# The J.M. Smucker Co. (SJM) Q1 2026 Financial Results Summary
The J.M. Smucker Co. (NYSE: SJM) released its financial results for the first quarter of fiscal year 2026 on August 27, 2025. The report reflects the company’s performance for the quarter ended July 31, 2025.
## Executive Summary:
– **Net Sales**:
– $2.1 billion, a decrease of $11.8 million, or **1%**.
– Excluding divestitures and foreign currency exchange, net sales increased **2%**.
– **Net Loss Per Diluted Share**:
– Reported at **-$0.41**, a decrease of **124%** from $1.74 in the previous year.
– Adjusted earnings per share were $1.90, a decrease of **22%** from $2.44.
– **Cash Flow**:
– Cash used for operating activities was **$10.6 million**, compared to cash provided of **$172.9 million** in the prior year.
– Free cash flow was **-$94.9 million**, down from $49.2 million the prior year.
– **Dividend**:
– Quarterly dividend declared was **$1.10 per common share**, up **2%** from $1.08 a year ago.
– **Outlook**:
– The Company updated its full-year fiscal 2026 financial guidance, increasing net sales expectations to **3.0% to 5.0%** growth (previously **2.0% to 4.0%**).
## First Quarter Consolidated Results:
| Metric | Q1 FY26 | Q1 FY25 | % Change |
|---|---|---|---|
| Net Sales | $2,113.3 million | $2,125.1 million | -1% |
| Operating Income | $45.6 million | $349.5 million | -87% |
| Adjusted Operating Income | $370.3 million | $447.9 million | -17% |
| Net Income (Loss) | -$43.9 million | $185.0 million | -124% |
| Adjusted Earnings Per Share | $1.90 | $2.44 | -22% |
| Weighted-Average Shares Outstanding | 106.6 million | 106.5 million | 0% |
### Detailed Insights:
– **Net Sales**:
– Decreased by **1%** due to divestitures and unfavorable currency exchange.
– Excluding prior year’s noncomparable net sales related to divestitures and FX impacts, net sales increased **2%**, with a **6%** increase attributable to net price realization.
– **Operating Income**:
– Gross profit was down **40%** primarily due to higher commodity costs and unfavorable volume/mix.
– Adjusted gross profit was decreased by **11%** as per non-GAAP results.
– **Interest Expense and Income Taxes**:
– Net interest expense remained comparable to the prior year.
– Effective income tax rate was **22.3%**, a decrease from **24.8%** in the previous year, attributed to a pre-tax loss in FY26.
– **Cash Flow and Debt**:
– Cash used for operating activities was **$10.6 million**, down from $172.9 million in the previous year.
– Free cash flow of **-$94.9 million** contrasted sharply with last year’s positive cash flow of $49.2 million.
## Segment Results:
1. **U.S. Retail Coffee**:
– Net Sales: $717.2 million | Increase of **15%** |
– Segment profit declined by **22%**.
2. **U.S. Retail Frozen Handheld and Spreads**:
– Net Sales: $484.7 million | Decrease of **2%** |
– Segment profit decreased by **4%**.
3. **U.S. Retail Pet Foods**:
– Net Sales: $368.0 million | Decrease of **8%** |
– Segment profit dropped by **12%**.
4. **Sweet Baked Snacks**:
– Net Sales: $253.2 million | Decrease of **24%** |
– Segment profit plummeted by **54%**.
5. **International and Away From Home**:
– Net Sales: $290.2 million | Increase of **7%** |
– Segment profit increased by **35%**.
## Full-Year Outlook Updates:
– **Net Sales Increase vs. Previous Year**: Expected between **3.0% to 5.0%**.
– **Adjusted Earnings Per Share**: Maintained range of **$8.50 – $9.50**.
– **Free Cash Flow**: Projected at **$975 million**.
– **Capital Expenditures**: Estimated at **$325 million**.
– **Adjusted Effective Income Tax Rate**: Expected at **23.8%**.
## Conclusion
The first quarter of fiscal year 2026 for The J.M. Smucker Co. reflects a challenging environment with notable declines in profitability and cash flow, despite some segments experiencing growth in sales. The update on full-year financial guidance indicates the company’s strategy to focus on growth areas and manage cost pressures effectively.
| 2025 | 2024 | % Increase (Decrease) | |
|---|---|---|---|
| Net sales | $2,113.3 | $2,125.1 | -1 % |
| Cost of products sold | 1,638.6 | 1,327.9 | 23 % |
| Gross Profit | 474.7 | 797.2 | -40 % |
| Gross margin | 22.5 % | 37.5 % | |
| Selling, distribution, and administrative expenses | 377.4 | 390.1 | -3 % |
| Amortization | 50.2 | 56.0 | -10 % |
| Other special project costs | 6.0 | 7.1 | -15 % |
| Other operating expense (income) | -4.5 | -5.5 | -18 % |
| Operating Income | 45.6 | 349.5 | -87 % |
| Operating margin | 2.2 % | 16.4 % | |
| Interest expense | -100.2 | -100.4 | — % |
| Other income (expense) – net | -1.9 | -3.1 | -39 % |
| Income (Loss) Before Income Taxes | -56.5 | 246.0 | -123 % |
| Taxes | -12.6 | 61.0 | -121 % |
| Net Income (Loss) | -$43.9 | $185.0 | -124 % |
| Net income (loss) per common share | -$0.41 | $1.74 | -124 % |
| Net income (loss) per common share assuming dilution | -$0.41 | $1.74 | -124 % |
| Dividends declared per common share | $1.10 | $1.08 | 2 % |
| Weighted-average shares outstanding | 106.6 | 106.3 | — % |
| Weighted-average shares outstanding – assuming dilution | 106.6 | 106.5 | — % |
| July 31, 2025 | April 30, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $39.3 | $69.9 |
| Trade receivables – net | 643.2 | 619.0 |
| Inventories | 1,386.0 | 1,209.4 |
| Other current assets | 333.4 | 248.3 |
| Total Current Assets | 2,401.9 | 2,146.6 |
| Property, Plant, and Equipment – Net | 3,047.0 | 3,079.6 |
| Other Noncurrent Assets | ||
| Goodwill | 5,709.4 | 5,710.0 |
| Other intangible assets – net | 6,296.8 | 6,346.9 |
| Other noncurrent assets | 286.8 | 280.2 |
| Total Other Noncurrent Assets | 12,293.0 | 12,337.1 |
| Total Assets | $17,741.9 | $17,563.3 |
| Liabilities and Shareholders’ Equity | ||
| Current Liabilities | ||
| Accounts payable | $1,234.1 | $1,288.7 |
| Short-term borrowings | 951.6 | 640.8 |
| Other current liabilities | 768.2 | 722.5 |
| Total Current Liabilities | 2,953.9 | 2,652.0 |
| Noncurrent Liabilities | ||
| Long-term debt | 7,038.3 | 7,036.8 |
| Other noncurrent liabilities | 1,823.8 | 1,791.9 |
| Total Noncurrent Liabilities | 8,862.1 | 8,828.7 |
| Total Shareholders’ Equity | 5,925.9 | 6,082.6 |
| Total Liabilities and Shareholders’ Equity | $17,741.9 | $17,563.3 |
