Total Revenue

–2.2% (from $2,905.9M in Q3 2024 to $2,841.0M in Q3 2025)

The overall revenue drop reflects pressure at the segment level—with a steeper decline in International (–17%) and a notable drop in Refrigerated & Frozen (–7%)—indicating that shifts in consumer demand and challenging market dynamics impacted performance relative to a higher base in Q3 2024. " " "

International Segment Revenue

–17% (from $271.7M in Q3 2024 to $223.9M in Q3 2025)

A sharp 17% decline suggests that CAG’s international business faced significant headwinds, potentially from adverse foreign exchange fluctuations, reduced demand, or divestitures—notably contrasting with stronger prior period figures. " " "

Refrigerated & Frozen Revenue

–7% (from $1,202.4M in Q3 2024 to $1,115.6M in Q3 2025)

The 7% decrease in this major segment points to challenges in volume and possibly an unfavorable product mix, which may be driven by shifting consumer preferences or competitive pressures that were less pronounced in Q3 2024. " " "

Net Income

–53% (cash flow reporting) or –76% (income statement)

Net income collapsed dramatically to $145.1M from a range of $308.8M–$610.1M in Q3 2024. This steep drop is likely due to a mix of cost pressures, deteriorating margins, and one-time or recurring adverse items that offset gains from prior periods, highlighting that previous over-performance was not sustainable under current operating conditions. " " " "

Operating Cash Flows

+22% (from $484.3M in Q3 2024 to $592.0M in Q3 2025)

The 22% improvement indicates more efficient working capital management—such as lower inventory levels and accelerated receivables—even as revenue and profit pressures mounted, suggesting effective operational measures compared to Q3 2024. " "

Cash and Cash Equivalents

–36% (from $77.7M in Q3 2024 to $49.4M in Q3 2025)

A 36% decline in liquidity reflects substantial cash outflows driven by financing activities (e.g., debt repayments and dividend payments), which, when combined with the lower operating inflows, reduced the overall cash balance from a stronger position in the previous period. " "

Leverage

FY 2025

3.4x "

3.55 "

raised

Inflation

FY 2025

close to 4% "

around 4% " "

no change

Equity-Method Earnings

FY 2025

no prior guidance

$150 million "

no prior guidance

CapEx Guidance

FY 2025

no prior guidance

Lowered by $40 million "

no prior guidance

Consumer Demand & Volume Growth

Q1 discussions highlighted challenged consumer behavior with a shift toward convenience and positive volume improvements driven by frozen and snack categories ( " " " ). Q2 commentary focused on steady, modest volume growth with shipments up by 1% and consumption rising by 0.6%, backed by targeted investments ( " " " ).

Q3 emphasized strong consumer connectivity as a key priority, with snack volumes up 4% and strategic innovation investments supporting healthy growth—even as supply constraints led to temporary out‑of‑stock situations ( " " " ).

Recurring topic with an enhanced focus on brand connection. Though consumer demand remains robust, Q3 sees a more positive spin on volume growth while acknowledging short‑term supply issues.

Innovative Product Portfolio & High‑Protein/Fiber Trends

In Q1, the company stressed brand building through innovation and portfolio reshaping—exemplified by acquisitions like FATTY Smoked Meat Sticks and a pivot towards protein‑rich, high‑fiber snacks ( " " " " ). Q2 reinforced this strategy by emphasizing leadership in frozen and snacking innovation and continued investment in protein‑centric and fiber‑centric product lines ( " " " ).

In Q3, executives reiterated a strong focus on high‑protein and fiber trends within snacking, spotlighting subcategories such as meat snacks, popcorn, and seeds. This focus contributed to a 4% increase in snack volumes and aligned with consumer demand trends ( " ).

Steady and consistent strategic focus. The emphasis on innovation and health‐oriented product trends remains intact across periods, with Q3 reinforcing and building on earlier progress.

Supply Chain Disruptions & Inventory Management

Q1 materials briefly alluded to supply chain issues—mainly noting that promotional efforts were suppressed by existing challenges ( " ). Q2 discussions provided a contrasting picture with stable inventory levels and actions taken to improve working capital, reflecting an earlier phase of supply chain management improvement ( " " ).

Q3 discussions offered more detailed insights into supply constraints leading to temporary out‑of‑stock situations and weaker consumption. The company is actively investing in rebuilding inventories and using third‑party co‑manufacturers, highlighting an increased operational focus ( " " ).

Recurring challenge with increased emphasis. The narrative has shifted from stable inventory management in Q2 to addressing acute supply constraints in Q3, although proactive measures signal an expected rebound.

Inflation & Cost Pressures

Q1 commentary focused on an overall inflation forecast rising from an initial 3% to 3.2%, driven notably by beef, sweeteners, and other input pressures ( " " ). In Q2, the company revised its forecast closer to 4%, citing higher protein costs along with FX impacts and tighter margins ( " " ).

Q3 maintained inflation at 4%, with detailed discussion of raw material challenges (like tinplate steel and palm oil), tariffs, and continued cost pressures. Mitigation strategies such as productivity improvements and pricing adjustments were emphasized ( " " " " ).

Persistent cost pressures with evolving focus. While inflation remains steady at 4%, the discussion in Q3 reflects a broader set of challenges (including tariffs) and continued efforts to mitigate impacts, signaling sustained vigilance.

Financial Health & Leverage Management

Q1 discussions centered on leveraging strong cash flow and balance sheet progress to support portfolio reshaping while targeting a 3.0x leverage ratio ( " ). In Q2, leverage increased modestly from 3.2x to 3.4x due to lower profit expectations, though free cash flow conversion exceeded 100%, highlighting effective working capital management ( " " ).

Q3 reaffirmed a rigorous focus on financial discipline with a target leverage of 3.0x by fiscal 2026, a strong free cash flow conversion rate of 125%, and explicit mention of debt reduction (e.g., a $0.5 billion paydown over 12 months) ( " " ).

Steady and disciplined focus on financial health. The company consistently emphasizes leverage reduction and strong cash flow generation, with Q3 exhibiting slight improvements and a continued commitment to an aggressive debt reduction path.

Capital Expenditure Challenges & Operational Delays

There were no specific mentions in Q1 or Q2 regarding CapEx challenges or operational delays.

Q3 introduced discussion of a lowered CapEx guidance (down by ~$40 million) attributed to timing shifts rather than project cancellations. Modernization efforts, especially in the chicken operations and supply chain, were highlighted as immediate priorities ( " ).

Newly emerging topic. Operational delays and timing issues affecting capital expenditure have become a recent focus, suggesting potential near‑term challenges that are expected to normalize in future periods.

Strategic Portfolio Reshaping & Brand Issues

Q1 provided detailed discussion on portfolio reshaping through strategic acquisitions (like FATTY) and divestitures while briefly noting minor brand issues (e.g., a temporary setback with Hebrew National) ( " ). Q2 did not contain explicit references to these topics.

Q3 did not explicitly discuss broad portfolio reshaping or brand issues. However, the focus on maintaining a clean‑label, consumer‑friendly portfolio (e.g., over 90% of products free of synthetic dyes) and strong snacking portfolio performance indirectly supports the strategic objective ( " " " ).

Reduced explicit emphasis. While the strategic agenda remains important, Q3’s discussion shifted toward operational performance and consumer connectivity rather than overt portfolio restructuring, suggesting a mature phase in the strategy.

Foreign Exchange (FX) Headwinds

FX was not mentioned in Q1. It was a notable factor in Q2, where FX headwinds were cited as a major contributor to EPS pressure and an increase in the leverage ratio ( " " ).

There was no mention of FX headwinds in Q3.

De‐emphasized in current period. After being a key concern in Q2, FX pressures are not highlighted in Q3, suggesting either improved conditions or a shift in focus during the current period.