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Jun 28, 2025
US Foods Q2 2025 Earnings Report
US Foods reported strong financial results for the second quarter of fiscal year 2025, driven by increased net sales, net income, and adjusted EBITDA.
Key Takeaways
US Foods delivered a robust performance in the second quarter of fiscal year 2025, with net sales growing 3.8% to $10.1 billion, net income increasing 13.1% to $224 million, and adjusted EBITDA rising 12.1% to $548 million. The company also saw significant growth in diluted EPS and adjusted diluted EPS, and successfully reduced its net leverage ratio.
Net sales increased 3.8% to $10.1 billion, driven by case volume growth and food cost inflation.
Net income grew 13.1% to $224 million, and Adjusted EBITDA increased 12.1% to $548 million, reflecting strong operational execution and margin expansion.
Diluted EPS rose 20.0% to $0.96, and Adjusted Diluted EPS surged 28.0% to $1.19.
The company repurchased $250 million of shares and reduced its net leverage ratio to 2.6x, demonstrating strong cash flow generation and commitment to shareholder returns.
Forward Guidance
US Foods has raised its full-year guidance for Adjusted EBITDA and Adjusted Diluted EPS, while maintaining its Net Sales growth outlook.
Positive Outlook
- Adjusted EBITDA growth guidance raised to 9.5% to 12% (from 8% to 12%).
- Adjusted Diluted EPS growth guidance raised to 19.5% to 23% (from 17% to 23%).
- Net Sales growth guidance remains strong at 4% to 6%.
- Continued focus on execution and delivering value to customers is expected to fuel further market share gains.
- Strong cash flow generation is anticipated to fund capital investments and shareholder returns.
Challenges Ahead
- No specific negative forward guidance points were provided in the report.
- The company did not provide a reconciliation of certain forward-looking non-GAAP financial measures due to the inability to predict certain financial impacts.
- Uncertainty regarding the financial impact of items like restructuring, asset impairment, and share-based compensation.
Historical Earnings Impact
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