Dec 28, 2024

Sysco Q2 2025 Earnings Report

Sysco's financial performance in Q2 2025 reflected sales and profit growth, driven by International, SYGMA, and National sales businesses, with improvements in local customer acquisition and margin expansion.

Key Takeaways

Sysco reported a 4.5% increase in sales, reaching $20.2 billion, and a 3.9% increase in gross profit to $3.7 billion. Operating income rose by 1.7% to $712 million, with adjusted operating income up 5.1% to $783 million. EPS was $0.82, while adjusted EPS increased by 4.5% to $0.93. The company reiterated its FY25 guidance, projecting sales growth of 4-5% and adjusted EPS growth of 6-7%.

Sales increased by 4.5%, with U.S. Foodservice volume up by 1.4%.

Gross profit increased by 3.9% to $3.7 billion.

Operating income increased by 1.7% to $712 million, while adjusted operating income increased by 5.1% to $783 million.

Adjusted EPS increased 4.5% to $0.93.

Total Revenue
$20.2B
Previous year: $19.3B
+4.5%
EPS
$0.93
Previous year: $0.89
+4.5%
Gross Profit
$3.7B
Previous year: $3.5B
+5.7%
Cash and Equivalents
$793M
Previous year: $962M
-17.6%
Free Cash Flow
$234M
Previous year: $631M
-62.9%
Total Assets
$25.3B
Previous year: $24.7B
+2.3%

Sysco

Sysco

Sysco Revenue by Segment

Forward Guidance

Sysco is reiterating FY25 guidance, with sales growth of 4-5% and adjusted EPS growth of 6-7%.

Positive Outlook

  • Expectations regarding future improvements in productivity
  • Belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods
  • Expectations regarding improvements in international volume
  • Expectations that our transformational agenda will drive long-term growth
  • Expectations regarding volume growth and benefits to gross margins

Challenges Ahead

  • Expectations regarding the continuation of an inflationary environment
  • Expectations regarding improvements in the efficiency of our supply chain
  • Expectations regarding the impact of our Recipe for Growth strategy and the pace of progress in implementing the initiatives under that strategy
  • Expectations regarding Sysco’s ability to outperform the market in future periods
  • Expectations that our strategic priorities will enable us to grow faster than the market

Revenue & Expenses

Visualization of income flow from segment revenue to net income