -42.17%, QoQ +5.49%
Cash Flow: CFO 75.54m; Capex 5.58m; Free Cash Flow 69.95m; Net Change in Cash +4.09m; Cash at End 17.07m
Balance Sheet: Total Assets 1.483b; Total Liabilities 0.884b; Total Equity 0.599b; Net Debt 521.59m
Liquidity/Lev...
Financial Highlights
Revenue: 425.47m; YoY +4.41%, QoQ +39.62%
Gross Profit: 42.87m; Margin 10.08%; YoY -26.23%, QoQ +0.42%
Operating Income: 24.68m; Margin 5.80%; YoY -35.77%, QoQ -3.74%
Net Income: 13.30m; Margin 3.13%; YoY -46.31%, QoQ +5.07%
EPS (GAAP/Diluted): 1.92 / 1.90; YoY -42.17%, QoQ +5.49%
Cash Flow: CFO 75.54m; Capex 5.58m; Free Cash Flow 69.95m; Net Change in Cash +4.09m; Cash at End 17.07m
Balance Sheet: Total Assets 1.483b; Total Liabilities 0.884b; Total Equity 0.599b; Net Debt 521.59m
Liquidity/Leverage: Current Ratio 2.64; Quick 0.326; Cash Ratio 0.0234; Debt/Assets 0.358; Debt/Equity 0.887; Interest Coverage 2.74
Valuation/Market Look: P/E ~7.94; P/BV ~0.71; P/S ~0.99; EV/EBITDA ~25.32; Price to Free Cash Flow ~6.04; No dividend (payout 0)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
425.47M |
4.41% |
39.62% |
| Gross Profit |
42.87M |
-26.23% |
0.42% |
| Operating Income |
24.68M |
-35.77% |
-3.74% |
| Net Income |
13.30M |
-46.31% |
5.07% |
| EPS |
1.92 |
-42.17% |
5.49% |
Key Financial Ratios
operatingProfitMargin
5.8%
operatingCashFlowPerShare
$10.92
freeCashFlowPerShare
$10.12
Management Commentary
No earnings call transcript data provided in the dataset. Management commentary and quotes from a QQ2 2025 earnings call could not be extracted from the provided text.
Forward Guidance
No explicit forward guidance was included in the data snapshot. Given the large working capital cycle and inventory levels, investors should watch for (i) price realization and input-cost trends (vegetable canning and packaging inputs), (ii) procurement and supply chain efficiency that could affect cost of goods sold and operating expenses, (iii) working capital management as seasonality shifts, and (iv) debt maturation and financing conditions given the elevated net debt load. If management provides 2H 2025 targets, key achievability hinges on commodity price stability, favorable mix (higher contribution from private-label/contract packing), and continued cash flow resilience.