Executive Summary

WK Kellogg Co was acquired by Ferrero and delisted on September 26, 2025; there are no public Q2 2026 earnings materials (press release, 8‑K 2.02, or call) post-acquisition .
Below is a recap of the last available quarter (Q2 2025) with trend context from Q1 2025 and Q4 2024, plus consensus comparisons; Q2 2026 Wall Street estimates were unavailable in S&P Global .
Q2 2025: Net sales fell and margins compressed amid supply chain downtime and restructuring costs; guidance was suspended due to the pending Ferrero transaction, removing a near-term stock catalyst beyond deal closure .
Management’s narrative through Q1 2025 emphasized a health/wellness pivot, pricing architecture lap, and a $500M supply chain modernization delivering ~500 bps margin expansion exiting 2026; those themes guided medium‑term fundamentals pre-delisting .

What Went Well and What Went Wrong

What Went Well

Supply chain modernization “on schedule and on budget”; plan targets ~500 bps gross margin expansion by exit 2026, with 8 workstreams and early delivery of ~100 bps already achieved .
Q4 2024 operational discipline lifted gross margin to 30.5% (+130 bps YoY) and adjusted EBITDA +7.5% YoY despite volume declines, showing cost execution traction .
Strategic repositioning toward health/wellness (Kashi relaunch, Special K protein innovations) and distribution gains in winning channels planned for the back half of 2025, aiming to stabilize topline and drive ROI from brand investment .

What Went Wrong

Q2 2025 net sales declined 8.8% with volume −8.1% and pricing/mix −0.7%; adjusted EBITDA fell 31% and margin compressed to 9.4%, reflecting supply chain downtime and restructuring costs .
Q1 2025 forced guidance cuts (organic net sales to −2% to −3%, adjusted EBITDA flat to −2%) on weaker consumption, Easter shift, and tariff impacts on inputs (estimated $2–$4M FY25) .
U.S. market share pressure, particularly Special K (−40 bps in 2024), and elevated category promotions weighed on the topline; Q2 2025 suspended guidance removed investor visibility pre‑deal close .

Financial Results

Last available quarters (oldest → newest):

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$640	$663	$613
Reported EPS ($USD)	N/A	$0.20	$0.09
Adjusted EPS ($USD)	$0.42	N/A	$0.25
Adjusted EBITDA ($USD Millions)	$57	$72	$57
Adjusted EBITDA Margin %	8.9%	10.8%	9.4%
Reported Net Income Margin %	N/A	2.6%	1.3%
Organic Net Sales Growth (%)	−1.8% (Adj net sales YoY)	−5.6%	−8.8%

KPIs and components:

KPI	Q4 2024	Q1 2025	Q2 2025
Volume change (%)	−5.6%	N/A	−8.1%
Price/mix (%)	+3.8%	N/A	−0.7%
Gross margin (%)	30.5%	Adjusted 29.4%	N/A

Note: No Q2 2026 public documents exist post-acquisition, so Q2 2026 columns are not shown .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic net sales	FY 2025	≈ −1.0% (currency-neutral)	−2.0% to −3.0%	Lowered
Adjusted EBITDA growth	FY 2025	+4% to +6%	Flat to −2%	Lowered
FY 2025 guidance status	FY 2025	As above	Suspended due to pending Ferrero transaction	Suspended
Dividend	Quarterly	$0.165 per share declared July 31, 2025	Payable Sep 12, 2025	Maintained cadence

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period
Supply chain modernization	“Investing up to $500M,” targeting ~500 bps EBITDA margin expansion by exit 2026; performance already improving	“On schedule/on budget; 8 workstreams; mechanical margin impact primarily in gross margin”	No Q2 2025 webcast; program reiterated in press/10‑Q
Health/wellness pivot	Innovation platforms (Glazed, Raisin Bran formats, granola) and ROI-focused marketing	Acceleration in health/wellness demand; Kashi relaunch; fiber campaigns; Special K protein formats	Press only; category shift confirmed by external coverage
Tariffs/macro	Potential Canada/Mexico tariffs not in base guidance; scenario planning	Tariff impacts estimated $2–$4M FY25; most flows covered by USMCA	No Q2 2025 call; guidance suspended
Promotional intensity	Elevated category promos; company remained disciplined	Strategic reallocation to higher ROI channels; expect price realization to flatten in H2	Not discussed (no call); Q2 2025 sales reflect −0.7% price/mix
Brand performance (Special K)	Underperformance noted; portfolio breadth supports different consumer needs	Plan to reorient Special K toward health claims, protein granola, Special K Zero restage	Not updated in Q2 2025 (no call); external press focused on headline declines

Trend: Supply chain modernization execution steady; health/wellness emphasis increasing; tariff risk monitoring ongoing; promotional environment elevated but managed; Special K remediation in progress.

Management Commentary

“We’re investing up to $500 million while expanding margin by approximately 500 basis points as we exit 2026…execution is on track, and our supply chain performance is already improving.” (CEO) .
“500 basis points mostly through gross margin…two of the eight workstreams are now completed…our confidence in the overall program grows.” (CEO/CFO on modernization) .
“We saw this [health & nutrition] trend coming…prepared with Kashi relaunch and multi‑brand fiber campaigns…this is more than a fad.” (CEO) .
“We adjusted our manufacturing plan…largest impact to Q2…we should come out of Q2 rightsized on inventory, setting up more stabilized gross margin in the back half.” (CFO) .
“Our 2025 outlook does not include potential tariffs…we make most of our food in the U.S., but inputs naturally flow across borders.” (CEO) .

Q&A Highlights

Top themes: inventory right‑sizing in Q2 for H2 margin stabilization ; pricing architecture lap with H2 price/volume convergence ; health/wellness activation via Kashi and Special K pipeline ; modernization predominantly gross margin accretive with 500 bps target by exit 2026 .
Guidance clarifications: FY25 organic net sales lowered to −2% to −3% and adjusted EBITDA flat to −2% due to consumption softness and tariffs on certain inputs .
Tone vs prior quarter: Cautiously confident on H2 trajectory and medium‑term margin plan; near‑term topline stabilization dependent on innovation and distribution gains .

Estimates Context

Q2 2026 S&P Global consensus unavailable (company was private under Ferrero; no public estimates).
Last available: Q2 2025 comparison vs S&P Global (SPGI) consensus.

Metric	Q2 2025 Consensus	Q2 2025 Actual
Primary EPS Consensus Mean	$0.270*	$0.240*
Revenue Consensus Mean ($USD)	$613.25M*	$613.00M*
Primary EPS – # of Estimates	5*	—
Revenue – # of Estimates	2*	—

Values retrieved from S&P Global.*

Interpretation: Q2 2025 delivered slight revenue in line with consensus and an EPS shortfall (adj EPS ~$0.25 also cited by third parties), reflecting volume/mix pressure and restructuring effects .

Key Takeaways for Investors

No Q2 2026 reporting is available; KLG is private under Ferrero post‑Sept 2025, eliminating near‑term public trading catalysts tied to earnings .
Pre‑deal fundamentals showed cost execution progress (Q4 gross margin +130 bps YoY) but topline softness; H2 2025 strategy hinged on health/wellness innovation and channel distribution gains .
Supply chain modernization remains the core margin lever (target ~500 bps expansion by exit 2026), primarily via gross margin mechanics; this underpinned medium‑term value creation pre‑delisting .
Special K remediation and natural/organic brand focus (Kashi, Bear Naked) were central to share stabilization plans; execution quality would have determined mix and unit recovery .
Tariff exposure on certain inputs (estimated $2–$4M FY25) and elevated promotions were headwinds to near‑term EPS; management planned pricing lap and ROI reallocation to mitigate .
For any residual portfolio exposure pre‑close, Q2 2025 guidance suspension signaled limited visibility; deal closure at $23 per share provided the terminal value realization .
Medium‑term thesis under Ferrero likely emphasizes brand investment and supply chain optimization continuity; future performance is no longer disclosed at a ticker level.

Document availability note: No Q2 2026 earnings press release (8‑K 2.02), earnings call transcript, or related press releases exist due to WK Kellogg Co’s acquisition and delisting in September 2025 . The recap synthesizes Q2 2025, Q1 2025, and Q4 2024 primary sources and consensus where available.

WK Kellogg Co (KLG)·Q2 2026 Earnings Summary