B&G Foods, Inc.

B&G Foods reported Q2 2026 net sales of $383 million, down from $424 million in Q2 2025, and a net loss of $4 million, or $0.05 per diluted share, versus a net loss of $9.8 million, or $0.12 per diluted share, a year ago. Adjusted net income was $4.9 million, or $0.06 per adjusted diluted share, versus $2.9 million, or $0.04 per adjusted diluted share. Gross profit was $79.6 million, or 20.8% of net sales, versus $87 million, or 20.5%; adjusted gross profit was $83.7 million, or 21.8%, versus $89.1 million, or 21.0%. Adjusted EBITDA rose to $60.4 million from $58 million, and adjusted EBITDA margin improved to 15.8% from 13.7%. For fiscal 2026, the company reaffirmed net sales guidance of $1.735 billion to $1.775 billion, adjusted EBITDA of $275 million to $290 million, adjusted diluted EPS of $0.575 to $0.675, and adjusted EBITDA margin of approximately 15.8% to 16.3%. It also guided to full-year interest expense of $157.5 million to $162.5 million, cash interest of $150 million to $155 million, depreciation of $40 million to $45 million, amortization of $17 million to $19 million, cash taxes of approximately $5 million or less, an effective tax rate of 26% to 27%, and CapEx at the lower end of $30 million to $35 million.

Bruce Wacha framed the quarter as evidence that the portfolio reshaping is starting to work, even if it is taking time. He emphasized the shift away from low-margin, working-capital-intensive businesses and toward higher-margin, more cash-generative assets, while also pointing to the new Green Giant frozen contract manufacturing business as a modest but steady EBITDA contributor. His tone was constructive and cautious: he said the company is seeing “green shoots,” but it still needs to improve execution, reduce stranded costs, and stabilize the base business.

Wacha highlighted the main financial drivers: lower net sales from divestitures, offset by $37 million of sales from acquired brands plus contract manufacturing in Q2, and improved profitability from mix and margin actions. He said SG&A fell $6.6 million year over year to $40.6 million, or 10.6% of sales, and noted further cost reductions should continue into early Q3 before reaching a more stable run rate. He also pointed to $38.5 million of net interest expense in the quarter, up from $35.8 million, due in part to the new 11% senior unsecured notes due 2031 and overlap with the redeemed 5.25% notes due 2027. On capital allocation, he reiterated a focus on debt reduction, disciplined M&A, and maintaining a healthy dividend policy.

Analysts pressed on several topics: the size and durability of tariff refunds, inflation and potential pricing actions, weakness in measured channels, the performance of College Inn and Kitchen Basics, and whether more portfolio actions are coming. Management said the tariff refund was “relatively modest,” with about $8 million to $9 million of total incremental tariff exposure previously identified and some more recovery possible later in the year. On demand, Wacha said non-measured channels remain strong, but branded retail performance needs improvement; he also said Tones and Weber distribution changes are mostly a shift from branded to partner brands, not a brand sale. On College Inn and Kitchen Basics, he said College Inn was a bit softer and needs careful pricing, while Kitchen Basics looks promising and will have a more meaningful seasonal test in Q3 and Q4. On M&A and divestitures, he said the company will keep looking for opportunities, but the next major step is likely Green Giant Canada closing, which is still waiting on regulatory approval.