Rogers Sugar Inc.

For Q3 fiscal 2026, Rogers Sugar reported adjusted net earnings of $16 million, or $0.13 per share, versus $17 million, or $0.13 per share, in the same quarter last year. Consolidated adjusted EBITDA was $36 million, compared with $37 million a year ago. Revenue was $294 million, down 8% from $320 million last year, driven mainly by lower average Raw #11 prices and lower volumes. For the first 9 months, adjusted EBITDA was nearly $121 million versus $111 million last year, and adjusted net earnings were $60 million, or $0.47 per share, up from the prior year by $7 million and $0.06 per share. Management raised full-year sugar volume guidance modestly to 745,000 metric tonnes, said Maple full-year results will be lower than fiscal 2025, and kept LEAP cost guidance at $280 million to $300 million with incremental capacity still expected in the first half of calendar 2027.

Mike Walton framed the quarter as evidence that the business is built to be stable in a tougher operating environment, pointing to cautious consumers, softening global demand in some food categories, and ongoing trade uncertainty. He said the company is focusing on what it can control: customer service, efficiency, and cost discipline, while noting that lower cocoa and Raw #11 prices may help confectionery demand over time. He also emphasized the strategic importance of the two new labor agreements and said LEAP is entering commissioning on schedule.

J.S. Couillard said Sugar exceeded expectations while Maple came in below expectations, with Q3 adjusted EBITDA of $32 million in Sugar and about $4 million in Maple. He highlighted Sugar adjusted gross margin of $46 million and $245 per metric tonne, noting a $3 million nonrecurring noncash pension charge tied to the Montreal labor agreement, plus some lower raw sugar procurement costs that were not expected to recur. He also cited trailing 12-month free cash flow of $90 million, revolver drawings of $116 million, convertible debentures of $173 million, LEAP spend of $207 million to date, and an extension of the revolving credit facility to July 2031. The board also declared a quarterly dividend of $0.09 per share.

Analysts pressed on why Sugar gross margin held up so well, and management said some of the benefit came from cheaper raw sugar vessels and timing of maintenance, rather than a recurring step-up. Questions on industrial demand were met with comments that confectionery demand is improving from existing customers and could continue if lower cocoa and sugar prices persist. On Maple, management said the lower margin reflected extra maintenance and a more competitive market, while on exports and tariffs they said export sales are opportunistic and lumpy, direct U.S. refined-sugar exposure is small, and they do not want to speculate on CUSMA outcomes.