Premium Brands (PBH) Q2 2026 Prepared Remarks earnings summary

Executive summary

• Achieved record Q2 2026 sales of $2.4 billion, adjusted EBITDA of $225 million, and adjusted EPS of $1.53, with strong U.S. growth and successful capital investments in manufacturing and market expansion.

• U.S.-focused initiatives in the Specialty Food segment drove 10.7% organic volume growth and U.S. sales of $1.2 billion, accounting for 71% of segment sales.

• Completed the sale of a 74% interest in Shaw Bakers and declared a quarterly dividend of $0.85 per share.

• Rationalized older plants, commissioned new facilities, and reduced startup and restructuring costs as major CapEx projects reached base operating parameters.

• Net free cash flow turned positive at $68 million after four years of negative results.

Financial highlights

• Q2 2026 revenue reached $2,375.7 million, up 26.3% year-over-year, with $354.5 million from acquisitions, $74.5 million (4.0%) organic volume growth, and $59.9 million from price inflation.

• Adjusted EBITDA rose to $225 million, a 29.5% increase, and adjusted EPS from continuing operations was $1.53, up 17.7% year-over-year.

• Net earnings for the quarter were $70.9 million, up 154% year-over-year, boosted by a $73.9 million gain on a sale and a $30 million fee.

• Steady state free cash flow was $116 million for the quarter; net free cash flow was $68.4 million.

• Declared dividends per share: $0.85 for Q3 2026; payout ratio for trailing four quarters was 46.5%.

Outlook and guidance

• 2026 revenue guidance revised to $9.1–$9.3 billion due to delayed product launches, exited unprofitable sales, and weaker foodservice demand.

• Adjusted EBITDA guidance for 2026 set at $840–$870 million, reflecting revised revenue expectations.

• Remains on track to meet or exceed 2027 targets of $10 billion in revenue and $1 billion adjusted EBITDA.

• Expect strong growth in revenue and EBITDA in the second half of 2026.