John B. Sanfilippo & Son, Inc. — Fiscal 2026 Earnings Summary

Financial Performance

• Q4 Net Sales increased 4.2% year-over-year to $280.4 million; Full Year Net Sales increased 6.2% to $1.18 billion.
• Q4 Gross Profit decreased 9.5% to $44.1 million (Gross Margin declined to 15.7% from 18.1%); Full Year Gross Profit increased 3.8% to $211.2 million (Gross Margin declined to 18.0% from 18.4%).
• Q4 Diluted EPS decreased 38.3% to $0.71; Full Year Diluted EPS increased 4.6% to $5.26.
• Q4 Operating Expenses increased $3.1 million to $31.7 million (11.3% of net sales); Full Year Operating Expenses increased to $122.0 million.
• Q4 Net Income was $8.4 million; Full Year Net Income was $61.9 million.
• Total Inventories decreased $8.8 million (3.4%) to $245.8 million at quarter-end.
• Revolving credit facility borrowings decreased to $33.6 million from $57.6 million; Long-term debt increased to $43.6 million from $14.6 million.
• Cash and cash equivalents increased to $1.1 million from $0.6 million.

Guidance and Future Outlook

• Management expressed confidence in the company's ability to improve operational efficiencies and respond to increased costs in fiscal 2027.
• CEO Jeffrey T. Sanfilippo announced he will step down as CEO in October 2026 to become Executive Chairman, with his brother Jasper Sanfilippo succeeding him as CEO.
• The company remains focused on a disciplined growth strategy emphasizing continuous improvement, innovation, customer partnership, and operational excellence.

Business Segments and Product Lines

• Q4 Sales Volume increased 1.4% to 87.4 million pounds; Full Year Sales Volume decreased 2.5% to 349.3 million pounds.
• Consumer Distribution Channel volume increased 0.8%, driven by a 2.4% increase in private brand sales, partially offset by decreased bars volume.
• Commercial Ingredients Distribution Channel volume decreased 5.4%, primarily due to timing of peanut crushing stock sales.
• Contract Manufacturing Distribution Channel volume increased 12.6%, driven by increased snack nut sales to a significant new customer.
• Fisher recipe nut sales were negatively impacted by Easter holiday timing; Southern Style Nuts Hunter Mix was temporarily withdrawn due to a product recall.
• Pricing actions were taken in response to higher commodity acquisition costs for peanuts and all major tree nuts except walnuts.

Market and Competitive Landscape

• The company operates in a challenging consumer and cost environment, achieving record net sales and earnings growth despite these conditions.
• Private label nuts and trail mix sales volume was positively impacted by initial shipments to a new grocery retailer and expanded distribution at two existing retailers.
• The company lost private label business at an online retailer.

Risks and Challenges

• Q4 profitability was impacted by higher-than-anticipated input and transportation costs.
• Manufacturing inefficiencies were associated with the continued onboarding of a large contract manufacturing customer.
• Gross profit was adversely affected by $2.7 million in recall-related costs for dry milk powder supplied by a third-party manufacturer.
• Additional Q4 headwinds included higher customer claims, higher snack bar ingredient costs, and higher freight expenses.
• Certain customer-related charges also impacted Q4 results.

Management Commentary and Tone

• CEO Jeffrey T. Sanfilippo described fiscal 2026 as "strong" with record net sales, noting that the return to growth in company-wide sales volume after five consecutive quarters of decline was a "positive signal."
• Management highlighted the strength of the business, team dedication, and depth of customer relationships as key drivers.
• The CEO expressed confidence that the company is positioned for continued success under new leadership.

Other Key Points

• The company declared an annual dividend increase of 5.6% to $0.95 per share and a special dividend of $1.05 per share (a 75% increase from the prior year).
• Total dividends paid during the 2026 calendar year reached $3.50 per share.
• This marks the 15th consecutive year of returning capital to shareholders through dividends and the 9th consecutive year of increasing the annual dividend.
• Dividends were scheduled to be paid on September 9, 2026.
• The company will present at the BWS Financial Growth and Value Summer Investor Series on August 25, 2026, and the Midwest IDEAS conference on August 27, 2026.