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Jun 29, 2025
Utz Q2 2025 Earnings Report
Utz Brands reported its second fiscal quarter 2025 results, showcasing increased net sales and organic net sales growth, particularly in its Branded Salty Snacks portfolio, while experiencing a decline in net income and adjusted EBITDA.
Key Takeaways
Utz Brands delivered a strong performance in the second quarter of 2025, with a 2.9% increase in both Net Sales and Organic Net Sales, reaching $366.7 million. This growth was primarily driven by a robust 5.4% increase in Branded Salty Snacks Organic Net Sales. Despite this top-line growth and an expansion in Adjusted Gross Profit Margin, the company saw a significant 60.2% decrease in Net Income to $10.1 million and a 2.0% decrease in Adjusted EBITDA to $48.7 million, largely due to higher selling, distribution, and administrative expenses, and increased depreciation, amortization, and interest expenses.
Net Sales and Organic Net Sales both increased by 2.9% to $366.7 million, indicating solid top-line growth.
Branded Salty Snacks Organic Net Sales, representing 88% of total Net Sales, grew by 5.4%, driven by Power Four Brands.
Net Income decreased significantly by 60.2% to $10.1 million, and Adjusted EBITDA decreased by 2.0% to $48.7 million, impacted by higher operating costs.
Adjusted Gross Profit Margin expanded by 220 basis points to 39.8%, reflecting effective cost management and productivity savings.
Revenue by Segment
Forward Guidance
Utz Brands is updating its fiscal year 2025 outlook, raising expectations for Organic Net Sales growth and tightening the Adjusted EBITDA growth range, while lowering Adjusted Earnings Per Share growth due to higher capital expenditures, depreciation, amortization, and interest expense related to strategic investments.
Positive Outlook
- Organic Net Sales growth is now expected to be 2.5% or better, an increase from prior low-single digits expectation.
- Adjusted EBITDA growth guidance is tightened to 7% to 10%, reflecting confidence in productivity programs.
- Adjusted EBITDA Margin expansion of approximately 100bps is expected, consistent with prior guidance.
- Adjusted EBITDA Margin expansion will be led by Adjusted Gross Profit Margin expansion, fueled by strong productivity cost savings and improved product mix.
- Strategic investments in manufacturing network and automation capabilities are expected to position the company for sustained Adjusted EBITDA margin expansion and continued geographic expansion in 2026 and beyond.
Challenges Ahead
- Adjusted Earnings Per Share growth guidance is lowered to 7% to 10%, from the prior 10% to 15%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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