MONTRÉAL, March 26, 2026 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) announced today that Linda Mantia has been appointed to its Board of Directors as an independent director. Ms. Mantia is a corporate director and former senior executive with experience in operations, technology, and enterprise transformation across global organizations. She currently serves on the boards of Maple Leaf Foods and Liberty Mutual Corporation, and previously served on the boards of McKesson Corporati ...

MONTRÉAL, March 26, 2026 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) announced today that Linda Mantia has been appointed to its Board of Directors as an independent director. Ms. Mantia is a corporate director and former senior executive with experience in operations, technology, and enterprise transformation across global organizations. She currently serves on the boards of Maple Leaf Foods and Liberty Mutual Corporation, and previously served on the boards of McKesson Corporati ...

Core Insights - The company reported a decline in revenue but achieved an adjusted EBITDA of $181 million for the quarter, reflecting a 10.3% margin, attributed to strong program execution and cost efficiency measures [1] - Full-year revenue was $7.26 billion, down approximately 3% organically, primarily due to the decision to no-bid low-margin Cloud One revenue, which was a $200 million headwind for fiscal 2026 [2] - The company expects fiscal 2027 revenue to be between $7.0 billion and $7.2 billion, indicating an organic contraction of 2% to 4% due to recompete losses, with an anticipated $400 million headwind [7] Financial Performance - Adjusted diluted EPS for the quarter was $2.62, and $10.75 for the year, benefiting from stronger margins and a favorable tax rate [1] - Free cash flow was reported at $336 million for the quarter and $577 million for the year, exceeding guidance by about 10% [6] - Adjusted EBITDA guidance for fiscal 2027 is set at $705 million to $715 million, implying a margin of 9.9% to 10.1% [8] Business Development Strategy - The company is adopting a more selective approach in business development, focusing on opportunities with a "greater right to win" and higher customer retention [4] - The hiring of a chief growth officer is part of the strategy to enhance business development efforts [4] - The company aims for $25 billion to $28 billion in proposal submissions for fiscal 2027 to support growth and margin improvement [4] Operational Initiatives - The company is undergoing an enterprise transformation initiative aimed at improving speed and execution [6] - Management has set a target for $100 million in cost reductions to provide flexibility for investment and margin improvement [19] - The company is prepared to adjust capital expenditures based on demand signals and is focusing on operational efficiency [16] Market Position and Challenges - The large enterprise IT market is expected to decline from 17% of revenue in fiscal 2025 to 10% in fiscal 2027, with a focus on opportunities that demonstrate measurable value [13] - The company has experienced challenges in recompete losses, particularly in cost-plus work, which has made differentiation difficult [12] - Improved proposal quality and discipline are expected to influence win rates within six months, although government sales cycles can be lengthy [14]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.75 billion, representing an organic contraction of approximately 6% due to a $60 million reduction from the low-margin Cloud One program and a $45 million headwind from a non-recurring software license sale in the prior year [17] - Full year revenue was $7.26 billion, declining approximately 3% organically, primarily due to the decision to no-bid low-margin Cloud One revenue, which was a $200 million headwind for the year [17] - Adjusted EBITDA for the fourth quarter was $181 million, resulting in a margin of 10.3%, contributing to a full year margin of 9.7%, which is roughly 20 basis points ahead of guidance [18] - Free cash flow was $336 million in the quarter and $577 million for the full year, demonstrating strong cash conversion [18] Business Line Data and Key Metrics Changes - The company is focusing on higher-margin programs and has seen improved performance in its civilian enterprise IT portfolio, which has driven stronger win rates [11] - The large enterprise IT market is expected to shrink from 17% of company revenues in FY 2025 to an anticipated 10% in FY 2027, indicating a strategic shift away from low-margin work [11] Market Data and Key Metrics Changes - The company expects total revenue in FY 2027 to be in the range of $7 billion to $7.2 billion, representing an organic contraction of 2%-4% primarily due to recompete losses [20] - The guidance for adjusted EBITDA in FY 2027 is projected to be between $705 million and $715 million, reflecting margins between 9.9%-10.1% [20] Company Strategy and Development Direction - The company is committed to aligning and focusing its portfolio, improving internal processes, and enhancing external results, with a focus on mission expertise and customer intimacy [5][6] - A new chief growth officer has been hired to prioritize business development and drive higher win rates for recompetes and new business [6] - The company aims for $25 billion-$28 billion in submissions for FY 2027, focusing on opportunities with a greater right to win and higher customer retention [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the operating environment remains uneven, with procurement delays and customer disruptions impacting revenue [9] - The company is optimistic about achieving a 10% adjusted EBITDA margin for FY 2027, marking the first time it has guided to a double-digit margin on a full-year basis [9] - Management emphasized the importance of innovation and investment in capabilities to meet evolving customer needs and address the threat landscape [12] Other Important Information - The company is undergoing a multi-year enterprise transformation initiative aimed at unlocking significant value and eliminating outdated business processes [21] - The leadership team is focused on executing against a $100 million cost reduction target to provide operational and financial flexibility [13] Q&A Session Summary Question: What is the most significant portfolio pivot required to align with government budget priorities? - Management indicated a need to focus on areas where the company has a right to win and where customer retention rewards innovation and strong performance [30] Question: Thoughts on FY 2027 guidance and CapEx? - Management stated that the current CapEx is adequate to meet demand signals and that they are prepared to increase capacity if customer demand arises [39][40] Question: How long will it take to build momentum in the business development process? - Management noted that while the sales cycle can be lengthy, improvements in win rates could be seen within six months [48] Question: What is the status of recompetes and their impact on revenue? - The largest recompete is the Department of State Vanguard program, with management feeling confident about retaining most of the work [97][99]

Financial Data and Key Metrics Changes - Q4 net sales were $104.7 million, a decline of $1.8 million compared to the previous year's Q4, while full year net sales were $422.2 million, down $42.1 million year-over-year [10][25][27] - Adjusted operating income for Q4 was $3.3 million, up from $2.4 million in the prior year, and for the full year, it was $14.2 million, an increase of $9.1 million from the previous year [11][27] - Adjusted EBITDA for Q4 was $12.9 million, up from $12.1 million a year ago, and for the full year, it was $49 million, compared to $48.3 million for the prior year [12][26][28] - Adjusted EBITDA margin for Q4 was 12.3%, representing a 100 basis point improvement on an as-reported basis [26] Business Line Data and Key Metrics Changes - Power Solutions segment net sales for Q4 were $45.5 million, up 14.9% year-over-year, driven by new program launches in electrical and defense business [30] - Mobile Solutions segment Q4 net sales were $59.3 million, down from $63.8 million in the prior year, primarily due to the rationalization of dilutive business [32] - Power Solutions adjusted EBITDA for Q4 was $6.4 million, an increase of $0.8 million year-over-year, while Mobile Solutions adjusted EBITDA for Q4 was $10 million, showing slight improvement [31][34] Market Data and Key Metrics Changes - The global automotive market is expected to grow slightly by 2% in 2026, with specific growth outlooks varying by region [18] - The commercial vehicle market is anticipated to begin growing in 2026, supported by strong orders and an upcoming EPA mandate [19] - The defense electronics market is growing strongly, with increased production capacity to meet demand from customers like Raytheon [49] Company Strategy and Development Direction - The company is shifting its sales profile towards higher value end markets and capabilities, moving away from low-value commodity automotive parts [7] - A record level of program launches is expected in 2026, with a pipeline of over $800 million in high-quality prospects [8][37] - The company aims to achieve adjusted gross margins of 20% and is focusing on cost rationalization programs to offset inflation [39] Management's Comments on Operating Environment and Future Outlook - Management noted that volatility remains high in markets due to global supply chain issues, tariffs, and geopolitical unrest [9][21] - The company is optimistic about returning to net sales growth in 2026, with a forecast of $445 million to $465 million in sales [55] - Management emphasized the importance of new business wins, targeting $70 million to $80 million in new business for the year [22][55] Other Important Information - The company completed a significant transformation plan, including the closure of four plants and the exit of unprofitable business lines [7][51] - The company achieved cost-out targets of $15 million for the year, which offset inflation and pricing pressures [17] Q&A Session Summary Question: Can you expand on the data center end market opportunity? - Management highlighted the precision requirements for products in the data center market and the immediate ramp-up potential due to supply chain needs [60][63] Question: What does the roadmap for sustaining sales growth in 2026 look like? - Management indicated that growth will primarily come from new wins, with a significant increase in capital spending allocated to growth initiatives [64][65] Question: What is the cadence of ramp in 2026 in terms of revenue? - It was noted that approximately $20 million to $25 million of revenue is expected from launches occurring in 2026, alongside revenue from programs launched in 2025 [72] Question: What sort of CapEx activity are you planning? - The majority of CapEx will be directed towards growth programs, with over $15 million allocated for launching new business [73] Question: How much visibility do you have beyond Q1? - Management confirmed a healthy backlog and strong orders for Q2, indicating positive momentum [74]

Financial Data and Key Metrics Changes - The company reported its fourth consecutive quarter of financial results that met or exceeded expectations across nearly every reporting line [4] - For Q4 2025, Local Media division revenue was $360 million, down 30% year-over-year due to the absence of political advertising revenue, while core advertising increased by 12% [8][9] - Scripps Networks revenue was $199 million, down less than 8% compared to Q4 2024, but ahead of guidance [11] - The company reported a loss of $0.51 per share for the quarter, which included a $19.5 million non-cash charge for held-for-sale assets [12][13] Business Line Data and Key Metrics Changes - Local Media segment profit was $50 million, down from $199 million in Q4 of the previous political cycle [9] - Scripps Networks segment profit was $64 million, with a segment margin of 32% [12] - Connected TV revenue increased nearly 10% year-over-year for Q4 and 30% for the full year [11] Market Data and Key Metrics Changes - Local Media distribution revenue decreased by 1.6%, while expenses for the division were down about 1% year-over-year [9] - The company expects Local Media Division revenue to grow in the low to mid-single digits for Q1 2026, driven by core advertising growth [10] Company Strategy and Development Direction - The company announced a transformation plan aimed at growing enterprise EBITDA by $125 million to $150 million by 2028, focusing on cost management and revenue growth initiatives [4][17] - The strategy includes reacquiring 23 TV stations affiliated with ION for approximately $54 million, which is expected to be immediately accretive to profit and margins [6][8] - The company is leveraging technology, AI, and automation to enhance operational efficiency and revenue generation [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial performance in 2026, citing record midterm election spending and strong local sports partnerships [16][17] - The company is focused on improving its balance sheet and reducing debt and leverage ratios as top capital allocation priorities [14][15] Other Important Information - The company has no borrowings outstanding on its revolving credit facilities, with cash and cash equivalents totaling $28 million and net debt at $2.3 billion [14] - The company is actively engaged in M&A activities, with a focus on optimizing its portfolio and improving operating performance [31][83] Q&A Session Summary Question: Broader environment and M&A opportunities - Management indicated that the transformation plan positions the company better for potential M&A opportunities, emphasizing the importance of organic growth [30] Question: Organic growth expectations - Management highlighted that growth will come from enhancing current business yields and exploring new opportunities in adjacent markets [33] Question: Performance of interest-sensitive advertising categories - Core advertising is expected to grow mid-single digits in Q1, with strong performance in several key categories, although some categories like home services are weaker [37] Question: Political advertising visibility - Management noted strong visibility for political advertising in Q2 and Q3, with several competitive races expected to drive spending [40] Question: Breakdown of EBITDA growth targets - Management refrained from providing a specific breakdown of the $125 million to $150 million EBITDA growth target but emphasized that it will impact all segments [42] Question: Employee engagement in transformation - Management expressed confidence in employee engagement and the importance of upskilling to adapt to technological changes [53] Question: Sinclair acquisition proposal - Management confirmed that the board rejected Sinclair's acquisition proposal, stating it was not in the interest of stakeholders [57] Question: AI's role in cost savings - Management provided examples of how AI will enhance efficiency and improve product quality, allowing journalists to focus more on reporting [63][66] Question: Timing for lifting the ownership cap - Management expressed optimism about the potential lifting of the 39% ownership cap but refrained from providing a specific timeline [76] Question: Details on the ION transaction - Management indicated that reacquiring the ION stations would be immediately accretive and relieve a significant tax liability [78]

Financial Data and Key Metrics Changes - The company reported its fourth consecutive quarter of financial results that met or exceeded expectations across nearly every reporting line [4] - For the fourth quarter, Local Media division revenue was $360 million, down 30% due to the absence of political advertising revenue compared to the prior year, while core advertising was up 12% [8][9] - Scripps Networks revenue was $199 million, down less than 8% compared to Q4 2024, but well ahead of guidance [11] - The company reported a loss of $0.51 per share for the quarter, which included a $19.5 million non-cash charge for held-for-sale assets [12][13] Business Line Data and Key Metrics Changes - Local Media segment profit was $50 million, compared to $199 million in Q4 of the previous political cycle [9] - Scripps Networks segment profit was $64 million, with a segment margin of 32% [12] - Connected TV revenue was up nearly 10% for the same quarter last year and 30% for the full year [11] Market Data and Key Metrics Changes - Local Media distribution revenue was down 1.6%, while expenses for the division were down about 1% year-over-year [9] - The company expects Local Media Division revenue to be up low to mid-single digits in the first quarter [10] - Political advertising is projected to be strong in the upcoming midterm elections, with expectations of significant spending in competitive races [10][41] Company Strategy and Development Direction - The company announced a transformation plan aimed at growing enterprise EBITDA by $125 million-$150 million by 2028, focusing on cost savings and revenue growth initiatives [4][17] - The strategy includes reacquiring 23 TV stations affiliated with ION, which is expected to be immediately accretive to the Scripps Networks Division segment profit and margins [6][78] - The company is leveraging technology, AI, and automation to enhance operational efficiency and improve revenue generation [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the EBITDA growth target, emphasizing a well-laid out and executed plan [44][55] - The company is optimistic about the impact of record midterm election spending and local sports partnerships on financial performance [17][40] - Management highlighted the importance of community connection and engagement as a core part of the company's mission in a polarized environment [22][23] Other Important Information - The company has no borrowings outstanding on its revolving credit facilities, with cash and cash equivalents totaling $28 million and net debt at $2.3 billion [14] - The company is focused on improving its balance sheet and reducing debt and leverage ratios as top capital allocation priorities [15] Q&A Session Summary Question: How does the transformation plan affect M&A opportunities? - Management indicated that the transformation positions the company better for potential M&A participation, focusing on organic growth rather than just financial engineering [30] Question: What are the expectations for organic growth? - Management expects growth from enhancing current business yields and exploring new opportunities in adjacent markets [33] Question: How are interest-sensitive advertising categories performing? - Core advertising is expected to be up mid-single digits in the first quarter, with strong performance in several key categories [37] Question: What visibility is there for political advertising in Q2 and Q3? - Management noted a favorable outlook for political advertising, with several competitive races expected to drive spending [40] Question: Can you break down the $125 million to $150 million EBITDA growth target? - Management stated that the target includes both revenue growth and cost savings across the enterprise, but specific breakdowns were not provided [42][43] Question: How will AI impact cost savings and product improvement? - Management highlighted that AI will enhance efficiency and allow journalists to focus more on content creation rather than administrative tasks [66][67] Question: What is the status of the Sinclair acquisition proposal? - Management confirmed that the board rejected Sinclair's proposal as it was not in the interest of Scripps stakeholders [57]

Financial Data and Key Metrics Changes - Total ACV grew 17% year-over-year, as reported, and 14% in constant currency, exceeding guidance [7] - Pega Cloud ACV increased 33% year-over-year as reported, and 28% in constant currency, a significant acceleration from last year's growth [7][10] - Free cash flow rose 45% year-over-year to $491 million, surpassing guidance by $51 million [10] - Contractually committed backlog grew 28% year-over-year, exceeding $2 billion for the first time in Pega's history [11] Business Line Data and Key Metrics Changes - Pega Cloud backlog now represents 74% of total backlog, indicating strong growth in cloud services [12] - Net new ACV increased by 37% year-over-year in constant currency, driven by strong demand for Pega's Predictable AI agents [9] Market Data and Key Metrics Changes - The company reported a strong demand for its services, particularly in the context of digital transformation and legacy system modernization [43][66] - The competitive landscape is shifting, with a focus on AI and automation, which Pega is well-positioned to leverage [19][86] Company Strategy and Development Direction - Pega's strategy emphasizes a cloud-first approach and the integration of AI into its platform, particularly through the Blueprint experiential sales approach [8][10] - The company aims to achieve $2 billion in total revenue for 2026, marking a significant milestone [12] - Pega is focused on organic growth, product innovation, and maintaining a strong balance sheet while returning capital to shareholders [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of ACV growth due to Pega's deep integration into clients' core operations [9] - The company anticipates continued growth in Pega Cloud revenue, expected to accelerate above 30% in 2026 [15] - Management highlighted the importance of transforming customer engagement from experimentation to execution [37] Other Important Information - Pega achieved ISO 42001 certification across its cloud services and AI solutions, enhancing its compliance credibility [9] - The company is actively working on app modernization, leveraging partnerships with firms like Accenture and AWS [66] Q&A Session Summary Question: What is the current deal environment and macroeconomic outlook? - Management noted that the Blueprint approach reduces friction in client engagement, leading to an exciting pipeline [41] Question: What gives confidence in achieving the 15% ACV growth target? - Management highlighted an expanding net retention rate and successful targeting of new logos as key factors [46] Question: How is Blueprint impacting sales cycles and deployment times? - Early signs indicate faster pipeline build and progression, with a significant reduction in training time for new staff [58][61] Question: What is the status of app modernization efforts? - Management reported strong interest from clients in app modernization, with capabilities to modernize both legacy and old Pega systems [66] Question: How is the partnership with AWS evolving? - The partnership focuses on transforming legacy workflows using Blueprint, aligning both companies' selling strategies [78]

Financial Data and Key Metrics Changes - Total Annual Contract Value (ACV) grew 17% year-over-year, with a 14% increase in constant currency, surpassing guidance [5][10] - Pega Cloud ACV increased by 33% year-over-year as reported, and 28% in constant currency, significantly up from last year's growth of 18% as reported and 21% in constant currency [5][10] - Free cash flow rose 45% year-over-year to $491 million, exceeding guidance by $51 million [8][10] - Contractually committed backlog grew 28% year-over-year, now exceeding $2 billion for the first time in Pega's history [9][10] Business Line Data and Key Metrics Changes - Pega Cloud backlog represented 74% of total backlog, with a 36% year-over-year increase [9][10] - Net new ACV increased by 37% year-over-year in constant currency, driven by strong demand for Pega's AI agents [7][10] Market Data and Key Metrics Changes - The company noted a strong demand for its AI solutions integrated into enterprise workflows, indicating a positive market response [6][10] - The competitive landscape is shifting, with Pega positioned as a leader in enterprise transformation through its unique offerings [16][20] Company Strategy and Development Direction - The company is focused on a cloud-first strategy and the integration of AI through its Blueprint platform, which has transformed its sales approach [6][10] - Pega aims to achieve $2 billion in total revenue for 2026, marking a significant milestone for the firm [10][11] - The company is committed to disciplined capital allocation, prioritizing organic growth and product innovation [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of ACV growth due to the strength of Pega's integration within clients' core operations [7][10] - The company anticipates continued acceleration in Pega Cloud revenue, projecting growth above 30% in 2026 [13][10] - Management highlighted the importance of transitioning from experimentation to execution in leveraging AI for business transformation [36][10] Other Important Information - The Supreme Court of Virginia affirmed a verdict that eliminated a $2 billion liability for the company, positively impacting its financial outlook [9][10] - The company has authorized an additional $1 billion in share buyback capacity, reflecting confidence in cash flow durability [11][10] Q&A Session Summary Question: What is the current deal environment and how is it affecting 2026 outlook? - Management noted that the Blueprint approach reduces friction in client engagement, leading to an advanced pipeline [40][41] Question: What gives confidence in achieving the 15% ACV growth target? - The company highlighted consistent growth rates and an expanding net retention rate, alongside successful targeting of new logos [44][45] Question: How is the app modernization journey progressing with Blueprint? - Management indicated significant interest from clients in app modernization, with expectations for success stories to emerge in the near future [66][10] Question: What is the status of the partnership with AWS? - The partnership is aligned on transforming legacy workflows, leveraging both AWS and Pega's tools for effective modernization [77][10]

Group 1 - The core point of the article is that submissions to the ISG Case Study Research Program increased by 35 percent in 2025, indicating a growing demand for enterprise transformation [1] Group 2 - The increase in submissions reflects a significant trend in the industry towards enterprise transformation [1] - The data suggests that organizations are increasingly seeking innovative solutions to enhance their operations and strategies [1] - This growth may signal potential investment opportunities in companies focused on enterprise transformation services [1]