Smucker (NYSE: SJM) posts 7% Q3 sales growth but books large noncash impairments
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
The J. M. Smucker Co. reported fiscal 2026 third quarter results with net sales of $2.34 billion, up 7% from a year ago, driven mainly by higher pricing, especially in coffee. Comparable net sales excluding divestitures and currency rose 8%.
Despite higher sales, the company posted a GAAP net loss of $724.2 million, or -$6.79 per diluted share, largely due to $961.7 million of noncash impairment charges on goodwill and other intangibles in Sweet Baked Snacks and Hostess trademarks. Adjusted earnings per share were $2.38, down 9%.
Cash generation was strong: operating cash flow jumped to $558.5 million from $239.4 million, and free cash flow rose to $487.0 million from $151.3 million, helped by lower working capital needs and capital spending. Coffee net sales grew 23% on pricing, while Sweet Baked Snacks net sales fell 19% and segment profit dropped sharply.
For the full 2026 fiscal year, Smucker now expects net sales to grow 3.5%–4.0%, comparable net sales up about 5.0%–5.5%, adjusted EPS of $8.75–$9.25, free cash flow of about $975 million, and capital expenditures of $325 million. The sales outlook midpoint was trimmed for the estimated impact of a February fire at its Emporia, Kansas facility, while earnings and cash flow guidance were maintained.
Positive
- Robust cash generation: Operating cash flow rose to $558.5 million from $239.4 million and free cash flow increased to $487.0 million from $151.3 million, supporting a full‑year free cash flow outlook of about $975.0 million.
- Pricing-driven growth and reaffirmed earnings outlook: Net sales grew 7% (8% on a comparable basis) with strong coffee pricing, and the company maintained its fiscal 2026 adjusted EPS guidance range of $8.75 to $9.25.
Negative
- Significant noncash impairments and margin compression: Goodwill and other intangible asset impairment charges totaling $961.7 million drove a quarterly net loss of $724.2 million and contributed to gross margin declining from 40.2% to 35.4%.
- Weaker profitability in key segments: Adjusted operating income fell 7% to $431.6 million and Sweet Baked Snacks segment profit dropped 78%, with its margin down from 19.7% to 5.4%, signaling pressure in that business.
Insights
Strong cash flow and pricing power offset by large noncash impairments and margin pressure.
Smucker delivered 7% net sales growth to $2.34 billion, with 8% comparable growth and sizeable price realization, especially in coffee. However, gross margin fell from 40.2% to 35.4%, and adjusted operating margin slid to 18.4%, showing cost inflation and mix headwinds.
GAAP results are dominated by noncash impairment charges: $507.5 million to goodwill and $454.2 million to other intangibles this quarter, tied to the Sweet Baked Snacks reporting unit and Hostess trademarks. These drove a net loss of $724.2 million and highlight that management now expects lower long‑term profitability from those assets.
On the positive side, operating cash flow more than doubled year over year to $558.5 million, and free cash flow reached $487.0 million. Full‑year guidance still calls for adjusted EPS of $8.75–$9.25 and free cash flow of about $975 million, even after trimming net sales growth to 3.5–4.0% for the Emporia facility fire impact. Sustainability of pricing, recovery in Sweet Baked Snacks profitability, and execution of Hostess integration will be important themes in future quarters.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 26, 2026
| (Exact name of registrant as specified in charter) | ||
| (State or other jurisdiction of | (Commission | (IRS Employer | ||||||||||||
| incorporation or organization) | file number) | Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip code) | ||||||||||
Registrant’s telephone number, including area code: (330 ) 682-3000
| Not Applicable | ||
| (Former name or former address and former fiscal year, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2026, The J. M. Smucker Company (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended January 31, 2026. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including the exhibit attached hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
Exhibit Number | Exhibit Description | ||||
99.1 | Press Release, dated February 26, 2026 | ||||
| 104 | The cover page of this Current Report on Form 8-K, formatted in Inline XBRL | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE J. M. SMUCKER COMPANY | ||||||||
| By: | /s/ Tucker H. Marshall | |||||||
| Tucker H. Marshall | ||||||||
| Chief Financial Officer | Executive Vice President, Frozen Handheld and Spreads and Sweet Baked Snacks | ||||||||
Date: February 26, 2026
Exhibit 99.1
The J.M. Smucker Co. Announces Fiscal 2026 Third Quarter Results
ORRVILLE, Ohio, Feb. 26, 2026 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced results for the third quarter ended January 31, 2026, of its 2026 fiscal year. Financial results for the third quarter of fiscal year 2026 reflect the divestiture of certain Sweet Baked Snacks value brands on March 3, 2025, and the divestiture of the Voortman® business on December 2, 2024. All comparisons are to the third quarter of the prior fiscal year, unless otherwise noted.
EXECUTIVE SUMMARY
•Net sales was $2.3 billion, an increase of $153.4 million, or 7 percent. Net sales excluding the divestitures and foreign currency exchange increased 8 percent.
•Net loss per diluted share was $6.79, reflecting noncash impairment charges attributable to the Sweet Baked Snacks reporting unit. Adjusted earnings per share was $2.38, a decrease of 9 percent.
•Cash provided by operations was $558.5 million compared to $239.4 million in the prior year. Free cash flow was $487.0 million compared to $151.3 million in the prior year.
•The Company updated its full-year fiscal 2026 financial outlook.
CHIEF EXECUTIVE OFFICER REMARKS
“Our business continues to deliver strong results in a dynamic external environment. In the third quarter, net sales and adjusted earnings per share exceeded our expectations, reflecting the strength of our portfolio of leading brands, along with our disciplined cost management,” said Mark Smucker, Chief Executive Officer, President and Chair of the Board.
“We continue to advance our focused strategy centered around engaging and delighting consumers by participating in attractive categories, building brands consumers love, and being everywhere the consumer shops. Looking ahead, we remain confident in our fiscal 2026 outlook and are focused on driving top-line growth, while enhancing profitability and earnings for the Company. We have the right strategy and leadership team in place to support long-term value creation for all of our shareholders.”
THIRD QUARTER CONSOLIDATED RESULTS
| Three Months Ended January 31, | |||||||||||||||||
| 2026 | 2025 | % Increase (Decrease) | |||||||||||||||
| (Dollars and shares in millions, except per share data) | |||||||||||||||||
| Net sales | $2,339.4 | $2,186.0 | 7 | % | |||||||||||||
Operating income (loss) | ($548.4) | ($594.0) | 8 | % | |||||||||||||
| Adjusted operating income | 431.6 | 463.8 | (7) | % | |||||||||||||
Net income (loss) per common share – assuming dilution | ($6.79) | ($6.22) | (9) | % | |||||||||||||
| Adjusted earnings per share – assuming dilution | 2.38 | $2.61 | (9) | % | |||||||||||||
| Weighted-average shares outstanding – assuming dilution | 106.7 | 106.4 | — | % | |||||||||||||
Net Sales
Net sales increased $153.4 million, or 7 percent. Excluding $26.3 million of noncomparable net sales in the prior year related to divestitures and $2.0 million of favorable foreign currency exchange, net sales increased $177.7 million, or 8 percent.
The increase in comparable net sales reflects a 10 percentage point increase from net price realization, primarily driven by higher net pricing for coffee. Comparable net sales also reflects a 2 percentage point decrease from volume/mix, primarily driven by decreases for sweet baked goods and fruit spreads, and lapping contract manufacturing sales related to the divested pet food brands in the prior year, partially offset by an increase for Uncrustables® sandwiches.
Operating Income
Gross profit decreased $50.3 million, or 6 percent. The decrease primarily reflects higher costs, inclusive of commodity costs and tariffs, and unfavorable volume/mix, partially offset by higher net price realization. Operating loss decreased $45.6 million, or 8 percent, primarily driven by lapping a $50.2 million net pre-tax loss on divestitures in the prior year and a $40.8 million decrease in impairment charges related to the goodwill of the Sweet Baked Snacks reporting unit and Hostess® brand trademark, partially offset by the decrease in gross profit.
Adjusted gross profit decreased $28.4 million, or 3 percent. The difference between adjusted gross profit and generally accepted accounting principles (“GAAP”) results reflects the exclusion of the change in net cumulative unallocated derivative gains and losses and special project costs. Adjusted operating income decreased $32.2 million, or 7 percent, which further reflects the exclusion of the noncash impairment charges related to the goodwill of the Sweet Baked Snacks reporting unit and Hostess® brand trademark, amortization, other special project costs, and the net pre-tax loss on divestitures in the prior year, as compared to GAAP operating income.
Interest Expense and Income Taxes
Net interest expense was comparable to the prior year.
The effective income tax rate was (11.1) percent in the quarter, as compared to 0.0 percent in the prior year. Both the current and prior year effective income tax rates reflect the tax impacts related to the goodwill impairment charges for the Sweet Baked Snacks reporting unit. The decrease in the effective income tax rate is attributable to the tax impacts of the integration of Hostess Brands and the completion of the Voortman® business divestiture in the prior year. The adjusted effective income tax rate was 24.3 percent, compared to 23.7 percent in the prior year, reflecting additional withholding taxes in the current year on the repatriation of foreign cash.
Cash Flow and Debt
Cash provided by operating activities was $558.5 million, compared to $239.4 million in the prior year, primarily reflecting less cash required to fund working capital requirements and a decrease in cash used for income and other taxes, partially offset by lower net income (loss) adjusted for noncash items. Free cash flow was $487.0 million, compared to $151.3 million in the prior year, reflecting the increase in cash provided by operating activities and a decrease in capital expenditures as compared to the prior year.
FULL-YEAR OUTLOOK
The Company updated its full-year fiscal 2026 guidance, as summarized below.
| Current | Previous | |||||||||||||
| Net sales increase vs. prior year | 3.5% to 4.0% | 3.5% to 4.5% | ||||||||||||
| Adjusted earnings per share | $8.75 - $9.25 | $8.75 - $9.25 | ||||||||||||
| Free cash flow (in millions) | $975.0 | $975.0 | ||||||||||||
| Capital expenditures (in millions) | $325.0 | $325.0 | ||||||||||||
| Adjusted effective income tax rate | 24.0 | % | 23.8 | % | ||||||||||
This guidance reflects the Company’s current expectations as it continues to operate in a dynamic and evolving external environment. The change in the midpoint of the net sales guidance range reflects the estimated impact of a recent fire at the Company’s Emporia, Kansas manufacturing facility in February. The Company maintains its adjusted earnings per share guidance and free cash flow expectations for the full fiscal year.
Net sales is expected to increase 3.5 to 4.0 percent versus the prior year, which includes an impact of $134.7 million related to the divestitures of the Voortman® business and certain Sweet Baked Snacks value brands. Comparable net sales is expected to increase approximately 5.0 to 5.5 percent, which excludes the noncomparable sales in the prior year related to the divestitures. The increase in comparable net sales reflects higher net price realization, partially offset by a decline in volume/mix. This guidance also reflects a decline of approximately $38.0 million of contract manufacturing sales related to the divested pet food brands, as the contract manufacturing agreement concluded at the end of fiscal year 2025.
Adjusted earnings per share is expected to range from $8.75 to $9.25. This guidance reflects the increase in net sales versus the prior year, adjusted gross profit margin of approximately 35.0 percent, SD&A expenses flat-to-slightly down versus the prior year, interest expense of approximately $380.0 million, an adjusted effective income tax rate of 24.0 percent, and 106.9 million weighted-average common shares outstanding. Free cash flow is expected to be approximately $975.0 million at the midpoint of our adjusted earnings per share guidance range, with capital expenditures of $325.0 million.
THIRD QUARTER SEGMENT RESULTS
(Dollar amounts in the segment tables below are reported in millions.)
U.S. Retail Coffee
| Net Sales | Segment Profit | Segment Profit Margin | ||||||||||||||||||
| FY26 Q3 Results | $908.2 | $199.0 | 21.9% | |||||||||||||||||
Increase (decrease) vs. prior year | 23% | (5)% | -630bps | |||||||||||||||||
Net sales increased $167.6 million, or 23 percent. Net price realization increased net sales by 23 percentage points, primarily driven by higher net pricing across the portfolio. Volume/mix decreased net sales by 1 percentage point, reflecting decreases for the Dunkin’® and Folgers® brands, partially offset by an increase for the Café Bustelo® brand.
Segment profit decreased $9.6 million, primarily reflecting higher commodity costs, tariffs, unfavorable volume/mix, and lapping favorable property taxes in the prior year, partially offset by higher net price realization.
U.S. Retail Frozen Handheld and Spreads
| Net Sales | Segment Profit | Segment Profit Margin | ||||||||||||||||||
| FY26 Q3 Results | $454.0 | $103.6 | 22.8% | |||||||||||||||||
Increase (decrease) vs. prior year | 2% | 4% | 50bps | |||||||||||||||||
Net sales increased $8.8 million, or 2 percent. Net price realization increased net sales by 2 percentage points, primarily driven by higher net pricing for Uncrustables® sandwiches, partially offset by higher trade spend for peanut butter. Volume/mix was neutral to net sales, reflecting an increase for peanut butter, mostly offset by a decrease for fruit spreads.
Segment profit increased $4.4 million, primarily driven by higher net price realization and lower pre-production expenses primarily related to the new Uncrustables® sandwiches manufacturing facility, partially offset by higher costs and unfavorable volume/mix.
U.S. Retail Pet Foods
| Net Sales | Segment Profit | Segment Profit Margin | ||||||||||||||||||
| FY26 Q3 Results | $417.1 | $121.9 | 29.2% | |||||||||||||||||
Increase (decrease) vs. prior year | (1)% | 4% | 160bps | |||||||||||||||||
Net sales decreased $5.9 million, or 1 percent. Volume/mix decreased net sales by 2 percentage points, primarily driven by lapping contract manufacturing sales related to the divested pet food brands in the prior year and a decrease for dog snacks, partially offset by an increase for cat food. Net price realization was neutral to net sales, reflecting higher net pricing for cat food, mostly offset by lower net pricing for dog snacks.
Segment profit increased $5.1 million, primarily driven by lower marketing spend.
Sweet Baked Snacks
| Net Sales | Segment Profit | Segment Profit Margin | ||||||||||||||||||
| FY26 Q3 Results | $224.8 | $12.2 | 5.4% | |||||||||||||||||
Increase (decrease) vs. prior year | (19)% | (78)% | -1430bps | |||||||||||||||||
Net sales decreased $53.8 million, or 19 percent. Excluding noncomparable net sales in the prior year related to the divested Voortman® business and certain Sweet Baked Snacks value brands, net sales decreased $27.5 million, or 11 percent. Volume/mix decreased net sales by 10 percentage points, primarily reflecting decreases for snack cakes, donuts, and breakfast. Net price realization was neutral to net sales.
Segment profit decreased $42.6 million, primarily reflecting higher costs, unfavorable volume/mix, and higher marketing spend.
International and Away From Home
| Net Sales | Segment Profit | Segment Profit Margin | ||||||||||||||||||
| FY26 Q3 Results | $335.3 | $72.0 | 21.5% | |||||||||||||||||
Increase (decrease) vs. prior year | 12% | 17% | 90bps | |||||||||||||||||
Net sales increased $36.7 million, or 12 percent. Excluding $2.0 million of favorable foreign currency exchange, net sales increased $34.7 million, or 12 percent. Net price realization increased net sales by 11 percentage points, primarily driven by higher net pricing for coffee. Volume/mix was neutral to net sales as increases for Uncrustables® sandwiches and coffee were mostly offset by decreases for fruit spreads, portion control products, cat food, and peanut butter.
Segment profit increased $10.4 million, primarily reflecting higher net price realization, partially offset by higher costs, tariffs, and unfavorable volume/mix.
Financial Results Discussion and Webcast
At approximately 7:00 a.m. Eastern Standard Time today, the Company will post to its website at investors.jmsmucker.com a pre-recorded management discussion of its fiscal 2026 third quarter financial results, a transcript of the discussion, and supplemental materials. At 9:00 a.m. Eastern Standard Time today, the Company will webcast a live question-and-answer session with Mark Smucker, Chief Executive Officer, President and Chair of the Board, and Tucker Marshall, Chief Financial Officer | Executive Vice President, Frozen Handheld and Spreads and Sweet Baked Snacks. The live webcast and replay can be accessed at investors.jmsmucker.com.
The J.M. Smucker Co. Forward-Looking Statements
This press release contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this press release, which could cause actual results to differ materially from those expressed, include: the Company’s ability to successfully integrate Hostess Brands’ operations and employees and to implement plans and achieve financial forecasts with respect to the Hostess Brands’ business; disruption from the acquisition of Hostess Brands by diverting the attention of the Company’s management and making it more difficult to maintain business and operational relationships; the negative effects of the acquisition of Hostess Brands on the market price of the Company’s common shares; the amount of the costs, fees, expenses, and charges and the risk of litigation related to the acquisition of Hostess Brands; the effect of the acquisition of Hostess Brands on the Company’s business relationships, operating results, ability to hire and retain key talent, and business generally; disruptions or inefficiencies in the Company’s operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages, or other calamities; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company’s products or its competitors’ products, changes in consumer preferences, consumer or other litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; risks associated with derivative and purchasing strategies the Company employs to manage commodity pricing and interest rate risks; the availability of reliable transportation on acceptable terms; the ability to achieve cost savings related to the Company’s restructuring and cost management programs in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to continue operating under the Company’s capital deployment model, including capital expenditures, debt repayment to meet the Company’s deleveraging objectives, dividend payments, and share repurchases; a change in outlook or downgrade in the Company’s public credit ratings by a rating agency below investment grade; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the Company’s businesses, including product innovation; general competitive activity in the market, including competitors’ pricing practices and promotional spending levels; the Company’s ability to attract and retain key talent; the concentration of certain of the Company’s businesses with key customers and suppliers, including primary or single-source suppliers of certain key raw materials and finished goods, and the Company’s ability to manage and maintain key relationships; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in the useful lives of other intangible assets or other long-lived assets; the impact of new or changes to existing governmental, regulations, and policies and their application, including tariffs, food ingredients, food labeling, and food accessibility; the outcome of tax examinations, changes in tax laws, and other tax matters; a disruption, failure, or security breach of the Company or its suppliers’ information technology systems, including, but not limited to, ransomware attacks; foreign currency exchange rate and interest rate fluctuations; and risks related to other factors described under “Risk Factors” in other reports and statements filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin’®, Café Bustelo®, Jif®, Uncrustables®, Smucker’s®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin’®, which is a trademark of DD IP Holder LLC. The Dunkin’® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin’® restaurants.
Contacts:
The J.M. Smucker Co.: (330) 682-3000
Investors: Crystal Beiting, Vice President, Investor Relations & FP&A
Media: Abbey Linville, Vice President, Public Relations & Communications
| The J.M. Smucker Co. Unaudited Condensed Consolidated Statements of Income (Loss) | |||||||||||||||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Increase (Decrease) | 2026 | 2025 | % Increase (Decrease) | ||||||||||||||||||||||||||||||
| (Dollars and shares in millions, except per share data) | |||||||||||||||||||||||||||||||||||
| Net sales | $2,339.4 | $2,186.0 | 7 | % | $6,782.8 | $6,582.3 | 3 | % | |||||||||||||||||||||||||||
| Cost of products sold | 1,511.6 | 1,307.9 | 16 | % | 4,610.4 | 4,020.9 | 15 | % | |||||||||||||||||||||||||||
| Gross Profit | 827.8 | 878.1 | (6) | % | 2,172.4 | 2,561.4 | (15) | % | |||||||||||||||||||||||||||
| Gross margin | 35.4 | % | 40.2 | % | 32.0 | % | 38.9 | % | |||||||||||||||||||||||||||
| Selling, distribution, and administrative expenses | 363.2 | 367.6 | (1) | % | 1,138.8 | 1,148.4 | (1) | % | |||||||||||||||||||||||||||
| Amortization | 50.3 | 53.9 | (7) | % | 150.7 | 165.7 | (9) | % | |||||||||||||||||||||||||||
| Goodwill impairment charges | 507.5 | 794.3 | (36) | % | 507.5 | 794.3 | (36) | % | |||||||||||||||||||||||||||
| Other intangible assets impairment charges | 454.2 | 208.2 | 118 | % | 454.2 | 208.2 | 118 | % | |||||||||||||||||||||||||||
| Other special project costs | 5.0 | 10.1 | (50) | % | 16.6 | 27.9 | (41) | % | |||||||||||||||||||||||||||
| Loss (gain) on divestitures – net | — | 50.2 | (100) | % | — | 311.0 | (100) | % | |||||||||||||||||||||||||||
| Other operating expense (income) – net | (4.0) | (12.2) | 67 | % | (11.1) | (19.3) | 42 | % | |||||||||||||||||||||||||||
| Operating Income (Loss) | (548.4) | (594.0) | 8 | % | (84.3) | (74.8) | (13) | % | |||||||||||||||||||||||||||
| Operating margin | (23.4) | % | (27.2) | % | (1.2) | % | (1.1) | % | |||||||||||||||||||||||||||
| Interest expense – net | (94.5) | (95.4) | (1) | % | (293.3) | (294.5) | — | % | |||||||||||||||||||||||||||
Other debt gains (charges) – net | — | 30.3 | (100) | % | — | 30.3 | (100) | % | |||||||||||||||||||||||||||
| Other income (expense) – net | (9.0) | (3.4) | n/m | (12.4) | (10.7) | (16) | % | ||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | (651.9) | (662.5) | 2 | % | (390.0) | (349.7) | (12) | % | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 72.3 | (0.2) | n/m | 136.8 | 152.1 | (10) | % | ||||||||||||||||||||||||||||
| Net Income (Loss) | ($724.2) | ($662.3) | (9) | % | ($526.8) | ($501.8) | (5) | % | |||||||||||||||||||||||||||
Net Income (Loss) Per Common Share | ($6.79) | ($6.22) | (9) | % | ($4.94) | ($4.72) | (5) | % | |||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Assuming Dilution | ($6.79) | ($6.22) | (9) | % | ($4.94) | ($4.72) | (5) | % | |||||||||||||||||||||||||||
Dividends Declared Per Common Share | $1.10 | $1.08 | 2 | % | $3.30 | $3.24 | 2 | % | |||||||||||||||||||||||||||
| Weighted-average shares outstanding | 106.7 | 106.4 | — | % | 106.7 | 106.4 | — | % | |||||||||||||||||||||||||||
| Weighted-average shares outstanding – assuming dilution | 106.7 | 106.4 | — | % | 106.7 | 106.4 | — | % | |||||||||||||||||||||||||||
| The J.M. Smucker Co. Unaudited Condensed Consolidated Balance Sheets | |||||||||||
| January 31, 2026 | April 30, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $52.8 | $69.9 | |||||||||
| Trade receivables – net | 645.7 | 619.0 | |||||||||
| Inventories | 1,171.1 | 1,209.4 | |||||||||
| Other current assets | 119.0 | 248.3 | |||||||||
| Total Current Assets | 1,988.6 | 2,146.6 | |||||||||
| Property, Plant, and Equipment – Net | 3,004.3 | 3,079.6 | |||||||||
| Other Noncurrent Assets | |||||||||||
| Goodwill | 5,204.6 | 5,710.0 | |||||||||
| Other intangible assets – net | 5,743.3 | 6,346.9 | |||||||||
| Other noncurrent assets | 324.9 | 280.2 | |||||||||
| Total Other Noncurrent Assets | 11,272.8 | 12,337.1 | |||||||||
| Total Assets | $16,265.7 | $17,563.3 | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable | $1,125.6 | $1,288.7 | |||||||||
| Short-term borrowings | 486.9 | 640.8 | |||||||||
| Other current liabilities | 744.8 | 722.5 | |||||||||
| Total Current Liabilities | 2,357.3 | 2,652.0 | |||||||||
| Noncurrent Liabilities | |||||||||||
| Long-term debt | 6,841.3 | 7,036.8 | |||||||||
| Other noncurrent liabilities | 1,831.0 | 1,791.9 | |||||||||
| Total Noncurrent Liabilities | 8,672.3 | 8,828.7 | |||||||||
| Total Shareholders’ Equity | 5,236.1 | 6,082.6 | |||||||||
| Total Liabilities and Shareholders’ Equity | $16,265.7 | $17,563.3 | |||||||||
| The J.M. Smucker Co. Unaudited Condensed Consolidated Statements of Cash Flow | |||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Operating Activities | |||||||||||||||||||||||
| Net income (loss) | ($724.2) | ($662.3) | ($526.8) | ($501.8) | |||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operations: | |||||||||||||||||||||||
| Depreciation | 93.8 | 68.2 | 271.9 | 213.4 | |||||||||||||||||||
| Amortization | 50.3 | 53.9 | 150.7 | 165.7 | |||||||||||||||||||
| Goodwill impairment charges | 507.5 | 794.3 | 507.5 | 794.3 | |||||||||||||||||||
| Other intangible assets impairment charges | 454.2 | 208.2 | 454.2 | 208.2 | |||||||||||||||||||
| Pension settlement loss (gain) | 7.8 | — | 7.8 | — | |||||||||||||||||||
| Share-based compensation expense | 2.5 | 9.4 | 20.4 | 25.2 | |||||||||||||||||||
| Loss (gain) on divestitures – net | — | 50.2 | — | 311.0 | |||||||||||||||||||
| Deferred income tax expense (benefit) | (75.8) | (87.1) | (11.8) | (63.2) | |||||||||||||||||||
| Other noncash adjustments – net | 13.6 | (23.4) | 41.9 | 6.7 | |||||||||||||||||||
| Changes in assets and liabilities, net of effect from acquisition and divestitures: | |||||||||||||||||||||||
| Trade receivables | 30.3 | 149.0 | (26.3) | 80.5 | |||||||||||||||||||
| Inventories | 184.2 | (4.8) | 38.6 | (59.2) | |||||||||||||||||||
| Other current assets | 10.4 | (53.4) | 87.4 | (27.7) | |||||||||||||||||||
| Accounts payable | 10.2 | (90.3) | (150.8) | (173.7) | |||||||||||||||||||
| Accrued liabilities | (140.1) | (136.8) | (84.8) | (117.0) | |||||||||||||||||||
| Income and other taxes | 135.7 | (28.9) | 118.8 | (33.5) | |||||||||||||||||||
| Other – net | (1.9) | (6.8) | (4.3) | (12.4) | |||||||||||||||||||
| Net Cash Provided by (Used for) Operating Activities | 558.5 | 239.4 | 894.4 | 816.5 | |||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||
| Additions to property, plant, and equipment | (71.5) | (88.1) | (222.1) | (298.8) | |||||||||||||||||||
| Proceeds from divestitures – net | — | 290.5 | — | 290.5 | |||||||||||||||||||
| Proceeds from disposal of property, plant, and equipment | — | 0.2 | 13.1 | 0.2 | |||||||||||||||||||
| Collateral received (pledged) for derivative cash margin accounts | 87.6 | 4.5 | 34.8 | (10.4) | |||||||||||||||||||
| Other – net | — | 0.1 | 0.3 | — | |||||||||||||||||||
| Net Cash Provided by (Used for) Investing Activities | 16.1 | 207.2 | (173.9) | (18.5) | |||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||
| Short-term borrowings (repayments) – net | (268.4) | (31.6) | (181.0) | (153.2) | |||||||||||||||||||
| Repayments of long-term debt | (200.0) | (300.0) | (200.0) | (300.0) | |||||||||||||||||||
| Quarterly dividends paid | (116.7) | (114.4) | (347.9) | (340.9) | |||||||||||||||||||
| Purchase of treasury shares | (0.2) | (0.4) | (5.2) | (3.1) | |||||||||||||||||||
| Other – net | (0.7) | (0.5) | (3.6) | (13.4) | |||||||||||||||||||
| Net Cash Provided by (Used for) Financing Activities | (586.0) | (446.9) | (737.7) | (810.6) | |||||||||||||||||||
| Effect of exchange rate changes on cash | 1.4 | (1.7) | 0.1 | (2.2) | |||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (10.0) | (2.0) | (17.1) | (14.8) | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 62.8 | 49.2 | 69.9 | 62.0 | |||||||||||||||||||
| Cash and Cash Equivalents at End of Period | $52.8 | $47.2 | $52.8 | $47.2 | |||||||||||||||||||
| The J.M. Smucker Co. Unaudited Supplemental Schedule | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | % of Net Sales | 2025 | % of Net Sales | 2026 | % of Net Sales | 2025 | % of Net Sales | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $2,339.4 | $2,186.0 | $6,782.8 | $6,582.3 | |||||||||||||||||||||||||||||||||||||||||||
| Selling, distribution, and administrative expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Marketing | 109.6 | 4.7 | % | 112.9 | 5.2 | % | 369.7 | 5.5 | % | 343.9 | 5.2 | % | |||||||||||||||||||||||||||||||||||
| Selling | 65.6 | 2.8 | % | 63.5 | 2.9 | % | 197.1 | 2.9 | % | 200.5 | 3.0 | % | |||||||||||||||||||||||||||||||||||
| Distribution | 71.9 | 3.1 | % | 73.8 | 3.4 | % | 213.6 | 3.1 | % | 214.1 | 3.3 | % | |||||||||||||||||||||||||||||||||||
| General and administrative | 116.1 | 5.0 | % | 117.4 | 5.4 | % | 358.4 | 5.3 | % | 389.9 | 5.9 | % | |||||||||||||||||||||||||||||||||||
| Total selling, distribution, and administrative expenses | $363.2 | 15.5 | % | $367.6 | 16.8 | % | $1,138.8 | 16.8 | % | $1,148.4 | 17.4 | % | |||||||||||||||||||||||||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||
| The J.M. Smucker Co. Unaudited Reportable Segments | |||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||
| U.S. Retail Coffee | $908.2 | $740.6 | $2,474.3 | $2,068.0 | |||||||||||||||||||
| U.S. Retail Frozen Handheld and Spreads | 454.0 | 445.2 | 1,399.8 | 1,427.2 | |||||||||||||||||||
| U.S. Retail Pet Foods | 417.1 | 423.0 | 1,198.3 | 1,268.1 | |||||||||||||||||||
| Sweet Baked Snacks | 224.8 | 278.6 | 734.1 | 927.8 | |||||||||||||||||||
| International and Away From Home | 335.3 | 298.6 | 976.3 | 891.2 | |||||||||||||||||||
| Total net sales | $2,339.4 | $2,186.0 | $6,782.8 | $6,582.3 | |||||||||||||||||||
| Segment profit: | |||||||||||||||||||||||
| U.S. Retail Coffee | $199.0 | $208.6 | $487.5 | $583.9 | |||||||||||||||||||
| U.S. Retail Frozen Handheld and Spreads | 103.6 | 99.2 | 320.0 | 334.3 | |||||||||||||||||||
| U.S. Retail Pet Foods | 121.9 | 116.8 | 347.6 | 353.5 | |||||||||||||||||||
| Sweet Baked Snacks | 12.2 | 54.8 | 68.2 | 199.8 | |||||||||||||||||||
| International and Away From Home | 72.0 | 61.6 | 213.9 | 178.2 | |||||||||||||||||||
| Total segment profit | $508.7 | $541.0 | $1,437.2 | $1,649.7 | |||||||||||||||||||
| Amortization | (50.3) | (53.9) | (150.7) | (165.7) | |||||||||||||||||||
| Goodwill impairment charges | (507.5) | (794.3) | (507.5) | (794.3) | |||||||||||||||||||
| Other intangible assets impairment charges | (454.2) | (208.2) | (454.2) | (208.2) | |||||||||||||||||||
| Gain (loss) on divestitures – net | — | (50.2) | — | (311.0) | |||||||||||||||||||
| Interest expense – net | (94.5) | (95.4) | (293.3) | (294.5) | |||||||||||||||||||
| Change in net cumulative unallocated derivative gains and losses | 59.3 | 60.0 | (90.8) | 41.7 | |||||||||||||||||||
| Cost of products sold – special project costs | (22.3) | (1.1) | (60.7) | (11.7) | |||||||||||||||||||
| Other special project costs | (5.0) | (10.1) | (16.6) | (27.9) | |||||||||||||||||||
Other debt gains (charges) – net | — | 30.3 | — | 30.3 | |||||||||||||||||||
| Corporate administrative expenses | (77.1) | (77.2) | (241.0) | (247.4) | |||||||||||||||||||
| Other income (expense) – net | (9.0) | (3.4) | (12.4) | (10.7) | |||||||||||||||||||
| Income (loss) before income taxes | ($651.9) | ($662.5) | ($390.0) | ($349.7) | |||||||||||||||||||
| Segment profit margin: | |||||||||||||||||||||||
| U.S. Retail Coffee | 21.9 | % | 28.2 | % | 19.7 | % | 28.2 | % | |||||||||||||||
| U.S. Retail Frozen Handheld and Spreads | 22.8 | % | 22.3 | % | 22.9 | % | 23.4 | % | |||||||||||||||
| U.S. Retail Pet Foods | 29.2 | % | 27.6 | % | 29.0 | % | 27.9 | % | |||||||||||||||
| Sweet Baked Snacks | 5.4 | % | 19.7 | % | 9.3 | % | 21.5 | % | |||||||||||||||
| International and Away From Home | 21.5 | % | 20.6 | % | 21.9 | % | 20.0 | % | |||||||||||||||
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortization expense, impairment charges related to intangible assets, and gains and losses on divestitures (“EBITDA (as adjusted)”); and free cash flow, as key measures for purposes of evaluating performance internally. The Company believes that investors’ understanding of its performance is enhanced by disclosing these performance measures. Furthermore, these non-GAAP financial measures are used by management in preparation of the annual budget and for the monthly analyses of its operating results. The Board of Directors also utilizes certain non-GAAP financial measures as components for measuring performance for incentive compensation purposes.
Non-GAAP financial measures exclude certain items affecting comparability that can significantly affect the year-over-year assessment of operating results, which include amortization expense and impairment charges related to intangible assets; certain divestiture, acquisition, integration, and restructuring costs (“special project costs”); gains and losses on divestitures; the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities (“change in net cumulative unallocated derivative gains and losses”); and other infrequently occurring items that do not directly reflect ongoing operating results. Income taxes, as adjusted is calculated using an adjusted effective income tax rate that is applied to adjusted income before income taxes and reflects the exclusion of the previously discussed items, as well as any adjustments for one-time tax-related activities, when they occur. While this adjusted effective income tax rate does not generally differ materially from the GAAP effective income tax rate, certain exclusions from non-GAAP results, such as the unfavorable income tax impacts associated with the impairment charges for the Sweet Baked Snacks reporting unit, can significantly impact the adjusted effective income tax rate.
These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with U.S. GAAP. Rather, the presentation of these non-GAAP financial measures supplements other metrics used by management to internally evaluate its businesses and facilitate the comparison of past and present operations and liquidity. These non-GAAP financial measures may not be comparable to similar measures used by other companies and may exclude certain nondiscretionary expenses and cash payments. A reconciliation of certain non-GAAP financial measures to the comparable GAAP financial measure for the current and prior year periods is included in the “Unaudited Non-GAAP Financial Measures” tables. The Company has also provided a reconciliation of non-GAAP financial measures for its fiscal year 2026 outlook.
| The J.M. Smucker Co. Unaudited Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Increase (Decrease) | % | 2026 | 2025 | Increase (Decrease) | % | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net sales reconciliation: | |||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $2,339.4 | $2,186.0 | $153.4 | 7 | % | $6,782.8 | $6,582.3 | $200.5 | 3 | % | |||||||||||||||||||||||||||||||||||||
| Sweet Baked Snacks value brands divestiture | — | (13.4) | 13.4 | 1 | — | (43.3) | 43.3 | 1 | |||||||||||||||||||||||||||||||||||||||
Voortman® divestiture | — | (12.9) | 12.9 | 1 | — | (86.3) | 86.3 | 1 | |||||||||||||||||||||||||||||||||||||||
| Foreign currency exchange | (2.0) | — | (2.0) | — | (0.2) | — | (0.2) | — | |||||||||||||||||||||||||||||||||||||||
| Net sales excluding divestitures and foreign currency exchange | $2,337.4 | $2,159.7 | $177.7 | 8 | % | $6,782.6 | $6,452.7 | $329.9 | 5 | % | |||||||||||||||||||||||||||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||
| The J.M. Smucker Co. Unaudited Non-GAAP Financial Measures | ||||||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
(Dollars and shares in millions, except per share data) | ||||||||||||||||||||||||||
| Gross profit reconciliation: | ||||||||||||||||||||||||||
| Gross profit | $827.8 | $878.1 | $2,172.4 | $2,561.4 | ||||||||||||||||||||||
| Change in net cumulative unallocated derivative gains and losses | (59.3) | (60.0) | 90.8 | (41.7) | ||||||||||||||||||||||
| Cost of products sold – special project costs | 22.3 | 1.1 | 60.7 | 11.7 | ||||||||||||||||||||||
| Adjusted gross profit | $790.8 | $819.2 | $2,323.9 | $2,531.4 | ||||||||||||||||||||||
| % of net sales | 33.8 | % | 37.5 | % | 34.3 | % | 38.5 | % | ||||||||||||||||||
| Operating income (loss) reconciliation: | ||||||||||||||||||||||||||
| Operating income (loss) | ($548.4) | ($594.0) | ($84.3) | ($74.8) | ||||||||||||||||||||||
| Amortization | 50.3 | 53.9 | 150.7 | 165.7 | ||||||||||||||||||||||
| Goodwill impairment charges | 507.5 | 794.3 | 507.5 | 794.3 | ||||||||||||||||||||||
| Other intangible assets impairment charges | 454.2 | 208.2 | 454.2 | 208.2 | ||||||||||||||||||||||
| Loss (gain) on divestitures – net | — | 50.2 | — | 311.0 | ||||||||||||||||||||||
| Change in net cumulative unallocated derivative gains and losses | (59.3) | (60.0) | 90.8 | (41.7) | ||||||||||||||||||||||
| Cost of products sold – special project costs | 22.3 | 1.1 | 60.7 | 11.7 | ||||||||||||||||||||||
| Other special project costs | 5.0 | 10.1 | 16.6 | 27.9 | ||||||||||||||||||||||
| Adjusted operating income | $431.6 | $463.8 | $1,196.2 | $1,402.3 | ||||||||||||||||||||||
| % of net sales | 18.4 | % | 21.2 | % | 17.6 | % | 21.3 | % | ||||||||||||||||||
| Net income (loss) reconciliation: | ||||||||||||||||||||||||||
| Net income (loss) | ($724.2) | ($662.3) | ($526.8) | ($501.8) | ||||||||||||||||||||||
| Income tax expense (benefit) | 72.3 | (0.2) | 136.8 | 152.1 | ||||||||||||||||||||||
| Amortization | 50.3 | 53.9 | 150.7 | 165.7 | ||||||||||||||||||||||
| Goodwill impairment charges | 507.5 | 794.3 | 507.5 | 794.3 | ||||||||||||||||||||||
| Other intangible assets impairment charges | 454.2 | 208.2 | 454.2 | 208.2 | ||||||||||||||||||||||
| Loss (gain) on divestitures – net | — | 50.2 | — | 311.0 | ||||||||||||||||||||||
| Change in net cumulative unallocated derivative gains and losses | (59.3) | (60.0) | 90.8 | (41.7) | ||||||||||||||||||||||
| Cost of products sold – special project costs | 22.3 | 1.1 | 60.7 | 11.7 | ||||||||||||||||||||||
| Other special project costs | 5.0 | 10.1 | 16.6 | 27.9 | ||||||||||||||||||||||
| Other expense – special project costs | 0.1 | — | 1.0 | — | ||||||||||||||||||||||
| Other infrequently occurring items: | ||||||||||||||||||||||||||
Other debt charges (gains) – net (A) | — | (30.3) | — | (30.3) | ||||||||||||||||||||||
Pension plan termination settlement charge (B) | 7.8 | — | 7.8 | — | ||||||||||||||||||||||
| Adjusted income before income taxes | $336.0 | $365.0 | $899.3 | $1,097.1 | ||||||||||||||||||||||
| Income taxes, as adjusted | 81.5 | 86.7 | 217.1 | 265.1 | ||||||||||||||||||||||
| Adjusted income | $254.5 | $278.3 | $682.2 | $832.0 | ||||||||||||||||||||||
Weighted-average shares outstanding – assuming dilution (C) | 106.9 | 106.7 | 106.9 | 106.6 | ||||||||||||||||||||||
Adjusted earnings per share – assuming dilution (C) | $2.38 | $2.61 | $6.38 | $7.80 | ||||||||||||||||||||||
(A)Net other debt charges (gains) includes a net gain on extinguishment of debt as a result of the tender offers completed during the third quarter of 2025. (B)Represents the nonrecurring pre-tax settlement charge recognized during the third quarter of 2026 related to the termination of one of the Company’s U.S. qualified defined benefit plans. (C)Adjusted earnings per common share – assuming dilution for the three and nine months ended January 31, 2026 and 2025, was computed using the treasury stock method. Further, for the three and nine months ended January 31, 2026 and 2025, the weighted-average shares – assuming dilution differed from our GAAP weighted-average common shares outstanding – assuming dilution as a result of the anti-dilutive effect of our stock-based awards, which were excluded from the computation of net loss per share – assuming dilution. | ||||||||||||||||||||||||||
| The J.M. Smucker Co. Unaudited Non-GAAP Financial Measures | |||||||||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| EBITDA (as adjusted) reconciliation: | |||||||||||||||||||||||
| Net income (loss) | ($724.2) | ($662.3) | ($526.8) | ($501.8) | |||||||||||||||||||
| Income tax expense (benefit) | 72.3 | (0.2) | 136.8 | 152.1 | |||||||||||||||||||
| Interest expense – net | 94.5 | 95.4 | 293.3 | 294.5 | |||||||||||||||||||
| Depreciation | 93.8 | 68.2 | 271.9 | 213.4 | |||||||||||||||||||
| Amortization | 50.3 | 53.9 | 150.7 | 165.7 | |||||||||||||||||||
| Goodwill impairment charges | 507.5 | 794.3 | 507.5 | 794.3 | |||||||||||||||||||
| Other intangible assets impairment charges | 454.2 | 208.2 | 454.2 | 208.2 | |||||||||||||||||||
| Loss (gain) on divestitures – net | — | 50.2 | — | 311.0 | |||||||||||||||||||
| EBITDA (as adjusted) | $548.4 | $607.7 | $1,287.6 | $1,637.4 | |||||||||||||||||||
| % of net sales | 23.4 | % | 27.8 | % | 19.0 | % | 24.9 | % | |||||||||||||||
| Free cash flow reconciliation: | |||||||||||||||||||||||
| Net cash provided by (used for) operating activities | $558.5 | $239.4 | $894.4 | $816.5 | |||||||||||||||||||
| Additions to property, plant, and equipment | (71.5) | (88.1) | (222.1) | (298.8) | |||||||||||||||||||
| Free cash flow | $487.0 | $151.3 | $672.3 | $517.7 | |||||||||||||||||||
The following tables provide a reconciliation of the Company’s fiscal year 2026 guidance for estimated adjusted earnings per share and free cash flow.
| Year Ending April 30, 2026 | ||||||||||||||
| Low | High | |||||||||||||
| Net income per common share – assuming dilution reconciliation: | ||||||||||||||
Net income per common share – assuming dilution | ($1.89) | ($1.39) | ||||||||||||
Change in net cumulative unallocated derivative gains and losses (A) | 1.04 | 1.04 | ||||||||||||
Amortization | 2.61 | 2.61 | ||||||||||||
Goodwill impairment charge | 6.29 | 6.29 | ||||||||||||
| Other intangible assets impairment charge | 5.63 | 5.63 | ||||||||||||
Special project costs | 1.01 | 1.01 | ||||||||||||
Pension plan termination settlement charge (B) | 0.57 | 0.57 | ||||||||||||
Adjusted effective income tax rate impact | (6.51) | (6.51) | ||||||||||||
| Adjusted earnings per share | $8.75 | $9.25 | ||||||||||||
(A) We are unable to project derivative gains and losses on a forward-looking basis as these will vary each quarter based on market conditions and derivative positions taken. The change in unallocated derivative gains and losses in the table above reflects the net impact of the gains and losses that have been recognized in our GAAP results and excluded from non-GAAP results as of January 31, 2026, that are expected to be allocated to non-GAAP results in future periods. (B) Represents non-recurring pre-tax settlement charges related to the termination of one of the Company’s U.S. defined benefit pension plans anticipated to be realized during fiscal year 2026 upon settlement of the pension obligations. | ||||||||||||||
| Year Ending April 30, 2026 | ||||||||||||||
| (Dollars in millions) | ||||||||||||||
| Free cash flow reconciliation: | ||||||||||||||
| Net cash provided by operating activities | $1,300.0 | |||||||||||||
| Additions to property, plant, and equipment | (325.0) | |||||||||||||
Free cash flow | $975.0 | |||||||||||||
FAQ
How did J.M. Smucker (SJM) perform in its fiscal 2026 third quarter?
J.M. Smucker’s fiscal 2026 third quarter net sales rose 7% to $2.34 billion, but it reported a GAAP net loss of $724.2 million due to large noncash impairment charges. Adjusted EPS was $2.38, down 9% from the prior year period.
What caused the large net loss reported by J.M. Smucker (SJM) this quarter?
The net loss of $724.2 million, or -$6.79 per share, was mainly driven by $507.5 million of goodwill impairment and $454.2 million of other intangible asset impairment. These charges relate to the Sweet Baked Snacks reporting unit and Hostess® brand trademark.
What is J.M. Smucker’s (SJM) fiscal 2026 guidance for sales and earnings?
For fiscal 2026, J.M. Smucker expects net sales to grow 3.5%–4.0% versus the prior year and comparable net sales to rise about 5.0%–5.5%. The company forecasts adjusted EPS between $8.75 and $9.25, with an adjusted gross margin of roughly 35%.
How strong was J.M. Smucker’s (SJM) cash flow in the third quarter of fiscal 2026?
Cash flow was strong, with operating cash rising to $558.5 million from $239.4 million a year earlier. Free cash flow increased to $487.0 million from $151.3 million, reflecting better working capital and lower capital expenditures than the prior year.
How did J.M. Smucker’s (SJM) major segments perform in the quarter?
U.S. Retail Coffee net sales grew 23% to $908.2 million on higher pricing, though segment profit fell 5%. Sweet Baked Snacks net sales declined 19% to $224.8 million and segment profit plunged 78%, with margin dropping to 5.4%.
Did J.M. Smucker (SJM) change its fiscal 2026 outlook after the Emporia facility fire?
The company narrowed net sales growth guidance to 3.5%–4.0%, lowering the midpoint for the estimated impact of a February fire at its Emporia, Kansas facility. However, it maintained adjusted EPS guidance of $8.75–$9.25 and free cash flow guidance of about $975 million.