Core Viewpoint - Post Holdings, Inc. will hold a conference call on November 21, 2025, to discuss its fourth-quarter financial results for fiscal year 2025 and provide an outlook for fiscal year 2026 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for November 21, 2025, at 9:00 a.m. ET, featuring key executives including the CEO and CFO [1]. - Financial results for the fourth quarter will be released after market close on November 20, 2025 [2]. - Interested parties can join the call by dialing specific numbers for the U.S. and international participants, with a conference identification number provided [3]. Group 2: Replay Information - A replay of the conference call will be available until November 28, 2025, with specific dialing instructions for U.S. and international listeners [4]. - A webcast replay will also be accessible for a limited time on Post's website [4]. Group 3: Company Overview - Post Holdings, Inc. is a consumer packaged goods holding company based in St. Louis, Missouri, with operations in various food categories [5]. - The company includes brands such as Post Consumer Brands, Weetabix, Michael Foods, and Bob Evans Farms, with a strong presence in ready-to-eat cereals, pet food, and refrigerated foods [5].

Core Insights - Post Holdings (NYSE: POST) is enhancing its M&A strategy, indicating a distinctive approach to capital allocation that prioritizes share repurchase over dividends and exhibits a higher tolerance for leverage [1]. Group 1: M&A Strategy - Post Holdings is adding an interesting chapter to its M&A strategy, reflecting its commitment to growth through acquisitions [1]. Group 2: Capital Allocation - The company has a unique capital allocation strategy that emphasizes share repurchase rather than dividends, showcasing its focus on returning value to shareholders [1]. - Post Holdings demonstrates a higher tolerance for leverage, which may indicate a willingness to take on more debt to finance its growth initiatives [1].

Core Insights - The article emphasizes the importance of efficiency ratios as indicators of a company's financial health and operational efficiency [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2] - **Asset Utilization**: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5] Screening Process - A screening process was applied to identify stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to 18 [7] - The screening criteria included turnover ratios, asset utilization, and operating margin, along with a favorable Zacks Rank of 1 (Strong Buy) [6][8] Selected Companies - **Post Holdings (POST)**: A consumer-packaged goods holding company with a positive earnings surprise of 21.4% [7] - **BuildABear Workshop (BBW)**: A leading interactive retail-entertainment company with a positive earnings surprise of 21.3% [9] - **Equity Bancshares (EQBK)**: A financial services provider with a positive earnings surprise of 17.9% [10] - **Ardmore Shipping (ASC)**: Engaged in the ownership and operation of tankers, with a positive earnings surprise of 9.6% [11] - **Sally Beauty (SBH)**: An international retailer of beauty supplies with a positive earnings surprise of 8.3% [12]

Core Insights - Post Holdings, Inc.'s Foodservice division has shown significant resilience, with Q3 2025 net sales increasing by 18.6% to $698.5 million, driven by a 4.5% volume increase excluding the PPI acquisition [1][8] - The segment's adjusted EBITDA rose 32% to $159 million, indicating strong operational momentum and its importance to overall company performance [1][4] Sales and Performance - The Foodservice segment's sales growth was supported by temporary avian influenza pricing, solid distribution growth in eggs and potatoes, and consistent contributions from protein shakes [1][2] - Management anticipates that avian influenza pricing will decline by the end of Q4, with egg supply expected to fully recover as the company enters fiscal 2026 [2] Future Outlook - Post Holdings expects the Foodservice segment to achieve a normalized adjusted EBITDA run rate of approximately $115 million per quarter after the pricing effects subside, indicating a robust cash-generating platform with potential for expansion [3][4] Market Position - The successful integration of strategic acquisitions, such as PPI, has strengthened the Foodservice segment's market position and diversified its product offerings [4] - The segment's growth is further supported by increased breakfast traffic and improved egg availability, contributing to sustained momentum in key product areas [2][4] Valuation - Post Holdings currently trades at a forward 12-month P/E ratio of 13.31, which is lower than the industry average of 15.92 and the sector average of 17.04, positioning the stock at a modest discount relative to peers [9]

Market Overview - The U.S. stock market is expected to remain volatile due to uncertainty following a federal appeals court ruling that a significant portion of President Trump's worldwide tariffs is unlawful [1][7] Investment Strategy - To mitigate risks in the uncertain market, investors are advised to consider low-beta stocks such as Post Holdings, Inc. (POST), Tencent Music Entertainment Group (TME), and Kiniksa Pharmaceuticals International, plc (KNSA) [1][7] Company Insights Post Holdings - Post Holdings is restructuring its portfolio, recently announcing the divestment of its 8th Avenue pasta business for $375 million in cash, while retaining its nut butter, granola, and fruit & nut businesses for better alignment with operations and potential cost synergies [6][7] Tencent Music Entertainment - Tencent Music is poised for growth through its expanding music subscription service, boasting over 124 million paying subscribers and 15 million Super VIP members, alongside a booming advertising business supported by new ad formats and key shopping events [7][8] Kiniksa Pharmaceuticals - Kiniksa Pharmaceuticals is a leading player in treating recurrent pericarditis with its drug ARCALYST, which is currently the only treatment option available for this condition [9][7]

Core Insights - Post Holdings, Inc. has agreed to divest its pasta business from the recently acquired 8th Avenue Food & Provisions to Richardson (US) Holdings Limited for $375 million in cash, with Richardson assuming approximately $80 million in leaseback financial liabilities, expected to close in the first quarter of fiscal 2026 [1][9] Divestiture Details - Post Holdings acquired 8th Avenue on July 1, 2025, and will retain its nut butters, fruit and nut products, and granola businesses, which will be integrated into the Post Consumer Brands segment [2] - The retained businesses are expected to generate $45-$50 million in adjusted EBITDA in fiscal 2026, with an additional $15 million in annual cost synergies anticipated by year-end [3] Capital Allocation Strategy - Management has approved a new $500 million share repurchase authorization effective August 29, 2025, replacing the previous $500 million authorization that was canceled after repurchasing $304.8 million in shares [4][9] Stock Performance - Post Holdings has a Zacks Rank of 1 (Strong Buy) and its shares have gained 2.7% over the past three months, contrasting with a 1.9% decline in the industry and a 9.6% increase in the S&P 500 index during the same period [5] Valuation Metrics - The company currently trades at a forward 12-month P/E ratio of 14.13X, which is below the industry average of 15.9X and the sector's 17.18X, indicating a modest discount relative to peers and the broader consumer staples sector [10]

Core Viewpoint - Post Holdings, Inc. has announced the sale of its pasta business from 8th Avenue Food & Provisions to Richardson for $375 million in cash, along with assuming $80 million in leaseback liabilities, expected to close in the first fiscal quarter of 2026 [1] Group 1: Transaction Details - The transaction involves Richardson paying $375 million in cash and assuming approximately $80 million in leaseback financial liabilities [1] - Post acquired 8th Avenue on July 1, 2025, and will retain its nut butters, fruit and nut products, and granola businesses, which are expected to be integrated into the Post Consumer Brands segment [1] Group 2: Financial Expectations - The retained businesses are projected to contribute approximately $45-50 million in Adjusted EBITDA for fiscal year 2026 before realizing cost synergies, which are expected to reach an annual run rate of about $15 million by the end of fiscal year 2026 [2] - The synergized acquisition multiple for the remaining business is expected to be below 7 times synergized Adjusted EBITDA, consistent with Post's previous acquisition multiple [2] Group 3: Share Repurchase Authorization - On August 27, 2025, Post's Board of Directors approved a new $500 million share repurchase authorization, effective from August 29, 2025 [3] - As of August 27, 2025, Post had repurchased approximately $304.8 million under its previous $500 million authorization, which was canceled effective August 28, 2025 [3] Group 4: Non-GAAP Measures - Post uses non-GAAP measures such as Adjusted EBITDA and synergized acquisition multiple to provide transparency and assist investors in understanding the underlying operating performance [5][6] - Adjusted EBITDA represents earnings before interest, taxes, depreciation, and amortization, while the synergized acquisition multiple is calculated based on the net purchase price divided by post-synergies Adjusted EBITDA [5] Group 5: Company Overview - Post Holdings, Inc. is a consumer packaged goods holding company with operations in various food categories, including ready-to-eat cereals, pet food, and refrigerated foods [12] - The company is a leader in the North American branded and private label markets, with notable brands such as Weetabix and Bob Evans Farms [12]

Core Viewpoint - Post Holdings, Inc. (NYSE: POST) has underperformed in the market over the past year, showing flat trading and missing out on significant market rallies due to weaker-than-expected sales in its cereal division [1] Company Performance - The company's cereal division has reported sales that were weaker than anticipated, contributing to its overall disappointing performance [1] Market Context - Despite the challenges faced by Post Holdings, the broader market has experienced meaningful rallies that the company has not capitalized on [1]

Core Insights - Post Holdings, Inc. reported strong third-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][10]. Financial Performance - Adjusted earnings per share were $2.03, surpassing the Zacks Consensus Estimate of $1.67, and increased from $1.54 in the same quarter last year [2][10]. - Net sales reached $1,984.3 million, a 1.9% increase year over year, beating the estimate of $1,951 million. This includes $8.4 million from the acquisition of Potato Products of Idaho, L.L.C. [3][10]. - Gross profit was $596.2 million, up 3.3% year over year, with gross margin expanding to 30% from 29.6% [3][10]. - Selling, general and administrative (SG&A) expenses decreased by 3.8% to $312.1 million, representing 15.7% of net sales compared to 16.7% in the prior year [4]. - Operating profit increased by 15.5% to $234.6 million, and adjusted EBITDA rose 13.4% to $397 million from $350.2 million in the previous year [4]. Segment Performance - **Post Consumer Brands**: Reported net sales of $914 million, down 9.3% year over year, missing the estimate of $945 million, primarily due to a 10.3% drop in volumes [5]. - **Weetabix**: Net sales increased by 1.3% to $137.9 million but missed the estimate of $139 million, with a 2.5% decline in volumes [6]. - **Foodservice**: Achieved 18.6% growth in net sales to $698.5 million, exceeding the estimate of $636 million, with volumes growing 4.5% excluding acquisition impacts [7]. - **Refrigerated Retail**: Sales increased by 9.1% to $233.9 million, beating the estimate of $224 million, with a profit surge of 380.4% to $24.5 million [8]. Future Outlook - The company raised its fiscal 2025 adjusted EBITDA guidance to a range of $1,500-$1,520 million, up from the previous range of $1,460-$1,500 million [10][14]. - Capital expenditures for fiscal 2025 are expected to be between $450 million and $480 million, increased from the previous range of $390-$430 million [15]. Shareholder Actions - Post Holdings repurchased 0.6 million shares for $62.1 million in the third quarter, totaling 3.9 million shares for $434.7 million for the nine months ended June 30, 2025 [12].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and detailed notes [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Financial Metric | Three Months Ended June 30, 2025 (Millions USD) | Three Months Ended June 30, 2024 (Millions USD) | Nine Months Ended June 30, 2025 (Millions USD) | Nine Months Ended June 30, 2024 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,984.3 | $1,947.7 | $5,911.1 | $5,912.6 | | **Gross Profit** | $596.2 | $577.3 | $1,737.3 | $1,729.5 | | **Operating Profit** | $234.6 | $203.2 | $630.9 | $602.6 | | **Net Earnings** | $108.8 | $99.8 | $284.7 | $285.1 | | **Diluted EPS** | $1.79 | $1.53 | $4.60 | $4.36 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Balance Sheet Item | June 30, 2025 (Millions USD) | September 30, 2024 (Millions USD) | | :--- | :--- | :--- | | **Total Current Assets** | $2,642.9 | $2,231.6 | | **Total Assets** | $13,369.6 | $12,854.2 | | **Total Current Liabilities** | $1,018.3 | $944.9 | | **Long-term debt** | $7,346.0 | $6,811.6 | | **Total Liabilities** | $9,362.7 | $8,752.9 | | **Total Shareholders' Equity** | $4,006.9 | $4,101.3 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity | Nine Months Ended June 30, 2025 (Millions USD) | Nine Months Ended June 30, 2024 (Millions USD) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $697.0 | $696.3 | | **Net Cash Used in Investing Activities** | ($473.4) | ($538.3) | | **Net Cash Provided by Financing Activities** | $47.3 | $66.7 | | **Net Increase in Cash, Cash Equivalents and Restricted Cash** | $273.1 | $226.6 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - On March 3, 2025, the Company acquired Potato Products of Idaho, L.L.C. ("PPI") for **$120.0 million**, with a closing payment of **$129.5 million**, reporting PPI in the Refrigerated Retail and Foodservice segments[31](index=31&type=chunk) - In March 2025, the Company finalized plans to close Post Consumer Brands manufacturing facilities in Sparks, Nevada, and Cobourg, Ontario, by Q1 fiscal 2026, with total expected restructuring charges of **$21.1 million** for these and the Lancaster facility closure[42](index=42&type=chunk)[44](index=44&type=chunk) - On October 9, 2024, the Company issued **$600.0 million** of 6.250% senior notes due 2034, using proceeds to redeem outstanding 5.625% senior notes due 2028 and for general corporate purposes[76](index=76&type=chunk) - Subsequent to quarter end, on July 1, 2025, the Company acquired the remaining **39.5%** equity interest in 8th Avenue Food & Provisions, Inc. for a preliminary purchase price of **$798.8 million**, funded by cash on hand and Revolving Credit Facility borrowings[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and YTD fiscal 2025 financial results, covering sales, profit, market trends, acquisitions, and liquidity [Overview](index=25&type=section&id=Overview) - The company operates in four reportable segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail[109](index=109&type=chunk)[113](index=113&type=chunk) - Key recent acquisitions include: - **PPI (FY25):** Manufacturer of refrigerated and frozen potato products - **8th Avenue (Subsequent to Q3'25):** Manufacturer of pasta, nut butters, and granola - **Perfection Pet Foods (FY24):** Private label pet food manufacturer - **Deeside Cereals (FY24):** Private label cereal manufacturer in the U.K[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Market trends impacting results include: - **HPAI outbreaks:** Causing volatility in egg supply and pricing for Foodservice and Refrigerated Retail segments - **Inflationary pressures:** Affecting input costs across all segments, though some pressures have eased[112](index=112&type=chunk)[114](index=114&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) | Metric | Three Months Ended June 30, 2025 (Millions USD) | Change vs. 2024 | Nine Months Ended June 30, 2025 (Millions USD) | Change vs. 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,984.3 | +2% | $5,911.1 | 0% | | **Operating Profit** | $234.6 | +15% | $630.9 | +5% | | **Net Earnings** | $108.8 | +9% | $284.7 | 0% | - The **15% increase in Q3 operating profit** was primarily driven by higher segment profit in Foodservice and Refrigerated Retail, partially offset by declines in Post Consumer Brands and Weetabix[119](index=119&type=chunk) - Interest expense increased by **12% in Q3** and **10% in the nine-month period**, driven by higher average outstanding debt and a higher weighted-average interest rate[121](index=121&type=chunk)[122](index=122&type=chunk) [Segment Results](index=27&type=section&id=Segment%20Results) | Segment | Q3 2025 Net Sales (Millions USD) | Q3 YoY Change | Q3 2025 Segment Profit (Millions USD) | Q3 YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Post Consumer Brands** | $914.0 | -9% | $120.5 | -6% | | **Weetabix** | $137.9 | +1% | $19.3 | -20% | | **Foodservice** | $698.5 | +19% | $123.9 | +38% | | **Refrigerated Retail** | $233.9 | +9% | $24.5 | +380% | - **Post Consumer Brands:** Sales decline driven by a **15% drop in pet food sales** and a **4% drop in cereal sales** due to lower volumes[132](index=132&type=chunk) - **Foodservice:** Sales growth driven by incremental HPAI pricing and **2% higher volumes** in egg products[139](index=139&type=chunk) - **Refrigerated Retail:** Profit surged **380%** due to higher average net selling prices (including HPAI impact on eggs) and lower manufacturing and freight costs[144](index=144&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) - The company believes cash on hand, cash from operations, and credit facilities are sufficient to meet working capital, capital expenditures, and other financing needs for the foreseeable future[150](index=150&type=chunk) - Key financing activities during the first nine months of fiscal 2025 included: - Issued **$600.0 million** of 6.250% senior notes - Redeemed **$464.9 million** of 5.625% senior notes - Borrowed **$400.0 million** under the Revolving Credit Facility (primarily to fund the 8th Avenue acquisition) - Repurchased **3.9 million shares** for **$438.2 million**[149](index=149&type=chunk)[151](index=151&type=chunk) Cash Flow Data (Nine Months Ended June 30) | Cash Flow Data (Nine Months Ended June 30) | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | **Operating activities** | $697.0 | $696.3 | | **Investing activities** | ($473.4) | ($538.3) | | **Financing activities** | $47.3 | $66.7 | [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details exposure to commodity, foreign currency, and interest rate risks, and derivative strategies for management - The company is exposed to commodity price risk for raw materials, energy, and fuel, using derivatives to manage this exposure; a hypothetical **10% change in prices** would alter the derivative portfolio's fair value by approximately **$1 million**[172](index=172&type=chunk) - Exposure to foreign currency risk, primarily USD-GBP and Euro-GBP, is managed with forward contracts and swaps; a hypothetical **10% change in exchange rates** would change the derivative portfolio's fair value by approximately **$2 million**[173](index=173&type=chunk) - As of June 30, 2025, total debt was **$7.38 billion**, with **$6.98 billion** at a fixed rate (**5.3% weighted-average**) and **$400 million** at a variable rate (**5.9%**); a hypothetical **10% change in interest rates** would change the fair value of fixed-rate debt by approximately **$118 million**[174](index=174&type=chunk)[175](index=175&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that as of the end of the period, the Company's disclosure controls and procedures were effective to provide reasonable assurance of achieving the desired control objectives[178](index=178&type=chunk) - No significant changes were made to the Company's internal control over financial reporting during the quarter ended June 30, 2025[179](index=179&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Management expects no material impact from pending legal proceedings on the company's financial condition or operations - Management does not expect any pending legal proceedings to have a material impact on the company's financial condition, results of operations, or cash flows[90](index=90&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Highlights new risks from 8th Avenue Food & Provisions, Inc. integration, including synergy, operational, and liability challenges - A new risk factor has been added concerning the integration of 8th Avenue Food & Provisions, Inc. into the Post Consumer Brands business[183](index=183&type=chunk) - Potential integration challenges include the inability to achieve cost savings and synergies, difficulties combining complex business systems, and the risk of unknown liabilities for which the company has limited or no recourse[183](index=183&type=chunk)[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 fiscal 2025 share repurchases under the $500 million authorization, with **$353.2 million** remaining Share Repurchases (Q3 2025) | Period | Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | **April 2025** | 108,927 | $113.51 | | **May 2025** | 65,300 | $111.84 | | **June 2025** | 385,270 | $110.11 | | **Total Q3 2025** | **559,497** | **$110.98** | - As of June 30, 2025, approximately **$353.2 million** remained available for repurchase under the current authorization, which expires on February 10, 2027[185](index=185&type=chunk)[186](index=186&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q3 fiscal 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the third quarter of fiscal 2025[187](index=187&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including the 8th Avenue acquisition agreement, senior note indentures, and certifications