The J.M. Smucker Co. Announces Fiscal Year 2027 First Quarter Results
The J.M. Smucker Co. Announces Fiscal Year 2027 First Quarter Results and Updates Full-Year Fiscal 2027 Outlook ORRVILLE, Ohio, Aug. 26, 2026 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced results for the first quarter ended July 31, 2026, of its 2027 fiscal year. All comparisons are to the first quarter of the prior fiscal year, unless otherwise noted.
• Net income per diluted share was $3.03. Adjusted earnings per share was $3.24, an increase of 71 percent, which included an $0.84 benefit from tariff refunds received in the quarter.
• Cash provided by operating activities was $425.7 million compared to cash used for operating activities of $10.6 million in the prior year.
• Free cash flow was $337.3 million compared to ($94.9) million in the prior year.
• The Company updated its fiscal 2027 outlook, with net sales now expected to decrease 1.0 to 2.0 percent, adjusted earnings per share to range from $10.50 to $11.00, and free cash flow of approximately $1.1 billion.
“Our first quarter results exceeded our expectations for both net sales and adjusted earnings per share, demonstrating continued momentum across the Company,” said Mark Smucker, Chief Executive Officer, President and Chair of the Board. “Our performance reflects the strength of our differentiated portfolio, disciplined execution against our strategic priorities, and the investments we continue to make in our brands and capabilities.”
“Based on our strong first quarter performance and expectations for the remainder of the year, we are increasing our net sales, adjusted earnings per share, and free cash flow outlook for the fiscal year. We are focused on advancing our strategic priorities of driving organic volume growth across our key platforms, improving profitability and accelerating earnings growth, and maintaining a disciplined approach to capital deployment. We remain confident in our ability to deliver long-term growth and increase shareholder value.”
Three Months Ended July 31, 2026 2025 % Increase (Decrease) -Dollars and shares in millions, except per share data Net sales $2,219.3 $2,113.3 5 % Operating $511.6 $45.6 n/m income Adjusted operating 540.7 370.3 46 % income Net income (loss) per common $3.03 -$0.41 n/m share – assuming dilution Adjusted earnings per share $3.24 $1.90 71 % – assuming dilution Weighted-… shares outstandi… 107.1 106.6 — % – assuming dilution
Net sales increased $106.0 million, or 5 percent. The increase in net sales reflects a 4 percentage point increase from net price realization, primarily driven by higher net pricing for coffee. Net sales also reflects a 1 percentage point increase from volume/mix, primarily driven by increases for Uncrustables ® sandwiches and coffee, partially offset by decreases for sweet baked goods and peanut butter.
Gross profit increased $504.9 million, or 106 percent. The increase primarily reflects lower costs, including a net favorable impact of derivative gains and losses, as well as tariff refunds, higher net price realization, and favorable volume/mix. Gross profit included tariff refunds received of approximately $115.0 million during the quarter. Operating income increased $466.0 million, primarily reflecting the increase in gross profit, partially offset by an increase in selling, distribution, and administrative (“SD&A”) expenses.
Adjusted gross profit increased $207.0 million, or 28 percent. The difference between adjusted gross profit and generally accepted accounting principles (“GAAP”) results reflects the exclusion of the change in net cumulative unallocated derivative gains and losses and special project costs. Adjusted operating income increased $170.4 million, or 46 percent, which further reflects the exclusion of amortization expense and other special project costs as compared to GAAP operating income.
Net interest expense decreased $17.9 million, primarily due to reduced debt outstanding as compared to the prior year. Net interest expense included $4.0 million of interest income associated with the receipt of tariff refunds during the quarter.
The effective income tax rate was 24.2 percent in the quarter, as compared to 22.3 percent in the prior year. The increase in the effective income tax rate was primarily due to the impact of the loss before income taxes in the prior year. The adjusted effective income tax rate was 24.2 percent in the quarter and the prior year.
Cash provided by operating activities was $425.7 million, compared to cash used for operating activities of $10.6 million in the prior year, primarily reflecting higher net income (loss) adjusted for noncash items and less cash required to fund working capital requirements. Free cash flow was $337.3 million, compared to ($94.9) million in the prior year, primarily reflecting the increase in cash provided by operating activities. Net cash outflows related to debt were $230.8 million.
Current Previous Net sales (2.0)% to (4.0)% to decrease vs. (1.0)% (3.0)% prior year Adjusted $10.50 - $9.75 - earnings per $11.00 $10.25 share Free cash flow (in $1.1 $1.0 billions) Capital expenditures $325.0 $325.0 (in millions) Adjusted effective 24.2 % 24.3 % income tax rate
The Company continues to operate in a dynamic and evolving external environment, including geopolitical, macroeconomic, and policy changes, as well as changes in consumer behaviors, that could impact its fiscal year 2027 outlook. This guidance reflects the Company's expectations based on its current understanding of these factors and does not assume any impacts from new tariffs, changes to existing tariffs, or changes to the tariff refunds received in the first quarter.
Net sales is now expected to decrease 1.0 to 2.0 percent versus the prior year. The decrease in net sales primarily reflects lower net price realization and neutral volume/mix. Adjusted earnings per share is now expected to range from $10.50 to $11.00. This updated guidance reflects the decrease in net sales, adjusted gross profit margin of approximately 38.75 percent, which now includes approximately $115.0 million of tariff refunds received in the first quarter, an increase of SD&A expenses of approximately 8.0 percent versus the prior year, interest expense of approximately $335.0 million, an adjusted effective income tax rate of 24.2 percent, and 107.1 million weighted-average common shares outstanding. The adjusted earnings per share range now includes a net benefit of approximately $0.60 related to the receipt of tariff refunds, which reflects the $0.84 benefit from tariff refunds received in the first quarter, net of planned investments in SD&A expenses. Free cash flow is now expected to be $1.1 billion at the midpoint of our adjusted earnings per share guidance range, with capital expenditures of $325.0 million.
Net Segment Profit Segment Profit Margin Sales FY27 Q1 Results $807.8 $300.0 37.1% Increase (decrease) vs. 13% 124% 1,840bps prior year
Net sales increased $90.6 million, or 13 percent. Net price realization increased net sales by 10 percentage points, reflecting higher net pricing across the portfolio. Volume/mix increased net sales by 2 percentage points, primarily reflecting increases for the Dunkin’ ® and Café Bustelo ® brands.
Segment profit increased $165.8 million, primarily reflecting tariff refunds and higher net price realization, partially offset by higher marketing spend.
Net Segment Profit Segment Profit Margin Sales FY27 Q1 Results $499.3 $129.7 26.0% Increase (decrease) vs. 3% 13% 240bps prior year
Net sales increased $14.6 million, or 3 percent. Net price realization increased net sales by 2 percentage points, reflecting higher net pricing across the portfolio. Volume/mix increased net sales by 1 percentage point, primarily reflecting an increase for Uncrustables ® sandwiches, partially offset by decreases for peanut butter and fruit spreads.
Segment profit increased $15.4 million, primarily driven by higher net price realization, lower marketing spend, and favorable volume/mix, partially offset by higher costs.
Net Segment Profit Segment Profit Margin Sales FY27 Q1 Results $371.7 $98.9 26.6% Increase (decrease) vs. 1% (2)% -90bps prior year
Net sales increased $3.7 million, or 1 percent. Volume/mix increased net sales by 1 percentage point, primarily driven by an increase for cat food. Net price realization was neutral to net sales, as higher net pricing for cat food was mostly offset by higher trade spend for dog snacks.
Segment profit decreased $2.4 million, primarily driven by higher costs and higher marketing spend, partially offset by tariff refunds and favorable volume/mix.
Net Segment Profit Segment Profit Margin Sales FY27 Q1 Results $236.5 $29.9 12.6% Increase (decrease) vs. (7)% (13)% -90bps prior year
Net sales decreased $16.7 million, or 7 percent. Volume/mix decreased net sales by 8 percentage points, primarily reflecting decreases for snack cakes and breakfast. Net price realization increased net sales by 2 percentage points, primarily reflecting higher net pricing for snack cakes and donuts.
Segment profit decreased $4.3 million, primarily reflecting higher costs and unfavorable volume/mix, partially offset by higher net price realization and lower marketing spend.
Net Segment Profit Segment Profit Margin Sales FY27 Q1 Results $203.7 $61.2 30.0% Increase (decrease) vs. 3% 19% 410bps prior year
Net sales increased $5.4 million, or 3 percent. Volume/mix increased net sales by 2 percentage points, primarily driven by increases for Uncrustables ® sandwiches and fruit spreads, partially offset by a decrease for coffee. Net price realization was neutral to net sales, as higher net pricing for coffee was mostly offset by lower net pricing for Uncrustables ® sandwiches and portion control products.
Segment profit increased $9.8 million, primarily reflecting tariff refunds and favorable volume/mix, partially offset by higher costs.
At approximately 7:00 a.m. Eastern Time today, the Company will post to its website at investors.jmsmucker.com a pre-recorded management discussion of its fiscal 2027 first quarter financial results, a transcript of the discussion, and supplemental materials. At 9:00 a.m. Eastern Time today, the Company will webcast a live question-and-answer session with Mark Smucker, Chief Executive Officer, President and Chair of the Board, and Tucker Marshall, Chief Financial Officer | Executive Vice President, Frozen Handheld and Spreads and Sweet Baked Snacks. The live webcast and replay can be accessed at investors.jmsmucker.com.
This press release contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this press release, which could cause actual results to differ materially from those expressed, include: the Company’s ability to maintain operational stability and successfully achieve the benefits associated with ongoing optimization initiatives of the Sweet Baked Snacks business, including the risk that the business may not achieve anticipated operating or financial results; disruptions or inefficiencies in the Company’s operations or supply chain, including any impact caused by product recalls, political instability, terrorism, geopolitical conflicts, extreme weather conditions, natural disasters, pandemics, work stoppages or labor shortages, or other calamities; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation; the impact of food security concerns involving either the Company’s products or its competitors’ products, changes in consumer preferences, consumer or other litigation, actions by the U.S. Food and Drug Administration or other agencies, and product recalls; risks associated with derivative and purchasing strategies the Company employs to manage commodity pricing and interest rate risks; the availability of reliable transportation on acceptable terms; the ability to achieve cost savings related to the Company’s cost management programs in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to continue operating under the Company’s capital deployment model, including capital expenditures, debt repayment to meet the Company’s deleveraging objectives, dividend payments, and share repurchases; a change in outlook or downgrade in the Company’s public credit ratings by a rating agency below investment grade; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the Company’s businesses, including product innovation; general competitive activity in the market, including competitors’ pricing practices and promotional spending levels; the Company’s ability to attract and retain key talent; the concentration of certain of the Company’s businesses with key customers and suppliers, including primary or single-source suppliers of certain key raw materials and finished goods, and the Company’s ability to manage and maintain key relationships; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in the useful lives of other intangible assets or other long- lived assets; the impact of new or changes to existing governmental laws, regulations, and policies and their application, including tariffs, food ingredients, food labeling, and food accessibility; the outcome of tax examinations, changes in tax laws, and other tax matters; a disruption, failure, or security breach of the Company or its suppliers’ information technology systems, including, but not limited to, ransomware attacks; foreign currency exchange rate and interest rate fluctuations; and risks related to other factors described under “Risk Factors” in other reports and statements filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.
At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers ® , Dunkin’ ® , Café Bustelo ® , Jif ® , Uncrustables ® , Smucker’s ® , Hostess ® , Milk-Bone ® , and Meow Mix ® . Through our unwavering commitment to producing quality products, operating responsibly and ethically and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin’ ® , which is a trademark of DD IP Holder LLC. The Dunkin’ ® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin’ ® restaurants.
The J.M. Smucker Co. Unaudited Condensed Consolidated Balance Sheets July 31, 2026 April 30, 2026 ────────────────────────────────────────────────────────────────────────────── -Dollars in millions Assets Current Assets Cash and cash $43.2 $58.6 equivalents Trade receivables – 615.7 656.3 net Inventories 1,186.5 1,126.5 Other current 145.8 131.7 assets Total Current 1,991.2 1,973.1 Assets Property, Plant, and 3,016.9 3,032.1 Equipment – Net Other Noncurrent Assets Goodwill 5,200.0 5,205.0 Other intangible 5,625.0 5,683.7 assets – net Other noncurrent 370.1 325.5 assets Total Other Noncurrent 11,195.1 11,214.2 Assets Total Assets $16,203.2 $16,219.4 Liabilities and Shareholders’ Equity Current Liabilities Accounts $1,205.1 $1,175.1 payable Current portion of long-term 150.0 150.0 debt Short-term 193.5 420.9 borrowings Other current 740.2 792.2 liabilities Total Current 2,288.8 2,538.2 Liabilities Noncurrent Liabilities Long-term debt, less current 6,394.3 6,392.8 portion Other noncurrent 1,769.3 1,744.6 liabilities Total Noncurrent 8,163.6 8,137.4 Liabilities Total Shareholders’ 5,750.8 5,543.8 Equity Total Liabilities and $16,203.2 $16,219.4 Shareholders’ Equity
The J.M. Smucker Co. Unaudited Condensed Consolidat… Statements of Cash Flow Three Months Ended July 31, 2026 2025 -Dollars in millions Operating Activities Net income $324.3 -$43.9 (loss) Adjustments to reconcile net income (loss) to net cash provided by (used for) operations: Depreciati… 69.6 85.0 Amortizati… 57.9 50.2 Share-based compensati… 12.2 9.0 expense Deferred income tax -0.4 24.0 expense (benefit) Other noncash 11.4 12.7 adjustments – net Changes in assets and liabilitie… Trade 40.1 -24.3 receivables Inventories -61.1 -177.3 Other current -13.8 53.0 assets Accounts 60.9 -33.2 payable Accrued -26.0 76.2 liabilities Income and -31.7 -41.1 other taxes Other – net -17.7 -0.9 Net Cash Provided by (Used for) 425.7 -10.6 Operating Activities Investing Activities Additions to property, -88.4 -84.3 plant, and equipment Proceeds from disposal of 0.3 12.9 property, plant, and equipment Collateral received (pledged) for 2.0 -126.7 derivative cash margin accounts Other – net 0.3 0.2 Net Cash Provided by (Used for) -85.8 -197.9 Investing Activities Financing Activities Short-term borrowings -230.8 300.6 (repayment… – net Quarterly dividends -116.8 -114.4 paid Purchase of treasury -5.7 -4.6 shares Other – net -0.7 -3.6 Net Cash Provided by (Used for) -354.0 178.0 Financing Activities Effect of exchange rate -1.3 -0.1 changes on cash Net increase (decrease) -15.4 -30.6 in cash and cash equivalents Cash and cash equivalents 58.6 69.9 at beginning of period Cash and Cash Equivalents $43.2 $39.3 at End of Period
The J.… Sm… Co. Un… Su… Sc… Thr… Mon… End… July 31, % of % of 2026 Net 2025 Net Sales Sales -Dol… in mill… Net $2,… $2,… sa… Se… di… and ad… ex…
The J.M. Smucker Co. Unaudited Reportable Segments Three Months Ended July 31, 2026 2025 -Dollars in millions Net sales: U.S. Retail $807.8 $717.2 Coffee U.S. Retail Frozen 499.3 484.7 Handheld and Spreads U.S. Retail 371.7 368.0 Pet Foods Sweet Baked 236.5 253.2 Snacks Away From 203.7 198.3 Home Other(A) 100.3 91.9 Total net $2,219.3 $2,113.3 sales Segment profit: U.S. Retail $300.0 $134.2 Coffee U.S. Retail Frozen 129.7 114.3 Handheld and Spreads U.S. Retail 98.9 101.3 Pet Foods Sweet Baked 29.9 34.2 Snacks Away From 61.2 51.4 Home Other(A) 19.3 14.1 Total segment $639.0 $449.5 profit Amortizati… -57.9 -50.2 Interest expense – -82.3 -100.2 net Change in net cumulative unallocated 29.4 -253.1 derivative gains and losses Cost of products sold – — -15.4 special project costs Other special -0.6 -6.0 project costs Corporate administra… -98.3 -79.2 expenses Other income -1.4 -1.9 (expense) – net Income (loss) before $427.9 -$56.5 income taxes Segment profit margin: U.S. Retail 37.1 % 18.7 % Coffee U.S. Retail Frozen 26.0 % 23.6 % Handheld and Spreads U.S. Retail 26.6 % 27.5 % Pet Foods Sweet Baked 12.6 % 13.5 % Snacks Away From 30.0 % 25.9 % Home Other(A) 19.2 % 15.3 %
The Company uses non-GAAP financial measures, including: net sales excluding divestitures and foreign currency exchange; adjusted gross profit; adjusted operating income; adjusted income; adjusted earnings per share; earnings before interest, taxes, depreciation, amortization expense, impairment charges related to intangible assets, and gains and losses on divestitures (“EBITDA (as adjusted)”); and free cash flow, as key measures for purposes of evaluating performance internally. The Company believes that investors’ understanding of its performance is enhanced by disclosing these performance measures. Furthermore, these non-GAAP financial measures are used by management in preparation of the annual budget and for the monthly analyses of its operating results. The Board of Directors also utilizes certain non-GAAP financial measures as components for measuring performance for incentive compensation purposes.
Non-GAAP financial measures exclude certain items affecting comparability that can significantly affect the year-over-year assessment of operating results, which include amortization expense and impairment charges related to intangible assets; certain divestiture, acquisition, integration, and restructuring costs (“special project costs”); gains and losses on divestitures; the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities (“change in net cumulative unallocated derivative gains and losses”); and other infrequently occurring items that do not directly reflect ongoing operating results. Income taxes, as adjusted is calculated using an adjusted effective income tax rate that is applied to adjusted income before income taxes and reflects the exclusion of the previously discussed items, as well as any adjustments for one-time tax-related activities, when they occur. While this adjusted effective income tax rate does not generally differ materially from the GAAP effective income tax rate, certain exclusions from non- GAAP results can significantly impact the adjusted effective income tax rate.
These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with U.S. GAAP. Rather, the presentation of these non-GAAP financial measures supplements other metrics used by management to internally evaluate its businesses and facilitate the comparison of past and present operations and liquidity. These non-GAAP financial measures may not be comparable to similar measures used by other companies and may exclude certain nondiscretionary expenses and cash payments. A reconciliation of certain non- GAAP financial measures to the comparable GAAP financial measure for the current and prior year periods is included in the “Unaudited Non-GAAP Financial Measures” tables. The Company has also provided a reconciliation of non-GAAP financial measures for its fiscal year 2027 outlook.
The J.M. Smuc… Co. Unau… Non-… Fina… Meas… Three Months Ended July 31, 2026 2025 Incre… % (Decr… -Doll… in milli… Net sales reco… Net $2,21… $2,1… $106… 5 % sales Fore… curr… 1.3 — 1.3 — exch… Net sales excl… $2,22… $2,1… $107… 5 % fore… curr… exch… Amou… may not add due to roun…
The J.M. Smucker Co. Unaudited Non-GAAP Financial Measures Three Months Ended July 31, 2026 2025 -Dollars and shares in millions, except per share data Gross profit reconciliat… Gross profit $979.6 $474.7 Change in net cumulative unallocated -29.4 253.1 derivative gains and losses Cost of products sold – — 15.4 special project costs Adjusted $950.2 $743.2 gross profit % of net 42.8 % 35.2 % sales Operating income reconciliat… Operating $511.6 $45.6 income Amortization 57.9 50.2 Change in net cumulative unallocated -29.4 253.1 derivative gains and losses Cost of products sold – — 15.4 special project costs Other special 0.6 6.0 project costs Adjusted operating $540.7 $370.3 income % of net 24.4 % 17.5 % sales Net income (loss) reconciliat… Net income $324.3 -$43.9 (loss) Income tax expense 103.6 -12.6 (benefit) Amortization 57.9 50.2 Change in net cumulative unallocated -29.4 253.1 derivative gains and losses Cost of products sold – — 15.4 special project costs Other special 0.6 6.0 project costs Adjusted income $457.0 $268.2 before income taxes Income taxes, as 110.5 64.8 adjusted Adjusted $346.5 $203.4 income Weighted-av… shares outstanding 107.1 106.8 – assuming dilution(A) Adjusted earnings per share – $3.24 $1.90 assuming dilution(A) (A)Adjusted earnings per common share – assuming dilution for the three months ended July 31, 2026 and 2025, was computed using the treasury stock method. Further, for the three months ended July 31, 2025, the weighted-av… shares outstanding – assuming dilution differed from the Company’s GAAP weighted-av… common shares outstanding – assuming dilution as a result of the anti-diluti… effect of the Company’s stock-based awards, which were excluded from the computation of net loss per share – assuming dilution.
The J.M. Smucker Co. Unaudited Non-GAAP Financial Measures Three Months Ended July 31, 2026 2025 -Dollars in millions EBITDA (as adjusted) reconciliat… Net income $324.3 -$43.9 (loss) Income tax expense 103.6 -12.6 (benefit) Interest expense – 82.3 100.2 net Depreciation 69.6 85.0 Amortization 57.9 50.2 EBITDA (as $637.7 $178.9 adjusted) % of net 28.7 % 8.5 % sales Free cash flow reconciliat… Net cash provided by (used for) $425.7 -$10.6 operating activities Additions to property, -88.4 -84.3 plant, and equipment Free cash $337.3 -$94.9 flow
The following tables provide a reconciliation of the Company’s fiscal year 2027 guidance for estimated adjusted earnings per share and free cash flow.
Year Ending April 30, 2027 ────────────────────────────────────────────────────────────────────────────── Low High Net income per common share – assuming dilution reconciliation: Net income per common share – assuming $8.70 $9.20 dilution Change in net cumulative unallocated 0.15 0.15 derivative gains and losses(A) Amortization 1.64 1.64 Adjusted effective income tax rate 0.01 0.01 impact Adjusted earnings per $10.50 $11.00 share (A) We are unable to project derivative gains and losses on a forward-looking basis as these will vary each quarter based on market conditions and derivative positions taken. The change in unallocated derivative gains and losses in the table above reflects the net impact of the gains and losses that have been recognized in the Company’s GAAP results and excluded from non-GAAP results as of July 31, 2026, that are expected to be allocated to non-GAAP results in future periods. Year Ending April 30, 2027 -Dollars in millions Free cash flow reconciliation: Net cash provided by operating $1,425.0 activities Additions to property, plant, and -325.0 equipment Free cash flow $1,100.0
Full text with the tables
Exhibit 99.1
The J.M. Smucker Co. Announces Fiscal Year 2027 First Quarter Results
and Updates Full-Year Fiscal 2027 Outlook
ORRVILLE, Ohio, Aug. 26, 2026 /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM)
today announced results for the first quarter ended July 31, 2026, of its 2027
fiscal year. All comparisons are to the first quarter of the prior fiscal year,
unless otherwise noted.
EXECUTIVE SUMMARY
• Net sales was $2.2 billion, an increase of $106.0 million, or 5 percent.
• Net income per diluted share was $3.03. Adjusted earnings per share was $3.24,
an increase of 71 percent, which included an $0.84 benefit from tariff refunds
received in the quarter.
• Cash provided by operating activities was $425.7 million compared to cash used
for operating activities of $10.6 million in the prior year.
• Free cash flow was $337.3 million compared to ($94.9) million in the prior
year.
• The Company updated its fiscal 2027 outlook, with net sales now expected to
decrease 1.0 to 2.0 percent, adjusted earnings per share to range from $10.50 to
$11.00, and free cash flow of approximately $1.1 billion.
CHIEF EXECUTIVE OFFICER REMARKS
“Our first quarter results exceeded our expectations for both net sales and
adjusted earnings per share, demonstrating continued momentum across the
Company,” said Mark Smucker, Chief Executive Officer, President and Chair of the
Board. “Our performance reflects the strength of our differentiated portfolio,
disciplined execution against our strategic priorities, and the investments we
continue to make in our brands and capabilities.”
“Based on our strong first quarter performance and expectations for the
remainder of the year, we are increasing our net sales, adjusted earnings per
share, and free cash flow outlook for the fiscal year. We are focused on
advancing our strategic priorities of driving organic volume growth across our
key platforms, improving profitability and accelerating earnings growth, and
maintaining a disciplined approach to capital deployment. We remain confident in
our ability to deliver long-term growth and increase shareholder value.”
FIRST QUARTER CONSOLIDATED RESULTS
Three
Months
Ended July
31,
2026 2025 % Increase
(Decrease)
-Dollars
and shares
in
millions,
except per
share data
Net sales $2,219.3 $2,113.3 5 %
Operating $511.6 $45.6 n/m
income
Adjusted
operating 540.7 370.3 46 %
income
Net income
(loss) per
common $3.03 -$0.41 n/m
share –
assuming
dilution
Adjusted
earnings
per share $3.24 $1.90 71 %
– assuming
dilution
Weighted-…
shares
outstandi… 107.1 106.6 — %
–
assuming
dilution
Net Sales
Net sales increased $106.0 million, or 5 percent. The increase in net sales
reflects a 4 percentage point increase from net price realization, primarily
driven by higher net pricing for coffee. Net sales also reflects a 1 percentage
point increase from volume/mix, primarily driven by increases for Uncrustables ®
sandwiches and coffee, partially offset by decreases for sweet baked goods and
peanut butter.
Operating Income
Gross profit increased $504.9 million, or 106 percent. The increase primarily
reflects lower costs, including a net favorable impact of derivative gains and
losses, as well as tariff refunds, higher net price realization, and favorable
volume/mix. Gross profit included tariff refunds received of approximately
$115.0 million during the quarter. Operating income increased $466.0 million,
primarily reflecting the increase in gross profit, partially offset by an
increase in selling, distribution, and administrative (“SD&A”) expenses.
Adjusted gross profit increased $207.0 million, or 28 percent. The difference
between adjusted gross profit and generally accepted accounting principles
(“GAAP”) results reflects the exclusion of the change in net cumulative
unallocated derivative gains and losses and special project costs. Adjusted
operating income increased $170.4 million, or 46 percent, which further reflects
the exclusion of amortization expense and other special project costs as
compared to GAAP operating income.
Interest Expense and Income Taxes
Net interest expense decreased $17.9 million, primarily due to reduced debt
outstanding as compared to the prior year. Net interest expense included $4.0
million of interest income associated with the receipt of tariff refunds during
the quarter.
The effective income tax rate was 24.2 percent in the quarter, as compared to
22.3 percent in the prior year. The increase in the effective income tax rate
was primarily due to the impact of the loss before income taxes in the prior
year. The adjusted effective income tax rate was 24.2 percent in the quarter and
the prior year.
Cash Flow and Debt
Cash provided by operating activities was $425.7 million, compared to cash used
for operating activities of $10.6 million in the prior year, primarily
reflecting higher net income (loss) adjusted for noncash items and less cash
required to fund working capital requirements. Free cash flow was $337.3
million, compared to ($94.9) million in the prior year, primarily reflecting the
increase in cash provided by operating activities. Net cash outflows related to
debt were $230.8 million.
FULL-YEAR OUTLOOK
The Company updated its full-year fiscal 2027 guidance, as summarized below.
Current Previous
Net sales (2.0)% to (4.0)% to
decrease vs. (1.0)% (3.0)%
prior year
Adjusted $10.50 - $9.75 -
earnings per $11.00 $10.25
share
Free cash
flow (in $1.1 $1.0
billions)
Capital
expenditures $325.0 $325.0
(in
millions)
Adjusted
effective 24.2 % 24.3 %
income tax
rate
The Company continues to operate in a dynamic and evolving external environment,
including geopolitical, macroeconomic, and policy changes, as well as changes in
consumer behaviors, that could impact its fiscal year 2027 outlook. This
guidance reflects the Company's expectations based on its current understanding
of these factors and does not assume any impacts from new tariffs, changes to
existing tariffs, or changes to the tariff refunds received in the first
quarter.
Net sales is now expected to decrease 1.0 to 2.0 percent versus the prior year.
The decrease in net sales primarily reflects lower net price realization and
neutral volume/mix. Adjusted earnings per share is now expected to range from
$10.50 to $11.00. This updated guidance reflects the decrease in net sales,
adjusted gross profit margin of approximately 38.75 percent, which now includes
approximately $115.0 million of tariff refunds received in the first quarter, an
increase of SD&A expenses of approximately 8.0 percent versus the prior year,
interest expense of approximately $335.0 million, an adjusted effective income
tax rate of 24.2 percent, and 107.1 million weighted-average common shares
outstanding. The adjusted earnings per share range now includes a net benefit of
approximately $0.60 related to the receipt of tariff refunds, which reflects the
$0.84 benefit from tariff refunds received in the first quarter, net of planned
investments in SD&A expenses. Free cash flow is now expected to be $1.1 billion
at the midpoint of our adjusted earnings per share guidance range, with capital
expenditures of $325.0 million.
FIRST QUARTER SEGMENT RESULTS
(Dollar amounts in the segment tables below are reported in millions.)
U.S. Retail Coffee
Net Segment Profit Segment Profit Margin
Sales
FY27 Q1 Results $807.8 $300.0 37.1%
Increase (decrease) vs. 13% 124% 1,840bps
prior year
Net sales increased $90.6 million, or 13 percent. Net price realization
increased net sales by 10 percentage points, reflecting higher net pricing
across the portfolio. Volume/mix increased net sales by 2 percentage points,
primarily reflecting increases for the Dunkin’ ® and Café Bustelo ® brands.
Segment profit increased $165.8 million, primarily reflecting tariff refunds and
higher net price realization, partially offset by higher marketing spend.
U.S. Retail Frozen Handheld and Spreads
Net Segment Profit Segment Profit Margin
Sales
FY27 Q1 Results $499.3 $129.7 26.0%
Increase (decrease) vs. 3% 13% 240bps
prior year
Net sales increased $14.6 million, or 3 percent. Net price realization increased
net sales by 2 percentage points, reflecting higher net pricing across the
portfolio. Volume/mix increased net sales by 1 percentage point, primarily
reflecting an increase for Uncrustables ® sandwiches, partially offset by
decreases for peanut butter and fruit spreads.
Segment profit increased $15.4 million, primarily driven by higher net price
realization, lower marketing spend, and favorable volume/mix, partially offset
by higher costs.
U.S. Retail Pet Foods
Net Segment Profit Segment Profit Margin
Sales
FY27 Q1 Results $371.7 $98.9 26.6%
Increase (decrease) vs. 1% (2)% -90bps
prior year
Net sales increased $3.7 million, or 1 percent. Volume/mix increased net sales
by 1 percentage point, primarily driven by an increase for cat food. Net price
realization was neutral to net sales, as higher net pricing for cat food was
mostly offset by higher trade spend for dog snacks.
Segment profit decreased $2.4 million, primarily driven by higher costs and
higher marketing spend, partially offset by tariff refunds and favorable
volume/mix.
Sweet Baked Snacks
Net Segment Profit Segment Profit Margin
Sales
FY27 Q1 Results $236.5 $29.9 12.6%
Increase (decrease) vs. (7)% (13)% -90bps
prior year
Net sales decreased $16.7 million, or 7 percent. Volume/mix decreased net sales
by 8 percentage points, primarily reflecting decreases for snack cakes and
breakfast. Net price realization increased net sales by 2 percentage points,
primarily reflecting higher net pricing for snack cakes and donuts.
Segment profit decreased $4.3 million, primarily reflecting higher costs and
unfavorable volume/mix, partially offset by higher net price realization and
lower marketing spend.
Away From Home
Net Segment Profit Segment Profit Margin
Sales
FY27 Q1 Results $203.7 $61.2 30.0%
Increase (decrease) vs. 3% 19% 410bps
prior year
Net sales increased $5.4 million, or 3 percent. Volume/mix increased net sales
by 2 percentage points, primarily driven by increases for Uncrustables ®
sandwiches and fruit spreads, partially offset by a decrease for coffee. Net
price realization was neutral to net sales, as higher net pricing for coffee was
mostly offset by lower net pricing for Uncrustables ® sandwiches and portion
control products.
Segment profit increased $9.8 million, primarily reflecting tariff refunds and
favorable volume/mix, partially offset by higher costs.
Financial Results Discussion and Webcast
At approximately 7:00 a.m. Eastern Time today, the Company will post to its
website at investors.jmsmucker.com a pre-recorded management discussion of its
fiscal 2027 first quarter financial results, a transcript of the discussion, and
supplemental materials. At 9:00 a.m. Eastern Time today, the Company will
webcast a live question-and-answer session with Mark Smucker, Chief Executive
Officer, President and Chair of the Board, and Tucker Marshall, Chief Financial
Officer | Executive Vice President, Frozen Handheld and Spreads and Sweet Baked
Snacks. The live webcast and replay can be accessed at investors.jmsmucker.com.
The J.M. Smucker Co. Forward-Looking Statements
This press release contains forward-looking statements, such as projected net
sales, operating results, earnings, and cash flows that are subject to risks and
uncertainties that could cause actual results to differ materially from future
results expressed or implied by those forward-looking statements. The risks,
uncertainties, important factors, and assumptions listed and discussed in this
press release, which could cause actual results to differ materially from those
expressed, include: the Company’s ability to maintain operational stability and
successfully achieve the benefits associated with ongoing optimization
initiatives of the Sweet Baked Snacks business, including the risk that the
business may not achieve anticipated operating or financial results; disruptions
or inefficiencies in the Company’s operations or supply chain, including any
impact caused by product recalls, political instability, terrorism, geopolitical
conflicts, extreme weather conditions, natural disasters, pandemics, work
stoppages or labor shortages, or other calamities; risks related to the
availability of, and cost inflation in, supply chain inputs, including labor,
raw materials, commodities, packaging, and transportation; the impact of food
security concerns involving either the Company’s products or its competitors’
products, changes in consumer preferences, consumer or other litigation, actions
by the U.S. Food and Drug Administration or other agencies, and product recalls;
risks associated with derivative and purchasing strategies the Company employs
to manage commodity pricing and interest rate risks; the availability of
reliable transportation on acceptable terms; the ability to achieve cost savings
related to the Company’s cost management programs in the amounts and within the
time frames currently anticipated; the ability to generate sufficient cash flow
to continue operating under the Company’s capital deployment model, including
capital expenditures, debt repayment to meet the Company’s deleveraging
objectives, dividend payments, and share repurchases; a change in outlook or
downgrade in the Company’s public credit ratings by a rating agency below
investment grade; the ability to implement and realize the full benefit of price
changes, and the impact of the timing of the price changes to profits and cash
flow in a particular period; the success and cost of marketing and sales
programs and strategies intended to promote growth in the Company’s businesses,
including product innovation; general competitive activity in the market,
including competitors’ pricing practices and promotional spending levels; the
Company’s ability to attract and retain key talent; the concentration of certain
of the Company’s businesses with key customers and suppliers, including primary
or single-source suppliers of certain key raw materials and finished goods, and
the Company’s ability to manage and maintain key relationships; impairments in
the carrying value of goodwill, other intangible assets, or other long-lived
assets or changes in the useful lives of other intangible assets or other long-
lived assets; the impact of new or changes to existing governmental laws,
regulations, and policies and their application, including tariffs, food
ingredients, food labeling, and food accessibility; the outcome of tax
examinations, changes in tax laws, and other tax matters; a disruption, failure,
or security breach of the Company or its suppliers’ information technology
systems, including, but not limited to, ransomware attacks; foreign currency
exchange rate and interest rate fluctuations; and risks related to other factors
described under “Risk Factors” in other reports and statements filed with the
Securities and Exchange Commission, including the Company’s most recent Annual
Report on Form 10-K. The Company undertakes no obligation to update or revise
these forward-looking statements, which speak only as of the date made, to
reflect new events or circumstances.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people and pets love
by offering a diverse family of brands available across North America. We are
proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld,
sweet baked goods, dog snacks, and cat food categories by offering brands
consumers trust for themselves and their families each day, including Folgers ®
, Dunkin’ ® , Café Bustelo ® , Jif ® , Uncrustables ® , Smucker’s ® , Hostess ®
, Milk-Bone ® , and Meow Mix ® . Through our unwavering commitment to producing
quality products, operating responsibly and ethically and delivering on our
Purpose, we will continue to grow our business while making a positive impact on
society. For more information, please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced herein, except
for Dunkin’ ® , which is a trademark of DD IP Holder LLC. The Dunkin’ ® brand is
licensed to The J.M. Smucker Co. for packaged coffee products sold in retail
channels such as grocery stores, mass merchandisers, club stores, e-commerce and
drug stores, and in certain away from home channels. This information does not
pertain to products for sale in Dunkin’ ® restaurants.
Contacts:
The J.M. Smucker Co.: (330) 682-3000
Investors: Crystal Beiting, Vice President, Investor Relations & FP&A
Media: Abbey Linville, Vice President, Public Relations & Communications
The
J.M.
Smu…
Co.
Una…
Con…
Con…
Sta…
of
Inc…
(Lo…
Three
Mont…
Ended
July
31,
%
2026 2025 Incr…
(Dec…
-Dol…
and
shar…
in
mill…
exce…
per
share
data
Net $2,2… $2,… 5 %
sal…
Cost
of 1,23… 1,6… -24 %
pro…
sold
Gro… 979.6 474… 106 %
Pro…
Gro… 44.1 % 22.5 %
mar…
Sel…
dis…
and 410.5 377… 9 %
adm…
exp…
Amo… 57.9 50.2 15 %
Oth…
spe… 0.6 6.0 -90 %
pro…
cos…
Oth…
ope…
exp… -1.0 -4.5 78 %
(in…
–
net
Ope… 511.6 45.6 n/m
Inc…
Ope… 23.1 % 2.2 %
mar…
Int…
exp… -82.3 -10… -18 %
–
net
Oth…
inc…
(ex… -1.4 -1.9 26 %
–
net
Inc…
(Lo…
Bef… 427.9 -56… n/m
Inc…
Tax…
Inc…
tax 103.6 -12… n/m
exp…
(be…
Net
Inc… $324… -$4… n/m
(Lo…
Net
Inc…
(Lo… $3.04 -$0… n/m
Per
Com…
Sha…
Net
Inc…
(Lo…
Per
Com… $3.03 -$0… n/m
Sha…
–
Ass…
Dil…
Div…
Dec…
Per $1.12 $1.… 2 %
Com…
Sha…
Wei…
sha… 106.8 106… — %
out…
Wei…
sha…
out… 107.1 106… — %
–
ass…
dil…
The J.M.
Smucker Co.
Unaudited
Condensed
Consolidated
Balance Sheets July 31, 2026 April 30, 2026
──────────────────────────────────────────────────────────────────────────────
-Dollars in
millions
Assets
Current Assets
Cash and cash $43.2 $58.6
equivalents
Trade
receivables – 615.7 656.3
net
Inventories 1,186.5 1,126.5
Other current 145.8 131.7
assets
Total Current 1,991.2 1,973.1
Assets
Property,
Plant, and 3,016.9 3,032.1
Equipment – Net
Other
Noncurrent
Assets
Goodwill 5,200.0 5,205.0
Other
intangible 5,625.0 5,683.7
assets – net
Other
noncurrent 370.1 325.5
assets
Total Other
Noncurrent 11,195.1 11,214.2
Assets
Total Assets $16,203.2 $16,219.4
Liabilities and
Shareholders’
Equity
Current
Liabilities
Accounts $1,205.1 $1,175.1
payable
Current portion
of long-term 150.0 150.0
debt
Short-term 193.5 420.9
borrowings
Other current 740.2 792.2
liabilities
Total Current 2,288.8 2,538.2
Liabilities
Noncurrent
Liabilities
Long-term debt,
less current 6,394.3 6,392.8
portion
Other
noncurrent 1,769.3 1,744.6
liabilities
Total
Noncurrent 8,163.6 8,137.4
Liabilities
Total
Shareholders’ 5,750.8 5,543.8
Equity
Total
Liabilities and $16,203.2 $16,219.4
Shareholders’
Equity
The J.M.
Smucker Co.
Unaudited
Condensed
Consolidat…
Statements
of Cash
Flow
Three Months
Ended July
31,
2026 2025
-Dollars in
millions
Operating
Activities
Net income $324.3 -$43.9
(loss)
Adjustments
to
reconcile
net income
(loss) to
net cash
provided by
(used
for)
operations:
Depreciati… 69.6 85.0
Amortizati… 57.9 50.2
Share-based
compensati… 12.2 9.0
expense
Deferred
income tax -0.4 24.0
expense
(benefit)
Other
noncash 11.4 12.7
adjustments
– net
Changes in
assets and
liabilitie…
Trade 40.1 -24.3
receivables
Inventories -61.1 -177.3
Other
current -13.8 53.0
assets
Accounts 60.9 -33.2
payable
Accrued -26.0 76.2
liabilities
Income and -31.7 -41.1
other taxes
Other – net -17.7 -0.9
Net Cash
Provided by
(Used for) 425.7 -10.6
Operating
Activities
Investing
Activities
Additions
to
property, -88.4 -84.3
plant, and
equipment
Proceeds
from
disposal of 0.3 12.9
property,
plant, and
equipment
Collateral
received
(pledged)
for 2.0 -126.7
derivative
cash margin
accounts
Other – net 0.3 0.2
Net Cash
Provided by
(Used for) -85.8 -197.9
Investing
Activities
Financing
Activities
Short-term
borrowings -230.8 300.6
(repayment…
– net
Quarterly
dividends -116.8 -114.4
paid
Purchase of
treasury -5.7 -4.6
shares
Other – net -0.7 -3.6
Net Cash
Provided by
(Used for) -354.0 178.0
Financing
Activities
Effect of
exchange
rate -1.3 -0.1
changes on
cash
Net
increase
(decrease) -15.4 -30.6
in cash and
cash
equivalents
Cash and
cash
equivalents 58.6 69.9
at
beginning
of period
Cash and
Cash
Equivalents $43.2 $39.3
at End of
Period
The
J.…
Sm…
Co.
Un…
Su…
Sc…
Thr…
Mon…
End…
July
31,
% of % of
2026 Net 2025 Net
Sales Sales
-Dol…
in
mill…
Net $2,… $2,…
sa…
Se…
di…
and
ad…
ex…
Ma… 122… 5.5 % 117… 5.6 %
Se… 76.1 3.4 % 70.9 3.4 %
Di… 72.4 3.3 % 69.2 3.3 %
Ge…
and 139… 6.3 % 119… 5.6 %
ad…
To…
se…
di… $41… 18.5 % $37… 17.9 %
and
ad…
ex…
Am…
may
not
add
due
to
ro…
The J.M.
Smucker Co.
Unaudited
Reportable
Segments
Three Months
Ended July
31,
2026 2025
-Dollars in
millions
Net sales:
U.S. Retail $807.8 $717.2
Coffee
U.S. Retail
Frozen 499.3 484.7
Handheld
and Spreads
U.S. Retail 371.7 368.0
Pet Foods
Sweet Baked 236.5 253.2
Snacks
Away From 203.7 198.3
Home
Other(A) 100.3 91.9
Total net $2,219.3 $2,113.3
sales
Segment
profit:
U.S. Retail $300.0 $134.2
Coffee
U.S. Retail
Frozen 129.7 114.3
Handheld
and Spreads
U.S. Retail 98.9 101.3
Pet Foods
Sweet Baked 29.9 34.2
Snacks
Away From 61.2 51.4
Home
Other(A) 19.3 14.1
Total
segment $639.0 $449.5
profit
Amortizati… -57.9 -50.2
Interest
expense – -82.3 -100.2
net
Change in
net
cumulative
unallocated 29.4 -253.1
derivative
gains and
losses
Cost of
products
sold – — -15.4
special
project
costs
Other
special -0.6 -6.0
project
costs
Corporate
administra… -98.3 -79.2
expenses
Other
income -1.4 -1.9
(expense) –
net
Income
(loss)
before $427.9 -$56.5
income
taxes
Segment
profit
margin:
U.S. Retail 37.1 % 18.7 %
Coffee
U.S. Retail
Frozen 26.0 % 23.6 %
Handheld
and Spreads
U.S. Retail 26.6 % 27.5 %
Pet Foods
Sweet Baked 12.6 % 13.5 %
Snacks
Away From 30.0 % 25.9 %
Home
Other(A) 19.2 % 15.3 %
(A) Represents the International operating segment.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, including: net sales excluding
divestitures and foreign currency exchange; adjusted gross profit; adjusted
operating income; adjusted income; adjusted earnings per share; earnings before
interest, taxes, depreciation, amortization expense, impairment charges related
to intangible assets, and gains and losses on divestitures (“EBITDA (as
adjusted)”); and free cash flow, as key measures for purposes of evaluating
performance internally. The Company believes that investors’ understanding of
its performance is enhanced by disclosing these performance measures.
Furthermore, these non-GAAP financial measures are used by management in
preparation of the annual budget and for the monthly analyses of its operating
results. The Board of Directors also utilizes certain non-GAAP financial
measures as components for measuring performance for incentive compensation
purposes.
Non-GAAP financial measures exclude certain items affecting comparability that
can significantly affect the year-over-year assessment of operating results,
which include amortization expense and impairment charges related to intangible
assets; certain divestiture, acquisition, integration, and restructuring costs
(“special project costs”); gains and losses on divestitures; the net change in
cumulative unallocated gains and losses on commodity and foreign currency
exchange derivative activities (“change in net cumulative unallocated derivative
gains and losses”); and other infrequently occurring items that do not directly
reflect ongoing operating results. Income taxes, as adjusted is calculated using
an adjusted effective income tax rate that is applied to adjusted income before
income taxes and reflects the exclusion of the previously discussed items, as
well as any adjustments for one-time tax-related activities, when they occur.
While this adjusted effective income tax rate does not generally differ
materially from the GAAP effective income tax rate, certain exclusions from non-
GAAP results can significantly impact the adjusted effective income tax rate.
These non-GAAP financial measures are not intended to replace the presentation
of financial results in accordance with U.S. GAAP. Rather, the presentation of
these non-GAAP financial measures supplements other metrics used by management
to internally evaluate its businesses and facilitate the comparison of past and
present operations and liquidity. These non-GAAP financial measures may not be
comparable to similar measures used by other companies and may exclude certain
nondiscretionary expenses and cash payments. A reconciliation of certain non-
GAAP financial measures to the comparable GAAP financial measure for the current
and prior year periods is included in the “Unaudited Non-GAAP Financial
Measures” tables. The Company has also provided a reconciliation of non-GAAP
financial measures for its fiscal year 2027 outlook.
The
J.M.
Smuc…
Co.
Unau…
Non-…
Fina…
Meas…
Three
Months
Ended
July
31,
2026 2025 Incre… %
(Decr…
-Doll…
in
milli…
Net
sales
reco…
Net $2,21… $2,1… $106… 5 %
sales
Fore…
curr… 1.3 — 1.3 —
exch…
Net
sales
excl… $2,22… $2,1… $107… 5 %
fore…
curr…
exch…
Amou…
may
not
add
due
to
roun…
The J.M.
Smucker Co.
Unaudited
Non-GAAP
Financial
Measures
Three Months
Ended July
31,
2026 2025
-Dollars and
shares in
millions,
except per
share data
Gross profit
reconciliat…
Gross profit $979.6 $474.7
Change in
net
cumulative
unallocated -29.4 253.1
derivative
gains and
losses
Cost of
products
sold – — 15.4
special
project
costs
Adjusted $950.2 $743.2
gross profit
% of net 42.8 % 35.2 %
sales
Operating
income
reconciliat…
Operating $511.6 $45.6
income
Amortization 57.9 50.2
Change in
net
cumulative
unallocated -29.4 253.1
derivative
gains and
losses
Cost of
products
sold – — 15.4
special
project
costs
Other
special 0.6 6.0
project
costs
Adjusted
operating $540.7 $370.3
income
% of net 24.4 % 17.5 %
sales
Net income
(loss)
reconciliat…
Net income $324.3 -$43.9
(loss)
Income tax
expense 103.6 -12.6
(benefit)
Amortization 57.9 50.2
Change in
net
cumulative
unallocated -29.4 253.1
derivative
gains and
losses
Cost of
products
sold – — 15.4
special
project
costs
Other
special 0.6 6.0
project
costs
Adjusted
income $457.0 $268.2
before
income taxes
Income
taxes, as 110.5 64.8
adjusted
Adjusted $346.5 $203.4
income
Weighted-av…
shares
outstanding 107.1 106.8
–
assuming
dilution(A)
Adjusted
earnings per
share – $3.24 $1.90
assuming
dilution(A)
(A)Adjusted
earnings per
common share
–
assuming
dilution for
the three
months
ended July
31, 2026 and
2025, was
computed
using the
treasury
stock
method.
Further, for
the three
months
ended July
31, 2025,
the
weighted-av…
shares
outstanding
–
assuming
dilution
differed
from the
Company’s
GAAP
weighted-av…
common
shares
outstanding
– assuming
dilution
as a result
of the
anti-diluti…
effect
of the
Company’s
stock-based
awards,
which were
excluded
from the
computation
of net loss
per share –
assuming
dilution.
The J.M.
Smucker Co.
Unaudited
Non-GAAP
Financial
Measures
Three Months
Ended July
31,
2026 2025
-Dollars in
millions
EBITDA (as
adjusted)
reconciliat…
Net income $324.3 -$43.9
(loss)
Income tax
expense 103.6 -12.6
(benefit)
Interest
expense – 82.3 100.2
net
Depreciation 69.6 85.0
Amortization 57.9 50.2
EBITDA (as $637.7 $178.9
adjusted)
% of net 28.7 % 8.5 %
sales
Free cash
flow
reconciliat…
Net cash
provided by
(used for) $425.7 -$10.6
operating
activities
Additions to
property, -88.4 -84.3
plant, and
equipment
Free cash $337.3 -$94.9
flow
The following tables provide a reconciliation of the Company’s fiscal year 2027
guidance for estimated adjusted earnings per share and free cash flow.
Year Ending April
30, 2027
──────────────────────────────────────────────────────────────────────────────
Low High
Net income per common
share – assuming
dilution
reconciliation:
Net income per common
share – assuming $8.70 $9.20
dilution
Change in net
cumulative
unallocated 0.15 0.15
derivative gains and
losses(A)
Amortization 1.64 1.64
Adjusted effective
income tax rate 0.01 0.01
impact
Adjusted earnings per $10.50 $11.00
share
(A) We are unable to
project derivative
gains and losses on a
forward-looking
basis as these will
vary each quarter
based on market
conditions and
derivative positions
taken. The change
in unallocated
derivative gains and
losses in the table
above reflects the
net impact of the
gains and losses that
have been recognized
in the Company’s
GAAP results and
excluded from
non-GAAP
results as of July
31, 2026, that are
expected to be
allocated to non-GAAP
results in future
periods.
Year Ending April 30,
2027
-Dollars in millions
Free cash flow
reconciliation:
Net cash provided by
operating $1,425.0
activities
Additions to
property, plant, and -325.0
equipment
Free cash flow $1,100.0