Executive Summary
Seneca Foods reported Q3 2025 revenue of $502.9 million, up 13.1% year over year and 18.2% quarter over quarter, reflecting continued demand for packaged fruits and vegetables and favorable pricing/mix. Despite top‑line growth, gross margin contracted to 9.77% (down YoY by 9.11% but up QoQ by 14.55%), signaling ongoing cost pressures or mix effects from product portfolio. Operating income was $25.66 million with a margin of 5.10%, down 16.6% YoY and modestly up 3.98% QoQ, while net income reached $14.66 million (net margin 2.92%), down 17.1% YoY but up 10.2% QoQ. Earnings per share stood at $2.12 basic and $2.10 diluted, reflecting a 14.2% YoY decrease and a 10.4% QoQ rise.
The company generated strong operating cash flow of $117.7 million and free cash flow of $108.7 million, supporting a debt repayment cadence and returning capital discipline over the period. Cash balance remained modest at $12.9 million at period end, with total debt of $421.0 million and net debt of $415.7 million. The balance sheet remains solid, with a current ratio of 3.38, but a low quick ratio (0.36) and very lean cash balance highlight ongoing working capital intensity, notably in inventory (average 145.9 days) and receivables dynamics. Interest coverage stood at 3.27x, and the debt-to-capitalization ratio was 0.407, underscoring a moderate leverage profile.
From a valuation perspective, SENEA traded at a price-to-earnings ratio of about 9.2x and a price-to-sales of roughly 1.07x, with an enterprise value multiple near 24.7x. Relative to select peers in the packaged foods space, Seneca’s top-line growth is solid but gross margins trail some broader food labels’ margin profiles, suggesting room for mix and cost‑of‑goods‑sold optimization. The company’s cash generation supports deleveraging and selective capex as growth levers.
Looking ahead, management did not issue formal numeric guidance within the provided data, but the earnings profile implies continued emphasis on price realization, cost containment, and working capital efficiency. The key questions for investors center on margin stabilization, inventory management, and the trajectory of commodity inputs and input-cost pass-through. Overall, the medium‑term thesis hinges on Seneca’s ability to sustain cash flow generation while gradually improving gross margins through pricing, product mix, and efficiency gains.
Key Performance Indicators
QoQ: 10.19% | YoY:-17.06%
QoQ: 10.42% | YoY:-14.17%
Key Insights
Revenue: $502.856 million, YoY +13.13%, QoQ +18.19%
Gross Profit: $49.110 million, Gross Margin 9.77%, YoY Gross Profit Change -9.11%, QoQ +14.55%
Operating Income: $25.660 million, Operating Margin 5.10%, YoY -16.59%, QoQ +3.98%
Net Income: $14.659 million, Net Margin 2.92%, YoY -17.06%, QoQ +10.19%
EPS (GAAP): $2.12, Diluted: $2.10, YoY EPS -14.17%, QoQ +10.42%
Cash Flow: Net cash provided by operating activities $117.732 million; Free cash flow $108.658 million; Capex $9.074 million; CFO/Sale...
Financial Highlights
Revenue: $502.856 million, YoY +13.13%, QoQ +18.19%
Gross Profit: $49.110 million, Gross Margin 9.77%, YoY Gross Profit Change -9.11%, QoQ +14.55%
Operating Income: $25.660 million, Operating Margin 5.10%, YoY -16.59%, QoQ +3.98%
Net Income: $14.659 million, Net Margin 2.92%, YoY -17.06%, QoQ +10.19%
EPS (GAAP): $2.12, Diluted: $2.10, YoY EPS -14.17%, QoQ +10.42%
Cash Flow: Net cash provided by operating activities $117.732 million; Free cash flow $108.658 million; Capex $9.074 million; CFO/Sales ~23.4%
Balance Sheet: Total assets $1.226 billion; Total liabilities $613.093 million; Total stockholders’ equity $612.822 million; Cash $5.306 million; Inventory $735.682 million; Current ratio 3.38; Quick ratio 0.358; Cash ratio 0.0218
Leverage & Coverage: Total debt $421.023 million; Long-term debt $298.703 million; Debt to capitalization 0.407; Debt to equity 0.687; Interest coverage 3.27x
Valuation & Returns: P/E ~9.2x; P/S ~1.07x; P/B ~0.88x; Enterprise value multiple ~24.68x; ROA 1.20%, ROE 2.39%; Net debt vs. equity indicates a moderate leverage posture with substantial working capital needs.
Cash Flow Profile: Operating cash flow remains robust, supporting debt service and potential deleveraging, while inventory levels imply elevated working capital requirements and potential margin pressure in a competitive pricing environment.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
502.86M |
13.13% |
18.19% |
| Gross Profit |
49.11M |
-9.11% |
14.55% |
| Operating Income |
25.66M |
-16.59% |
3.98% |
| Net Income |
14.66M |
-17.06% |
10.19% |
| EPS |
2.12 |
-14.17% |
10.42% |
Key Financial Ratios
operatingProfitMargin
5.1%
operatingCashFlowPerShare
$17.09
freeCashFlowPerShare
$15.78
Management Commentary
No QQ3 2025 earnings call transcript data was provided in the input. Consequently, there are no management quotes or thematic highlights to extract from an earnings call transcript.
Forward Guidance
There is no explicit numeric guidance disclosed in the provided data for QQ4 2025 or FY2025/FY2026. Given the strong cash flow generation and disciplined balance sheet, the主要 near-term guidance would likely emphasize maintaining price realization, cost controls, and working capital optimization. Key factors to monitor include: (1) raw material and input cost trajectories and their pass-through in pricing; (2) product/mix shifts toward higher-margin SKUs and private-label growth; (3) inventory days on hand and days payable/receivable dynamics to sustain a healthy cash conversion cycle; (4) continued debt reduction and leverage normalization; (5) currency/exposure from international sales. If commodity costs stabilize and mix shifts favor higher-margin products, gross margins could improve from the 9.77% level, supporting higher ROE and stronger cash generation. Conversely, sustained input cost pressures or weaker volumes could suppress margins and cash returns.