Rogers Sugar Delivers Strong First Quarter Results, Driven by Focus on Execution in Both Business Segments

Core Insights - Rogers Sugar Inc. reported strong first quarter fiscal 2026 results, with consolidated adjusted EBITDA increasing by 18% to $46.9 million [1][2]. Financial Performance - Revenues for Q1 2026 were $298.2 million, down from $331.3 million in Q1 2025, a decrease of $38.7 million [2][8]. - Gross margin increased to $65.9 million from $46.7 million year-over-year [2][10]. - Adjusted gross margin rose to $60.8 million from $51.7 million, reflecting a favorable variance of $9.1 million [2][11]. - Net earnings for Q1 2026 were $28.5 million, compared to $15.8 million in Q1 2025, with basic earnings per share increasing to $0.22 from $0.12 [2][3]. - Free cash flow for the trailing twelve months was $89.3 million, an increase of $3.1 million from the previous year [6]. Segment Performance Sugar Segment - Sugar revenues decreased to $226.2 million from $264.9 million, with adjusted EBITDA rising to $41.1 million from $33.9 million [5][6]. - Sales volume in the Sugar segment was 175,000 metric tonnes, down 21,100 metric tonnes or approximately 11% year-over-year [6][9]. - Adjusted gross margin per metric tonne increased to $304, up $79 from the previous year [12]. Maple Segment - Maple revenues increased to $71.9 million from $66.4 million, with adjusted EBITDA remaining stable at $5.8 million [14][18]. - Total maple syrup sales volume was 14,400 thousand pounds, up from 13,400 thousand pounds in the previous year [14]. LEAP Project - The LEAP Project is progressing as planned, with $25 million spent in Q1 2026, primarily for expanding sugar refining and logistics capacity [6][19]. - The total cost of the LEAP Project is expected to be between $280 million and $300 million, with an anticipated in-service date in the first half of 2027 [19][21]. Market Outlook - The company expects continued strong financial results in 2026, despite some softening in global sugar demand due to food inflation [25][27]. - Anticipated sales volume for the Sugar segment in 2026 is 750,000 metric tonnes, reflecting a reduction of approximately 4% compared to 2025 [27]. - The Maple segment is expected to grow, with projected sales volume of 56 million pounds for fiscal 2026, a growth of approximately 5% [35][36].