Maple Leaf Foods Inc.

Second-quarter sales were $1.02 billion, up 1.6% year over year. Adjusted EBITDA was $137.1 million, up 4.8%, and adjusted EBITDA margin was 13.4%, up 40 basis points. Earnings from continuing operations were $40.8 million, or $0.33 per basic share, versus $39.0 million, or $0.31 per basic share, last year; adjusted earnings were $53.9 million, or $0.44 per basic share, versus $41.4 million, or $0.33 per basic share. For the first half, revenue was up approximately 4% to nearly $2 billion and adjusted EBITDA was up more than 5% to approximately $260 million. Management reaffirmed full-year 2026 guidance for mid-single-digit revenue growth, adjusted EBITDA of approximately $520 million to $540 million, and capital spending of approximately $160 million to $180 million, weighted to the second half.

Curtis Frank said the quarter showed the benefits of a more focused, protein-led CPG business and described the transformation as largely complete. He emphasized that pricing, mix, and Fuel for Growth efficiencies are driving better profitability, while poultry momentum and protein snacking innovation are creating new growth avenues. His tone was confident and steady, while acknowledging that pricing caused a normal near-term volume response and that inflation remains an active management issue.

David Smales highlighted $1.02 billion of sales, $137.1 million of adjusted EBITDA, and margin expansion to 13.4%. He noted SG&A of $104.5 million versus $99.6 million last year, capex of $23.3 million in the quarter and $44.6 million year-to-date, and free cash flow of an $18.9 million outflow, which was driven mainly by working-capital timing and higher tax payments. He also said net debt to trailing 12-month adjusted EBITDA was 2.2x, returned capital to shareholders reached $78 million year-to-date through dividends and buybacks, and the company remains active under its NCIB and committed to an investment-grade balance sheet.

Analysts pressed on whether Prepared Foods pricing reflected a weaker consumer, on the outlook for pork costs and second-half margins, and on whether Q3 would be the low point for margins. Management said the volume softness was expected after pricing, not a major change in consumer conditions, and warned against using pork cutout prices as a direct proxy because pork is only part of the input mix. They also said Q3 is typically the seasonal low point for margins and that trends in Prepared Foods should normalize later in the year as pricing effects moderate.