Cal-Maine Foods (CALM) Financial Results Summary

2026-01-07 · Stocks · QuoteReporter

Cal-Maine Foods (CALM) Q2 2026 Financial Results Summary

Release Date: January 7, 2026

Cal-Maine Foods, Inc. has announced its financial results for the second quarter of fiscal 2026, which concluded on November 29, 2025. Below is a summary of key performance metrics and strategic initiatives from the report.

Strategic Execution Highlights

• Sales Diversification:
• Shell egg sales constituted 84.4% of total net sales, down 1,030 basis points compared to the previous year.
• Specialty eggs increased to account for 44.0% of total shell egg sales, a rise of 1,230 basis points.
• Specialty eggs and prepared foods together comprised 46.4% of net sales, up 1,520 basis points.
• The company announced a $36 million investment aimed at centralizing and expanding prepared foods production, boosting capacity by over 30% over the next two years to foster long-term growth in high-protein, ready-to-eat products.
• Acquisition of Clean Egg, LLC’s production assets will enhance specialty and free-range egg capacity to bolster local sourcing and optimize supply.

Second Quarter Fiscal 2026 Highlights

• Net Sales: $769.5 million, down 19.4% from $954.7 million.
• Shell egg sales of $649.6 million, a decline of 28.1%:
  • Conventional egg sales plunged 41.0% to $363.9 million.
  • Specialty egg sales fell slightly by 0.4% to $285.7 million.
• Prepared foods sales surged to $71.7 million, up 586.4% from $10.4 million. However, there was a 14.5% sequential decline due to short-term production declines during remodeling and expansion at Echo Lake.
• Gross Profit: $207.4 million, a drop of 41.8%, with a gross profit margin of 27.0%.
• Operating Income: $123.9 million, down 55.5%, resulting in an operating income margin of 16.1%.
• Net Income Attributable: $102.8 million, plummeting 53.1% from the previous year.
• Diluted Earnings Per Share: $2.13, a decrease of 52.3%.
• Net Cash Flow from Operations: $94.8 million, down 22.8%.
• Quarterly Dividend Declared: The company declared a cash dividend of approximately $34.3 million, or $0.72 per share, based on its established variable dividend policy. This will be payable on February 12, 2026.

First Half of Fiscal 2026 Highlights

• Net Sales: $1.692 billion, down 2.8% from $1.741 billion.
• Shell egg sales totaling $1.439 billion, down 12.5%.
  • Conventional egg sales dropped 21.0% to $869.8 million.
  • Specialty egg sales increased by 4.7% to $569.2 million.
• Prepared foods sales rocketed to $155.6 million, up 702.9% from $19.4 million.
• Gross Profit: $518.7 million, down 14.0%, with a gross profit margin of 30.7%.
• Operating Income: $373.1 million, down 19.8%, yielding an operating income margin of 22.1%.
• Net Income Attributable: $302.1 million, a decline of 18.1%.
• Diluted Earnings Per Share: $6.26, down 17.0%.
• Net Cash Flow from Operations: $373.4 million, improving by 55.5%.

Looking Forward

Cal-Maine Foods continues to evolve its business model by shifting towards a more diversified platform, focusing on higher-value offerings in response to changing consumer demand for specialty and prepared protein solutions. The strategic initiatives reinforce its foundation in the core shell egg business while enhancing growth opportunities through specialty eggs and prepared foods.

Share Repurchase Update

During the quarter, Cal-Maine Foods repurchased 846,037 shares of its common stock for a total of $74.8 million under its current share repurchase authorization. The company retains $375.2 million of the $500 million share repurchase program.

Conclusion

Cal-Maine Foods’ second quarter results reflect the ongoing market challenges while the company remains committed to its strategic investments and product diversification efforts. The declaration of a cash dividend highlights its focus on returning value to shareholders amidst fluctuating performance metrics.

SUMMARY STATEMENTS OF INCOME (In thousands)

SUMMARY BALANCE SHEETS (In thousands)