Utz Brands, Inc. (NYSE: UTZ) reported fiscal fourth‑quarter 2025 results with net sales of $342.2 million, a 0.4 % year‑over‑year increase, and adjusted earnings per share of $0.26, matching consensus estimates.
Full‑year 2025 net sales totaled $1.4388 billion, up 2.4 % from $1.405 billion in 2024, while full‑year adjusted EPS rose to $0.82, above the $0.77 reported in the original article.
Adjusted gross profit margin expanded to 36.5 % in Q4, up from 30.9 % a year earlier, driven by productivity gains that offset higher investment costs. The 33.6 % margin in Q3, compressed by capacity expansion and promotional activity, was reversed in Q4 as new capacity reached utilization.
Branded salty snacks, the company’s Power Four Brands, grew 5.3 % in retail sales, and overall branded salty snacks organic net sales increased 2.5 % in Q4. In contrast, non‑branded and non‑salty segments declined 14.8 %.
Utz announced a first share‑repurchase program for up to $50 million, aimed at reducing leverage and returning capital to shareholders.
Management guidance for fiscal 2026 calls for organic net sales growth of 2 %–3 %, adjusted EBITDA growth of 5 %–8 %, a decline in adjusted EPS of 3 %–6 %, and adjusted free cash flow of $60 million–$80 million, reflecting higher depreciation, interest, and tax expenses.
Howard Friedman, CEO, said, "2025 was a year of solid progress in a dynamic operating environment. Branded Salty Organic Net Sales increased nearly 5%, driven by the Power Four Brands and Expansion Geographies. We also expanded Adjusted Gross Margin by more than 250bps for the full year, with an especially strong performance of 560bps in the fourth quarter." He added, "Our playbook remains the same, grow profitably above the category."
CFO BK Kelley noted, "Our initiatives to improve free cash flow and balance sheet leverage are starting to deliver, with leverage improving to 3.4x at year‑end," and "We are introducing Adjusted Free Cash Flow guidance, and believe this demonstrates our commitment to substantially improving this metric and continuing to reduce leverage."
Investors highlighted the margin expansion and share repurchase as positive signals, but the revenue miss and guidance for lower adjusted EPS tempered enthusiasm.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.