Rogers Sugar Reports Strong Profitability Growth in 2025, Fuelled by our Focus on Servicing our Customers and Disciplined Execution

Core Insights - Rogers Sugar Inc. reported strong fourth quarter and full-year results, demonstrating resilience in a challenging market, with consolidated adjusted EBITDA of $39.5 million for Q4 2025 and $150.4 million for the fiscal year [1][2] Financial Performance - Q4 2025 revenues were $322.7 million, down from $333.0 million in Q4 2024, while year-to-date revenues increased to $1.31 billion from $1.23 billion [2] - Gross margin for Q4 2025 was $44.0 million, compared to $49.7 million in Q4 2024, with adjusted gross margin rising to $51.9 million from $50.1 million [2][3] - Net earnings for Q4 2025 were $13.7 million, down from $18.6 million in Q4 2024, while adjusted net earnings increased to $19.8 million from $18.8 million [2][3] Segment Performance Sugar Segment - Sugar segment adjusted EBITDA for Q4 2025 was $35.1 million, up from $34.2 million in Q4 2024, driven by higher adjusted gross margin per metric tonne despite lower sales volume [2][3] - Sales volume in the Sugar segment for fiscal 2025 was 781,500 metric tonnes, an increase of 28,100 metric tonnes compared to fiscal 2024 [2][3] - Revenues for the Sugar segment in Q4 2025 were $259.0 million, down from $272.8 million in Q4 2024, primarily due to lower average prices and sales volume [3][4] Maple Segment - Maple segment adjusted EBITDA for Q4 2025 was $4.4 million, an increase from $4.1 million in Q4 2024, attributed to higher sales volume [2][9] - Revenues for the Maple segment in Q4 2025 were $63.7 million, up from $60.2 million in Q4 2024, driven by increased sales volume [9][10] LEAP Project - The LEAP Project aims to expand refining and logistics capacity in Eastern Canada, with total costs expected between $280 million and $300 million, and anticipated in-service by mid-2027 [5][14] - As of September 27, 2025, $128.4 million had been capitalized for the LEAP Project, including $3.7 million in interest costs [20][19] Outlook - The company expects continued strong financial results in 2026, with stable underlying demand for sugar and anticipated pricing increases [21][23] - For fiscal 2026, the Sugar segment is projected to have sales volumes between 750,000 and 770,000 metric tonnes, reflecting a slight reduction compared to 2025 [23][24] - The Maple segment anticipates sales volume growth of approximately 3% over 2025, with global demand for maple syrup expected to continue growing [31][32]