Cal-Maine Foods(CALM) - 2025 Q4 - Annual Results

Overview and Key Highlights Cal-Maine Foods reported a strong finish to fiscal 2025, with significant year-over-year growth in net sales and net income for both the fourth quarter and the full fiscal year, driven by record sales of specialty eggs, increased layer hen production, strategic acquisitions, and substantial shareholder returns through dividends and share repurchases Summary Financial Results | Metric | Q4 Fiscal 2025 | Fiscal Year 2025 | | :--- | :--- | :--- | | Net Sales | $1.1 billion | $4.3 billion | | Net Income | $342.5 million | $1.2 billion | | Diluted EPS | $7.04 | $24.95 | - The company achieved record total specialty dozens sold in Q4, driven by strong consumer demand and additional production from the newly acquired ISE America, Inc[3] - Significant progress was made to increase production capacity, evidenced by an 18% increase in average layer hens, a 48% increase in breeder flocks, and a 56% increase in total chicks hatched in Q4 YoY[3] - Announced the acquisition of Echo Lake Foods to expand into the prepared foods market, with the transaction closing on June 2, 2025[3][5] - A cash dividend of approximately $114.2 million, or $2.35 per share, was declared. The company also repurchased approximately $50 million of its Common Stock under a new $500 million share repurchase program[3][18] Financial Performance Analysis The company's robust financial performance was primarily driven by a significant increase in the net average selling price of shell eggs, a direct result of HPAI-related industry supply reductions during a period of high demand, complemented by a 9.0% rise in sales volume in Q4, while feed costs per dozen decreased slightly, overall farm production costs remained flat due to higher facility costs Q4 & Fiscal 2025 Results In Q4 fiscal 2025, net sales surged to $1.1 billion from $640.8 million YoY, with net income attributable to the company rising to $342.5 million from $113.2 million, and for the full fiscal year 2025, net sales more than doubled to $4.3 billion, and net income attributable to the company increased more than fourfold to $1.2 billion, driven by higher egg prices and sales volumes Q4 Financial Results | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.1 B | $640.8 M | +72.2% | | Net Income | $342.5 M | $113.2 M | +202.5% | | Diluted EPS | $7.04 | $2.32 | +203.4% | Fiscal Year Financial Results | Metric | Fiscal Year 2025 | Fiscal Year 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4.3 B | $2.3 B | +85.7% | | Net Income | $1.2 B | $277.9 M | +339.0% | | Diluted EPS | $24.95 | $5.69 | +338.5% | Sales Volume and Pricing Total shell eggs sold in Q4 increased by 9.0% to 311.4 million dozens, with specialty eggs showing strong growth of 16.0% to a record 121.8 million dozens, and the net average selling price per dozen jumped to $3.305 in Q4 from $2.133 in the prior year, with conventional egg prices experiencing the most significant rise to $3.784 per dozen Sales Volume (Dozens) | Sales Volume (Dozens) | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Dozens Sold | 311.4 M | 285.6 M | +9.0% | | Conventional Eggs | 189.6 M | 180.5 M | +5.0% | | Specialty Eggs | 121.8 M | 105.0 M | +16.0% | Net Average Selling Price (per dozen) | Net Average Selling Price (per dozen) | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total | $3.305 | $2.133 | +54.9% | | Conventional Eggs | $3.784 | $2.062 | +83.5% | | Specialty Eggs | $2.559 | $2.254 | +13.5% | Cost and Operations Farm production costs per dozen remained relatively flat in Q4 YoY, as a 2.2% decrease in feed costs per dozen ($0.493 vs $0.504) was offset by higher facility expenses, and the company also faced significantly higher costs for purchasing outside eggs due to elevated market prices - Feed costs per dozen decreased by 2.2% to $0.493 in Q4 FY2025 compared to $0.504 in Q4 FY2024[10][13] - The benefit from lower feed costs was offset by higher facility costs, resulting in relatively flat farm production costs per dozen compared to the prior-year period[10] - Costs for outside egg purchases increased significantly due to higher shell egg prices in the market[10] Key Operational Factors and Corporate Actions The company continues to navigate the significant risks posed by Highly Pathogenic Avian Influenza (HPAI), which has led to the depopulation of millions of hens industry-wide, while on the corporate front, Cal-Maine declared a substantial dividend of approximately $2.35 per share for Q4 and initiated its new $500 million share repurchase program, buying back $50 million in stock during the quarter HPAI Impact Highly Pathogenic Avian Influenza (HPAI) remains a major industry risk, with 39.0 million commercial layer hens and pullets depopulated in calendar year 2025 through May, and while the human health risk is considered low and no eggs have been recalled, the spread of HPAI in wild birds and dairy cattle increases risks to egg producers' operations - In calendar year 2025 through May, 39.0 million commercial layer hens and pullets have been depopulated due to HPAI, following 40.2 million in calendar year 2024[15] - HPAI is widespread in the wild bird population, and its recent spread in dairy cattle increases risks to Cal-Maine Foods' operations[15] - According to the USDA and CDC, the human health risk is low, HPAI cannot be transmitted through properly cooked eggs, and no eggs have been recalled due to HPAI[15] Capital Allocation (Dividends & Repurchases) The company declared a Q4 cash dividend of approximately $2.35 per share, totaling about $114.2 million, consistent with its policy of distributing one-third of quarterly net income, and additionally, it repurchased $50 million of its Common Stock from the founder's family members under a new $500 million authorization, leaving $450 million available for future repurchases - A cash dividend of approximately $2.35 per share will be paid for Q4 fiscal 2025, based on the company's policy to pay one-third of quarterly net income[16][17] - The Board approved a new $500 million share repurchase program on February 25, 2025[18] - During Q4, the company repurchased $50 million of its Common Stock (551,876 shares), with approximately $450 million remaining under the program[18][19] Business Outlook and Strategy Looking to fiscal 2026, management is confident in its resilient operating model and growth strategy, with the recent acquisition of Echo Lake Foods being a key strategic move to diversify into the prepared foods market, leveraging existing distribution to expand its customer base, and the company will continue to focus on expanding production capacity, both organically and through strategic acquisitions, to meet customer demand and deliver stakeholder value - The acquisition of Echo Lake Foods provides a significant opportunity to grow the prepared foods portfolio, diversifying product offerings and expanding reach to retail, QSR, and other foodservice customers[20] - The company believes it is well-positioned for fiscal 2026 to deliver on its growth and returns strategy, leveraging its production capability, integrated operations, and expanding portfolio[21] - The core mission remains to be the most sustainable producer and reliable supplier of high-quality fresh shell eggs, egg products, and prepared foods in the country[21] Financial Statements This section provides the unaudited summary statements of income and balance sheets for the fourth quarter and fiscal year ended May 31, 2025, showing significant year-over-year growth in revenue, profitability, and total assets, reflecting a strong financial position Summary Statements of Income The income statement highlights a substantial increase in profitability, with Q4 FY25 gross profit reaching $531.5 million and operating income at $435.9 million, compared to $186.4 million and $142.2 million in the prior-year quarter, respectively, and for the full fiscal year, operating income grew to $1.54 billion from $312.5 million in fiscal 2024 Summary Statements of Income (Amounts in Millions/Billions) | Metric | 13 Weeks Ended May 31, 2025 | 13 Weeks Ended June 1, 2024 | 52 Weeks Ended May 31, 2025 | 52 Weeks Ended June 1, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1.10 B | $640.8 M | $4.26 B | $2.33 B | | Gross profit | $531.5 M | $186.4 M | $1.85 B | $541.6 M | | Operating income | $435.9 M | $142.2 M | $1.54 B | $312.5 M | | Net income attributable to Cal-Maine Foods, Inc. | $342.5 M | $113.2 M | $1.22 B | $277.9 M | | Diluted EPS | $7.04 | $2.32 | $24.95 | $5.69 | Summary Balance Sheets The balance sheet as of May 31, 2025, reflects a significantly stronger financial position, with total assets growing to $3.08 billion from $2.18 billion a year prior, driven by a substantial increase in cash and short-term investments to $1.39 billion, and stockholders' equity also rose sharply to $2.57 billion from $1.80 billion Summary Balance Sheets (Amounts in Millions/Billions) | Metric | May 31, 2025 | June 1, 2024 | | :--- | :--- | :--- | | Cash and short-term investments | $1.39 B | $812.4 M | | Total current assets | $1.97 B | $1.24 B | | Total assets | $3.08 B | $2.18 B | | Total current liabilities | $308.4 M | $227.7 M | | Stockholders' equity | $2.57 B | $1.80 B | | Total liabilities and stockholders' equity | $3.08 B | $2.18 B |