Q4 2025 Premium Brands Holdings Corp Earnings Call - Pre-Recorded Remarks
Speaker #1: With me here is our CFO, Will Kalutycz. Our presentation will follow the deck that was posted on our website this morning. Later this morning, we will hold a separate live Q&A session at 10:30 AM PST.
George Paleologou: With me here is our CFO, Will Kalutycz. Our presentation will follow the deck that was posted on our website this morning. Later this morning, we will hold a separate live Q&A session at 10:30AM PST. Details to the call can be found on our press release as posted on our website. We're now on slide three, which outlines some of the key highlights for the year and Q4. We finished 2025 strongly, strategically, operationally, and financially despite significant commodity inflation headwinds throughout the year, and more specifically, record high beef costs for most of the year and substantial chicken cost increases in the first half of the year.
George Paleologou: With me here is our CFO, Will Kalutycz. Our presentation will follow the deck that was posted on our website this morning. Later this morning, we will hold a separate live Q&A session at 10:30AM PST. Details to the call can be found on our press release as posted on our website. We're now on slide three, which outlines some of the key highlights for the year and Q4. We finished 2025 strongly, strategically, operationally, and financially despite significant commodity inflation headwinds throughout the year, and more specifically, record high beef costs for most of the year and substantial chicken cost increases in the first half of the year.
Speaker #1: Details to the call can be found on our press release as posted on our website. We're now in slide 3, which outlines some of the key highlights for the year and the fourth quarter.
Speaker #1: We finished 2025 strongly, strategically operationally, and financially, despite significant commodity inflation headwinds throughout the year, and more for most of the year and substantial chicken cost increases in the first half of the year.
Speaker #1: As we have often stated, we manage our business for the long term, and are confident these headwinds are transitory and that our pricing actions combined with normalization of commodity markets will bring our margins back to historical levels.
George Paleologou: As we have often stated, we manage our business for the long term and are confident these headwinds are transitory, and that our pricing actions, combined with normalization of commodity markets, will bring our margins back to historical levels. Overall, 2025 was another transformational year for Premium Brands as we commissioned, expanded, or acquired substantial new plant capacity across North America to support our continued industry-leading growth. Correspondingly, we're well-positioned to meet or exceed our 2027 sales and adjusted EBITDA targets of CAD 10 billion and CAD 1 billion respectively.
George Paleologou: As we have often stated, we manage our business for the long term and are confident these headwinds are transitory, and that our pricing actions, combined with normalization of commodity markets, will bring our margins back to historical levels. Overall, 2025 was another transformational year for Premium Brands as we commissioned, expanded, or acquired substantial new plant capacity across North America to support our continued industry-leading growth. Correspondingly, we're well-positioned to meet or exceed our 2027 sales and adjusted EBITDA targets of CAD 10 billion and CAD 1 billion respectively.
Speaker #1: Overall, 2025 was another transformational year for PREMIUM BRANDS as we commissioned, expanded, or acquired substantial new plant capacity across North America to support our continued industry-leading growth, correspondingly we're well positioned to meet or exceed our 2027 sales and adjusted EBITDA targets of $10 billion and $1 billion respectively.
Speaker #1: Sales for the year increased by just over a billion dollars or 15.6% to 7.5 billion, while our adjusted EBITDA margin came in at 9% at 20 basis points decrease as compared to 2024, mainly due to beef and to a lesser extent chicken commodity cost inflation.
George Paleologou: Sales for the year increased by just over CAD 1 billion or 15.6% to CAD 7.5 billion, while our adjusted EBITDA margin came in at 9%, a 20 basis point decrease as compared to 2024, mainly due to beef and to a lesser extent, chicken commodity cost inflation. Subsequent to 2025, we completed the largest acquisition in our history with Stampede Culinary Partners joining our ecosystem of great food companies. Stampede's extensive plant network and accomplished management team will play a pivotal role in supporting the growth of our value-added protein group, the largest of six platforms. From a personal perspective, I'm delighted to do a call-out to our entire protein platform, which when combined with Stampede, is one of the most exciting food platforms in North America.
George Paleologou: Sales for the year increased by just over CAD 1 billion or 15.6% to CAD 7.5 billion, while our adjusted EBITDA margin came in at 9%, a 20 basis point decrease as compared to 2024, mainly due to beef and to a lesser extent, chicken commodity cost inflation. Subsequent to 2025, we completed the largest acquisition in our history with Stampede Culinary Partners joining our ecosystem of great food companies. Stampede's extensive plant network and accomplished management team will play a pivotal role in supporting the growth of our value-added protein group, the largest of six platforms. From a personal perspective, I'm delighted to do a call-out to our entire protein platform, which when combined with Stampede, is one of the most exciting food platforms in North America.
Speaker #1: Subsequent to 2025, we completed the largest acquisition in our history, with St. Pete Culinary Partners joining our ecosystem of great food companies. St. Pete's extensive plant network and accomplished management team will play a pivotal role in supporting the growth of our value-added protein group, the largest of six platforms.
Speaker #1: From a personal perspective, I'm delighted to do a callout to our entire protein platform, which, when combined with St. Pete, is one of the most exciting food platforms in North America.
Speaker #1: This is at a time when protein and more specifically premium meat protein is increasingly being recognized as the leading nutrient source for optimum human health.
George Paleologou: This is at a time when protein, and more specifically premium meat protein, is increasingly being recognized as the leading nutrient source for optimum human health. Everyone I know is increasing their protein intake, and we're uniquely positioned to offer consumers and customers best-in-class protein-based products for all eating occasions for both home and out-of-home consumption. I can assure you that the favorable positioning of our protein platform did not happen by accident, and that we have been preparing for this moment for a long time. As we have stated in the past, the food is medicine movement is taking over in North America, and consumers are shifting from ultra-processed foods, high in sugars, unhealthy fats, artificial colors and flavors, and preservatives to clean, nutrient-rich, protein-centric foods that improve their overall health and wellbeing.
George Paleologou: This is at a time when protein, and more specifically premium meat protein, is increasingly being recognized as the leading nutrient source for optimum human health. Everyone I know is increasing their protein intake, and we're uniquely positioned to offer consumers and customers best-in-class protein-based products for all eating occasions for both home and out-of-home consumption. I can assure you that the favorable positioning of our protein platform did not happen by accident, and that we have been preparing for this moment for a long time. As we have stated in the past, the food is medicine movement is taking over in North America, and consumers are shifting from ultra-processed foods, high in sugars, unhealthy fats, artificial colors and flavors, and preservatives to clean, nutrient-rich, protein-centric foods that improve their overall health and wellbeing.
Speaker #1: Everyone I know is increasing their protein intake, and we're uniquely positioned to offer consumers and customers best-in-class protein-based products for all eating occasions for both home and out-of-home consumption.
Speaker #1: I can assure you that the favorable positioning of our protein platform did not happen by accident and that we have been preparing for this moment for a long time.
Speaker #1: As we have stated in the past, the food is medicine movement is taking over in North America, and consumers are shifting from ultra-processed foods, high in sugars, and healthy fats artificial colors and flavors and preservatives to clean, nutrient-rich protein-centric foods that improve their overall health and well-being.
Speaker #1: And as I stated in my 2024 CEO letter to shareholders, an increasing number of consumers are no longer being swayed by the usual confusing and misleading messages of the past, and instead are basing their decisions on their own personal health markers measured in real-time on their wearable devices.
George Paleologou: As I stated in my 2024 CEO letter to shareholders, an increasing number of consumers are no longer being swayed by the usual confusing and misleading messages of the past, and instead are basing their decisions on their own personal health markers measured in real time on their wearable devices. They say that knowledge and data is power, and the power today definitely belongs to consumers who are looking for foods that improve their health markers and contribute to their journeys towards better health. Stampede complements our other protein business in many ways, including extensive sous vide cooking capabilities that position us to offer all cooking technologies to our retail, club, and food service customers across North America.
George Paleologou: As I stated in my 2024 CEO letter to shareholders, an increasing number of consumers are no longer being swayed by the usual confusing and misleading messages of the past, and instead are basing their decisions on their own personal health markers measured in real time on their wearable devices. They say that knowledge and data is power, and the power today definitely belongs to consumers who are looking for foods that improve their health markers and contribute to their journeys towards better health. Stampede complements our other protein business in many ways, including extensive sous vide cooking capabilities that position us to offer all cooking technologies to our retail, club, and food service customers across North America.
Speaker #1: They say that knowledge and data is power, and the power today definitely belongs to consumers who are looking for foods that improve their health markers and contribute to their journeys towards better health.
Speaker #1: St. Pete complements our other protein business in many ways, including extensive sous-vide cooking capabilities that position us to offer all cooking technologies to our retail, club, and food service customers across North America.
Speaker #1: As I said earlier, this comes at a time when demand for cooked protein is not only growing but accelerating, as consumers and food service operators are looking for convenience and ease of execution without sacrificing flavor, texture, nutritional value, or aesthetic attributes.
George Paleologou: As I said earlier, this comes at a time when demand for cooked protein is not only growing but accelerating as consumers and food service operators are looking for convenience and ease of execution without sacrificing flavor, texture, nutritional value, or aesthetic attributes. Stampede operates a national network of best-in-class facilities across the US and offers customers customized product and service solutions at both the regional and national levels. The onboarding of Stampede to Premium Brands into our protein platform has gone very well, and we look forward to reporting Stampede's progress in the future as it begins to leverage PBH product solutions, resources, and services to expand its offerings to new and existing customers, channels, and geographies. This week, we entered into a definitive agreement to sell our 74% interest in Shaw Bakers.
George Paleologou: As I said earlier, this comes at a time when demand for cooked protein is not only growing but accelerating as consumers and food service operators are looking for convenience and ease of execution without sacrificing flavor, texture, nutritional value, or aesthetic attributes. Stampede operates a national network of best-in-class facilities across the US and offers customers customized product and service solutions at both the regional and national levels. The onboarding of Stampede to Premium Brands into our protein platform has gone very well, and we look forward to reporting Stampede's progress in the future as it begins to leverage PBH product solutions, resources, and services to expand its offerings to new and existing customers, channels, and geographies. This week, we entered into a definitive agreement to sell our 74% interest in Shaw Bakers.
Speaker #1: St. Pete operates a national network of best-in-class facilities across the US and offers customers customized product and service solutions at both the regional and national levels.
Speaker #1: The onboarding of St. Pete to PREMIUM BRANDS and to our protein platform has gone very well, and we look forward to reporting St. Pete's progress in the future as it begins to leverage PB product solutions resources and services to expand its offerings to new and existing customers, channels, and geographies.
Speaker #1: This week, we entered into a definitive agreement to sell our 74% interest in Shaw Bakers. Occasionally, we will make investments in startups or early-stage companies if we believe in the management team and are aligned with the vision.
George Paleologou: Occasionally, we will make investments in startups or early-stage companies if we believe in the management team and are aligned with the vision. Since its inception, Shaw Bakers' management team has executed a very successful growth strategy and has positioned its business as the leading USDA premium laminated dough company in North America with its sales growing from very little to $100 million. As part of our recently announced non-core asset monetization strategy, we're pleased to be selling Shaw Bakers to a well-established and very reputable bakery company that will help take Shaw Bakers' business to the next level. Our CFO, Will Kalutycz, will give you more color on our results for the quarter and the year later on in the presentation. We're now on slide four.
George Paleologou: Occasionally, we will make investments in startups or early-stage companies if we believe in the management team and are aligned with the vision. Since its inception, Shaw Bakers' management team has executed a very successful growth strategy and has positioned its business as the leading USDA premium laminated dough company in North America with its sales growing from very little to $100 million. As part of our recently announced non-core asset monetization strategy, we're pleased to be selling Shaw Bakers to a well-established and very reputable bakery company that will help take Shaw Bakers' business to the next level. Our CFO, Will Kalutycz, will give you more color on our results for the quarter and the year later on in the presentation. We're now on slide four.
Speaker #1: Since its inception, Shaw's management team has executed a very successful growth strategy and has positioned its business as the leading USDA premium laminated dough company in North America with its sales growing from very little to $100 million US.
Speaker #1: As part of our recently announced non-core asset monetization strategy, we're pleased to be selling Shaw Bakers to a well-established and very reputable bakery company that will help take Shaw's business to the next level.
Speaker #1: Our CFO, Will Kalutycz, will give you more color on our results for the quarter and the year later on in the presentation. We're now on slide four.
Speaker #1: You can see here that our acquisition pipeline continues to be very active, and that we're in several discussions and conversations. As we have demonstrated in the past, including the St.
George Paleologou: You can see here that our acquisition pipeline continues to be very active and that we're in several discussions and conversations. As we have demonstrated in the past, including the Stampede acquisition, any new acquisitions will be done in the context of us achieving our stated long-term financial objectives. Slide 5 showcases our Stampede's portfolio of ready-to-eat and ready-to-cook products while demonstrating the diversity and versatility of their extensive offerings and capabilities. We're now on slides 6 to 8. Slide 6 shows you the location of our facilities in Canada and the US, with the dots in red showing the facilities that we have added to our plant network during the past couple of years.
George Paleologou: You can see here that our acquisition pipeline continues to be very active and that we're in several discussions and conversations. As we have demonstrated in the past, including the Stampede acquisition, any new acquisitions will be done in the context of us achieving our stated long-term financial objectives. Slide 5 showcases our Stampede's portfolio of ready-to-eat and ready-to-cook products while demonstrating the diversity and versatility of their extensive offerings and capabilities. We're now on slides 6 to 8. Slide 6 shows you the location of our facilities in Canada and the US, with the dots in red showing the facilities that we have added to our plant network during the past couple of years.
Speaker #1: Pete acquisition, any new acquisitions will be done in the context of us achieving our stated long-term financial objectives. Slide five showcases how St. Pete's portfolio of ready-to-eat and ready-to-cook products, while demonstrating the diversity and versatility of their extensive offerings and capabilities.
Speaker #1: We're now on slides six to eight. Slide six shows you the location of our facilities in Canada and the US, with the dots in red showing the facilities that we have added to our plant network during the past couple of years.
Speaker #1: You can see that the number of facilities in the US has expanded substantially, and that we're now much better able to support our US growth from state-of-the-art and modern US domiciled capacity as shown on slides seven and eight.
George Paleologou: You can see that the number of facilities in the US has expanded substantially, and that we're now much better able to support our US growth from state-of-the-art and modern US-domiciled capacity, as shown on slides 7 and 8. US sales made up 68% of our Specialty Foods segment's sales in Q4 and 67% for the year. With the purchase of Stampede, we expect this number to be in the 70 to 80% range in 2026. I will now pass it to Will.
George Paleologou: You can see that the number of facilities in the US has expanded substantially, and that we're now much better able to support our US growth from state-of-the-art and modern US-domiciled capacity, as shown on slides 7 and 8. US sales made up 68% of our Specialty Foods segment's sales in Q4 and 67% for the year. With the purchase of Stampede, we expect this number to be in the 70 to 80% range in 2026. I will now pass it to Will.
Speaker #1: US sales made up 68% of our specialty food segments, sales, in the fourth quarter and 67% for the year, with the purchase of St.
Speaker #1: Pete, we expect this number to be in the 70 to 80 percent range in 2026. I will now pass it to Will.
Speaker #2: Thanks, George. Before I begin, I would like to remind you that some of the statements made on today's call may constitute forward-looking information. And our future results may differ materially from what we discuss.
Will Kalutycz: Thanks, George. Before I begin, I would like to remind you that some of the statements made on today's call may constitute forward-looking information, and our future results may differ materially from what we discuss. Please refer to our MD&A for the thirteen and fifty-two weeks ended December 27, 2025, as well as other information on our website for a broader description of the risk factors that could affect our performance. Turning to slide 11. Our sales for the quarter were a record CAD 1.9 billion, up CAD 258 million or 15.7% as compared to Q4 of 2024. This increase was driven by three factors. The first and most significant was organic volume growth, which accounted for CAD 151 million of the increase.
Will Kalutycz: Thanks, George. Before I begin, I would like to remind you that some of the statements made on today's call may constitute forward-looking information, and our future results may differ materially from what we discuss. Please refer to our MD&A for the thirteen and fifty-two weeks ended December 27, 2025, as well as other information on our website for a broader description of the risk factors that could affect our performance. Turning to slide 11. Our sales for the quarter were a record CAD 1.9 billion, up CAD 258 million or 15.7% as compared to Q4 of 2024. This increase was driven by three factors. The first and most significant was organic volume growth, which accounted for CAD 151 million of the increase.
Speaker #2: Please refer to our MD&A for the 13 and 52 weeks ended December 27, 2025, as well as other information on our website for a broader description of the risk factors that could affect our performance.
Speaker #2: Turning to slide 11, our sales for the quarter were at record $1.9 billion. Up 258 million dollars or 15.7% as compared to the fourth quarter of 2024.
Speaker #2: This increase was driven by three factors. The first and most significant was organic volume growth, which accounted for 151 million dollars of the increase.
Speaker #2: Acquisitions made up another 76 million dollars of our growth, and selling price increases, primarily related to beef-based products, contributed 39 million dollars. These increases were partially offset by a currency translation impact of $8 million resulting from year-over-year strength in the Canadian dollar.
Will Kalutycz: Acquisitions made up another CAD 76 million of our growth, and selling price increases, primarily related to beef-based products, contributed CAD 39 million. These increases were partially offset by a currency translation impact of CAD 8 million resulting from year-over-year strength in the Canadian dollar. The main driver of our organic volume growth in the quarter was the continued success of our Specialty Foods segments, US market-focused initiatives in premium protein, sandwich, and artisan bakery products, which generated CAD 117 million in organic volume growth, representing an organic volume growth rate of over 18%. The balance of our organic volume growth came primarily from the sale of processed lobster inventory built up over the course of 2025. Slide 12 shows a breakdown of our core US growth sales initiatives by group.
Will Kalutycz: Acquisitions made up another CAD 76 million of our growth, and selling price increases, primarily related to beef-based products, contributed CAD 39 million. These increases were partially offset by a currency translation impact of CAD 8 million resulting from year-over-year strength in the Canadian dollar. The main driver of our organic volume growth in the quarter was the continued success of our Specialty Foods segments, US market-focused initiatives in premium protein, sandwich, and artisan bakery products, which generated CAD 117 million in organic volume growth, representing an organic volume growth rate of over 18%. The balance of our organic volume growth came primarily from the sale of processed lobster inventory built up over the course of 2025. Slide 12 shows a breakdown of our core US growth sales initiatives by group.
Speaker #2: The main driver of our organic volume growth in the quarter was the continued success of our specially food segments US market-focused initiatives and premium protein, sandwich, and artisan bakery products.
Speaker #2: Which generated 117 million dollars in organic volume growth, representing an organic volume growth rate of over 18%. The balance of our organic volume growth came primarily from the sale of processed lobster inventory built up over the course of 2025.
Speaker #2: Slide 12 shows a breakdown of our core US growth sales initiatives by group. As you can see, our protein, sandwich, and bakery groups all generated very solid results for the quarter.
Will Kalutycz: As you can see, our protein, sandwich, and bakery groups all generated very solid results for the quarter with organic volume growth rates of 20.1%, 12.5%, and 62.2%, respectively. For the year, our core US growth initiatives generated organic volume growth of CAD 370 million, representing an organic volume growth rate of 14.8%. Looking forward, we expect our US sales initiatives to continue to be the major driver of our overall organic volume growth. Turning to slide 13, our adjusted EBITDA for the quarter was CAD 179.5 million, representing an increase of CAD 30.8 million or 20.7% as compared to Q4 of 2024. The major drivers of this improvement were our organic volume growth, sales growth, and lower discretionary compensation.
Will Kalutycz: As you can see, our protein, sandwich, and bakery groups all generated very solid results for the quarter with organic volume growth rates of 20.1%, 12.5%, and 62.2%, respectively. For the year, our core US growth initiatives generated organic volume growth of CAD 370 million, representing an organic volume growth rate of 14.8%. Looking forward, we expect our US sales initiatives to continue to be the major driver of our overall organic volume growth. Turning to slide 13, our adjusted EBITDA for the quarter was CAD 179.5 million, representing an increase of CAD 30.8 million or 20.7% as compared to Q4 of 2024. The major drivers of this improvement were our organic volume growth, sales growth, and lower discretionary compensation.
Speaker #2: With organic volume growth rates of 20.1%, 12.5%, and 62.2% respectively. For the year, our core US growth initiatives generated organic volume growth of 370 million dollars, representing an organic volume growth rate of 14.8%.
Speaker #2: Looking forward, we expect our US sales initiatives to continue to be the major driver of our overall organic volume growth. Turning to slide 13, our adjusted EBITDA for the quarter was 179.5 million dollars, representing an increase of 30.8 million dollars or 20.7% as compared to the fourth quarter of 2024.
Speaker #2: The major drivers of this improvement were our organic volume growth sales growth and lower discretionary compensation. These were partially offset by higher operating overheads associated with our new production capacity brought online by our protein, sandwich, and bakery groups.
Will Kalutycz: These were partially offset by higher operating overheads associated with our new production capacity brought online by our protein, sandwich, and bakery groups. In terms of cost inflation impacts, while the difference between the selling price increases our Specialty Foods segment realized in the quarter and the impacts of commodity beef, and wage cost inflation improved significantly as compared to the last quarter, Specialty Foods margins were still below targeted levels. This was due to a combination of price increases being phased in over the course of the quarter, and some increases being delayed to Q1 2026. Despite this challenge, as well as below-average margins on our lobster product sales, we were still able to improve our adjusted EBITDA margin for the quarter by 40 basis points, resulting in a 9.5% EBITDA margin for the quarter.
Will Kalutycz: These were partially offset by higher operating overheads associated with our new production capacity brought online by our protein, sandwich, and bakery groups. In terms of cost inflation impacts, while the difference between the selling price increases our Specialty Foods segment realized in the quarter and the impacts of commodity beef, and wage cost inflation improved significantly as compared to the last quarter, Specialty Foods margins were still below targeted levels. This was due to a combination of price increases being phased in over the course of the quarter, and some increases being delayed to Q1 2026. Despite this challenge, as well as below-average margins on our lobster product sales, we were still able to improve our adjusted EBITDA margin for the quarter by 40 basis points, resulting in a 9.5% EBITDA margin for the quarter.
Speaker #2: In terms of cost inflation impacts, while the difference between the selling price increases, our specialty food segment realized in the quarter and the impacts of commodity beef and wage cost inflation improved significantly as compared to the last quarter, specialty foods margins were still below targeted levels.
Speaker #2: This was due to a combination of price increases being phased in over the course of the quarter and some increases being delayed to the first quarter of 2026.
Speaker #2: Despite this challenge, as well as below-average margins on our lobster product sales, we were still able to prove our adjusted EBITDA margin for the quarter by 40 basis points, resulting in a 9.5% EBITDA margin for the quarter.
Speaker #2: Slide 14 shows an US dollars and index comprised of some of the main beef commodities used by our specialty food segments businesses. You can see that the cost in the third and fourth quarters of 2025, which are represented by the green line, were at all-time record highs.
Will Kalutycz: Slide 14 shows in US dollars an index comprised of some of the main beef commodities used by our Specialty Foods segment's businesses. You can see that the cost in Q3 and Q4 2025, which are represented by the green line, were at all-time record highs. Slide 15 provides a breakdown of our startup and restructuring costs by initiative, by quarter for the last six quarters. In Q4 2025, costs for our Shaw Bakers and our major new product launch initiatives ended up being higher than planned due to a range of challenges, which resulted in an increase in total startup and restructuring costs as compared to the previous quarter.
Will Kalutycz: Slide 14 shows in US dollars an index comprised of some of the main beef commodities used by our Specialty Foods segment's businesses. You can see that the cost in Q3 and Q4 2025, which are represented by the green line, were at all-time record highs. Slide 15 provides a breakdown of our startup and restructuring costs by initiative, by quarter for the last six quarters. In Q4 2025, costs for our Shaw Bakers and our major new product launch initiatives ended up being higher than planned due to a range of challenges, which resulted in an increase in total startup and restructuring costs as compared to the previous quarter.
Speaker #2: Slide 15 provides a breakdown of our startup and restructuring costs, buy initiative, buy quarter for the last six quarters. In the fourth quarter of 2025, costs for our Shaw Bakers and our major new product launch initiatives ended up being higher than planned due to a range of challenges.
Speaker #2: Which resulted in an increase in total startup and restructuring costs as compared to the previous quarter. The good news is that all but one of our major projects are now finished or will be shortly with the remaining project expected to be completed in the second quarter of 2026.
Will Kalutycz: The good news is that all but one of our major projects are now finished or will be shortly, with the remaining project expected to be completed in Q2 2026. As George mentioned earlier, 2025 was a very key year in commissioning new capacity and launching new sales initiatives that will accelerate growth in our top and bottom lines for the next couple of years. Turning to Slide 16, our adjusted earnings and earnings per share for the quarter were CAD 57.6 million and CAD 1.29 per share, respectively, with these metrics increasing by 24.4% and 22.9%, respectively, as compared to Q4 2024.
Will Kalutycz: The good news is that all but one of our major projects are now finished or will be shortly, with the remaining project expected to be completed in Q2 2026. As George mentioned earlier, 2025 was a very key year in commissioning new capacity and launching new sales initiatives that will accelerate growth in our top and bottom lines for the next couple of years. Turning to Slide 16, our adjusted earnings and earnings per share for the quarter were CAD 57.6 million and CAD 1.29 per share, respectively, with these metrics increasing by 24.4% and 22.9%, respectively, as compared to Q4 2024.
Speaker #2: As George mentioned earlier, 2025 was a very key year in commissioning new capacity and launching new sales initiatives that will accelerate growth in our top and bottom lines for the next couple of years.
Speaker #2: Turning to slide 16, our adjusted earnings and earnings per share for the quarter were 57.6 million dollars and $1.29 per share, respectively. With these metrics increasing by 24.4% and 22.9%, respectively, as compared to the fourth quarter of 2024.
Speaker #2: The improvement in our profitability is due primarily to the growth in our adjusted EBITDA and to a much lesser extent lower interest rates. These factors were partially offset by higher depreciation lease and interest costs associated with the major investments we have been making in new production capacity.
Will Kalutycz: The improvement in our profitability is due primarily to the growth in our adjusted EBITDA and, to a much lesser extent, lower interest rates. These factors were partially offset by higher depreciation, lease, and interest costs associated with the major investments we have been making in new production capacity. Slide 17 shows our annual sales for the last eight years, which have grown at a compounded annual growth rate of almost 14%, as well as our 2026 sales guidance of CAD 9.25 to 9.55 billion. Note that our 2026 guidance reflects the sale of Shaw Bakers. As George mentioned earlier, our 2025 sales as compared to 2024 increased by CAD 1 billion or 15.7% to CAD 7.48 billion.
Will Kalutycz: The improvement in our profitability is due primarily to the growth in our adjusted EBITDA and, to a much lesser extent, lower interest rates. These factors were partially offset by higher depreciation, lease, and interest costs associated with the major investments we have been making in new production capacity. Slide 17 shows our annual sales for the last eight years, which have grown at a compounded annual growth rate of almost 14%, as well as our 2026 sales guidance of CAD 9.25 to 9.55 billion. Note that our 2026 guidance reflects the sale of Shaw Bakers. As George mentioned earlier, our 2025 sales as compared to 2024 increased by CAD 1 billion or 15.7% to CAD 7.48 billion.
Speaker #2: Slide 17 shows our annual sales for the last eight years, which have grown at a compounded annual growth rate of almost 14%. As well as our 2026 sales guidance of 9.25 billion dollars to 9.55 billion dollars.
Speaker #2: Note that our 2026 guidance reflects the sale of Shaw Bakers. As George mentioned earlier, our 2025 sales as compared to 2024 increased by $1 billion or 15.7% to $7.48 billion dollars.
Speaker #2: This was at the top end of our 2025 guidance range of 7.4 billion dollars to 7.5 billion dollars. Slide 18 shows our annual adjusted EBITDA for the last eight years, which has grown at a compounded annual growth rate of over 13%, as well as our 2026 adjusted EBITDA guidance of 870 million dollars to 910 million dollars.
Will Kalutycz: This was at the top end of our 2025 guidance range of CAD 7.4 to 7.5 billion. Slide 18 shows our annual adjusted EBITDA for the last eight years, which has grown at a compounded annual growth rate of over 13%, as well as our 2026 adjusted EBITDA guidance of CAD 870 to 910 million. Our 2025 adjusted EBITDA as compared to 2024 increased by CAD 79 million or 13.2% to CAD 672 million. This was within our 2025 guidance range of CAD 670 to 680 million.
Will Kalutycz: This was at the top end of our 2025 guidance range of CAD 7.4 to 7.5 billion. Slide 18 shows our annual adjusted EBITDA for the last eight years, which has grown at a compounded annual growth rate of over 13%, as well as our 2026 adjusted EBITDA guidance of CAD 870 to 910 million. Our 2025 adjusted EBITDA as compared to 2024 increased by CAD 79 million or 13.2% to CAD 672 million. This was within our 2025 guidance range of CAD 670 to 680 million.
Speaker #2: Our 2025 adjusted EBITDA as compared to 2024 increased by 79 million dollars or 13.2% to 672 million dollars. This was within our 2025 guidance range of 670 million dollars to 680 million dollars.
Speaker #2: Slide 19 shows our annual adjusted earnings and EPS for the last eight years, which have grown at compounded annual growth rates of 8.2% and 3.4%, respectively.
Will Kalutycz: Slide 19 shows our annual adjusted earnings and EPS for the last eight years, which have grown at compounded annual growth rates of 8.2% and 3.4%, respectively. These lower growth rates relative to our sales and adjusted EBITDA growth rates are due to the CapEx-related investment costs I mentioned earlier that have resulted in higher depreciation, lease, and interest costs. Our 2025 annual adjusted earnings and EPS as compared to 2024 increased by 15.8% and 14.8%, respectively. Looking forward, we expect the improvement in these metrics to accelerate significantly as we leverage our investment in production capacity to grow our business.
Will Kalutycz: Slide 19 shows our annual adjusted earnings and EPS for the last eight years, which have grown at compounded annual growth rates of 8.2% and 3.4%, respectively. These lower growth rates relative to our sales and adjusted EBITDA growth rates are due to the CapEx-related investment costs I mentioned earlier that have resulted in higher depreciation, lease, and interest costs. Our 2025 annual adjusted earnings and EPS as compared to 2024 increased by 15.8% and 14.8%, respectively. Looking forward, we expect the improvement in these metrics to accelerate significantly as we leverage our investment in production capacity to grow our business.
Speaker #2: These lower growth rates relative to our sales and adjusted EBITDA growth rates are due to the CAPEX-related investment costs I mentioned earlier, that have resulted in higher depreciation leased and interest costs.
Speaker #2: Our 2025 annual adjusted earnings and EPS as compared to 2024 increased by 15.8% and 14.8%, respectively. Looking forward, we expect the improvement in these metrics to accelerate significantly as we leverage our investment in production capacity to grow our business.
Speaker #2: Turning to slide 20, we spent 54.4 million dollars in capital expenditures in the quarter. Consisting of 21.3 million dollars in major project CAPEX, 15.4 million dollars in smaller project CAPEX, and 17.7 million dollars on maintenance CAPEX.
Will Kalutycz: Turning to slide 20, we spent CAD 54.4 million in capital expenditures in the quarter, consisting of CAD 21.3 million in major project CapEx, CAD 15.4 million in smaller project CapEx, and CAD 17.7 million on maintenance CapEx. We define project CapEx as investments that are expected to generate an unlevered after-tax internal rate of return of 15% or greater. All other capital expenditures are classified as maintenance CapEx. Primarily, all of our major project CapEx in the quarter were on investments to increase the production capacities and in many cases, operating efficiencies of our protein, sandwich, and bakery groups. For the year, we spent CAD 159.5 million on project CapEx and CAD 59.5 million on maintenance CapEx. Slide 21 shows our project CapEx for each of the last 12 quarters.
Will Kalutycz: Turning to slide 20, we spent CAD 54.4 million in capital expenditures in the quarter, consisting of CAD 21.3 million in major project CapEx, CAD 15.4 million in smaller project CapEx, and CAD 17.7 million on maintenance CapEx. We define project CapEx as investments that are expected to generate an unlevered after-tax internal rate of return of 15% or greater. All other capital expenditures are classified as maintenance CapEx. Primarily, all of our major project CapEx in the quarter were on investments to increase the production capacities and in many cases, operating efficiencies of our protein, sandwich, and bakery groups. For the year, we spent CAD 159.5 million on project CapEx and CAD 59.5 million on maintenance CapEx. Slide 21 shows our project CapEx for each of the last 12 quarters.
Speaker #2: We defined project CAPEX as investments that are expected to generate an unlevered after-tax internal rate of return of 15% or greater. All other capital expenditures are classified as maintenance CAPEX.
Speaker #2: Primarily, all of our major project CAPEX in the quarter were on investments to increase the production capacities and, in many cases, operating efficiencies of our protein sandwich and bakery groups.
Speaker #2: For the year, we spent 159.5 million dollars in project CAPEX and 59.5 million dollars on maintenance CAPEX. Slide 21 shows our project CAPEX for each of the last 12 quarters.
Speaker #2: You can see the significant downturn in expenditures in recent quarters as we near the end of our most recent major CAPEX investment cycle. Looking forward, we expect to spend over the next three quarters another 67 million dollars in major project CAPEX, after which we will have invested in approximately $2 billion of incremental sales capacity relative to our 2024 sales of 6.5 billion dollars.
Will Kalutycz: You can see the significant downturn in expenditures in recent quarters as we near the end of our most recent major CapEx investment cycle. Looking forward, we expect to spend over the next three quarters another CAD 67 million on major projects CapEx, after which we will have invested in approximately CAD 2 billion of incremental sales capacity relative to our 2024 sales of CAD 6.5 billion. Slide 22 shows some of the key metrics we use to assess our financial position. Our senior debt-to-EBITDA leverage level improved by 0.2 turns as compared to last quarter due to a CAD 172.5 million convertible debenture issuance that we completed in anticipation of the Stampede acquisition.
Will Kalutycz: You can see the significant downturn in expenditures in recent quarters as we near the end of our most recent major CapEx investment cycle. Looking forward, we expect to spend over the next three quarters another CAD 67 million on major projects CapEx, after which we will have invested in approximately CAD 2 billion of incremental sales capacity relative to our 2024 sales of CAD 6.5 billion. Slide 22 shows some of the key metrics we use to assess our financial position. Our senior debt-to-EBITDA leverage level improved by 0.2 turns as compared to last quarter due to a CAD 172.5 million convertible debenture issuance that we completed in anticipation of the Stampede acquisition.
Speaker #2: Slide 22 shows some of the key metrics we used to assess our financial position. Our senior debt to EBITDA leverage level improved by 0.2 terms as compared to last quarter, due to a 172.5 million dollar convertible debenture issuance that we completed in anticipation of the stampede acquisition.
Speaker #2: Our total debt to EBITDA leverage was flat as compared to last quarter, as in an approximate 0.2 terms improvement resulting from growth in our adjusted EBITDA, with offset by the impact of higher inventory levels associated with finished inventory builds to support our 2026 meat stick, cook protein, and kabob sales initiatives.
Will Kalutycz: Our total debt-to-EBITDA leverage was flat as compared to last quarter, as an approximate 0.2 turns improvement resulting from growth in our adjusted EBITDA was offset by the impact of higher inventory levels associated with finished inventory builds to support our 2026 meat stick, cooked protein, and kebab sales initiatives. While our debt ratio levels remain above our midterm targets, they are well within our shorter term operating parameters. Looking forward, in the coming quarters, we expect to make significant progress towards our goal of total debt leverage of 3 to 1 or better, driven by a variety of factors, including growth in our adjusted EBITDA and the sale of Shaw Bakers. The next and final slide shows a variety of our free cash flow and dividend metrics over the last eight years.
Will Kalutycz: Our total debt-to-EBITDA leverage was flat as compared to last quarter, as an approximate 0.2 turns improvement resulting from growth in our adjusted EBITDA was offset by the impact of higher inventory levels associated with finished inventory builds to support our 2026 meat stick, cooked protein, and kebab sales initiatives. While our debt ratio levels remain above our midterm targets, they are well within our shorter term operating parameters. Looking forward, in the coming quarters, we expect to make significant progress towards our goal of total debt leverage of 3 to 1 or better, driven by a variety of factors, including growth in our adjusted EBITDA and the sale of Shaw Bakers. The next and final slide shows a variety of our free cash flow and dividend metrics over the last eight years.
Speaker #2: While our debt ratio levels remain above our mid-term targets, they are well within our shorter-term operating parameters. Looking forward, in the coming quarters, we expect to make significant progress towards our goal of total debt leverage of 3 to 1 or better, driven by a variety of factors, including growth in our adjusted EBITDA and the sale of Shaw Bakers.
Speaker #2: The next and final slide shows a variety of our free cash flow and dividend metrics over the last eight years. For the quarter, we generated a record 82.9 million dollars in free cash flow, up 18.6 million dollars or 28.9% as compared to the fourth quarter of 2024.
Will Kalutycz: For the quarter, we generated a record CAD 82.9 million in free cash flow, up CAD 18.6 million or 28.9% as compared to Q4 2024. Similarly, our free cash flow per share for the quarter increased to a record CAD 1.86 per share, representing a 28.3% increase as compared to Q4 2024. These increases reflect the early stages of us generating returns on the investments we've been making in new production capacity. In terms of dividends, subsequent to the quarter, we declared a dividend of CAD 0.85 per share for Q1 2026. That concludes our presentation. Please join us on our Q&A conference call later today at 10:30AM Vancouver time, 1:30PM Toronto time. Thank you.
Will Kalutycz: For the quarter, we generated a record CAD 82.9 million in free cash flow, up CAD 18.6 million or 28.9% as compared to Q4 2024. Similarly, our free cash flow per share for the quarter increased to a record CAD 1.86 per share, representing a 28.3% increase as compared to Q4 2024. These increases reflect the early stages of us generating returns on the investments we've been making in new production capacity. In terms of dividends, subsequent to the quarter, we declared a dividend of CAD 0.85 per share for Q1 2026. That concludes our presentation. Please join us on our Q&A conference call later today at 10:30AM Vancouver time, 1:30PM Toronto time. Thank you.
Speaker #2: Similarly, our free cash flow per share for the quarter increased to a record $1.86 per share, representing a 28.3% increase as compared to the fourth quarter of 2024.
Speaker #2: These increases reflect the early stages of us generating returns on the investments we've been making in new production capacity. In terms of dividends, subsequent to the quarter, we declared a dividend of 85 cents per share for the first quarter of 2026.
Speaker #2: That concludes our presentation. Please join us on our Q&A conference call later today at 10:30 AM. Vancouver time, 1:30 PM Toronto time. Thank you.