John B. Sanfilippo & Son Inc. reported mixed financial results for the fourth quarter and full-year fiscal 2026, with revenue growth offset by a sharp decline in profitability and a missed earnings estimate.
The company posted adjusted earnings per share of $0.71 in Q4, falling short of Wall Street's $1.30 consensus by $0.59, or 45.4%, and down from $1.15 a year earlier. Net sales increased 4.2% year-over-year to $280.43 million, topping the $271.78 million forecast by 3.2%. Gross profit declined 9.5% to $44.1 million, with gross margins contracting to 15.7% from 18.1% in the prior year. Net income for the quarter totaled $8.4 million, compared with $13.5 million in Q4 fiscal 2025.
For the full fiscal year, the company achieved record net sales of $1.2 billion, up 6.2% from fiscal 2025. Diluted EPS rose 4.6% to $5.26, while net income increased to $61.9 million from $58.9 million. Gross profit margin remained relatively stable at 18.0%, down slightly from 18.4% in the prior year. Interest expense fell to $2.4 million from $3.6 million.
Management highlighted operational challenges, including a $2.7 million recall-related cost tied to third-party dried milk powder used in Southern Style Nuts products. Despite these headwinds, the company reported a return to volume growth after five consecutive quarters of decline, with total sales volume up 1.4% in pounds sold. Fisher brand shipments rose 15%, while private-label snack nut and trail mix shipments increased 3% even as the broader category declined 7%. Orchard Valley Harvest and Southern Style Nuts brands saw shipment declines of 26% and 27%, respectively.
Looking ahead, John B. Sanfilippo & Son outlined plans to expand production capacity at its Elgin facility, with a high-speed chewy bar line expected to be operational by the end of October 2026 and a fruit and grain bar line slated for Q2 fiscal 2027. Management estimated the new capacity could generate over $300 million in incremental growth over three to five years once fully utilized. Analysts project fiscal 2027 revenue growth of 6% and EPS of $5.99.
The company also announced dividend increases, raising its annual dividend by 5.6% to $0.95 per share and declaring a special dividend of $1.05 per share, a 75% increase from the prior year. Total calendar-year 2026 dividends reached $3.50 per share, with a dividend yield of 5.54%. Shares fell 8.22% in after-hours trading to $74.62 after the results.
