The Campbell’s Company (CPB) Faces 4% Cost Hit From Steel, Aluminum Tariffs in Fiscal 2026

Core Insights - The Campbell's Company is facing significant cost pressures due to tariffs on steel and aluminum, which are essential for canned goods production, with these costs projected to account for about 4% of its cost of goods sold in fiscal 2026 [2][4] - The company reported Q4 fiscal 2025 net sales of $2.3 billion, reflecting a 1% year-over-year increase, although organic sales declined by 3% [4] - Adjusted earnings per share for the quarter were $0.62, exceeding estimates by 8.8%, but overall earnings before interest and taxes are expected to decline by 9-13% for the fiscal year [4] Cost Pressures - Rising costs from tariffs on steel and aluminum are impacting the company's financials, particularly in the meals and beverages segment where selective price hikes may be necessary [2][4] - Limited domestic capacity for steel derivatives, especially tinplate, forces the company to rely on imports, complicating cost mitigation efforts [2] Supply Chain Challenges - The Campbell's Company has experienced some success with its premium Rao's pasta sauce brand through collaborations with Italian suppliers, but overall supply chain constraints remain a significant issue [3] - The company is actively seeking alternative suppliers for tinplate and other imported goods, although transitions take time to ensure product quality and consumer satisfaction [3] Financial Performance - The company declared a quarterly dividend payable in November 2025, with an annualized yield of 4.6% [4]