US Foods(US:USFD) Businesswire·2025-11-06 11:45Core Insights - US Foods reported a net sales increase of 4.8% to $10.2 billion for the third quarter of fiscal year 2025, with net income rising 3.4% to $153 million and diluted EPS increasing 9.8% to $0.67 [1][5][6] - Adjusted EBITDA grew by 11.0% to $505 million, and adjusted diluted EPS surged by 25.9% to $1.07, reflecting strong operational performance and margin expansion [1][6][9] - The company repurchased approximately $335 million of shares and signed a definitive agreement to acquire Shetakis, an independent food distributor [1][12] Financial Performance - Total case volume increased by 1.1%, driven by a 3.9% rise in independent restaurant case volume and a 3.9% increase in healthcare volume, while chain volume decreased by 2.4% [5][6] - Gross profit rose by 5.2% to $1.8 billion, with gross profit as a percentage of net sales at 17.2% [6][7] - Operating expenses increased by 6.0% to $1.5 billion, primarily due to higher distribution and administrative costs [8][9] Cash Flow and Debt Management - Cash flow from operating activities for the first nine months of fiscal year 2025 was $1,076 million, an increase of $185 million from the prior year [10] - Net debt at the end of the third quarter was $4.9 billion, with a net debt to adjusted EBITDA ratio of 2.6x, down from 2.8x at the end of fiscal year 2024 [11] M&A Activity - The company has signed a definitive agreement to acquire Shetakis, targeting a closure in the fourth quarter of 2025 [12] Outlook - The company updated its fiscal year 2025 guidance, projecting net sales growth of 4% to 5%, adjusted EBITDA growth of 10% to 12%, and adjusted diluted EPS growth of 24% to 26% [15]