Executive Summary

Q4 FY2025 delivered record sales and gross profit: revenue rose 5.0% to $475.4M and gross profit increased $8.5M to $106.1M with gross margin up 70 bps to 22.3% .
Revenue was above S&P Global consensus ($475.4M vs $458.0M*) and S&P “Primary EPS” was essentially in-line to slightly above (actual $1.34* vs $1.334*), while GAAP diluted EPS declined to $1.18 due to higher SG&A and $5.1M of restructuring and impairment charges tied to the Milpitas plant closure .
Management expects modest input cost inflation in FY2026 to be offset by contractual pricing and cost savings, with continued focus on margin improvement; Retail growth to be led by licensing and core brands, while Foodservice is supported by select QSR customers amid macro uncertainty .
Dividend maintained at $0.95 per share (249th consecutive quarterly dividend), reinforcing confidence and capital return consistency .

What Went Well and What Went Wrong

What Went Well
- Record fourth-quarter sales and gross profit; gross margin expanded 70 bps to 22.3% aided by cost savings and favorable Retail mix .
- Retail growth driven by Texas Roadhouse dinner rolls, Chick‑fil‑A sauce entry into club channel, and strong New York Bakery frozen garlic bread including gluten‑free Texas Toast; CEO: “We were pleased to report record sales and gross profit…” .
- Foodservice ex-TSA grew 1.4% helped by inflationary pricing, demand from national chain accounts, and branded Foodservice gains .
What Went Wrong
- SG&A rose $8.9M to $62.1M (marketing and personnel), compressing operating income by $2.8M to $38.9M .
- $5.1M restructuring/impairment (Milpitas closure) reduced EPS by $0.15; Foodservice volumes fell 1.7% YoY, offset by pricing .
- GAAP diluted EPS declined to $1.18 vs $1.26 LY on higher SG&A and increased restructuring charges .

Financial Results

Quarterly performance

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($M)	$509.3	$457.8	$475.4
GAAP Diluted EPS ($)	$1.78	$1.49	$1.18
Gross Profit ($M)	$132.8	$106.0	$106.1
SG&A ($M)	$57.1	$56.1	$62.1
Operating Income ($M)	$75.7	$49.9	$38.9
Net Income ($M)	$49.0	$41.1	$32.5

Q4 vs prior-year and vs consensus (S&P Global)

Metric	Q4 2024 Actual	Q4 2025 Actual	Consensus*	vs Consensus
Revenue ($M)	$452.8	$475.4	$458.0*	Beat by ~$17.4M
GAAP Diluted EPS ($)	$1.26	$1.18	n/a	n/a
Primary EPS (S&P)* ($)	n/a	$1.34*	$1.334*	~In-line/slight beat

Segment breakdown (Q4)

Segment	Q4 2024 Net Sales ($M)	Q4 2025 Net Sales ($M)	Q4 2025 Operating Income ($M)
Retail	$234.2	$241.6	$40.9
Foodservice	$218.6	$233.9	$28.8
Total	$452.8	$475.4	$38.9

Key KPIs and items (Q4)

KPI	Q4 2025
Gross Margin %	22.3%
Retail volume (lbs) YoY	+2.1% (exited lines ex: +2.9%)
Foodservice volume (lbs) YoY	−1.7%
TSA non-core sales (Foodservice)	$12.2M
Restructuring & impairment	$5.1M (Milpitas closure)
Dividend per share	$0.95 declared for Sep 30, 2025

Notes: Q2 gross margin reported at 26.1% in period commentary . Q4 gross margin explicitly reported at 22.3% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (qualitative)	FY2026	n/a	Retail to benefit from licensing and core brands; Foodservice supported by select QSR customers; macro/consumer could impact demand	Qualitative outlook
Input costs/margins	FY2026	n/a	Modest input cost inflation expected; plan to offset via contractual pricing and cost savings; focus on continued margin improvement	Qualitative outlook
Dividend	Ongoing	$0.95/qtr (maintained)	$0.95/qtr declared; 62nd year of increases, 249th consecutive dividend	Maintained

No numeric revenue/EPS/margin ranges were issued for FY2026 in the Q4 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q4 2025)	Trend
Licensing program growth	Strong contributions: Texas Roadhouse rolls, Buffalo Wild Wings sauces, Subway sauces, Olive Garden dressings	Began shipping Chick‑fil‑A sauce into club channel; continued strength in Texas Roadhouse rolls; Subway sauces incremental sales	Retail growth led by Texas Roadhouse rolls; Chick‑fil‑A sauce in club channel; New York Bakery gains incl. gluten‑free Texas Toast	Strengthening breadth
Cost savings/margins	Gross margin up to 26.1% aided by cost savings and mix	Record gross profit; cost savings offset volume and startup costs	Gross margin +70 bps to 22.3% on cost savings and favorable Retail mix	Sustained execution
Manufacturing network	Announced plan to acquire Atlanta sauce/dressing facility (Q2 commentary)	Closed Atlanta acquisition (Feb 18); startup costs; TSA initiated	TSA contributed $12.2M non-core sales; Milpitas closure driving $5.1M charges	Integration/optimization underway
Foodservice demand	Growth from select national chains	Industry-wide traffic slowdown; value menu shifts pressured volumes	Ex-TSA net sales +1.4% with pricing; volumes −1.7%	Mixed; pricing offsets
Macro/input costs	Modest cost deflation (Q2)	Mixed: deflation offset by startup costs	Expect modest FY26 inflation; plan to offset via pricing/cost savings	Slightly more inflationary

Management Commentary

“We were pleased to report record sales and gross profit for our fiscal fourth quarter.” — David A. Ciesinski, CEO .
“In the Retail segment, sales growth of 3.1% was led by expanding distribution for our popular Texas Roadhouse dinner rolls and new club channel sales for Chick‑fil‑A sauce… [and] strong volume gains… including contributions from our recently introduced gluten‑free Texas Toast.” .
“In the Foodservice segment, excluding non-core TSA sales, net sales increased 1.4% driven by inflationary pricing, increased demand from some of our national chain restaurant account customers and sales gains for our branded Foodservice products.” .
FY2026 outlook: anticipate modest input cost inflation offset by contractual pricing and cost savings; focus on continued margin improvement .

Q&A Highlights

A Q4 FY2025 earnings call was held on August 21, 2025 at 10:00 a.m. ET, but a transcript was not available in our document set; webcast/replay was referenced in the press release .
No Q&A transcript to extract themes or guidance clarifications; we note that restructuring/impairment and SG&A investments were key drivers referenced in the release .

Estimates Context

Q4 revenue exceeded consensus; S&P “Primary EPS” was in-line/slightly above; GAAP diluted EPS was lower due to restructuring/impairment and higher SG&A .

Consensus vs actuals (S&P Global and company-reported)

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue Consensus Mean ($M)*	495.43*	483.90*	457.98*
Revenue Actual ($M)	509.30	457.84	475.43
Primary EPS Consensus Mean ($)*	1.94*	1.5786*	1.334*
Primary EPS Actual (S&P)* ($)	1.78*	1.49*	1.34*
GAAP Diluted EPS ($)	1.78	1.49	1.18

Note: S&P “Primary EPS” may reflect normalized or continuing operations and can differ from GAAP diluted EPS reported in company filings; Q4 GAAP diluted EPS was $1.18 while S&P Primary EPS actual was $1.34* .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Topline resilient with sustained Retail momentum from licensing and core brands; Q4 revenue beat consensus and segment breadth is expanding (club channel for Chick‑fil‑A, gluten‑free extensions) .
Margin narrative remains constructive: cost savings and mix lifted Q4 gross margin; FY2026 plan targets offsetting modest inflation via pricing and efficiencies .
Operating leverage tempered by deliberate brand investment (SG&A) and one‑time restructuring; watch for post‑Milpitas run‑rate efficiencies in FY2026 .
Foodservice volumes remain a swing factor amid softer traffic/value menu shifts, but pricing and select QSR customer strength provide ballast .
TSA non‑core sales inflated Foodservice revenue; normalization expected by March 2026 (TSA expected to conclude in Q3 FY2026 per Q1 FY2026 update) .
Dividend durability (62 years of increases; $0.95/qtr) underscores cash generation and conservative balance sheet posture .
Estimate revisions: Expect modest upward adjustments to revenue and “Primary EPS” near term on the Q4 beat/in‑line, with potential medium‑term EPS lift as restructuring headwinds fade and Atlanta facility integration benefits accrue .

Sources: Q4 FY2025 8‑K press release, including financial statements and segment details ; Q2 FY2025 and Q3 FY2025 8‑K press releases (Lancaster Colony) for trend analysis ; Dividend 8‑K press release . S&P Global consensus and actuals for estimates context (see asterisk note).

MARZETTI CO (MZTI)·Q4 2025 Earnings Summary