AGT Food and Ingredients (AGTF) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with Packaged Foods and Ingredients (PFI) revenue up 18% and Adjusted EBITDA up 42% year-over-year, supported by robust demand and new retailer relationships.

• Strategic growth initiatives and capital expansion projects in India and Minot are progressing on schedule and within budget.

• Free cash flow and leverage improved significantly post-IPO and Fairfax Private Placement.

• Value Added Processing (VAP) segment faced headwinds from shipping delays and higher costs due to Middle East conflict, but expects recovery in the second half.

• Food security programs maintain a robust order book, with stable margins and expected tailwinds from government programs.

Financial highlights

• Q2 Adjusted EBITDA was $45.1 million (CAD 39 million in some reports), up 14% year-over-year, with consolidated shipment volumes increasing 7%.

• Adjusted Free Cash Flow rose 39% year-over-year to $23.4 million, with a 52% conversion rate.

• Adjusted Net Earnings grew 9% year-over-year to $8.2 million.

• Revenues increased 2% to $634.2 million, driven by higher shipment volumes and favorable product mix in PFI.

• Packaged Foods and Ingredients segment margin improved to 13%, with a trajectory toward 14%-14.5%.

Outlook and guidance

• Expecting strongest results in the second half of 2026, with inventory levels normalizing by year-end.

• Adjusted EBITDA and Adjusted Free Cash Flow are expected to exceed 2025 levels of $190.2 million and $73.7 million, respectively.

• Double-digit Adjusted EBITDA growth targeted in Packaged Foods and Ingredients, and strong single-digit growth in Value Added Processing.

• Commercial production in India to start mid-2027, with test production at year-end 2026.

• Capital expansion projects remain a priority, with commissioning expected in late 2026.