Seneca Foods Corporation (SENEB) Q4 2024 Earnings Report

Seneca Foods reported Q4 2024 revenue of $307.98 million, down 6.97% year over year and 30.71% quarter over quarter, reflecting ongoing volume and mix headwinds in a low-margin packaged foods environment. Gross profit totaled $20.78 million for the quarter, yielding a gross margin of 6.75%. Operating income was $2.87 million, up sharply from the year-ago period, driven by cost control and mix benefits, but the quarter still produced a net loss of $2.25 million and an EPS of -$0.32 as total other income/expense swung negative and interest expense remained a meaningful offset to operating profits. On a trailing-four-quarter basis, net income rose about 75% year over year, signaling some operational improvement against a tougher prior-year period; however, quarterly profitability remained pressured by financing costs and non-operating items. Cash generation remained a bright spot: net cash provided by operating activities was $45.16 million in the quarter, with free cash flow of $40.37 million after capital expenditures of $4.79 million. The balance sheet shows a solid current ratio of 6.40 and cash of $11.85 million at period end, but with a sizable debt load: total debt of $650.82 million and net debt of $638.97 million. Interest coverage sits at a low 0.25x, highlighting a meaningful fixed-cost burden even as the company generates operating cash flow. Management commentary is not provided in the supplied materials, limiting the ability to quote on strategic direction; as a result, the assessment relies on disclosed results and standard sector dynamics. Overall, the QQ4 2024 results underscore a low-margin, leverage-sensitive business in a volatile environment. While Seneca continues to generate positive operating cash flow and Free Cash Flow, the combination of subdued revenue, negative net income on a quarterly basis, and high interest expense warrants a cautious near-term stance until leverage is meaningfully reduced or margin drivers stabilize.