Core Insights - Maple Leaf Foods reported a revenue growth of 8.5% for Q2 2025, reaching $1,362.1 million compared to $1,255.2 million in the same period last year [9][12][18] - Adjusted EBITDA for the same quarter increased by 28.9% to $181.6 million, with an adjusted EBITDA margin of 13.3%, up from 11.2% year-over-year [9][22][23] - The company has increased its full-year 2025 adjusted EBITDA outlook to a range of $680 million to $700 million, up from a previous estimate of $634 million or greater [10][6] Financial Performance - Gross profit for Q2 2025 was $235.7 million, a significant increase from $131.2 million in Q2 2024, driven by improved pork market conditions and operational efficiencies [14][15] - Selling, general and administrative expenses decreased to $113.0 million from $116.6 million year-over-year, primarily due to lower consulting fees [16] - Earnings for Q2 2025 were $57.8 million ($0.47 per share), compared to a loss of $26.2 million ($0.21 per share) in the previous year [18][19] Operational Developments - The company is progressing towards the spin-off of Canada Packers, which has received shareholder approval and is expected to be completed in the second half of 2025 [3][4] - The spin-off is structured as a tax-free "butterfly reorganization" and aims to create two focused, market-leading companies [4][3] - Maple Leaf Foods has restructured its commercial and supply chain operations, splitting its prepared foods operations into two units: Prepared Foods and Poultry [7] Market Outlook - The company anticipates relatively normal pork market conditions and a stable consumer environment for the remainder of the year, which is reflected in its increased full-year outlook [6] - Maple Leaf Foods is closely monitoring evolving macro-economic factors, including tariffs between Canada and the U.S., which may impact its operations [6] - The company has adapted to changes in consumer sentiment, including launching campaigns in Canada that respond to the "buy Canadian" movement [6] Cash Flow and Debt Management - Free cash flow for Q2 2025 was $216.0 million, a significant increase from $27.0 million in the prior year, driven by improved earnings and changes in working capital [25][26] - Net debt as of June 30, 2025, was $1,344.2 million, down from $1,723.1 million a year earlier, with a net debt to trailing twelve months adjusted EBITDA ratio of 2.1x [26][44]