Financial Highlights PFG saw strong Q4 and full FY2025 growth in case volume, sales, and Adjusted EBITDA, but GAAP Net Income and Diluted EPS decreased due to acquisition costs Fourth-Quarter Fiscal 2025 Highlights PFG's Q4 FY2025 achieved double-digit growth in case volume, net sales, and Adjusted EBITDA, primarily from Independent Foodservice, yet Net Income and Diluted EPS declined significantly Q4 Fiscal 2025 Key Metrics vs. Q4 Fiscal 2024 | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $16.9 billion | +11.5% | | Gross Profit | $2.0 billion | +14.6% | | Total Case Volume | N/A | +11.9% | | Net Income | $131.5 million | -21.0% | | Adjusted EBITDA | $546.9 million | +19.9% | | Diluted EPS | $0.84 | -21.5% | | Adjusted Diluted EPS | $1.55 | +6.9% | Full-Year Fiscal 2025 Highlights PFG's full FY2025 saw robust growth in net sales and Adjusted EBITDA, with strong operating cash flow, but Net Income and Diluted EPS declined significantly Full-Year Fiscal 2025 Key Metrics vs. Full-Year Fiscal 2024 | Metric | FY 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $63.3 billion | +8.6% | | Gross Profit | $7.4 billion | +12.8% | | Total Case Volume | N/A | +8.5% | | Net Income | $340.2 million | -22.0% | | Adjusted EBITDA | $1.8 billion | +17.3% | | Diluted EPS | $2.18 | -21.9% | | Adjusted Diluted EPS | $4.48 | +4.2% | | Operating Cash Flow | $1.2 billion | N/A | | Free Cash Flow | $704.1 million | N/A | Financial Performance Analysis PFG's FY2025 saw strong top-line growth from case volume and acquisitions, but net income declined due to higher operating and financing costs related to these acquisitions - CEO George Holm credited the strong financial results to contributions from all three operating segments and successful market share gains, highlighting the ongoing integration of Cheney Brothers and José Santiago46 Fourth-Quarter Fiscal 2025 Financial Summary Q4 net sales and Adjusted EBITDA grew significantly, driven by case volume and acquisitions, but net income declined due to increased operating expenses and financing costs from recent acquisitions - Net sales growth was driven by recent acquisitions (including Cheney Brothers), a favorable shift in case mix, and price inflation of approximately 4.3%8 - Operating expenses increased by 18.3%, primarily due to acquisitions, higher personnel costs, and increased depreciation, partially offset by lower fuel prices10 - The decrease in net income primarily resulted from higher depreciation, amortization, and interest expense related to recent acquisitions, outweighing gross profit contributions from new businesses11 Full-Year Fiscal 2025 Financial Summary Full-year net sales and Adjusted EBITDA rose significantly, but net income decreased due to higher costs associated with recent acquisitions and increased average borrowings - Full-year net sales growth was driven by acquisitions, an 8.5% increase in total case volume, and product cost inflation of approximately 4.7%1314 - Gross profit grew 12.8% due to acquisitions, procurement efficiencies, and a favorable sales mix with growth in the independent channel15 - Net income declined primarily due to increased depreciation, amortization, and interest expense related to acquisitions and higher average borrowings17 Cash Flow, Capital Allocation, and Share Repurchases PFG generated strong FY2025 operating cash flow, increased capital expenditures, and actively managed its capital structure through share repurchases, including a new, larger program Cash Flow and Capital Spending Operating cash flow increased in FY2025 due to higher operating income, but free cash flow decreased due to a significant increase in capital expenditures Fiscal 2025 Cash Flow Summary (in millions) | Metric | Fiscal 2025 | Fiscal 2024 | | :--- | :--- | :--- | | Cash Flow from Operating Activities | $1,210.1 million | $1,163.0 million | | Capital Expenditures | $506.0 million | $395.6 million | | Free Cash Flow | $704.1 million | $767.4 million | Share Repurchase Program PFG repurchased common stock in FY2025 and authorized a new, larger share repurchase program, replacing the previous authorization - In fiscal year 2025, the company repurchased 0.8 million shares for a total of $57.6 million, at an average cost of $75.53 per share21 - A new $500 million share repurchase program was authorized on May 27, 2025, with an expiration date of May 27, 202922 Segment Performance (Q4 Fiscal 2025) All three operating segments contributed to Q4 growth, with Foodservice as the primary driver, showing significant increases in net sales and Adjusted EBITDA from acquisitions and independent case growth Foodservice The Foodservice segment's Q4 net sales and Adjusted EBITDA surged, driven by acquisitions, significant total case volume growth, and a rise in organic independent case volume Foodservice Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $9.2 billion | +20.0% | | Adjusted EBITDA | $386.9 million | +26.3% | | Total Case Growth | N/A | +17.4% | | Organic Independent Case Growth | N/A | +5.9% | - Growth was driven by recent acquisitions (including Cheney Brothers), case volume growth in independent and Chain business, and higher selling prices23 Convenience The Convenience segment reported Q4 increases in net sales and Adjusted EBITDA, attributed to higher selling prices from inflation, a recent acquisition, and modest organic case volume growth Convenience Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $6.4 billion | +2.8% | | Adjusted EBITDA | $120.0 million | +4.8% | | Organic Case Volume Growth | N/A | +0.6% | - Adjusted EBITDA growth resulted from higher gross profit from inventory holding gains and a favorable product mix, partially offset by increased personnel expenses2627 Specialty The Specialty segment's Q4 net sales and Adjusted EBITDA grew, supported by increased case volume, particularly in vending, office coffee, value, and retail channels Specialty Q4 FY2025 Performance | Metric | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $1.3 billion | +4.1% | | Adjusted EBITDA | $93.2 million | +9.0% | | Total Case Volume Growth | N/A | +4.2% | - Adjusted EBITDA growth was driven by higher gross profit from sales growth and inventory holding gains, with operating expenses only slightly increasing due to cost controls and lower fuel expense29 Fiscal 2026 Outlook PFG projects continued growth in both net sales and Adjusted EBITDA for fiscal 2026, with specific guidance provided for Q1 and the full year Fiscal 2026 Guidance | Period | Metric | Guidance Range | | :--- | :--- | :--- | | Q1 Fiscal 2026 | Net Sales | $16.6 billion - $16.9 billion | | | Adjusted EBITDA | $465 million - $485 million | | Full-Year Fiscal 2026 | Net Sales | $67 billion - $68 billion | | | Adjusted EBITDA | $1.9 billion - $2.0 billion | Financial Statements (Unaudited) The unaudited financial statements detail sales growth but lower net income due to higher expenses, significant asset and liability expansion from acquisitions, and strong operating cash flow used for investments Consolidated Statements of Operations For FY2025, net sales grew, but operating profit slightly decreased, and net income fell significantly, primarily due to a substantial increase in interest expense FY 2025 Statement of Operations Summary (in millions) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net sales | $63,298.9 | $58,281.2 | | Gross profit | $7,416.6 | $6,577.1 | | Operating profit | $816.3 | $826.4 | | Interest expense, net | $358.4 | $232.2 | | Net income | $340.2 | $435.9 | Condensed Consolidated Balance Sheets As of June 28, 2025, total assets and liabilities significantly increased, primarily driven by goodwill, intangible assets, PP&E, and long-term debt from acquisitions Balance Sheet Summary (in millions) | Line Item | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Total current assets | $7,135.1 | $6,153.3 | | Goodwill | $3,480.1 | $2,418.3 | | Total assets | $17,881.2 | $13,392.9 | | Total current liabilities | $4,517.6 | $3,758.1 | | Long-term debt | $5,388.8 | $3,198.5 | | Total liabilities | $13,408.8 | $9,266.0 | | Total shareholders' equity | $4,472.4 | $4,126.9 | Condensed Consolidated Statements of Cash Flows For FY2025, net cash from operating activities was strong, with significant cash used in investing activities for acquisitions and capital expenditures, largely funded by new borrowings FY 2025 Statement of Cash Flows Summary (in millions) | Line Item | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,210.1 | $1,163.0 | | Net cash used in investing activities | $(3,089.0) | $(682.7) | | Net cash provided by (used in) financing activities | $1,937.9 | $(472.6) | Non-GAAP Financial Measures and Reconciliations This section explains PFG's use of non-GAAP measures like Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow to clarify core operating performance by excluding specific items, with detailed reconciliations provided - Management uses non-GAAP measures like Adjusted EBITDA and Adjusted Diluted EPS to evaluate business performance, for business planning, and as part of management compensation incentives4345 - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures and is used to assess the company's ability to make strategic investments and manage debt46 Reconciliation of Net Income to Adjusted EBITDA and Diluted EPS to Adjusted Diluted EPS For FY2025, GAAP Net Income was reconciled to Adjusted EBITDA through adjustments for interest, taxes, depreciation, amortization, LIFO reserve changes, and acquisition expenses, with Diluted EPS similarly adjusted FY 2025 GAAP to Non-GAAP Reconciliation Summary (in millions) | Metric | Amount | | :--- | :--- | | Net income (GAAP) | $340.2 | | (+) Interest, Taxes, D&A | $1,194.9 | | (+) Other Adjustments | $231.8 | | Adjusted EBITDA (Non-GAAP) | $1,766.9 | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Free Cash Flow for FY2025 was calculated by subtracting capital expenditures from net cash provided by operating activities, representing a decrease from the prior fiscal year FY 2025 Free Cash Flow Calculation (in millions) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $1,210.1 | | (-) Purchases of property, plant and equipment | $(506.0) | | Free cash flow (Non-GAAP) | $704.1 | Segment Results Reconciliation PFG reports performance for Foodservice, Convenience, and Specialty segments, with Foodservice being the largest contributor to both Net Sales and Segment Adjusted EBITDA in FY2025, showing strong profitability growth FY 2025 Segment Performance (in millions) | Segment | Net Sales | Segment Adjusted EBITDA | | :--- | :--- | :--- | | Foodservice | $33,646.1 | $1,221.6 | | Convenience | $24,507.5 | $407.3 | | Specialty | $4,905.0 | $348.2 | | Total Segments | $63,058.6 | $1,977.1 |
Performance Food pany(PFGC) - 2025 Q4 - Annual Results