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Sep 27, 2025
US Foods Q3 2025 Earnings Report
US Foods reported its third quarter fiscal year 2025 earnings, showcasing growth in net sales, net income, and diluted EPS.
Key Takeaways
US Foods delivered a strong third quarter in fiscal year 2025, with significant growth across key financial metrics. Net sales increased by 4.8% to $10.2 billion, net income grew by 3.4% to $153 million, and diluted EPS rose by 9.8% to $0.67. The company also saw double-digit growth in Adjusted EBITDA and Adjusted Diluted EPS, driven by volume growth in target customer types and progress on self-help initiatives.
Net sales increased by 4.8% to $10.2 billion, driven by case volume growth and food cost inflation.
Adjusted EBITDA grew by 11.0% to $505 million, with an Adjusted EBITDA margin of 5.0%, an increase of 28 basis points.
Diluted EPS increased by 9.8% to $0.67, while Adjusted Diluted EPS saw a substantial 25.9% increase to $1.07.
The company repurchased approximately $335 million of shares and signed an agreement to acquire Shetakis, an independent food distributor.
Forward Guidance
US Foods updated its fiscal year 2025 guidance, narrowing the range for Net Sales growth and raising the lower end of the range for Adjusted EBITDA and Adjusted Diluted EPS growth, reflecting confidence in continued performance.
Positive Outlook
- Adjusted EBITDA growth guidance raised to 10% to 12% (from 9.5% to 12%).
- Adjusted Diluted EPS growth guidance raised to 24% to 26% (from 19.5% to 23%).
- Continued focus on disciplined capital allocation, including investments for growth.
- Execution of share repurchases, with approximately $467 million remaining under the current program.
- Opportunistic tuck-in M&A, as evidenced by the definitive agreement to acquire Shetakis.
Challenges Ahead
- Net Sales growth guidance narrowed to 4% to 5% (from 4% to 6%).
- Uncertainty in predicting the financial impact of certain significant items for non-GAAP reconciliation.
- Potential for material impact on GAAP reported results due to unpredictable items.
Historical Earnings Impact
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