Core Insights - Saputo Inc. reported solid financial results for the second quarter of fiscal 2026, with revenues of $4.721 billion, a slight increase of 0.3% compared to the previous year, driven by higher sales volumes and prices in North America and international markets [2][3] - The company achieved an adjusted EBITDA of $450 million, reflecting a 15.7% increase year-over-year, with an adjusted EBITDA margin of 9.5% [3][4] - Net earnings rose to $185 million, or $0.45 per share, up from $126 million, primarily due to higher adjusted EBITDA and a gain on hyperinflation in Argentina [4][9] Financial Highlights - Revenues for the second quarter were $4.721 billion, up $13 million from $4.708 billion in the same quarter last year [3] - Adjusted EBITDA reached $450 million, an increase of $61 million or 15.7%, with a margin improvement from 8.3% to 9.5% [3][4] - Net earnings increased to $185 million, up $59 million from the previous year, with earnings per share rising from $0.30 to $0.45 [4][9] Sector Performance Canada Sector - Revenues increased to $1.373 billion, up 6.1% from $1.294 billion, driven by higher sales volumes in retail, foodservice, and industrial segments [20][21] - Adjusted EBITDA for the sector was $179 million, a 10.5% increase from $162 million, with a margin of 13.0% [23][24] USA Sector - Revenues decreased to $2.153 billion, down 3.2% from $2.225 billion, impacted by lower US dairy commodity prices [28][29] - Adjusted EBITDA rose to $167 million, a 15.2% increase from $145 million, with a margin improvement to 7.8% [32][34] International and Europe Sectors - International Sector revenues were $871 million, down 4.5% from $912 million, while Europe Sector revenues increased to $324 million, up 17.0% [43][58] - Adjusted EBITDA for the International Sector was $79 million, a significant increase of 46.3%, while Europe Sector adjusted EBITDA decreased to $25 million [48][62] Strategic Initiatives - The company emphasized the importance of commercial investments, operational improvements, and cost optimization initiatives in driving performance [2][3] - Continued focus on maximizing returns on investments and strengthening commercial strategies is a priority moving forward [2][3] - The company plans to maintain disciplined capital deployment and expects capital expenditures of approximately $360 million in fiscal 2026 [68]