Core Insights - Utz Brands, Inc. will showcase innovative products from Boulder Canyon and Utz at the 2026 Natural Products Expo West, highlighting their commitment to better-for-you snacking [1][2] Product Highlights - Boulder Canyon, recognized as America's fastest growing salty snack brand, will present its full product lineup, including classic kettle style chips and new Boulder Batch Agave Sriracha flavored kettle style potato chips made with avocado oil [2][4] - The new Boulder Batch Agave Sriracha flavored chips combine agave's sweetness with sriracha's heat, catering to consumer interest in snacks cooked in non-seed oils and international flavors [3][4] - Utz will introduce a new line of Utz Protein Pretzels and Cheese Curls, responding to the growing consumer demand for protein-rich snacks, with 60% of consumers looking to increase protein in their diets [5][6] Nutritional Information - Utz Protein Pretzels are available in three flavors: Classic Sea Salt (10 grams of protein per serving), Honey Mustard, and Cheddar (both 8 grams of protein per serving) [7] - Utz Protein Cheese Curls come in Cheddar and Hot and Spicy Cheddar varieties, each providing 10 grams of protein per serving [8] Company Background - Utz Brands, Inc. manufactures a diverse portfolio of savory snacks, including popular brands like Utz, On The Border Chips & Dips, Zapp's, and Boulder Canyon [10] - Boulder Canyon, founded in 1994, focuses on better-for-you snacks using premium ingredients and is the No. 1 salty brand in the natural channel [12]

Financial Data and Key Metrics Changes - For the full year 2025, organic net sales grew by 2.4%, while branded salty organic net sales increased by 4.7%, contrasting with a 0.5% decline in the category's retail sales dollars [3][4] - Adjusted EBITDA margin expanded by 260 basis points to 18.2%, with productivity savings contributing 620 basis points to this expansion [21][22] - Adjusted earnings per share rose by 18.2%, reflecting strong margin performance and productivity initiatives [21][30] Business Line Data and Key Metrics Changes - In the fourth quarter, branded salty snacks organic net sales grew by 2.5%, driven by a volume mix growth of 2.1% [20][9] - Non-branded and non-salty snacks experienced a decline of 14.8%, attributed to headwinds faced in the branded salty segment [20] - The Power Four Brands achieved a 5.3% increase in retail sales dollars, driven by a 3.8% price per pound growth [12] Market Data and Key Metrics Changes - Retail sales in core geographies increased by 0.5%, with Power Four Brands leading at 1.8% compared to the total salty category's 1.1% growth [13] - Expansion geographies saw a retail sales growth of 7.3%, significantly outpacing the salty snacks category growth of 1.1% [14] - The average market share in expansion geographies is 3.2%, compared to 6.7% in core markets, indicating substantial growth potential [15] Company Strategy and Development Direction - The company plans to continue increasing marketing spending to support brand growth, with a 35% increase in 2025 on top of a nearly 70% increase in 2024 [5][18] - Expansion into the California market is seen as a key growth differentiator, with shipments expected to begin shortly [6] - The company aims to deliver consistent and predictable Adjusted EBITDA growth while focusing on free cash flow generation for deleveraging and capital allocation flexibility [25][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the fourth quarter but emphasized substantial progress on long-term strategies during 2025 [3] - The company remains cautiously optimistic about the category environment, expecting organic net sales growth of 2%-3% for 2026 [26] - Management highlighted the importance of productivity initiatives and revenue management strategies to achieve growth targets [10][28] Other Important Information - The company plans to introduce new reconciliation tables of GAAP to non-GAAP in the first quarter of 2026 to enhance transparency regarding supply chain and corporate transformation costs [33] - Adjusted free cash flow is expected to be between $60 million and $80 million in 2026, representing about 70% conversion of expected adjusted net income [34] Q&A Session Summary Question: What are the expectations for organic net sales growth in 2026? - The company expects organic net sales growth of 2%-3%, assuming a flat category at the midpoint [26] Question: How will the company manage its capital expenditures moving forward? - Capital expenditures are expected to decline from $102.8 million in 2025 to a range of $60-$65 million in 2026, reflecting a more normal cadence [32] Question: What is the outlook for adjusted EPS in 2026? - Adjusted EPS is expected to decline between 3% and 6% due to higher depreciation, interest expense, and a modestly higher tax rate [30]

Financial Data and Key Metrics Changes - For the full year 2025, organic net sales grew by 2.4%, while branded salty organic net sales increased by 4.7%, contrasting with a 0.5% decline in the category [3][4] - Adjusted gross margin expanded by 260 basis points, and adjusted EBITDA margin increased by 80 basis points for the full year [5][21] - In Q4, net sales growth was 0.4%, driven by a 0.5% price increase, while volume mix decreased by 0.1% [20][8] Business Line Data and Key Metrics Changes - Branded salty snacks organic net sales grew by 2.5% in Q4, with volume mix growth of 2.1% [20][9] - Non-branded and non-salty snacks saw a decline of 14.8% in organic net sales [20] - The Power Four Brands achieved a 5.3% increase in retail sales dollars, driven by a 3.8% price per pound growth [12] Market Data and Key Metrics Changes - Retail sales in core geographies increased by 0.5%, while total company retail sales in expansion geographies grew by 7.3%, significantly outpacing the salty snacks category growth of 1.1% [13][14] - The average market share in expansion geographies is 3.2%, compared to 6.7% in core markets, indicating substantial growth potential [15] Company Strategy and Development Direction - The company plans to continue increasing marketing spending, which rose by 35% in 2025, to support brand growth [5][18] - Expansion into the California market is seen as a key growth differentiator, with shipments expected to begin shortly [6] - The company aims to deliver consistent and predictable adjusted EBITDA growth while focusing on free cash flow generation and deleveraging [25][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in Q4 but emphasized substantial progress on long-term strategies during 2025 [3] - The company expects organic net sales growth of 2%-3% for 2026, assuming a flat category at the midpoint [26] - Management expressed confidence in achieving 2026 guidance through innovation, marketing, and promotional strategies [10] Other Important Information - The company plans to introduce new reconciliation tables of GAAP to non-GAAP in Q1 2026 to enhance transparency regarding supply chain and corporate transformation costs [33] - Adjusted free cash flow is expected to be between $60 million and $80 million in 2026, representing about 70% conversion of expected adjusted net income [34] Q&A Session Summary Question: What are the expectations for 2026 organic net sales growth? - The company expects organic net sales growth of 2%-3%, assuming a flat category at the midpoint, with a $20 million benefit from the 53rd week in Q4 [26] Question: How will the company manage its capital expenditures moving forward? - Capital expenditures are expected to decline from $102.8 million in 2025 to a range of $60-$65 million in 2026, reflecting a more normal cadence [32] Question: What is the outlook for adjusted EPS in 2026? - Adjusted EPS is expected to decline between 3% and 6% due to higher depreciation, interest expense, and a modestly higher tax rate [30]

Financial Data and Key Metrics Changes - For the full year 2025, organic net sales grew by 2.4%, while branded salty organic net sales increased by 4.7%, contrasting with a 0.5% decline in the category's retail sales dollars [3][4] - Adjusted gross margin expanded by 260 basis points, and adjusted EBITDA margin increased by 80 basis points for the full year [5][20] - In the fourth quarter, net sales growth was 0.4%, driven by a 0.5% increase in price, while volume mix decreased by 0.1% [19][8] Business Line Data and Key Metrics Changes - Branded salty snacks organic net sales grew by 2.5% in the fourth quarter, supported by a volume mix growth of 2.1% [19][9] - Non-branded and non-salty snacks experienced a decline of 14.8% in organic net sales [19] - The company achieved 7% productivity in 2025, exceeding the goal of 6% of adjusted cost of goods sold [5] Market Data and Key Metrics Changes - In core geographies, total retail sales dollars increased by 0.5%, while total company retail volume decreased by 2.4% [13] - Expansion geographies saw retail sales growth of 7.3%, significantly outpacing the salty snacks category growth of 1.1% [14] - The average market share in expansion geographies is 3.2%, compared to 6.7% in core markets, indicating substantial growth potential [14] Company Strategy and Development Direction - The company plans to continue increasing marketing spending in 2026 to support brand growth, following a 35% increase in 2025 [5][17] - Expansion into the California market is viewed as a key growth differentiator, with shipments expected to begin shortly [6] - The company aims to deliver consistent and predictable adjusted EBITDA growth while focusing on free cash flow generation for deleveraging and capital allocation flexibility [25][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in the fourth quarter but emphasized substantial progress on long-term strategies during 2025 [3] - The company expects organic net sales growth of 2%-3% for 2026, assuming a flat category at the midpoint [26] - Management expressed confidence in achieving 2026 top and bottom-line guidance through innovation and marketing strategies [10] Other Important Information - The company plans to file its 2025 10-K after the market closes on February 12 [2] - Cash provided by operations for the 52 weeks ended December 28, 2025, was $112.2 million, with cash on hand at $120.4 million [24] - The company expects adjusted free cash flow to be between $60 million and $80 million in 2026, representing about 70% conversion of expected adjusted net income [35] Q&A Session Summary Question: What are the expectations for 2026 organic net sales growth? - The company expects organic net sales growth of 2%-3%, assuming a flat category at the midpoint, with a $20 million benefit from the 53rd week in the fourth quarter [26] Question: How will the company manage its capital expenditures moving forward? - Capital expenditures are expected to decline from $102.8 million in 2025 to a range of $60-$65 million in 2026, reflecting a more normal cadence [33] Question: What is the outlook for adjusted EPS in 2026? - Adjusted EPS is expected to decline between 3% and 6% due to higher depreciation, interest expense, and a modestly higher tax rate [30]