Rogers Sugar Inc.

Third-quarter revenue was $294 million, down 8% from $320 million a year ago, mainly due to lower average Raw #11 prices and lower volumes. Adjusted net earnings were $16 million, or $0.13 per share, versus $17 million, or $0.13 per share, last year; consolidated adjusted EBITDA was $36 million versus $37 million last year. Sugar adjusted EBITDA was $32 million versus $33 million last year, with adjusted gross margin of $46 million and $245 per metric tonne, while Maple adjusted EBITDA was about $4 million and adjusted gross margin was $5.5 million, or 8.6%. For the first nine months, adjusted EBITDA was nearly $121 million versus $111 million a year ago, adjusted net earnings were $60 million or $0.47 per share, and Sugar adjusted gross margin was $146 million, up $17 million year over year. Management modestly raised full-year Sugar volume guidance to 745,000 metric tonnes and said Maple full-year volume expectations were adjusted down; LEAP remains within the $280 million to $300 million cost range with capacity still expected in the first half of calendar 2027.

Mike Walton emphasized that the company is operating in a difficult environment with trade uncertainty, softer consumer demand, and cost pressures, but said Rogers Refined is built for this kind of stability-focused setting. He highlighted steady domestic sugar demand, improving industrial demand from confectionery customers, and said the business is focused on controllable factors such as service, efficiency, and cost discipline. He also underscored the importance of the new labor agreements and the fact that LEAP is entering its final commissioning phase on schedule.

J.S. Couillard said results were supported by Sugar, while Maple came in below expectations due to challenging market dynamics. He cited Q3 adjusted EBITDA of $36 million, revenue of $294 million, trailing-12-month free cash flow of $90 million, and Sugar adjusted gross margin of $46 million, noting a $3 million nonrecurring noncash pension charge tied to the Montreal labor agreement. On the balance sheet, he said the company had $116 million drawn on its revolver, $173 million of convertible debentures outstanding, and $207 million already spent on LEAP; he also noted the revolver term was extended from March 2030 to July 2031 and the quarterly dividend remains $0.09 per share.

Analysts pressed on why Sugar gross margin held up so well, and management said lower raw sugar procurement costs were helped by cheaper vessel deliveries and were not expected to recur. Questions also focused on the outlook for industrial and export volumes, with management saying confectionery demand improvement is coming from existing customers and export sales remain opportunistic and lumpy, with U.S. refined sugar sales a very small, low-margin part of the business. On Maple, management said the market is more competitive and that some regional pricing skirmishes and lower consumer demand are weighing on margins; for Q4 and into 2027, they described Sugar margins as likely stable and Maple margins as still targeting about 10% for the year.