J M SMUCKER (SJM) Company Report

Net sales for Q2 FY26 were $2.33 billion, up 3% year-over-year; comparable net sales rose 5%.
Adjusted EPS was $2.10, down 24% versus the prior year.
Free cash flow was $280.2 million, compared to $317.2 million in Q2 FY25.
FY26 guidance updated: net sales growth of 3.5%–4.5%, adjusted EPS of $8.75–$9.25, and free cash flow of $975 million.

Nov 25, 2025, 2:00 PM

Presentation

J.M. Smucker outlines Q2 FY2026 performance and outlook

SJM

Earnings

Guidance Update

The coffee segment delivered an 18.2% profit margin in Q2 and is expected to edge up in Q3 (sub-20%) and exceed 20% in Q4; the company will absorb $75 million of green-coffee tariff costs (≈$0.50 EPS) in Q3—a FY2026 headwind that will become a tailwind in FY2027.
Coffee net sales are projected to grow 16% year-over-year, driven by 22% pricing and offset by a 6% volume/mix decline, reflecting improved elasticity assumptions (0.3 vs. 0.5 initially).
Sweet Baked Snacks segment profit totaled just over $20 million in Q2—below expectations due to bakery network transition costs—with flat to slightly down comparable sales in Q3 and a $10 million benefit in Q4 from the Indianapolis facility closure.
Frozen handhelds & spreads guidance was reduced by $80 million for FY2026 (half realized in Q2; remainder in H2), but Uncrustables remains on track to reach $1 billion in sales, growing 7% in Q2 and expected to accelerate to low-double-digit growth in H2.
The company targets $975 million of free cash flow in FY2026 to pay down $0.5 billion of net debt this year and an additional $0.5 billion in FY2027, aiming to reduce leverage from ~4× to ~3× EBITDA.

Nov 25, 2025, 2:00 PM

Transcript

Smucker reports Q2 FY 2026 results and updates guidance

SJM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Delivered sequential acceleration in comparable net sales growth, with mid-point FY 2026 guidance of 4% reported / 5.5% comparable excluding divestitures and FX.
Forecasted $0.50 per share tariff headwind in FY 2026 (mainly green coffee), translating to ~$75 million in Q3, but expected to be a tailwind in FY 2027.
Coffee segment margin rose to 18.2% in Q2, projected to modestly improve in Q3 (<20%) and exceed 20% in Q4, towards long-term targets.
Segment performance:
• Sweet baked snacks: sales beat but profit missed due to network transition; expect Q3/Q4 improvement, including a $10 million Q4 benefit from Indianapolis closure.
• Uncrustables on track to reach $1 billion in sales by year-end, with low double-digit H2 growth; spreads impacted by tough year-ago comps.
• Pet treats: projected low single-digit growth in Q3/Q4 driven by Milk-Bone and Meow Mix.
Committed to $975 million free cash flow in FY 2026, with $500 million debt repayment this year and another $500 million in FY 2027, targeting net leverage of ~3× by end FY 2027.

Nov 25, 2025, 2:00 PM

Transcript

JM Smucker reports Q2 FY2026 earnings call highlights

SJM

Earnings

Guidance Update

$0.50 EPS headwind in FY 2026 due to green coffee tariffs—primarily on green coffee—and expected to reverse as a tailwind in FY 2027 if tariffs remain off.
Coffee segment profit margin was 18.2% in Q2, forecast to improve slightly in Q3 (below 20%) and exceed 20% in Q4, absorbing ~$75 million of tariff costs in Q3.
Sweet baked snacks sales outperformed expectations on SKU rationalization, but Q2 profits missed due to network transition; Q4 will benefit from $10 million of savings from the Indianapolis bakery closure.
Pet treats momentum continues with Milk-Bone and Meow Mix driving low single-digit growth in Q3/Q4.
Uncrustables grew 7% in Q2 toward its billion-dollar goal and is set for low double-digit growth in the back half, while spreads face a ~$80 million full-year net-sales shortfall.

Nov 25, 2025, 2:00 PM

Transcript

JM Smucker reports Q2 FY2026 earnings call Q&A

SJM

Earnings

Guidance Update

The $0.50 per share tariff impact in FY 2026 is almost entirely from green coffee tariffs; this will shift from a headwind in FY 2026 to a tailwind in FY 2027.
Coffee segment profit margin was 18.2% in Q2, with expectations of slight improvement in Q3 (<20%) and above 20% in Q4; FY 2026 coffee net sales growth outlook is 16% (22% pricing, –6% volume) with improved elasticity (~0.3).
Sweet baked snacks net sales exceeded expectations, but segment profit underperformed due to supply‐chain transition costs; the Indianapolis facility closure will contribute $10 million in Q4, with Q3 flat‐to‐slight decline and low single‐digit growth in Q4.
Pet treats are expected to return to growth in Q3, led by Milk-Bone, supporting low single-digit growth in the pet portfolio in Q3 and Q4.
Frozen handhelds and spreads face a full-year net sales reduction of approximately $80 million from spreads; however, Uncrustables remains on track to become a $1 billion brand, with low double-digit growth projected in H2 driven by innovations and away-from-home channels.

Nov 25, 2025, 2:00 PM

Transcript

J.M. Smucker narrows FY26 guidance despite Q2 sales growth

SJM

Earnings

Guidance Update

J.M. Smucker narrowed its FY26 adjusted EPS guidance to $8.75–$9.25 and sees 3.5–4.5% net sales growth, with comparable sales up 5–6%.
Q2 net sales rose 3% to $2.33 billion, driven by higher pricing in coffee, while adjusted EPS fell to $2.10 from $2.76 a year ago.
Operating margin improved to 18% (vs. 7.5% prior year), though free cash flow margin dipped to 12%, with full-year free cash flow projected at $975 million.
The stock trades at a P/E of 11, with a consensus price target about 11.6% above its recent close, amid headwinds from tariffs, trade impacts, regulatory changes, and inflation.

Nov 25, 2025, 12:28 PM

WSJ

J.M. Smucker Co announces Q2 FY2026 results

SJM

Earnings

Guidance Update

J.M. Smucker Co reported net sales of $2.3 billion, up 3% (5% on a comparable basis, excluding divestitures and FX).
GAAP net income per diluted share was $2.26, while adjusted EPS declined 24% to $2.10.
Operating income rose 147% to $418.5 million, driven by the prior-year Voortman disposal impact; adjusted operating income was $394.3 million, down 20%.
Cash provided by operations was $346.5 million, with free cash flow of $280.2 million.
Full-year FY2026 guidance was updated to 3.5–4.5% net sales growth and $8.75–$9.25 adjusted EPS.

Nov 25, 2025, 12:20 PM

8-K

Smucker reports Q2 2026 earnings results

SJM

Earnings

Guidance Update

Q2 net sales increased 3%, comparable net sales +5%; adjusted EPS of $2.10, down 24% year-over-year
U.S. retail coffee net sales +21%, driven by +27 pp net price realization to recover higher commodity costs
U.S. retail frozen handheld & spreads net sales −5%; U.S. retail pet foods −7%; sweet baked snacks comparable net sales −3%; international & away from home comparable net sales +10%
FY 2026 outlook narrowed: net sales growth 3.5–4.5%, comparable net sales ~5.5%, adjusted EPS guidance $8.75–9.25 (midpoint $9.00)

Nov 25, 2025, 12:00 PM

Transcript

J.M. Smucker reports Q2 2026 results

SJM

Earnings

Guidance Update

Net sales rose 3% to $2.33 billion, with comparable net sales up 5% year-over-year.
Adjusted EPS was $2.10, down 24%, and GAAP diluted EPS was $2.26.
Free cash flow totaled $280.2 million, compared to $317.2 million in Q2 2025.
U.S. Retail Coffee net sales jumped 21% to $848.9 million, while Sweet Baked Snacks declined 19%.
Full-year fiscal 2026 outlook updated: net sales growth of 3.5%–4.5%, adjusted EPS of $8.75–$9.25, and free cash flow of $975 million.

Nov 25, 2025, 12:00 PM

Presentation

J.M. Smucker reports Q2 FY26 results

SJM

Earnings

Guidance Update

Net sales were $2.33 billion, up 3% year-over-year (5% on a comparable basis), driven by higher pricing in coffee products.
GAAP diluted EPS was $2.26, compared to a loss of $0.23 in Q2 FY25; adjusted EPS declined 24% to $2.10.
Cash provided by operations totaled $346.5 million (vs. $404.2 million prior year); free cash flow was $280.2 million (vs. $317.2 million).
The company updated its FY26 outlook, now expecting net sales growth of 3.5–4.5%, adjusted EPS of $8.75–9.25, and free cash flow of $975 million.

Nov 25, 2025, 12:00 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for J M SMUCKER.

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