Key Points – Saputo’s profitability improved in Q4, with adjusted EBITDA up 5% to CAD 386 million and margin expanding to 9.2%, even though revenue fell 6% because of lower U.S. dairy commodity pricing.
Adjusted EPS rose 21% to CAD 0.41, helped by stronger earnings and share repurchases. – The company is streamlining its portfolio by selling an 80% stake in its Argentina business, a move expected to close in the first half of fiscal 2027
Management says the divestiture is part of a broader push to reallocate capital toward higher-return markets and products. – Operating cash flow and balance sheet metrics strengthened, with more than CAD 500 million of operating cash generated in Q4 and full-year net cash flow from operations of CAD 1.5 billion. Net debt-to-adjusted EBITDA improved to 1.7x, or 1.37x pro forma including expected Argentina sale proceeds. Saputo (TSE:SAP) executives said the dairy processor ended fiscal 2026 with stronger margins, improved cash generation and a more focused portfolio, even as lower U.S. dairy commodity pricing weighed on reported revenue in the fourth quarter.
On the company’s fourth-quarter earnings call, President and Chief Executive Officer Carl Colizza said Saputo is seeing “clear structural demand momentum” in dairy, supported by consumer interest in protein and value-added products. He said the company’s growth is increasingly coming from “higher quality sources,” including better mix, stronger channel positioning and more disciplined pricing. Chief Financial Officer and Secretary Maxime Therrien said adjusted EBITDA rose 5% year over year to CAD 386 million in the fourth quarter, while adjusted EBITDA margin expanded to 9.2% from 8.3% a year earlier.