Financial Performance - For the fiscal year ended September 27, 2025, total revenues were $5,334.0 million, a decrease of 5.4% from $5,639.6 million in the previous year[27]. - Net income for the fiscal year ended September 27, 2025 was $83.6 million, a decrease from $105.5 million for the fiscal year ended September 28, 2024, reflecting a net income margin of 1.6% compared to 1.9% in the prior year[130][143]. - Net sales for the fiscal year ended September 27, 2025 totaled $5.33 billion, down from $5.64 billion for the fiscal year ended September 28, 2024, with a comparable store sales decrease of 1.7% excluding fuel[131][143]. - Gross profit for the fiscal year ended September 27, 2025 was $1.27 billion, a decrease of $25.7 million or 2.0% from $1.30 billion in the previous fiscal year, with a gross profit margin of 23.9%[134]. - Operating and administrative expenses for the fiscal year ended September 27, 2025 were $1.159 billion, a slight decrease of $2.9 million from $1.162 billion in the prior year, representing 21.7% of net sales[135]. - The number of transactions (excluding fuel) decreased by 4.2% in fiscal year 2025, while the average transaction size increased by 0.1%[132]. - The Company generated $154.1 million in cash from operations for fiscal 2025, a decrease of 41.3% compared to $262.5 million in fiscal 2024[152]. - Cash used in investing activities for fiscal 2025 totaled $109.9 million, down 46.8% from $206.2 million in fiscal 2024, primarily due to a $96.4 million decrease in capital expenditures[153]. Operational Impact - The Company recognized impairment losses of $30.4 million related to inventory and $4.5 million related to property and equipment due to Hurricane Helene[15]. - The Company incurred approximately $9.0 million in cleanup and repair costs related to Hurricane Helene and received $6.2 million in insurance proceeds[16]. - The Company estimates approximately $55 to $65 million in lost revenue due to Hurricane Helene, which impacted operations during the last two days of the fiscal year ended September 28, 2024[130][126]. - The Company incurred $9.0 million in cleanup and repair expenses due to Hurricane Helene, partially offset by insurance proceeds of $1.5 million[130][135]. - The Company is subject to various governmental regulations, including those from the U.S. Food and Drug Administration and the U.S. Department of Agriculture, and believes it is in compliance with these regulations[61]. - The Company operates primarily in the Southeastern United States, making it susceptible to regional economic factors, including natural disasters like Hurricane Helene, which caused significant operational disruptions[64]. Store Operations - The Company operated 194 supermarkets as of September 27, 2025, with 185 under the "Ingles" name and 9 under "Sav-Mor"[29]. - The weighted average sales per store decreased to $25,916, down from $27,341 in the previous year[32]. - The average store size is 57,411 square feet, with 82 stores being at least 62,000 square feet[46]. - Approximately 58.8% of goods sold are supplied from the Company's distribution facilities, with the remaining 41.2% purchased from third parties[20]. - Approximately 58.8% of the Company's inventory is supplied from its warehouse and distribution facilities, with a total of 1.65 million square feet dedicated to these operations[39]. - The Company owns the real property for 174 of its supermarkets, including three temporarily closed stores due to Hurricane Helene[22]. - The Company operates fuel stations at 106 locations, with potential disruptions in fuel availability and pricing posing risks to financial performance[72]. Strategic Initiatives - The Company plans to continue its renovation and expansion strategy to modernize stores and enhance customer convenience[19]. - The Company aims to modernize its stores continuously, with ongoing construction and remodeling projects to enhance customer experience[44]. - The Company has a strong focus on private label products, which include milk, bread, and organic items, aimed at promoting customer loyalty[37]. - The Ingles Curbside service is available at 131 stores, allowing customers to order products online for pickup[36]. - The Company plans to invest approximately $120 to $140 million in capital expenditures for fiscal year 2026, focusing on store improvements and technology upgrades[148][149]. Financial Management - Capital expenditures for fiscal year 2025 totaled $114.5 million, significantly lower than $210.9 million in fiscal year 2024, primarily due to fewer purchases of new sites[146]. - Interest expense decreased to $19.7 million for the fiscal year ended September 27, 2025, down from $21.9 million in the previous year, with total debt at $514.8 million[141]. - The Company has a $150 million unsecured senior line of credit, which was amended in June 2025 and matures in June 2030[155]. - The outstanding aggregate principal amount of the Recovery Zone Bonds was $45.4 million as of September 27, 2025, with mandatory annual redemptions of $4.5 million starting from January 1, 2014[157]. - The Company expects to continue paying regular cash dividends, having paid $0.66 per share of Class A Common Stock in fiscal 2025[105]. - The Company expects to continue paying quarterly cash dividends of $0.165 per share on Class A Common Stock and $0.15 per share on Class B Common Stock[164]. Risk Factors - A shortage of qualified associates could lead to increased labor costs, which the Company may not be able to pass on to customers, significantly raising operating costs[66]. - Energy and utility costs have been volatile, prompting the Company to enhance energy efficiency in store construction and remodeling[68]. - The supermarket industry is highly competitive, with the Company facing pressure from competitors with greater financial resources[75]. - Economic conditions affecting consumer spending, such as employment levels and interest rates, could adversely impact the Company's financial results[77]. - Inflation has been noted, with the Consumer Price Index showing a 3.0% increase for all items year-over-year as of September 27, 2025[79]. - The Company is exposed to interest rate changes due to its borrowing activities, with variable interest rates on long-term debt averaging 5.90%[170]. - The Company anticipates that economic conditions will affect customer behavior, including purchasing patterns and product variety[172]. Governance and Compliance - The principal stockholder, Robert P. Ingle II, holds approximately 72.5% of the voting power, allowing significant influence over Company decisions[81]. - The Company has adopted an insider trading policy to promote compliance with insider trading laws and regulations[191]. - The Company has a Code of Ethics applicable to senior financial officers, including the CEO and CFO[192]. - The independent auditors, Deloitte & Touche LLP, audited the consolidated financial statements and internal control over financial reporting[185]. - The Company maintained effective disclosure controls and procedures as of September 27, 2025, providing reasonable assurance for timely reporting[180]. - The internal control over financial reporting was assessed as effective as of September 27, 2025, based on the COSO framework[184]. - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended September 27, 2025[186]. - The evaluation of the effectiveness of disclosure controls and procedures was conducted under the supervision of the CEO and CFO[179]. Audit and Vendor Relations - The audit identified vendor allowances as a critical audit matter due to the diversity of individual vendor agreements[210]. - Vendor allowances applied as a reduction of merchandise costs totaled $151.9 million for the fiscal year ended September 27, 2025[121]. - The Company received funds from vendors for merchandising activities, including volume-based incentives and advertising allowances[209]. - Vendor allowances are recorded as a reduction of inventory cost and recognized in cost of goods sold when the related inventory is sold[209].

Financial Performance - The twelve-month backlog as of September 27, 2025, was $3.0 billion, an increase of 20% compared to September 28, 2024[16] - Net sales to the five largest customers represented approximately 31% of total sales in 2025[41] - Aerospace and defense OEM customers accounted for 61% of total sales in 2025, with U.S. Government contracts representing 38% of total sales[40][42] - Aftermarket sales accounted for 14% of total sales in 2025[40] - Industrial market sales represented 25% of total sales in 2025, with lead times of 90 days or less[40] Research and Development - Research and development expenses were $94 million, representing approximately 2.4% of sales in 2025[20] - Internal research and development activities are significant, with a focus on advanced motion control products[37] - The company maintains a patent portfolio that includes patents related to motion control and actuation systems, which are significant for future revenue opportunities[19] Employee Management - The company hired over 1,400 new employees and rehired over 70 employees in 2025[23] - The average voluntary attrition rate over the last five years was approximately 7%[30] - The company conducts an extensive talent review annually, including succession planning for critical roles[36] - Moog's leadership development programs include an 18-month Moog Leadership Program and a nine-month Emerging Leadership Program[34] - The company’s leadership development strategy focuses on internal growth and development of leaders through on-the-job experiences[33] Environmental Commitment - The company aims to reduce combined Scope 1 and 2 emissions by 40% from the 2022 baseline by 2030[43] - The company has established baselines for water consumption and hazardous waste from 2022 data, with improvement goals set[43] - Moog launched a pilot of paid Volunteer Time Off, allowing employees one paid shift per year to volunteer, with plans to expand in 2025[43] Operational Insights - The company operates through wholly-owned foreign subsidiaries primarily in Europe and the Asia-Pacific region, facing risks such as currency fluctuations and local government regulations[44] - The company emphasizes a strong commitment to health and safety, regularly conducting training and measuring EHS results continuously[27] - The company’s sales and marketing organization consists of individuals with specialized technical expertise to meet customer precision control requirements[14] - The company’s operations are not generally seasonal, although certain products in the energy market may experience seasonal variations in sales levels[18]

Financial Performance - The twelve-month backlog as of September 27, 2025, was $3.0 billion, an increase of 20% compared to September 28, 2024[16]. - Net sales to the five largest customers represented approximately 31% of total sales in 2025[41]. - Aerospace and defense OEM customers accounted for 61% of total sales in 2025, with U.S. Government contracts representing 38% of total sales[40][42]. - Aftermarket sales accounted for 14% of total sales in 2025[40]. - Industrial market sales represented 25% of total sales in 2025, typically based on lead times of 90 days or less[40]. Research and Development - Research and development expenses were $94 million, representing approximately 2.4% of sales in 2025[20]. - Internal research and development activities are significant, with a focus on innovation in motion control products[20]. - The company maintains a patent portfolio that includes patents related to motion control and actuation systems, which are significant for future revenue opportunities[19]. Employee and Leadership Development - The company hired over 1,400 new employees and rehired over 70 employees in 2025[23]. - The average voluntary attrition rate over the last five years was approximately 7%[30]. - The company’s leadership development strategy focuses on internal growth and development of leaders through on-the-job experiences[33]. - Moog's leadership development programs include an 18-month Moog Leadership Program and a nine-month Emerging Leadership Program[34]. - The company has established a Global Mentoring Program and an on-demand learning library to support employee development[35]. Environmental Commitment - The company aims to reduce combined Scope 1 and 2 emissions by 40% from the 2022 baseline by 2030[43]. - The company has refined its corporate charitable giving guidelines to prioritize twelve key United Nations Sustainable Development Goals[43]. Operational Insights - The company operates through wholly-owned foreign subsidiaries primarily in Europe and the Asia-Pacific region, facing risks such as currency fluctuations and local government regulations[44]. - Moog's international operations are primarily located in Europe and the Asia-Pacific region, facing typical risks of international trade[44]. - The company emphasizes a strong commitment to health and safety, regularly conducting training and measuring EHS results continuously[27]. - The company’s sales and marketing organization consists of individuals with specialized technical expertise to meet customer precision control requirements[14]. - The company’s operations are not generally seasonal, although certain products in the energy market may experience seasonal variations[18].

Financial Performance - GAAP diluted earnings per share were $1.51, and adjusted diluted earnings per share were $1.78, reflecting a decrease of 18.2% and 3.9% respectively compared to the prior year[59]. - Net sales for the third quarter were $25.3 billion, a decrease of 1.5% from the comparable prior-year period, with operating income of $0.9 billion, down 18.9%[65]. - Comparable sales decreased by 2.7%, driven by a 2.2% decrease in traffic and a 0.5% decrease in average transaction amount[71]. - Net earnings for the three months ended November 1, 2025, were $689 million, a decrease of 19.3% compared to $854 million in the same period last year[94]. - Cash flows from operating activities decreased to $3.5 billion for the nine months ended November 1, 2025, down from $4.1 billion in the prior year, attributed to lower net earnings and inventory purchases[100]. Cost and Expenses - The after-tax return on invested capital (ROIC) for the trailing twelve months was 13.4%, down from 15.9% in the prior year[60]. - The gross margin rate for the three months ended November 1, 2025, was 28.2%, slightly down from 28.3% in the prior year[78]. - Selling, General, and Administrative (SG&A) expense rate increased to 21.9% from 21.3% in the prior year, impacted by business transformation costs[83]. - GAAP diluted earnings per share for the three months ended November 1, 2025, was $1.51, while adjusted EPS was $1.78, reflecting a business transformation cost adjustment of $161 million[91]. Business Transformation - The company is undergoing a multi-year business transformation initiative, which may incur additional costs in future periods[63]. - Target Circle Card penetration was 16.9% for the three months ended November 1, 2025, down from 17.7% in the prior year[74]. Inventory and Liquidity - Inventory increased to $14.9 billion as of November 1, 2025, compared to $12.7 billion in February 2025, reflecting seasonal inventory build ahead of the holiday sales period[101]. - Cash and cash equivalents were $3.8 billion as of November 1, 2025, compared to $4.8 billion in February 2025, indicating a decrease in liquidity[99]. - The company believes its sources of liquidity will be adequate to meet contractual obligations, working capital, planned capital expenditures, and execute share repurchase programs[110]. Debt and Credit - The company issued $1.0 billion of unsecured debt in both March and June 2025, and repaid $1.5 billion of unsecured debt in April 2025[107]. - As of November 1, 2025, the company's credit ratings were A2 (Moody's), A (S&P), and A (Fitch) for long-term debt, and P-1 (Moody's), A-1 (S&P), and F1 (Fitch) for commercial paper[106]. - The company has a new committed $1.0 billion 364-day unsecured revolving credit facility expiring in October 2026, alongside a $3.0 billion unsecured revolving credit facility expiring in October 2028[108]. Tax and Dividends - The effective income tax rate decreased to 19.8% for the three months ended November 1, 2025, down from 21.7% in the prior year, mainly due to benefits from tax credits[88]. - Dividends paid totaled $518 million for the three months ended November 1, 2025, representing a per share increase of 1.8% compared to the same period last year[103]. Market and Risk Management - There have been no material changes in primary risk exposures or management of market risks since the last disclosure[115]. - The company does not expect any recently issued accounting pronouncements to materially affect its financial statements[111]. - Forward-looking statements include expectations regarding future financial performance, liquidity sources, and capital expenditures[113].

Company Overview - The company serves 72 mid-sized communities across 25 states, with over 633,000 digital-only subscribers[7]. - As of September 28, 2025, the total number of digital and print subscribers reached 889,802, with unique visitors averaging 14,509 monthly[16]. - Approximately 2,500 employees are employed, with a focus on investing in top digital talent to support growth strategies[19]. Revenue Streams - The primary revenue streams include subscriptions, advertising, and digital marketing services, with a focus on omni-channel marketing solutions[12]. - The company is focused on managing declining print revenue and adapting to changes in advertising and subscription demand[25]. Digital Strategy - The company is committed to expanding audiences and deepening engagement through hyper-local content and world-class digital products[9]. - The company has a strong portfolio of digital products, including AI-powered solutions, aimed at enhancing customer engagement and satisfaction[8]. - Future strategies include continuous innovation in digital products and expanding market reach through enhanced marketing solutions[10]. Corporate Governance - The board of directors consists of eight independent members, reflecting strong corporate governance practices[20]. - The company maintains good relationships with newsprint producers, ensuring an adequate supply of newsprint for operations[17].

Financial Performance - The Company reported a net income of $68.0 million, or $0.52 per share, for fiscal year 2025, up from $38.0 million, or $0.29 per share, in the prior year, primarily due to higher net interest income [143]. - The efficiency ratio improved to 58.33% for the current fiscal year, down from 66.91% in the prior year, reflecting higher net interest income [146]. - The return on average assets increased to 0.71% in 2025 from 0.40% in 2024, reflecting enhanced profitability relative to total assets [285]. - The return on average equity improved to 6.54 in 2025, up from 3.69 in 2024, indicating stronger returns for shareholders [285]. - Net income for the current fiscal year was $68.025 million, a 79.0% increase from $38.010 million in the prior fiscal year, with pretax income rising by 53.4% to $83.021 million [307]. Loan Portfolio - Total loans receivable increased to $8.0 billion in 2025, with a net interest income of $180.3 million, compared to $7.9 billion and $162.1 million in 2024, respectively [288]. - The commercial loan portfolio increased by $607.0 million, or approximately 40%, during the current fiscal year, while one- to four-family loans decreased by $400.0 million [148]. - The one- to four-family loan portfolio decreased to $3.77 billion, representing 64% of the total one- to four-family loan portfolio, impacted by high interest rates and limited housing inventory [177][176]. - The commercial loan portfolio, which includes commercial real estate loans, reached $2.12 billion, up from $1.51 billion in the previous year, with a weighted average yield of 5.98% [187]. - Total originated commercial loans amounted to $797,466,000 with a weighted average rate of 6.93% and a weighted average LTV of 65% [203]. Asset and Liability Management - Total assets reached $9.78 billion as of September 30, 2025, an increase of $251.1 million from the previous year, mainly due to loan portfolio growth funded by deposit increases [147]. - Total liabilities increased to $8.73 billion, up $235.7 million from the previous year, primarily due to a $364.5 million increase in deposits from high yield savings accounts [151]. - The Bank's total borrowings were $1.95 billion, representing approximately 20% of total assets, with a borrowing limit of 44% starting November 1, 2025 [312]. - The weighted average rate for total deposits decreased to 2.26% in 2025 from 2.45% in 2024 [251]. - The Bank had $2.92 billion in liquidity available as of September 30, 2025, based on its collateral agreements and unencumbered securities [313]. Credit Quality and Risk Management - The Allowance for Credit Losses (ACL) was $24.0 million as of September 30, 2025, an increase from $23.0 million in the previous year, while the reserve for off-balance sheet credit exposures decreased to $5.5 million from $6.0 million [171]. - Nonaccrual loans as a percentage of total loans increased to 0.59% as of September 30, 2025, from 0.13% in the previous year [225]. - The total non-performing assets amounted to $48.3 million, representing 0.49% of total assets as of September 30, 2025 [225]. - The ratio of ACL to total loans increased to 0.30% as of September 30, 2025, compared to 0.29% in the previous year, primarily due to a shift in the loan portfolio mix towards commercial loans [239]. - The provision for credit losses for the year ended September 30, 2025, was $1.202 million, a significant increase from a provision of $(633) thousand in 2024 [242]. Dividend and Shareholder Returns - Stockholders' equity totaled $1.05 billion as of September 30, 2025, with total dividends declared and paid during fiscal year 2025 amounting to $44.3 million [152]. - The Company plans to continue regular quarterly cash dividends of $0.085 per share and explore further share repurchase opportunities in fiscal year 2026 [163]. - The Company paid $44.3 million in cash dividends during the fiscal year, equating to $0.34 per share [271]. - A stock repurchase of 618,260 shares was executed at an average price of $6.23 per share during the fiscal year [272]. - Since the second-step conversion in December 2010, the Company has returned $2.01 billion to stockholders through dividends and stock repurchases [273]. Strategic Initiatives and Future Outlook - The Company anticipates growing past $10 billion in total assets in the coming fiscal years due to strategic initiatives [308]. - Management continues to evaluate capital allocation strategies to enhance stockholder value, including stock repurchases and additional cash dividends [273]. - The projected disbursements for the quarter ending December 31, 2025, are expected to be $75,856,000 [209]. - The Company aims to maintain a tier 1 leverage ratio of about 9% to manage risk effectively [275]. - The Bank is expected to continue making earnings distributions to the Company during fiscal year 2026, contingent on maintaining positive tax accumulated earnings [276]. Operational and Compliance Risks - Cybersecurity risks continue to rise, potentially impacting the Bank's operations and reputation [86]. - Compliance with evolving privacy and data protection laws may result in higher costs and restrict business activities [92]. - The Bank and the Company face potential business, reputation, and financial risks from third-party vendors, including operational errors and information security breaches [94]. - The Bank heavily relies on technology for product delivery and business operations, necessitating ongoing investment in technological solutions and system upgrades [97]. - There are risks associated with implementing new technology initiatives, including potential delays, budget overruns, and negative operational impacts [97].

Revenue Performance - Q4 total operating revenue was $139 million, with total digital revenue at $74 million, representing 53% of total revenue[2] - For the fiscal year 2025, total operating revenue was $562 million, with total digital revenue flat at $298 million[5] - Total Operating Revenue for the three months ended September 28, 2025, was $139.1 million, a decrease of 12.3% compared to $158.6 million for the same period in 2024[15] - Same-store Total Advertising Revenue for the twelve months ended September 29, 2025, was $252.3 million, down 5.5% from $266.9 million in 2024[15] - Digital Advertising Revenue for the three months ended September 28, 2025, was $44.1 million, a decline of 16.0% from $52.5 million in the same period last year[15] - Print Subscription Revenue for the twelve months ended September 29, 2025, decreased to $164.2 million, down 16.9% from $197.6 million in 2024[15] - Total Subscription Revenue for the three months ended September 28, 2025, was $67.0 million, a decrease of 8.5% from $73.0 million in the same period last year[15] Digital Revenue Insights - Digital-only subscription revenue increased by 16% year-over-year, totaling $25 million, with 633,000 digital-only subscribers at the end of the quarter[2] - The company reported Same-store Digital Subscription Revenue of $94.2 million for the twelve months ended September 29, 2025, an increase of 16.2% from $81.0 million in 2024[15] Financial Performance - Adjusted EBITDA for Q4 was $15 million, a decrease of $2 million year-over-year, but an increase of $2 million on a comparable basis[2] - Adjusted EBITDA for FY25 was negatively impacted by a cyber incident, with an estimated impact of approximately $8 million[17] - The company expects mid-single-digit Adjusted EBITDA growth for fiscal year 2026[4] Operating Expenses and Losses - Operating expenses for FY25 totaled $571 million, a 7% decrease compared to the prior year[5] - The company reported a net loss of $36 million for FY25, compared to a net loss of $25.8 million in the previous year[5] Debt and Financial Strategy - The company has $455 million of debt outstanding with favorable financing terms, including a fixed annual interest rate of 9.0%[4] - The company’s debt stands at $576 million under a credit agreement with BH Finance LLC[17] Strategic Changes - The strategic termination of the fully funded benefit pension plan is aimed at improving balance sheet flexibility and reducing long-term volatility[6] Operational Context - The fourth quarter of fiscal 2025 consisted of 13 weeks, compared to 14 weeks in the fourth quarter of fiscal 2024[17] - Cash Costs are defined as compensation, newsprint, ink, and other operating expenses, excluding non-cash operating expenses[17]

Financial Performance - Consolidated net sales for fiscal 2025 were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[220]. - Operating income increased by $64.7 million, or 34.9%, to $250 million in fiscal 2025, with an operating margin improvement to 8.0% from 5.8% in fiscal 2024[240]. - Gross profit rose by $53.6 million, or 5.7%, to $997.3 million, with gross margin improving 240 basis points to 31.9% in fiscal 2025[232]. - Net income for fiscal 2025 was $162.8 million, or $2.55 per diluted share, compared to $108.0 million, or $1.62 per diluted share in fiscal 2024[225]. - Total net sales for fiscal 2025 were $3,129.1 million, compared to $3,200.5 million for fiscal 2024, reflecting a decrease of 2.2%[260]. - Non-GAAP net income for fiscal 2025 was $174.2 million, or $2.73 per diluted share, compared to $142.4 million, or $2.13 per diluted share for fiscal 2024, indicating a 22.3% increase in non-GAAP net income[259]. Segment Performance - Pet net sales decreased by $30.8 million, or 1.7%, to $1.8 billion, primarily due to lower sales of durable items[230]. - Garden net sales decreased by $40.6 million, or 3.0%, to $1.3 billion, attributed to decreased sales of third-party products and the planned exit of the pottery business[231]. - The Garden segment's operating income for fiscal 2025 was $142.4 million, up from $81.9 million in fiscal 2024, showing a significant increase of 74.0%[262]. - The Pet segment's operating income for fiscal 2025 was $215.7 million, compared to $203.4 million in fiscal 2024, representing a 6.0% increase[261]. Expenses and Costs - Selling, general and administrative expenses decreased by $11.0 million, or 1.5%, to $747.3 million, but as a percentage of net sales, it increased to 23.9%[236]. - The company incurred approximately $10 million in one-time closure costs related to the wind-down of U.K. operations during fiscal 2025[222]. - The effective income tax rate increased to 24.4% in fiscal 2025 from 23.2% in fiscal 2024, primarily due to non-deductible losses from the U.K. operations wind-down[247]. - Inflation moderated in fiscal 2024 but increased in the second half of fiscal 2025, primarily due to tariffs, impacting margins and input costs[266]. Cash Flow and Financing - Net cash provided by operating activities decreased by $62.4 million, from $394.9 million in fiscal 2024 to $332.5 million in fiscal 2025[272]. - Net cash used in investing activities decreased by $60.3 million, from $105.2 million in fiscal 2024 to $44.9 million in fiscal 2025, primarily due to the acquisition of TDBBS, LLC in fiscal 2024[273]. - Net cash used in financing activities increased by $131.2 million, from $25.4 million in fiscal 2024 to $156.6 million in fiscal 2025, mainly due to higher stock repurchases[274]. - The company financed its growth through a combination of internally generated funds, bank borrowings, supplier credit, and sales of equity and debt securities[269]. Shareholder Activities - The company repurchased 3.2 million shares of non-voting common stock and 1.4 million shares of voting common stock at an aggregate cost of $148.4 million during fiscal 2025[224]. - The company has a $600 million asset-backed loan facility, which is expected to be sufficient for working capital and capital spending needs for at least the next 12 months[275]. Assets and Liabilities - Total debt outstanding as of September 27, 2025, was $1,191.7 million, slightly up from $1,190.0 million at September 28, 2024[283]. - The company has significant contractual cash obligations totaling $1.83 billion, with long-term debt obligations of $1.20 billion and interest payment obligations of $230.2 million[313]. - Long-term debt for the Parent/Issuer was $1.19 billion, with total liabilities amounting to $3.59 billion, while Guarantors had long-term debt of $100,000 and total liabilities of $580.9 million[312]. Impairments and Risks - The company recognized a non-cash impairment charge of $12.8 million in the Pet segment during fiscal 2024 due to changing market conditions[256]. - The company recognized impairment losses on intangible assets of $1.0 million, $12.8 million, and $11.5 million in fiscal years 2025, 2024, and 2023 respectively[328]. - The company performed annual goodwill impairment testing and determined that it was more likely than not that the fair values of its reporting segments were greater than their carrying amounts, thus no impairment was required for fiscal years 2024 and 2025[322][323]. Market and Currency Exposure - The company has minimal exposure to foreign currency exchange risk due to limited sales outside the United States[333]. - Purchases by U.S. subsidiaries from foreign vendors are primarily made in U.S. dollars, reducing currency risk[333]. - The international subsidiary primarily transacts in British pounds and Canadian dollars, but overall exposure remains minimal[333]. - The company does not hedge against foreign currency risks, considering them immaterial to current business operations[333].

Financial Performance - Consolidated net sales for fiscal 2025 were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[220]. - Operating income increased by $64.7 million, or 34.9%, to $250 million in fiscal 2025, with an operating margin improvement to 8.0% from 5.8% in fiscal 2024[240]. - Gross profit rose by $53.6 million, or 5.7%, to $997.3 million, with gross margin improving 240 basis points to 31.9% in fiscal 2025[232]. - Net income for fiscal 2025 was $162.8 million, or $2.55 per diluted share, compared to $108.0 million, or $1.62 per diluted share for fiscal 2024, representing a 50.6% increase in net income[248]. - Non-GAAP net income for fiscal 2025 was $174.2 million, or $2.73 per diluted share, compared to $142.4 million, or $2.13 per diluted share for fiscal 2024, reflecting a 22.3% increase in non-GAAP net income[259]. - Total net sales for fiscal 2025 were $3,129.1 million, compared to $3,200.5 million for fiscal 2024, indicating a slight decrease of 2.2%[260]. Segment Performance - Pet net sales decreased by $30.8 million, or 1.7%, to $1.8 billion, primarily due to lower sales of durable items[230]. - Garden net sales decreased by $40.6 million, or 3.0%, to $1.3 billion, attributed to decreased sales of third-party products and the planned exit of the pottery business[231]. - The Garden segment's operating income for fiscal 2025 was $142.4 million, up from $81.9 million in fiscal 2024, showing a significant increase of 74.0%[262]. - The Pet segment's operating income for fiscal 2025 was $215.7 million, compared to $203.4 million in fiscal 2024, marking a 6.0% increase[261]. Expenses and Costs - Selling, general and administrative expenses decreased by $11.0 million, or 1.5%, to $747.3 million, but as a percentage of net sales, it increased to 23.9%[236]. - The effective income tax rate increased to 24.4% in fiscal 2025 from 23.2% in fiscal 2024, primarily due to non-deductible losses from the wind-down of U.K. operations[247]. - The company incurred approximately $10.0 million in one-time closure costs related to the wind-down of U.K. operations[222]. - Net interest expense decreased by $5.1 million, or 13.4%, to $32.8 million, due to increased interest income from higher cash balances[245]. Cash Flow and Financing - Net cash provided by operating activities decreased by $62.4 million, from $394.9 million in fiscal 2024 to $332.5 million in fiscal 2025[272]. - Net cash used in investing activities decreased by $60.3 million, from $105.2 million in fiscal 2024 to $44.9 million in fiscal 2025, primarily due to the acquisition of TDBBS, LLC in fiscal 2024[273]. - Net cash used in financing activities increased by $131.2 million, from $25.4 million in fiscal 2024 to $156.6 million in fiscal 2025, mainly due to higher stock repurchases[274]. - The company financed its growth through a combination of internally generated funds, bank borrowings, supplier credit, and sales of equity and debt securities[269]. Share Repurchase and Debt - During fiscal 2025, the company repurchased 3.2 million shares of non-voting common stock and 1.4 million shares of voting common stock at a total cost of $148.4 million[224]. - Total debt outstanding as of September 27, 2025, was $1,191.7 million, slightly up from $1,190.0 million at September 28, 2024[283]. - The company has a $600 million asset-backed loan facility, which is expected to be adequate for working capital and capital spending needs for at least the next 12 months[275]. - The company incurred approximately $6 million of debt issuance costs related to the issuance of $400 million 4.125% senior notes due 2031[285]. Assets and Liabilities - Total assets for the Parent/Issuer were $5.20 billion, while Guarantors had total assets of $4.46 billion as of September 27, 2025, compared to $4.81 billion and $4.23 billion respectively in the prior year[312]. - Long-term debt for the Parent/Issuer was $1.19 billion, with total liabilities amounting to $3.59 billion, while Guarantors had long-term debt of $100,000 and total liabilities of $580.9 million[312]. - The company has significant contractual cash obligations totaling $1.83 billion, with $204.8 million due in fiscal 2026[313]. Impairments and Risks - The company recognized a non-cash impairment charge of $12.8 million in the Pet segment during fiscal 2024 due to changing market conditions[256]. - The company recognized impairment losses on intangible assets of $1.0 million, $12.8 million, and $11.5 million in fiscal years 2025, 2024, and 2023 respectively[328]. - Interest expense could increase or decrease by approximately $1.9 million if interest rates changed by 25 basis points on the company's Amended Credit Facility[331]. Market and Operational Insights - Approximately 64% of the Garden segment's net sales occurred during the second and third fiscal quarters, highlighting the seasonality of the business[268]. - Inflation moderated in fiscal 2024 but increased in the second half of fiscal 2025, primarily due to tariffs, impacting margins and input costs[266]. - The company has minimal sales outside of the United States, indicating a strong domestic focus[333]. - Purchases by U.S. subsidiaries from foreign vendors are primarily made in U.S. dollars, reducing foreign currency risk exposure[333]. - The international subsidiary primarily transacts in British pounds and Canadian dollars, but overall foreign currency exchange risk is considered immaterial[333]. - The company does not hedge against foreign currency risks, reflecting confidence in current operations[333]. Growth Strategy - The company anticipates capital expenditures of approximately $50 to $60 million over the next 12 months for plant and equipment upgrades and IT platform implementation[276]. - The company is evaluating potential acquisition candidates as part of its growth strategy, which may require additional external capital[277].

Business Operations - Suburban Propane sold approximately 400.5 million gallons of propane and 16.5 million gallons of fuel oil and refined fuels to retail customers during the year ended September 27, 2025[11]. - The company serves approximately 1.0 million customers through about 750 locations across 42 states, with operations mainly on the east and west coasts and parts of the Midwest and Alaska[11]. - Approximately 93% of propane gallons sold in fiscal 2025 were to retail customers, with 43% to residential, 39% to commercial, and 8% to industrial customers[32]. - Sales of fuel oil and refined fuels amounted to 16.5 million gallons in fiscal 2025, with 66% sold to residential customers[43]. - During fiscal 2025, approximately 1.1 million dekatherms of natural gas and 121.5 million kilowatt hours of electricity were sold, with 88% of customers being residential households[53]. - The retail propane industry is highly fragmented, with the ten largest retailers accounting for approximately 35% of total retail sales in the U.S.[41]. - Approximately two-thirds of retail propane volume is sold during the peak heating season from October through March[57]. - The fuel oil business experiences greater seasonality, with approximately three-fourths of volumes sold between October and March[57]. Renewable Energy Initiatives - In fiscal 2022, Suburban Renewable Energy acquired a platform of RNG production assets, including a facility in Arizona and a project in Ohio, expected to come online in the first half of fiscal 2026[14]. - Suburban Renewable Energy also acquired a 25% equity interest in Independence Hydrogen, Inc., focusing on developing a hydrogen ecosystem for local markets[15]. - The company aims to achieve sustainable profitable growth through strategic investments in renewable energy products and technologies[21]. - The company is committed to advancing clean air and low-carbon benefits of traditional propane while investing in innovative renewable energy solutions[22]. - The company is committed to increasing the availability of renewable liquid fuels, including renewable propane and RNG, in the coming years[73]. - The Renewable Fuel Standard (RFS) mandates the use of renewable fuel in the transportation sector, with the company expecting to generate RINs from RFS-compliant biofuel production[75]. - The Inflation Reduction Act includes tax credits and incentives for renewable energy production, which may benefit the company's renewable energy products[76]. - The company has executed agreements to purchase and distribute renewable propane, offering a low carbon intensity alternative to traditional fuels[74]. - In fiscal year 2025, the company exceeded 2.0 million gallons of renewable propane sales, primarily in California's transportation and forklift markets[87]. - The company contracted for the supply of over 10.0 million gallons annually of renewable propane to meet customer demand[87]. - The company has invested in a dairy waste anaerobic digester in upstate New York for the production of RNG and purchased anaerobic digesters in Columbus, Ohio, and Stanfield, Arizona[87]. Financial Performance and Risks - The company has accrued environmental liabilities of $1.1 million as of September 27, 2025, representing estimated future remediation and monitoring costs[63]. - The company anticipates ongoing compliance costs related to environmental regulations, but does not expect these to materially affect financial conditions[80]. - The company’s financial performance is vulnerable to disruptions in the capital and credit markets, affecting liquidity and investment opportunities[127]. - The potential for increased volatility in commodity and input costs could substantially impact operational results[127]. - Supply chain disruptions could adversely impact the company's ability to acquire sufficient supplies of products, potentially affecting financial results[128]. - The company has experienced increased freight expenses and longer lead times due to global supply chain disruptions, which may continue to affect operations[129]. - High inflation in the U.S. has led to increased commodity, transportation, and labor costs, negatively impacting profitability[130]. - The retail propane and fuel oil industries are expected to see relatively flat to moderately declining demand over the next several years due to competition and weather patterns[135]. - The company faces intense competition from other energy sources, particularly natural gas, which is currently less expensive than propane and fuel oil[136]. - The ongoing geopolitical conflicts, including the situation in Ukraine and the Middle East, have caused volatility in the price and supply of propane and fuel oil, potentially impacting business operations[144]. Regulatory and Compliance Issues - The company is required to disclose climate-related financial risks by January 1, 2026, under California's SB 261[79]. - The California climate disclosure legislation requires entities meeting certain revenue thresholds to disclose Scope 1 and Scope 2 GHG emissions starting in 2026, impacting operational costs[122]. - Government regulations related to environmental and health and safety matters could lead to significant costs and operational challenges for the company[148]. - Current regulatory proposals could adversely impact the assessment of carbon intensity for fuel produced outside of California, affecting the value of RINs and LCFS Credits[170]. Employee and Community Engagement - As of September 27, 2025, the company had 3,190 full-time employees, with 2,476 in customer service centers[108]. - The company intensified efforts in fiscal year 2024 to collaborate with organizations supporting underserved communities, focusing on issues like food insecurity and education[91]. - The company has been recognized as a "Top Company for Women to Work in Transportation" for two consecutive years and ranked among the "Elite 30" in 2025[97]. - The Board of Supervisors was honored with the Small Company Board of the Year award in fiscal year 2025 for high standards of governance[104]. Safety and Environmental Commitment - The company maintains a strong commitment to safety, investing in programs and technology to improve safety throughout its operations[93]. - The company is actively monitoring potential environmental issues and compliance with various federal and state regulations[62]. - The company is positioned to benefit from state-level programs aimed at reducing greenhouse gas emissions, such as the California Low Carbon Fuel Standard[77]. Debt and Financial Obligations - As of September 27, 2025, the company has long-term debt totaling $350.0 million in 5.875% senior notes due March 1, 2027, $650.0 million in 5.0% senior notes due June 1, 2031, $80.6 million in 5.5% green bonds due October 1, 2028 through October 1, 2033, and $149.2 million outstanding under a $500.0 million senior secured revolving credit facility[182]. - The company’s ability to make distributions to Unitholders is limited by its debt obligations, including covenants that restrict additional indebtedness and certain transactions[182]. - The Green Bonds previously required a debt service coverage ratio of not less than 1.00 to 1.00, which the company did not comply with for several fiscal quarters, leading to potential events of default[183]. - The company obtained waivers from the holders of the Green Bonds for non-compliance with the debt service coverage ratio, allowing continued operations without immediate default[186]. Market and Economic Conditions - Economic conditions, including inflation and consumer spending rates, have adversely affected business performance and may continue to do so[126]. - Increased costs and reduced demand for products may arise from climate change effects, including severe weather events and shifts in consumer behavior[119]. - A significant percentage of the workforce being unable to work due to external conditions could negatively impact operations[127]. - The company is challenged in attracting and retaining qualified employees, particularly drivers and technicians, which may affect operational efficiency[141]. - The company faces risks related to cybersecurity breaches, which could lead to significant harm to its business and operations[178].