Sysco(US:SYY) Globenewswire·2025-07-29 12:00Core Insights - Sysco Corporation reported financial results for the fourth fiscal quarter and the fiscal year ended June 28, 2025, showing improved performance driven by company-specific initiatives and increased restaurant industry traffic [1][2]. Financial Performance Summary - Fourth Quarter Results: - Total sales increased by 2.8% to $21.1 billion [5][33]. - Gross profit rose by 3.9% to $4.0 billion, with a gross margin of 18.9% [6][8]. - Operating income decreased by 9.0% to $889 million, while adjusted operating income increased by 1.1% to $1.1 billion [6][10]. - Net earnings fell by 13.2% to $531 million, but adjusted net earnings increased by 3.3% to $716 million [6][10]. - EBITDA decreased by 6.5% to $1.1 billion, while adjusted EBITDA increased by 1.8% to $1.3 billion [6][10]. - Diluted EPS decreased by 10.6% to $1.10, while adjusted EPS increased by 6.5% to $1.48 [6][10]. - Fiscal Year Results: - Total sales for the fiscal year increased by 3.2% to $81.4 billion [19][33]. - Gross profit increased by 2.5% to $15.0 billion, with a gross margin of 18.4% [19][33]. - Operating income decreased by 3.6% to $3.1 billion, while adjusted operating income increased by 1.2% to $3.5 billion [19][21]. - Net earnings decreased by 6.5% to $1.8 billion, but adjusted net earnings increased by 0.8% to $2.2 billion [19][21]. - EBITDA decreased by 1.2% to $4.0 billion, while adjusted EBITDA increased by 2.4% to $4.3 billion [19][21]. Segment Performance - U.S. Foodservice Operations: - Sales increased by 2.4% to $14.8 billion, with total case volume decreasing by 0.3% [11][23]. - Gross profit increased by 2.8% to $2.9 billion, with a gross margin of 19.5% [11][23]. - Operating income decreased by 2.0% to $1.0 billion [12][24]. - International Foodservice Operations: - Sales increased by 3.6% to $3.9 billion, with a constant currency increase of 1.0% [15][25]. - Gross profit increased by 7.6% to $847 million, with a gross margin of 21.6% [16][26]. - Operating income increased by 26.1% to $145 million [18][28]. Cash Flow and Capital Management - The company reported cash flow from operations of $2.5 billion and free cash flow of $1.8 billion for the fiscal year [30][44]. - Sysco returned approximately $2.3 billion to shareholders through $1.3 billion in share repurchases and $1.0 billion in dividends [30][38]. Outlook - Sysco expects sales growth of approximately 3% to 5% for fiscal year 2026, targeting sales of $84 billion to $85 billion [2]. - Adjusted EPS is projected to grow by approximately 1% to 3%, aiming for $4.50 to $4.60 [2]. - The company plans to reward shareholders with approximately $1 billion in dividends and $1 billion in share repurchases for FY26 [2].