Executive Summary
The J. M. Smucker Company delivered a challenging QQ1 2026 with a revenue decline and material margin compression that culminated in a net loss for the quarter. Revenue totaled $2.113 billion, down 4.19% year over year and 3.33% quarter over quarter, while gross profit was $474.7 million and gross margin compressed to 22.46%. Operating income reached $45.6 million, but the company reported a net loss of $43.9 million and earnings per share of -$0.41. EBITDA stood at $175.8 million, with an EBITDA margin of roughly 8.3%, illustrating the ongoing pressure on profitability amid product mix changes and input-cost dynamics. Free cash flow remained negative at -$94.9 million for the period, and overall liquidity appears modest given a cash balance of $39.3 million and net debt of $8.041 billion. The balance sheet shows substantial goodwill and intangible assets, underscoring a high asset base that could warrant impairment risk if profitability does not stabilize. Management commentary to date (where disclosed) points to a continued emphasis on pricing optimization, cost reduction, and portfolio discipline as key levers for improving profitability over the medium term. Investors should monitor input-cost trajectories, pricing realizations, working capital efficiency, and the pace of deleveraging as primary drivers of the investment thesis.
Key Performance Indicators
QoQ: -45.94% | YoY:-48.02%
QoQ: 107.68% | YoY:-88.77%
QoQ: 93.37% | YoY:-117.91%
QoQ: 93.41% | YoY:-117.75%
Key Insights
Revenue: $2,113.3 million; YoY -4.19%; QoQ -3.33%. Gross Profit: $474.7 million; YoY -48.02%; QoQ -45.94%; Gross Margin: 22.46%. Operating Income: $45.6 million; YoY -88.77%; QoQ +107.68%. EBITDA: $175.8 million; EBITDA Margin: 8.32%. Net Income: -$43.9 million; Net Income Margin: -2.08%. EPS: -$0.41; EPS Diluted: -$0.41; Net Debt: $8,041 million; Cash at End of Period: $39.3 million. Free Cash Flow: -$94.9 million. Key liquidity metrics: Cash from operating activities -$10.6 million; Capital ex...
Financial Highlights
Revenue: $2,113.3 million; YoY -4.19%; QoQ -3.33%. Gross Profit: $474.7 million; YoY -48.02%; QoQ -45.94%; Gross Margin: 22.46%. Operating Income: $45.6 million; YoY -88.77%; QoQ +107.68%. EBITDA: $175.8 million; EBITDA Margin: 8.32%. Net Income: -$43.9 million; Net Income Margin: -2.08%. EPS: -$0.41; EPS Diluted: -$0.41; Net Debt: $8,041 million; Cash at End of Period: $39.3 million. Free Cash Flow: -$94.9 million. Key liquidity metrics: Cash from operating activities -$10.6 million; Capital expenditures $84.3 million; Net Change in Cash: -$30.6 million. Current assets $2.4019 billion vs. current liabilities $2.9539 billion; current ratio ~0.81. Total assets $17.742 billion; total liabilities $11.816 billion; total stockholders’ equity $5.926 billion; goodwill and intangible assets combined $12.006 billion.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.11B |
-4.19% |
-3.33% |
| Gross Profit |
474.70M |
-48.02% |
-45.94% |
| Operating Income |
45.60M |
-88.77% |
107.68% |
| Net Income |
-43.90M |
-117.91% |
93.37% |
| EPS |
-0.41 |
-117.75% |
93.41% |
Management Commentary
Transcript data not provided in the supplied materials. Consequently, no direct management quotes or theme-based quotes could be extracted. When transcript content is available, expected highlights would cover: pricing strategy and realization, portfolio optimization and brand equity, cost-reduction initiatives (SG&A and COGS), currency and input-cost dynamics, and capital allocation — including deleveraging and capital expenditures plans.
Forward Guidance
No formal forward guidance is included in the provided data for QQ1 2026. Based on the quarterly metrics and typical management commentary for a portfolio-focused consumer staples company, the near-term outlook would depend on: (1) successful inflationary pass-through and price realization to stabilize gross margin, (2) ongoing cost-reduction and efficiency programs that can lift operating margins, and (3) working capital management to improve cash flow. Given the leverage and cash-flow pressures observed, the achievability of any medium-term margin expansion hinges on sustained pricing discipline, favorable input-cost dynamics, and an accelerated deleveraging path. Key factors to monitor include input-cost trajectories (commodities and packaging), effectiveness of pricing actions, portfolio optimization outcomes, currency effects on international segments, and the pace of debt reduction.