High Liner Foods (HLF) Q2 2026 earnings summary

Executive summary

• Achieved year-over-year adjusted EBITDA growth and maintained top-line momentum, with sales up 12.4% in Q2 and 18.9% for the first half, driven by higher volumes, pricing, and retail strength despite inflation, tariffs, and a warehouse fire.

• Adjusted EBITDA rose 20.3% to CAD 30.2 million in Q2 and 4.0% to CAD 59.5 million for the half-year, reflecting strategic initiatives and tariff recoveries.

• Net income declined 40% in Q2 and 45% for the half-year, impacted by inventory loss from a warehouse fire and higher distribution and financing costs.

• Adjusted net income increased 10.4% in Q2 but fell 14.2% for the half-year, with Adjusted Diluted EPS up in Q2 and down for the half-year.

• Improved supply chain execution led to better product availability and retail fill rates.

Financial highlights

• Q2 sales: CAD 269.3 million (+12.4% YoY); H1 sales: CAD 604.2 million (+18.9% YoY).

• Q2 Adjusted EBITDA: CAD 30.2 million (+20.3% YoY); H1 Adjusted EBITDA: CAD 59.5 million (+4.0% YoY).

• Q2 net income: CAD 5.1 million (-40% YoY); H1 net income: CAD 13.1 million (-45% YoY).

• Q2 Adjusted Net Income: CAD 12.7 million (+10.4% YoY); H1 Adjusted Net Income: CAD 24.1 million (-14.2% YoY).

• Gross profit margin declined to 18.6% in Q2 and 19.3% in H1, impacted by inventory loss and tariffs.

Outlook and guidance

• Expect gradual operational improvements and margin expansion through Q3 and Q4 into next year.

• Anticipate low single-digit volume growth for the full year, with gross margin just below 20% in the second half.

• Year-end net debt to adjusted EBITDA expected to be slightly below 3x, aided by tariff recoveries.

• Confident in delivering year-over-year Adjusted EBITDA growth in 2026, excluding tariff recoveries.

• Incrementally more positive full-year EBITDA outlook after Q2, driven by Q2 performance and progress on initiatives.