Premium Brands (PBH) Q2 2026 (Q&A) earnings summary

Executive summary

• Achieved record Q2 revenue of $2.4 billion, up 26.3% year-over-year, with 7.5% organic sales growth, and record adjusted EBITDA and EPS for Q2-2026.

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

• Organic volume growth in Specialty Foods was 6% for Q2, the lowest in the last four quarters, mainly due to deferred launches and weather-related softness in Eastern Canada.

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

• Announced shutdown of a low-margin beef facility in Ontario and planned consolidation of four facilities as new GTA capacity comes online in 2027.

Financial highlights

• Q2-2026 revenue was $2,375.7M, up from $1,880.7M in Q2-2025; adjusted EBITDA rose 29.5% to $225.0M.

• Adjusted EBITDA guidance was reduced by CAD 35 million at the midpoint, entirely due to timing of customer initiatives and facility shutdowns, not underlying business weakness.

• Q2 steady state free cash flow was $116 million; net free cash flow was $68 million, with expectations for acceleration in the second half due to improved working capital, EBITDA growth, and lower CapEx and restructuring costs.

• Gross margin decline in Q2 was attributed to higher sales mix from Stampede and lower margins in Specialty Foods and PFD.

• Revenue benefited from $354.5 million in acquisitions, $74.5 million (4.0%) organic volume growth, and $59.9 million from selling price inflation.

Outlook and guidance

• Revised 2026 revenue guidance to $9.1–$9.3B (previous: $9.25–$9.55B); adjusted EBITDA guidance to $840–$870M (previous: $870–$910M), driven by delayed product launches, exit from unprofitable beef sales, and weaker foodservice demand.

• Maintaining 2027 targets of $10 billion in revenue and $1 billion in adjusted EBITDA.

• Growth for the remainder of the year is expected to be slightly weighted toward Q4 due to phased retail launches and a major 1,500-store launch scheduled for October.

• Organic volume growth in PFD is expected at 1%-2%, with Specialty Foods growth similar to Q2, slightly stronger in Q4.

• No material facility closure costs are expected for the rest of 2026; future closures are planned for 2027 as new capacity comes online.