Saputo Inc.

Saputo reported revenue of $4.4 billion, up 1.5% year over year. Adjusted EBITDA increased close to 8%, or $30 million, to $427 million, and margin expanded to 9.7% from 9.1% last year. Net earnings from continuing operations were $183 million; adjusted net earnings were $199 million, up 13%, and adjusted EPS increased 17% to $0.49. Net cash from operating activities from continuing operations was $151 million. For fiscal 2027, capital expenditure is expected to be approximately $515 million, weighted toward high-return projects, and the company expects to remain active in share repurchases while maintaining a balanced capital allocation approach.

Carl Colizza framed the quarter as proof that Saputo’s investment cycle is starting to translate into results, with all 4 sectors growing and ingredients, protein, and branded offerings driving the strongest momentum. He emphasized that protein demand is structural rather than a short-lived trend, and said the company will keep concentrating capital and management attention on categories, geographies, and customers where it can win. His tone was confident but disciplined, repeatedly stressing portfolio simplification, operational efficiency, and selective reinvestment.

Maxime Therrien highlighted the earnings and margin improvements, pointing to adjusted EBITDA of $427 million, margin of 9.7%, revenue of $4.4 billion, and adjusted EPS of $0.49. He also noted the impact of portfolio actions, including $710 million of proceeds from the Argentina sale, the planned Australia JV sale for about $253 million, and repayment of $350 million of senior unsecured notes. On capital allocation, he said $380 million was returned to shareholders in the quarter, the NCIB may be increased to about 24 million shares subject to TSX approval, capital spending was $57 million in the quarter, and full-year capex should be about $515 million; leverage ended at 1.47x versus a long-term target of 2.25x.

Analysts focused on the U.S. growth runway, cheese and whey pricing dynamics, inflation, Canadian margins, and how aggressively Saputo might deploy capital through buybacks or M&A. Management said U.S. growth is being driven by customer wins, higher utilization of assets like Waupun, new capacity additions at Friendship, and strong protein demand, while cheese profitability remains constrained by milk supply and block-market dynamics but should improve over time. On capital allocation, management said the NCIB is opportunistic and will be weighed against growth investments and M&A, with no fixed deal size preference; on inflation, they cited energy, fuel, labor, logistics, packaging, and technology spending as ongoing pressures.