Core Viewpoint - Rogers Sugar Inc. reported strong financial results for the second quarter and first six months of fiscal 2025, with consolidated adjusted EBITDA of $34.7 million, driven by solid performance in the Sugar and Maple segments [1][2]. Financial Performance - Revenues for Q2 2025 reached $326.3 million, up from $300.9 million in Q2 2024, marking an increase of $17.4 million [2][7]. - Gross margin for Q2 2025 was $52.9 million, compared to $44.9 million in Q2 2024, reflecting improved operational efficiency [2][8]. - Adjusted net earnings for Q2 2025 were $16.2 million, a decrease from $18.9 million in Q2 2024 [2][45]. - Net earnings for Q2 2025 were $20.5 million, compared to $13.9 million in Q2 2024, indicating a significant year-over-year increase [2][45]. Segment Performance Sugar Segment - Sugar segment revenues for Q2 2025 were $260.7 million, up from $243.0 million in Q2 2024 [5][13]. - Adjusted EBITDA for the Sugar segment was $27.6 million in Q2 2025, down from $33.2 million in Q2 2024, primarily due to an unfavorable product mix and higher maintenance costs [5][12]. - Sales volumes in the Sugar segment increased to 198,246 metric tonnes in Q2 2025, a rise of approximately 10% compared to the same period last year [5][8]. Maple Segment - Maple segment revenues for Q2 2025 were $65.6 million, compared to $58.0 million in Q2 2024, reflecting a strong demand [13][17]. - Adjusted EBITDA for the Maple segment increased to $7.1 million in Q2 2025, up from $4.9 million in Q2 2024, driven by higher sales volume and lower operating expenses [6][19]. - Sales volumes in the Maple segment for the first six months of 2025 were 13% higher than the same period last year, attributed to favorable market conditions [6][17]. Capital Expenditures and Projects - The company invested $22.8 million in property, plant, and equipment during Q2 2025, with a significant portion allocated to the LEAP Project aimed at expanding sugar refining capacity [6][20]. - The LEAP Project is expected to add approximately 100,000 metric tonnes of refined sugar capacity by the end of 2026, with total costs estimated between $280 million and $300 million [20][21]. Outlook - The company anticipates continued strong performance in both the Sugar and Maple segments for the remainder of fiscal 2025, despite potential adverse impacts from US tariffs [25][36]. - The Sugar segment is expected to achieve sales volumes of 785,000 metric tonnes in fiscal 2025, reflecting a year-over-year increase of about 1% [29][30]. - The Maple segment is projected to grow by approximately 6.5% in sales volume in 2025, contingent on market conditions and potential tariffs [36][37].