Campbell Soup Company (CSC.DE) Q2 2025 Earnings Report

Campbell Soup Company delivered a Q2 2025 results profile characterized by solid top-line growth and resilient cash flow, anchored by its diversified portfolio in Americas Simple Meals and Beverages and Global Biscuits and Snacks. Revenue reached $2.685 billion, up 13.3% year over year, as price realization and favorable mix supported sales, even as sequential momentum softened by about 3.1% quarter over quarter. Gross profit was $819 million with a gross margin of 30.5%, while operating income of $327 million yielded an operating margin of roughly 12.2%. Net income of $173 million produced earnings per share of $0.58. The company generated $512 million of operating cash flow and $411 million in free cash flow, underscoring the strength of cash conversion despite a heavy leverage profile. Management commentary is not captured in the provided data, limiting forward-looking guidance, but the balance of growth, profitability, and deleveraging remains central to the investment thesis. From a balance sheet perspective, Campbell carries a substantial debt load with total debt of $7.675 billion and net debt of $6.845 billion against total assets of $15.91 billion and total stockholders’ equity of $3.91 billion. Liquidity metrics reflect a tighter working-capital position (current ratio 0.93; quick ratio 0.56; cash ratio 0.24). Free cash flow generation supports ongoing debt service and shareholder returns, but leverage remains the primary risk factor for near-term investors. The dividend payout ratio stands at approximately 64%, underscoring a commitment to shareholder return even as deleveraging is a priority. In summary, Q2 2025 confirms Campbell’s ability to monetize its brand and portfolio in a challenging macro environment, delivering positive profitability and robust cash flow while balancing significant debt. The key questions for investors are whether the company can sustain margin discipline, accelerate deleveraging, and translate revenue growth into meaningful margin expansion in the quarters ahead. The absence of explicit forward guidance in the data requires a cautious view, with emphasis on management's ability to realize cost efficiencies, price realization, and portfolio optimization to improve risk-adjusted returns.