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Apr 30

Smucker Q4 2025 Earnings Report

Smucker reported a quarterly loss due to significant goodwill impairments, despite stable adjusted earnings and healthy free cash flow.

Key Takeaways

The J.M. Smucker Co. posted a Q4 net loss driven by $980M in impairment charges related to its Sweet Baked Snacks and Hostess brands. However, adjusted EPS reached $2.31 and free cash flow held steady. Revenue saw a modest decline, largely attributable to recent divestitures.

Q4 net loss of $729M due to large impairment charges.

Adjusted EPS came in at $2.31 despite headline losses.

Revenue fell 3% to $2.14B, partly due to divestitures.

Free cash flow remained strong at nearly $299M.

Total Revenue
$2.14B
Previous year: $2.21B
-2.8%
EPS
$2.31
Previous year: $2.66
-13.2%
Coffee Segment Margin
28.6%
Previous year: 31.6%
-9.5%
Pet Foods Margin
26.8%
Previous year: 25.2%
+6.3%
Baked Snacks Margin
8%
Previous year: 20.8%
-61.5%
Gross Profit
$823M
Previous year: $913M
-9.9%
Cash and Equivalents
$69.9M
Previous year: $62M
+12.7%
Free Cash Flow
$299M
Previous year: $298M
+0.5%
Total Assets
$17.6B
Previous year: $20.3B
-13.4%

Smucker

Smucker

Smucker Revenue by Segment

Smucker Revenue by Geographic Location

Forward Guidance

Smucker expects modest sales growth and stable free cash flow in FY26, despite input inflation and the expiration of some contract manufacturing.

Positive Outlook

  • FY26 net sales expected to grow 2.0–4.0%
  • Adjusted EPS guidance set at $8.50–$9.50
  • Free cash flow projected at $875M
  • Stable adjusted tax rate at ~23.7%
  • Capital expenditures expected to be $325M

Challenges Ahead

  • Impact from $134.7M in divestitures included in guidance
  • Volume/mix expected to decline slightly
  • Contract manufacturing revenue to drop $38M
  • SD&A expenses to increase ~3%
  • Ongoing input cost inflation and market volatility

Revenue & Expenses

Visualization of income flow from segment revenue to net income