B&G Foods — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for Q3 2026 increased 4.7% year-over-year to $459.8 million; for the first three quarters of 2026, net sales decreased 2.9% to $1,252.0 million.
• Base business net sales increased 5.0% in Q3 2026 to $404.6 million and 1.8% in the first three quarters of 2026 to $1,116.0 million.
• GAAP net loss was $32.5 million ($0.40 per diluted share) for Q3 2026 compared to a net loss of $19.1 million ($0.24 per share) in Q3 2025; for the first three quarters, net loss was $69.0 million ($0.85 per share) compared to $28.1 million ($0.35 per share) in 2025.
• Adjusted net income was $17.8 million ($0.21 per adjusted diluted share) for Q3 2026, up 51.3% from $11.7 million ($0.15 per share) in Q3 2025; for the first three quarters, adjusted net income was $29.5 million ($0.36 per share), up 63.1% from $18.1 million ($0.23 per share).
• Adjusted EBITDA was $81.8 million for Q3 2026, an increase of 16.2% from $70.4 million in Q3 2025; for the first three quarters, adjusted EBITDA was $199.9 million, up 6.6% from $187.5 million.
• Gross profit margin was 23.7% in Q3 2026 versus 22.5% in Q3 2025; adjusted gross profit margin was 24.2% in Q3 2026 versus 22.5% in Q3 2025.
• Net interest expense increased 20.1% to $44.8 million in Q3 2026 and 7.4% to $119.1 million in the first three quarters of 2026, driven by higher debt outstanding and the 11.00% interest rate on new senior notes due 2031.
• Selling, general and administrative expenses increased 14.9% to $51.3 million in Q3 2026 and 0.8% to $142.1 million in the first three quarters of 2026, primarily due to acquisition/divestiture-related and non-recurring expenses.
• The company recorded pre-tax, non-cash impairment charges of $40.7 million for indefinite-lived intangible trademark assets related to the B&M and Joan of Arc brands in Q3 2026.
• Cash and cash equivalents were $61.7 million as of October 3, 2026, compared to $56.3 million as of January 3, 2026.
• Long-term debt, net of current portion, was $2,035.4 million as of October 3, 2026, compared to $1,945.6 million as of January 3, 2026.

Guidance and Future Outlook:

• Full-year fiscal 2026 net sales guidance increased to a range of $1.760 billion to $1.800 billion.
• Full-year fiscal 2026 adjusted EBITDA guidance increased to a range of $280.0 million to $290.0 million.
• Full-year fiscal 2026 adjusted diluted earnings per share guidance reaffirmed at a range of $0.575 to $0.675.
• Management priorities include delivering on 2026 commitments, building a stronger operating foundation for 2027, accelerating productivity and cost savings, improving cash generation, and reducing leverage.

Business Segments and Product Lines:

• Specialty Segment: Net sales increased 8.3% in Q3 2026 to $163.0 million and 0.7% in the first three quarters to $422.7 million; adjusted EBITDA decreased 10.2% in Q3 and 19.4% in the first three quarters, driven by higher oil input costs and transportation expenses.
• Meals Segment: Net sales increased 27.9% in Q3 2026 to $140.6 million and 11.9% in the first three quarters to $358.2 million, primarily driven by the acquisition of College Inn and Kitchen Basics; adjusted EBITDA increased 24.7% in Q3 and 1.3% in the first three quarters.
• Frozen & Vegetables Segment: Net sales decreased 29.6% in Q3 2026 to $54.5 million and 33.5% in the first three quarters to $172.7 million due to the Green Giant U.S. frozen and Le Sueur U.S. divestitures; adjusted EBITDA increased 37.3% in Q3 to $5.7 million and was $9.1 million in the first three quarters compared to a loss of $0.028 million in 2025.
• Spices & Flavor Solutions Segment: Net sales increased 0.3% in Q3 2026 to $101.7 million and 3.0% in the first three quarters to $298.4 million; adjusted EBITDA increased 24.1% in Q3 to $32.7 million and 21.9% in the first three quarters to $93.6 million.
• The Company acquired College Inn and Kitchen Basics on March 19, 2026, contributing $29.0 million in Q3 2026 and $45.1 million in the first three quarters of 2026.
• The Company entered a co-manufacturing agreement with the acquirer of the Green Giant U.S. frozen business on March 2, 2026, contributing $26.3 million in Q3 2026 and $58.7 million in the first three quarters of 2026.
• The Company divested the Green Giant U.S. frozen business on March 2, 2026, and the Le Sueur U.S. business on August 1, 2025.
• The Company divested the B&M and Joan of Arc brands on October 13, 2026.

Market and Competitive Landscape:

• Specialty segment growth was driven by increased volumes in institutional bulk vegetable oil sales.
• Spices & Flavor Solutions segment growth was driven by strong continued growth in private label and foodservice channels.
• Meals segment growth was driven by the College Inn and Kitchen Basics acquisition and increased net pricing.
• The Company faces rising costs for raw materials, including oil for the Crisco brand, and rising diesel fuel prices impacting transportation and logistics.

Risks and Challenges:

• Significant leverage and debt obligations, including an 11.00% interest rate on senior notes due 2031, increase net interest expense.
• Impairment charges related to indefinite-lived intangible assets (B&M and Joan of Arc) and assets held for sale (Green Giant Canada).
• Loss on sale of assets of $36.3 million in the first three quarters of 2026, primarily related to the Green Giant U.S. frozen divestiture.
• Acquisition/divestiture-related and non-recurring expenses increased significantly, including $16.6 million in the first three quarters of 2026.
• Potential inability to successfully complete divestitures of non-core businesses or realize expected synergies from acquisitions.
• Risks related to tariffs, international trade disputes, and currency fluctuations (Canadian dollar and Mexican peso).

Management Commentary and Tone:

• CEO Rob Mills stated results reflect "encouraging progress" with base business net sales growth and increased adjusted EBITDA.
• Management is establishing a "more focused and accountable operating approach" with an emphasis on profitable growth, productivity, and disciplined execution.
• Management expressed confidence in the strength of brands and the potential across the portfolio following engagement with teams and review of operations.
• The tone indicates a focus on strengthening the financial foundation, improving cash generation, and reducing leverage for sustainable long-term performance.

Other Key Points:

• The Company declared cash dividends of $0.095 per share in Q3 2026 and $0.380 per share for the first three quarters of 2026.
• The Company recorded a gain of approximately $1.8 million related to Green Giant Canada assets held for sale in Q3 2026.
• The Company recorded a loss on extinguishment of debt of $1.1 million in Q3 2026 compared to a net gain of $0.5 million in Q3 2025.
• The Company's 11.00% senior notes due 2031 were issued on June 10, 2026, prior to the redemption of the 5.25% senior notes due 2027, resulting in a 24-day period of interest expense on both sets of notes.
• The Company operates four business segments: Specialty, Meals, Frozen & Vegetables, and Spices & Flavor Solutions.
• The Company does not provide a reconciliation of forward-looking adjusted EBITDA and adjusted diluted earnings per share guidance to GAAP measures due to the inherent difficulty in forecasting certain amounts.