SunOpta (US:STKL)2025-11-05 22:30Q3 2025 Performance - Revenue from continuing operations reached $205.4 million, a 17% year-over-year increase driven by a 17% volume/mix growth[16] - Operating income significantly improved, showing a 751% year-over-year increase to $6.9 million[16] - Adjusted EBITDA from continuing operations increased by 13% to $23.6 million[16] - Adjusted earnings per share from continuing operations increased by 250% to $0.05[16] - Total debt was $265.785 million with cash and cash equivalents of $2.225 million, resulting in net debt of $263.560 million[72] Growth and Expansion - The company is investing $35 million in a new beverage and broth line at the Midlothian, Texas facility, expected to increase capacity by approximately 10%[40] - An additional $25 million is being invested in a new fruit snacks line in Omak, Washington[39] - Coffee chains are growing faster than the overall market, with emerging coffee chains growing at 28% and all coffee chains growing at 8% CAGR from 2018-2024, fueling demand for plant-based offerings[23] Financial Outlook - The company raised its revenue outlook for FY25 to $812-$816 million[37] - The adjusted EBITDA outlook for FY25 is $90-$92 million[37] - The company anticipates a year-end net leverage of 2.8x[37] Operational Challenges - Short-term supply chain challenges impacted Q3 results due to accelerated volume impact, Midlothian wastewater limitations, and delays in the margin improvement plan[28] - These temporary issues are expected to impact Q4 Adjusted EBITDA by $2 million due to Midlothian wastewater limitations, $3 million due to accelerated volume impact, $3 million due to Midlothian Q4 operations downtime, and $2 million due to prioritizing servicing accelerated demand[41, 42, 43, 44]