Saputo Inc.

Saputo reported revenue of $4.4 billion, up 1.5% year over year, adjusted EBITDA of $427 million, up close to 8% or $30 million, and adjusted EPS of $0.49, up 17%. Net earnings from continuing operations were $183 million, and adjusted net earnings were $199 million, up 13%. Margin expanded to 9.7% from 9.1% last year. By region, Canada revenue was $1.4 billion and adjusted EBITDA was $175 million; the U.S. revenue was $2.1 billion and adjusted EBITDA was $181 million; International revenue was $635 million and adjusted EBITDA was $38 million; Europe revenue was $283 million and adjusted EBITDA was $33 million. For capital allocation, the company received $710 million in proceeds from the Argentina sale, expects about $253 million from the Australia JV sale, plans about $515 million of fiscal 2027 capex, and said leverage ended at 1.47x net debt to adjusted EBITDA. Management did not give formal next-quarter or full-year revenue/EPS guidance, but reiterated fiscal 2027 capex of about $515 million and said it expects to remain active in share repurchases.

Carl Colizza said the quarter showed Saputo is converting prior investments into higher-quality earnings, with all 4 sectors contributing and ingredients becoming a key growth engine. He emphasized that protein demand is structural rather than a trend, and repeatedly tied the company’s strategy to investing behind categories, geographies and customers where Saputo can win. His tone was constructive and confident, but still disciplined: simplify where needed, invest where returns are attractive, and keep the business focused on long-term value creation.

Maxime Therrien highlighted the hard numbers: $4.4 billion in revenue, $427 million of adjusted EBITDA, 9.7% margin, $199 million of adjusted net earnings, and $0.49 adjusted EPS. He also pointed to cash generation and capital returns, noting $151 million of net cash from operating activities from continuing operations, $57 million of capex in the quarter, and leverage of 1.47x versus a long-term target of 2.25x. He said fiscal 2027 capex is expected to be about $515 million, weighted toward high-return projects, and detailed capital return actions including repurchasing 7.2 million shares for about $300 million, paying $80 million of dividends, repaying $350 million of notes with Argentina sale proceeds, and raising the quarterly dividend from $0.20 to $0.21.

Analysts focused on the U.S. growth runway, pricing and margin dynamics in cheese, inflation pressures, the sustainability of protein demand, and capital allocation. Management said the U.S. is being driven by higher capacity utilization, customer wins in retail and foodservice, and strong demand for whey protein and cottage cheese, with added capacity planned at Friendship and continued runway at Waupun. On cheese, Carl Colizza said milk supply remains abundant, keeping block pricing under pressure for now, but he sees better days ahead and said exports are helping offset weakness. On buybacks and M&A, management said the NCIB is opportunistic and tied to excess cash, while M&A remains on the table if it helps meet growth ambitions; they also stressed they are not seeking new milksheds.