Core Insights - The company is experiencing a shift in capital allocation priorities due to changing valuations among smaller food companies, with M&A becoming more attractive as multiples decline [1][3] - Fiscal 2026 is off to a strong start, with Q1 adjusted EBITDA exceeding expectations, leading to a significant increase in guidance [4][18] - The company is maintaining aggressive share repurchases while remaining opportunistic regarding acquisitions, driven by evolving multiples rather than a specific category focus [3][5] Operational Drivers and Risks - Key drivers of the stronger outlook include normalization in the Foodservice segment, particularly improved volumes in eggs and value-added egg products [2][10] - The company is facing challenges in the ready-to-drink shakes segment, which has not yet reached target run rates [2][18] - Management noted that the cereal category has shown recent improvements, but it requires more time to determine if these changes are sustainable [6][10] Capital Allocation Stance - The company continues to pursue aggressive share repurchases while being opportunistic about M&A opportunities as smaller food valuations decline [3][18] - Management emphasized that acquisition interest is driven by changing multiples rather than focusing on specific categories [5] Financial Performance - Q1 adjusted EBITDA significantly surpassed expectations, prompting a notable increase in fiscal 2026 guidance [4][18] - Strong operating performance and the sale of the 8th Avenue pasta business helped maintain net leverage flat, providing flexibility for capital allocation [4][18] Portfolio Updates - The Refrigerated Retail segment is performing well, with private label momentum and a good start for new offerings [14][19] - The pet segment is stabilizing, with improvements in key brands and a planned relaunch [16][19] - Management is focusing on product development in side dishes, particularly in adding protein options [15][19]

Core Insights - Post Holdings, Inc. (POST) reported fiscal first-quarter 2026 results with both revenue and earnings exceeding expectations, showing year-over-year growth [1] Financial Performance - Adjusted earnings per share were $2.13, surpassing the Zacks Consensus Estimate of $1.66, and increased from $1.73 in the same quarter last year [2] - Net sales reached $2,174.6 million, a 10.1% increase year over year, including $224.6 million from acquisitions, slightly above the Zacks Consensus Estimate of $2,165 million [3] - Gross profit was $638.5 million, up 7.3% year over year, with a slight contraction in gross margin to 29.4% from 30.1% [4] - Operating profit increased by 11.3% to $238.4 million, and adjusted EBITDA rose 13.1% to $418.2 million from $369.9 million in the previous year [5] Segment Performance - **Post Consumer Brands**: Net sales were $1,103.8 million, up 14.5% year over year, but volumes declined 6.1% when excluding contributions from acquisitions [6] - **Foodservice**: Net sales grew 8.5% to $669.1 million, with a segment profit surge of 36.5% to $117.5 million [7] - **Refrigerated Retail**: Reported net sales of $266.6 million, unchanged from the prior year, with a segment profit increase of 25.6% to $30.4 million [8] - **Weetabix**: Net sales increased by 8.1% to $137.9 million, with a segment profit rise of 36.5% to $21.7 million [9] Future Outlook - Post Holdings raised its fiscal 2026 adjusted EBITDA guidance to $1.55-$1.58 billion, up from the previous range of $1.50-$1.54 billion [10][12] - Capital expenditures are expected to remain in the range of $350 million to $390 million, focusing on facility expansions [12] Shareholder Actions - The company ended the quarter with cash and cash equivalents of $279.3 million and long-term debt of $7,457.9 million [11] - In the first quarter, Post Holdings repurchased 3.7 million shares for $378.9 million, with an additional 1.8 million shares repurchased for $175.4 million after the quarter [11]

Financial Data and Key Metrics Changes - Fiscal 2026 started strong with Q1 adjusted EBITDA significantly above expectations, leading to an increase in guidance [4] - Continued aggressive share repurchases have helped maintain net leverage flat despite operational performance [4] Business Line Data and Key Metrics Changes - The foodservice normalized run rate has been updated positively, reflecting strong operational performance [4] - The egg segment saw volume growth, particularly in higher value-added eggs, with expectations of a 3%-4% growth rate moving forward [23][45] Market Data and Key Metrics Changes - The cereal category has recently returned to historical low single-digit growth rates after significant declines, attributed to changes in consumer behavior and SNAP adjustments [11][12] - The pet category, particularly dog food, has been softer compared to cat food, with expectations of stabilization in volumes as brands are relaunched [76] Company Strategy and Development Direction - The company remains opportunistic regarding M&A, with no specific category focus but is open to investments that show potential returns [31] - Adjustments in promotional spending and assortment strategies are being made to enhance efficiency in promotional-driven channels [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that market valuations for small-cap growth-oriented food companies are changing, making M&A more interesting as multiples decrease [10] - The company is confident in the stickiness of the foodservice normalized run rate and expects continued growth driven by value propositions [45] Other Important Information - The company has successfully closed two cereal facilities, with cost savings expected to impact the P&L starting in Q3 [78] - The company is focused on balancing attention between the foodservice segment and the RTD shakes plan, ensuring profitability before expansion [39] Q&A Session Summary Question: Market valuations and M&A activity - Management noted that changing multiples are making M&A more interesting, but it is still uncertain if valuations are attractive enough for smaller public entities [10] Question: Cereal category performance - Management indicated that recent improvements in the cereal category are linked to SNAP changes and a shift in consumer preferences towards more affordable options [12] Question: Guidance for the rest of the year - The balance of the portfolio is expected to remain similar to initial outlooks, with no material changes anticipated [21] Question: Foodservice volume growth - Management highlighted that year-over-year growth in foodservice is influenced by previous avian influenza impacts and customer inventory reloads [23] Question: Competitor behavior in the cereal market - Management stated that their strategy remains unchanged despite competitor investments in price and promotion, focusing instead on efficiency [28] Question: Pet category trends - Management expects stabilization in pet volumes, particularly with the relaunch of brands like Nutrish and Gravy Train [76] Question: Cost savings from facility closures - Cost savings from the closure of cereal facilities are expected to start impacting the P&L in Q3 [78]

Financial Data and Key Metrics Changes - Fiscal 2026 started strong with Q1 adjusted EBITDA significantly above expectations, leading to an increase in guidance [4] - The company maintained net leverage flat despite aggressive share repurchases and the sale of the 8th Avenue pasta business [4] Business Line Data and Key Metrics Changes - The foodservice normalized run rate was updated positively, contributing to the strong operating performance [4] - The egg segment saw volume growth, particularly in higher value-added eggs, with expectations of a 3%-4% growth rate moving forward [24][46] Market Data and Key Metrics Changes - The cereal category has recently returned to a low single-digit growth rate after significant declines, attributed to changes in SNAP and a shift towards more affordable breakfast options [11][12] - The pet food segment, particularly dog food, has been softer compared to cat food, with expectations of gradual recovery as brands are relaunched [78] Company Strategy and Development Direction - The company continues to focus on opportunistic capital allocation, particularly in M&A, as market valuations change [10] - There is no significant change in strategy despite competitor investments in the cereal category; the company is adjusting promotional spending to enhance efficiency [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalized run rate for foodservice and the ability to grow off that base due to favorable supply and demand dynamics [46] - The company is monitoring the impact of dietary guidelines on its portfolio but believes it is well-positioned with its current offerings [74] Other Important Information - The company has successfully closed two cereal facilities, with cost savings expected to impact the P&L starting in Q3 [80] - Management is cautious about future actions to streamline the portfolio, indicating no obvious opportunities at this time [80] Q&A Session Summary Question: Market valuations and M&A activity - Management noted that changing multiples make M&A more interesting, but it is still a subjective assessment [10] Question: Cereal category trends - Management indicated that recent improvements in the cereal category are linked to SNAP changes and a shift in consumer behavior towards more affordable options [12] Question: Foodservice business expectations - Management stated that the balance of the portfolio remains in line with initial expectations, with no material changes anticipated [22] Question: RTD shakes ramp-up - Management acknowledged ongoing challenges with production efficiency but remains optimistic about the long-term potential of the RTD shakes business [39] Question: Pet food category trends - Management confirmed that the dog food segment remains softer, but improvements are expected as brands are relaunched [78] Question: Cost savings from facility closures - Management expects cost savings from closed facilities to start impacting the P&L in Q3, with no immediate plans for further streamlining [80]

Financial Data and Key Metrics Changes - Fiscal 2026 started strong with Q1 adjusted EBITDA significantly above expectations, leading to an increase in guidance [4] - The company maintained net leverage flat despite aggressive share repurchases and the sale of the 8th Avenue pasta business [4] Business Line Data and Key Metrics Changes - The foodservice normalized run rate was updated positively, reflecting strong operating performance [4] - The cereal category has recently returned to a low single-digit growth rate after previous declines, attributed to changes in SNAP and trade-down behavior from other categories [11][12] Market Data and Key Metrics Changes - The company noted a significant change in the cereal category's trajectory, with improvements in both cereal and peanut butter segments [12] - The pet food segment experienced volume challenges, particularly in the dog category, while cat food remained stronger [78] Company Strategy and Development Direction - The company continues to focus on share repurchases as a primary use of free cash flow, while remaining opportunistic regarding M&A as market valuations change [10] - There is an ongoing assessment of promotional spending and assortment adjustments to enhance efficiency in the cereal category [29] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalized run rate for foodservice, expecting continued growth driven by value propositions for operators [45] - The company is balancing its focus between the foodservice segment and the RTD shakes plan, ensuring not to overemphasize the latter [39] Other Important Information - The company has successfully closed two cereal facilities, with cost savings expected to impact the P&L starting in Q3 [80] - Management indicated that the portfolio is well-aligned with updated dietary guidelines, with no immediate changes anticipated [74] Q&A Session Summary Question: Market valuations and M&A activity - Management noted that as market multiples change, M&A opportunities become more attractive, but current valuations may not yet warrant significant changes in capital allocation [10] Question: Cereal category performance - Management observed a recent improvement in the cereal category, attributing it to SNAP changes and a shift towards more affordable breakfast options [12] Question: Foodservice business expectations - Management indicated that the balance of the portfolio remains in line with initial expectations, with no material changes anticipated [22] Question: Pricing dynamics in pet food - Management confirmed that pricing challenges were primarily driven by the pet segment, particularly with the Nutrish brand [53] Question: Private label business performance - The private label business is performing as expected, with growth opportunities identified in mashed potatoes and mac and cheese [65] Question: Trends in the pet category - Management noted that the dog food segment remains softer compared to cat food, with expectations for gradual recovery [78]

分组1 - Post Holdings reported quarterly earnings of $2.13 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, and up from $1.73 per share a year ago, representing an earnings surprise of +28.57% [1] - The company achieved revenues of $2.17 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.46%, and an increase from $1.97 billion year-over-year [2] - Post Holdings has outperformed the S&P 500 with a share price increase of about 5.5% since the beginning of the year, compared to the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $2.09 billion, and for the current fiscal year, it is $7.01 on revenues of $8.4 billion [7] - The Zacks Industry Rank indicates that the Food - Miscellaneous sector is currently in the bottom 32% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Financial Performance - Net sales increased by $199.9 million, or 10%, to $2,174.6 million for the three months ended December 31, 2025, compared to $1,974.7 million in the prior year[110] - Operating profit rose by $24.3 million, or 11%, to $238.4 million for the same period, driven by higher segment profit across all segments[112] - Net earnings decreased by $16.5 million, or 15%, to $96.8 million for the three months ended December 31, 2025, compared to $113.3 million in the prior year[110] Segment Performance - Post Consumer Brands segment net sales increased by $139.9 million, or 15%, to $1,103.8 million, driven by the inclusion of three months of 8th Avenue net sales of $217.2 million[120] - Foodservice segment net sales increased by $52.5 million, or 9%, to $669.1 million, with egg product sales up by $32.9 million, or 6%[122] - Refrigerated Retail segment net sales remained flat at $266.6 million, while segment profit increased by $6.2 million, or 26%, to $30.4 million[124] - Weetabix segment net sales increased by $10.3 million, or 8%, to $137.9 million, driven by favorable foreign currency exchange impact and higher volumes[126] - Segment profit for Post Consumer Brands increased by $1.2 million, or 1%, to $132.2 million, supported by lower integration costs of $11.7 million and reduced advertising expenses of $10.5 million[121] - Segment profit for Foodservice increased by $31.4 million, or 36%, to $117.5 million, primarily due to lower raw material costs of $26.0 million[123] - Refrigerated Retail segment profit increased by $6.2 million, or 26%, to $30.4 million, driven by lower manufacturing costs[125] Expenses and Cash Flow - Interest expense increased by $19.3 million, or 23%, to $103.4 million, attributed to lower interest income and higher average outstanding principal amounts of debt[113] - General corporate expenses increased by $21.5 million, or 58%, to $58.8 million for the three months ended December 31, 2025, primarily due to higher restructuring costs and increased net losses from economic hedges[128] - Cash provided by operating activities decreased by $74.7 million to $235.7 million for the three months ended December 31, 2025, driven by higher interest payments and cash outflows in the Post Consumer Brands and Foodservice segments[138] - Cash provided by investing activities was $261.8 million for the three months ended December 31, 2025, mainly from the sale of the Pasta Business for $378.5 million, offset by capital expenditures of $116.4 million[139] - Cash used in financing activities totaled $395.8 million for the three months ended December 31, 2025, including $1,300.0 million from the issuance of senior notes and $195.0 million repaid under the Revolving Credit Facility[141] Tax and Compliance - The effective income tax rate was 22.0% for the three months ended December 31, 2025, compared to 22.1% in the prior year[117] - As of December 31, 2025, the company was in compliance with its financial covenants under the Credit Agreement, with no anticipated non-compliance in the foreseeable future[143] - As of December 31, 2025, the company was in compliance with the secured net leverage ratio financial covenant of not exceeding 4.25 to 1.00[143] Strategic Acquisitions and Future Outlook - The company completed the acquisition of 8th Avenue Food & Provisions, Inc. on July 1, 2025, enhancing its product offerings in nut butters and granola[104] - The company has made strategic acquisitions, including 8th Avenue and pet food assets in April 2023 and December 2023, which are part of its growth strategy[150] - The company expects to continue generating positive cash flows from operations, with sufficient liquidity to meet working capital requirements and other financing needs[131] - Cash on hand and cash flows from operations are projected to be adequate for future commitments, including capital expenditures and research and development activities[131] Risks and Legal Considerations - The company faces various risks including supply chain disruptions, economic conditions, and competition in product categories that could impact future performance[150] - The company is subject to various legal and regulatory risks that could affect its operations and financial results[150] - The company acknowledges the potential for impairment in the carrying value of goodwill and other assets[150] - The company has obligations related to Bob Evans Farms, Inc. that may impact its financial position[150] - There have been no significant changes to the company's critical accounting estimates since September 30, 2025[146] Shareholder Actions - The company repurchased 3.7 million shares of common stock at an average price of $101.57 per share, totaling $382.2 million[137] - The company issued $1,300.0 million principal value of 6.50% senior notes and redeemed $1,235.0 million principal value of 5.50% senior notes at a premium of $22.6 million during the three months ended December 31, 2025[130] Forward-Looking Statements - The company does not undertake any obligation to update forward-looking statements after the report date[151]

Financial Performance - Net sales for the first quarter were $2,174.6 million, a 10.1% increase from $1,974.7 million in the prior year, including $224.6 million from acquisitions[5] - Operating profit was $238.4 million, an 11.3% increase compared to $214.1 million in the prior year[6] - Net earnings decreased by 14.6% to $96.8 million from $113.3 million in the prior year[7] - Adjusted EBITDA was $418.2 million, a 13.1% increase from $369.9 million in the prior year[9] - Net sales for the three months ended December 31, 2025, were $2,174.6 million, an increase of 10.1% compared to $1,974.7 million in the same period of 2024[32] - Gross profit for the same period was $638.5 million, up from $595.3 million, reflecting a gross margin improvement[32] - Operating profit increased to $238.4 million from $214.1 million, indicating a growth of 11.3% year-over-year[32] - Net earnings for the three months ended December 31, 2025, were $96.8 million, a decrease from $113.3 million in the prior year[32] Segment Performance - Post Consumer Brands segment net sales increased by 14.5% to $1,103.8 million, including $217.2 million from 8th Avenue[10] - Foodservice segment net sales rose by 8.5% to $669.1 million, with a segment profit increase of 36.5% to $117.5 million[11] - Refrigerated Retail segment net sales were flat at $266.6 million, but segment profit increased by 25.6% to $30.4 million[12] - The Post Consumer Brands segment reported net sales of $1,103.8 million, up from $963.9 million, showing strong growth in this category[38] - Segment Profit for Post Consumer Brands was $131.0 million, representing 13.6% of Net Sales[61] - Adjusted EBITDA for the same segment was $204.8 million, accounting for 21.2% of Net Sales[61] - Segment Profit for Refrigerated was $86.1 million, which is 14.0% of Net Sales[61] - Adjusted EBITDA for Refrigerated was $116.8 million, representing 18.9% of Net Sales[61] - Segment Profit for Retail was $24.2 million, equating to 9.1% of Net Sales[61] - Adjusted EBITDA for Retail was $41.6 million, which is 15.6% of Net Sales[61] Outlook and Guidance - The company raised its fiscal year 2026 Adjusted EBITDA outlook to $1,550-$1,580 million from a previous range of $1,500-$1,540 million[19] - Adjusted EBITDA outlook for fiscal year 2026 is expected to be positively impacted by the 8th Avenue acquisition, excluding the pasta business[27] - Capital expenditures for fiscal year 2026 are expected to range between $350-$390 million, including investments in cage-free egg facility expansion[19] Cash Flow and Debt - Cash provided by operating activities was $235.7 million, down from $310.4 million in the same quarter of 2024[36] - Total assets decreased to $12,984.3 million from $13,528.4 million as of September 30, 2025[34] - Long-term debt increased slightly to $7,457.9 million from $7,421.7 million, indicating a stable leverage position[34] - Net cash provided by operating activities for Q4 2025 was $235.7 million, down from $310.4 million in Q4 2024[62] - Free Cash Flow for Q4 2025 was $119.3 million, compared to $171.4 million in Q4 2024[62] Adjustments and Costs - Adjusted Net Earnings for Q4 2025 were $123.7 million, compared to $111.9 million in Q4 2024, reflecting a year-over-year increase of approximately 10.4%[52] - Adjusted EBITDA for Q4 2025 was $418.2 million, up from $369.9 million in Q4 2024, representing a growth of about 13.0%[57] - Adjusted EBITDA as a percentage of Net Sales increased to 19.2% in Q4 2025 from 18.7% in Q4 2024, indicating improved operational efficiency[57] - Total Net Adjustments for Q4 2025 amounted to $38.9 million, compared to a negative adjustment of $1.2 million in Q4 2024[52] - The company incurred $22.6 million in debt premiums paid in Q4 2025, significantly higher than $4.4 million in Q4 2024[52] - Restructuring and facility closure costs in Q4 2025 were $23.0 million, compared to $3.6 million in Q4 2024, indicating increased restructuring activities[52] - The company reported a loss on the sale of business of $9.7 million in Q4 2025, while there were no such losses reported in Q4 2024[52] - Integration costs for Q4 2025 were $4.3 million, down from $15.6 million in Q4 2024, suggesting a decrease in integration-related expenses[52] - The income tax effect on adjustments for Q4 2025 was $12.0 million, compared to $0.2 million in Q4 2024, reflecting a significant increase in tax-related adjustments[52] Corporate Strategy - The company is focused on new product introductions and market expansion strategies to enhance competitive positioning[30] - General corporate expenses and other for Q4 2025 totaled $(37.3) million[61] - Integration costs for the period were $15.6 million[61]

Core Insights - Post Holdings, Inc. reported a net sales increase of 10.1% to $2,174.6 million for the first fiscal quarter ended December 31, 2025, compared to $1,974.7 million in the prior year period [5] - The company raised its fiscal year 2026 Adjusted EBITDA outlook to a range of $1,550-$1,580 million from the previous range of $1,500-$1,540 million [19] Financial Performance - Gross profit was $638.5 million, representing 29.4% of net sales, an increase of 7.3% compared to $595.3 million or 30.1% of net sales in the prior year [5] - Operating profit increased by 11.3% to $238.4 million from $214.1 million in the prior year [6] - Net earnings decreased by 14.6% to $96.8 million compared to $113.3 million in the prior year [7] Segment Performance - Post Consumer Brands segment net sales were $1,103.8 million, up 14.5%, but volumes decreased by 6.1% when excluding the benefit from the 8th Avenue acquisition [10] - Foodservice segment net sales increased by 8.5% to $669.1 million, with segment profit rising by 36.5% to $117.5 million [11] - Refrigerated Retail segment net sales remained flat at $266.6 million, with a segment profit increase of 25.6% to $30.4 million [12] - Weetabix segment net sales grew by 8.1% to $137.9 million, with segment profit increasing by 36.5% to $21.7 million [13] Share Repurchase and Capital Management - During the first quarter, the company repurchased 3.7 million shares for $378.9 million at an average price of $101.57 per share [17] - A new share repurchase authorization of $500 million was approved by the Board of Directors [17] Outlook - The company expects fiscal year 2026 capital expenditures to range between $350-$390 million, including investments in a cage-free egg facility and the completion of a precooked egg facility expansion [19]

Core Viewpoint - Post Holdings, Inc. has announced the appointment of Greg Pearson as President and Chief Executive Officer of Post Consumer Brands, effective April 1, 2026, succeeding Nicolas Catoggio [1] Group 1: Leadership Transition - Greg Pearson will join Post from Compana Pet Brands, where he served as CEO since January 2023, leading significant business transformation efforts [1] - Pearson has 25 years of experience in the consumer packaged goods industry, including previous roles at Pretzels, Inc. and Chewy.com [1] - Nicolas Catoggio will transition to the role of Executive Vice President and Chief Operating Officer of Post Holdings [1] Group 2: Company Background - Post Holdings, Inc. is a consumer packaged goods holding company based in St. Louis, Missouri, with operations in various food categories [1] - The company’s brands include Post Consumer Brands, Weetabix, Michael Foods, and Bob Evans Farms, with Post Consumer Brands being a leader in ready-to-eat cereals and pet food [1] - Weetabix is noted as the number one selling ready-to-eat cereal brand in the UK [1]