US Foods(US:USFD)2025-11-06 11:47Financial Performance - Net sales increased by 4.8% to $10.2 billion, driven by case volume growth and food cost inflation of 3.0%[4] - Adjusted EBITDA grew by 11.0% to $505 million, with an Adjusted EBITDA margin expansion of 28 basis points to 5.0%[7] - Diluted EPS increased by 9.8% to $0.67, while Adjusted Diluted EPS rose by 25.9% to $1.07[3] - Net sales for the 13 weeks ended September 27, 2025, were $10,191 million, an increase of 4.8% from $9,728 million for the same period in 2024[28] - Gross profit for the 39 weeks ended September 27, 2025, was $5,144 million, up 5.7% from $4,868 million in 2024[28] - Adjusted EBITDA for the 13 weeks ended September 27, 2025, was $505 million, representing an 11.0% increase from $455 million in 2024[33] - Net income for the 39 weeks ended September 27, 2025, was $492 million, a 15.0% increase compared to $428 million in 2024[30] - Adjusted Net income for the 13 weeks ended September 27, 2025, was $245 million, a 17.8% increase from $208 million in 2024[33] - Adjusted EBITDA for the same period was $1,442 million, up 10.9% from $1,300 million year-over-year[40] - Adjusted Net income increased by 18.8% to $681 million compared to $573 million in the prior year[40] - Diluted EPS (GAAP) rose to $2.12, reflecting a 21.8% increase from $1.74 in the previous year[40] Operating Metrics - Total case volume increased by 1.1%, with independent restaurant case volume up by 3.9%[4] - Operating expenses rose by 6.0% to $1.5 billion, primarily due to increased case volume and higher distribution costs[6] - Cash flows from operating activities for the 39 weeks ended September 27, 2025, were $1,076 million, compared to $891 million in 2024[30] - Operating expenses (GAAP) increased by 4.8% to $4,266 million from $4,071 million year-over-year[40] - Business acquisition and integration-related costs for the 39 weeks ended September 27, 2025, were $24 million, up from $17 million in the prior year[43] Debt and Cash Flow - Net debt at the end of the quarter was $4.9 billion, with a Net Debt to Adjusted EBITDA ratio of 2.6x[9] - The company repurchased approximately $335 million of shares during the quarter, with $467 million remaining under its share repurchase program[9] - Total Debt as of September 27, 2025, was $4,952 million, slightly up from $4,928 million at the end of December 2024[45] - Net Debt stood at $4,896 million, compared to $4,869 million in December 2024[45] - The Net Leverage Ratio improved to 2.6 from 2.8 in the previous reporting period[45] Future Guidance and Acquisitions - Fiscal Year 2025 guidance was updated to reflect net sales growth of 4% to 5% and Adjusted EBITDA growth of 10% to 12%[13] - The company signed a definitive agreement to acquire Shetakis, targeting a close in the fourth quarter of 2025[10] Assets and Liabilities - Total assets as of September 27, 2025, were $14,044 million, up from $13,436 million as of December 28, 2024[26] - Total liabilities increased to $9,573 million as of September 27, 2025, compared to $8,908 million as of December 28, 2024[26] - The company experienced a 100% increase in LIFO reserve adjustment from $23 million in 2024 to $46 million in 2025[33]