The Marzetti Company reported adjusted earnings per share of $1.46 in the fiscal fourth quarter ended June 30, 2026, beating Wall Street’s $1.40 estimate by 4.3%. Diluted EPS totaled $1.76, up 49.2% from the prior-year quarter. Revenue, however, declined 2.2% year-over-year to $465 million, missing the $479 million consensus forecast by 2.9%. Excluding a temporary supply agreement, adjusted net sales rose 0.4%.
Gross profit increased 7.4% to $114 million, while gross margin expanded by 220 basis points year-over-year. Adjusted gross margin rose 160 basis points, marking the 12th consecutive quarter of margin improvement. Operating income climbed 48.2% to $58.6 million, with adjusted operating income up 17.5% to $51.6 million. SG&A expenses rose by $12.3 million, primarily due to acquisition-related costs, though adjusted SG&A increased just $100,000.
The company’s tax rate for the quarter was 14.6%, compared with 17.9% in the prior-year period. For fiscal 2027, management estimated a tax rate of 23%. Operating cash flow for the full fiscal year 2026 reached $283.8 million, up 8.5% year-over-year. Capital expenditures totaled $77.7 million year-to-date, with a forecast of $90 million for fiscal 2027. Share buybacks amounted to $36.3 million in fiscal 2026, a $28.3 million increase over the prior year.
Marzetti’s long-term debt stood at slightly under $200 million, with an effective interest rate of approximately 4.8% at June 30. The company paid a quarterly cash dividend of $1 per share on June 30, a 5% increase from the prior year, maintaining a 63-year streak of annual dividend increases. The dividend yield was cited at 3.46%, with 56 consecutive years of uninterrupted payments. The stock was trading at $116.91, up 0.99% from the prior close, with a P/E ratio of 18.3.
Management highlighted growth in key brands, including Texas Roadhouse rolls, which saw sales surge 28.1% for the quarter. Sister Schubert’s and New York Bakery brands also reported market share gains. The company completed the sale of a closed manufacturing facility in Milpitas, California, for over $20 million, recording an $18.5 million gain.
For fiscal 2027, Marzetti expects mid-single-digit revenue growth, with retail revenue projected to rise in the mid-single digits and foodservice revenue in the low to mid-single digits. Gross margin expansion of about 100 basis points is anticipated, with roughly half attributed to Bachan’s accretion and synergies and the remainder to commodity risk management and cost savings. SG&A growth is projected at 10% to 15% due to the Bachan’s acquisition. Management warned that a Cyclospora outbreak could reduce net sales by approximately 250 basis points in fiscal Q1 2027, potentially flattening sales and reducing operating income by about 15%.
