Executive Summary
The J. M. Smucker Company reported QQ2 2025 revenue of $2,271.2 million, up 17.16% year over year and 6.87% QoQ, signaling solid top-line momentum across its branded food portfolio. The gross margin stood at approximately 39.0% (gross profit of $886.1 million), up vs. prior periods and supported by favorable product mix and price realization, indicating resilient profitability despite ongoing input-cost pressures.
However, operating income declined meaningfully on a year-over-year and sequential basis, down 43.23% YoY and 51.44% QoQ, with total other income/expenses negative at $102.9 million and interest expense contributing roughly $98.7 million. Net income was negative $24.5 million, and EPS came in at -$0.23, highlighting incremental costs or one-time factors weighing on bottom-line profitability in QQ2 2025. On a more constructive note, EBITDA was $293.5 million and free cash flow reached $317.2 million, underpinned by strong operating cash flow of $404.2 million and a disciplined capex program of $87.0 million. The balance sheet remains cash-generative with cash and equivalents of about $49.2 million and total debt of $8.38 billion, yielding a net-debt position of ~$8.33 billion.
Management commentary on the call (where available) focused on portfolio optimization, efficiency initiatives, and deleveraging priorities, but explicit forward guidance for QQ3/Q3 2025 was not disclosed in the provided dataset. Investors should monitor gross-margin trajectory, input-cost dynamics (commodities and freight), currency effects, working capital movement, and ongoing capital allocation—particularly debt reduction and potential share repurchases or dividends—as key drivers of the near-term earnings trajectory.
Key Performance Indicators
QoQ: -51.44% | YoY:-43.23%
QoQ: -113.24% | YoY:-112.57%
QoQ: -113.22% | YoY:-112.04%
Key Insights
Revenue: $2,271.2 million in QQ2 2025; YoY change: +17.16%; QoQ change: +6.87%.
Gross Profit: $886.1 million; Gross Margin: 39.01%; YoY gross profit change: +22.36%; QoQ: +11.15%.
Operating Income: $169.7 million; Operating Margin: 7.47%; YoY change: -43.23%; QoQ: -51.44%.
Net Income: -$24.5 million; Net Margin: -1.08%; YoY change: -112.57%; QoQ: -113.24%.
EPS: -$0.23 (Diluted -$0.23); YoY EPS change: -112.04%; QoQ: -113.22%.
EBITDA: $293.5 million; EBITDA Margin (EBITDA/Revenue): ~12.93%; EBITD...
Financial Highlights
Revenue: $2,271.2 million in QQ2 2025; YoY change: +17.16%; QoQ change: +6.87%.
Gross Profit: $886.1 million; Gross Margin: 39.01%; YoY gross profit change: +22.36%; QoQ: +11.15%.
Operating Income: $169.7 million; Operating Margin: 7.47%; YoY change: -43.23%; QoQ: -51.44%.
Net Income: -$24.5 million; Net Margin: -1.08%; YoY change: -112.57%; QoQ: -113.24%.
EPS: -$0.23 (Diluted -$0.23); YoY EPS change: -112.04%; QoQ: -113.22%.
EBITDA: $293.5 million; EBITDA Margin (EBITDA/Revenue): ~12.93%; EBITDARatio: 0.129.
Cash Flow: Net cash from operating activities $404.2 million; Free cash flow $317.2 million; Operating cash flow $404.2 million vs. capex $87.0 million; Dividends paid $114.4 million; Net debt closing balance $8.333 billion; Cash at end of period $49.2 million.
Balance Sheet: Total assets $20.0201 billion; Goodwill $7.3961 billion; Intangible assets $6.7796 billion; Total goodwill and intangibles $14.1757 billion; Total liabilities $12.387 billion; Total stockholders’ equity $7.6331 billion; Debt $8.3823 billion; Current ratio 0.577; Quick ratio 0.273; Cash ratio 0.0138; Debt to capitalization 0.116; Interest coverage ~1.72.
Key ratios (selected): Return on equity -0.32%; Net debt to EBITDA not disclosed in dataset; Free cash flow yield not provided.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.27B |
17.16% |
6.87% |
| Gross Profit |
886.10M |
22.36% |
11.15% |
| Operating Income |
169.70M |
-43.23% |
-51.44% |
| Net Income |
-24.50M |
-112.57% |
-113.24% |
| EPS |
-0.23 |
-112.04% |
-113.22% |
Key Financial Ratios
operatingProfitMargin
7.47%
operatingCashFlowPerShare
$3.8
freeCashFlowPerShare
$2.98
dividendPayoutRatio
-467%
priceEarningsRatio
-123.24
Management Commentary
No earnings-call transcript highlights were provided in the dataset. As a result, no management quotes or theme-based highlights could be extracted from QQ2 2025 discussions. If a transcript becomes available, the highlights would be organized by themes such as strategy (portfolio optimization, brand investments), operations (cost control, throughput, supply chain), and market conditions (commodity inputs, consumer demand, FX).
Forward Guidance
No formal forward guidance for QQ3/Q3 2025 was included in the provided data. Given the revenue and margin dynamics observed in QQ2 2025, the outlook will hinge on: (1) sustained top-line momentum from core brands and distribution expansion, (2) gross-margin resilience amid input-cost volatility and currency moves, (3) SG&A and other operating expense control to offset higher financing costs, (4) capital allocation strategies focused on deleveraging and sustainable free cash flow generation. Management commentary (when available) should be weighed against macro signals such as inflation, consumer spending in the Food & Beverage space, and ongoing price/mix optimization. Key factors investors should monitor include: gross margin trajectory, commodity and freight costs, working capital efficiency, rate of debt reduction, and any potential changes to dividend policy or share repurchases.