"Our third‑quarter results underscore the momentum building across our global platform," said Carl Colizza, President and CEO. "Strong commercial execution and continued efficiencies from our modernized network drove robust cash generation, while disciplined cost management and a more resilient operating model supported meaningful margin expansion. Combined with growing demand for high‑protein dairy and the strength of our trusted brands, we are entering the final quarter of the fiscal year with a solid foundation to continue advancing our strategy and creating long‑term value for shareholders."
(unaudited)
For the third quartersended December 31
For the nine-month periodsended December 31
2025
2024
2025
2024
Revenues
4,888
4,994
14,240
14,308
Adjusted EBITDA1
492
417
1,368
1,189
Adjusted EBITDA margin1
10.1
%
8.4
%
9.6
%
8.3
%
Net earnings
220
(518
)
570
(250
)
Earnings per share (EPS)
Basic
0.54
(1.22
)
1.38
(0.59
)
Diluted
0.53
(1.22
)
1.38
(0.59
)
Adjusted net earnings1
235
167
617
491
Adjusted EPS1
Basic
0.57
0.39
1.50
1.16
Diluted
0.57
0.39
1.49
1.16
Net cash from operating activities
401
382
1,090
735
Capital expenditures
82
82
231
271
FINANCIAL HIGHLIGHTS
A strong performance across all our sectors in the third quarter resulted in an increase in adjusted EBITDA1 of 18.0%. We generated organic sales volumes growth, while strengthening our margins and cash generation. We benefited from commercial momentum, operational improvements, and sustained cost optimization measures, while we continued the strategic consolidation of our network.
Revenues of $4.888 billion, down $106 million or 2.1%, driven by lower US dairy commodity market pricing3. However, third quarter revenues reflected higher sales volumes in all our sectors and higher selling prices in both domestic and international cheese and dairy ingredient markets.
Adjusted EBITDA1 of $492 million, up $75 million or 18.0%, with an adjusted EBITDA margin1 of 10.1%, up from 8.4%.
Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix, driven by growth in cheese and value-added product categories;
Operational improvements, primarily driven by ongoing efficiency initiatives stemming from our recent capital investments, and proactive cost management supported margin improvement;
In our export markets, the relation between the international cheese and dairy ingredient market prices and the cost of milk as raw material had a positive impact on our results;
In our domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance;
Continued cost optimization measures on selling, general, and administrative costs;
Unfavourable US dairy commodity market conditions3 compared to the same quarter last fiscal year; and
Strategic investments in advertising and promotional activity to support commercial growth.
1
This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the "Non-GAAP Measures" section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.
3
Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.
Net earnings totalled $220 million or $0.54 per share (basic) and $0.53 per share (diluted), up $738 million. The increase in net earnings was mainly due to the absence this quarter of the non-cash goodwill and intangible assets impairment charge recorded in our Dairy Division (UK) in the third quarter of last fiscal year of $684 million ($674 million after tax), higher adjusted EBITDA1, lower financial charges and depreciation and amortization. The increase in EPS also reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our normal course issuer bid (NCIB).
Adjusted net earnings1 totalled $235 million or $0.57 per share1 (basic and diluted), up $68 million or $0.18 per share. The increase in adjusted EPS1 is mainly due to higher net earnings and reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.
Net cash from operating activities for the nine months of fiscal 2026 totalled $1.090 billion, up $355 million or 48.3%. The increase is mainly due to lower working capital usage and higher adjusted EBITDA1.
The Company returned capital to shareholders in the nine months of fiscal 2026 through the purchase of approximately 12.6 million common shares for a total purchase price of $403 million and the payment of dividends totalling $243 million.
Capital expenditures for the nine months of fiscal 2026 totalled $231 million and the balance of operating cash was directed primarily toward the reduction of net debt2.
KEY EVENTS:
The Board of Directors approved a dividend of $0.20 per share, payable on March 13, 2026, to shareholders of record on March 3, 2026.
On November 19, 2025, we renewed our NCIB to purchase up to 5% of our issued and outstanding common shares, which will end no later than November 18, 2026. This NCIB reflects our continued commitment to returning capital to shareholders, while maintaining the flexibility to allocate capital for growth opportunities.
In December 2025, we permanently closed our Green Bay, Wisconsin, facility as part of the consolidation activities related to our previously announced network optimization initiatives in our USA Sector.
1
This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the "Non-GAAP Measures" section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.
2
Refer to the ‘‘Glossary'' section of the Management's Discussion and Analysis.
Additional Information
For more information, reference is made to the condensed interim consolidated financial statements, the notes thereto and to the Management's Discussion and Analysis for the third quarter of fiscal 2026. These documents can be obtained on SEDAR+ under the Company's profile at www.sedarplus.ca and in the "Investors" section of the Company's website, at www.saputo.com.
Webcast and Conference Call
A webcast and conference call will be held on Friday, February 6, 2026, at 8:30 a.m. (Eastern Time).
The webcast will begin with a short presentation followed by a question and answer period. The speakers will be Carl Colizza, President and CEO, and Maxime Therrien, CFO and Secretary.
To participate:
Webcast: A live webcast of the event can be accessed using this link.Presentation slides will be included in the webcast and can also be accessed in the "Investors" section of Saputo's website (www.saputo.com), under "Calendar of Events".
Conference line: 1-800-715-9871; Conference ID: 9438561Please dial in five minutes prior to the start time.
Replay of the conference call and webcast presentationFor those unable to join, the webcast presentation will be archived on Saputo's website (www.saputo.com) in the "Investors" section, under "Calendar of Events".
About Saputo
Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, a leading dairy processor in Australia and the top dairy processor in Argentina. In the USA, Saputo ranks among the top three cheese producers and is one of the top producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol "SAP". Follow Saputo's activities at www.saputo.com or via Facebook, Instagram, and LinkedIn.
Investor InquiriesNicholas EstrelaSenior Director, Investor Relations1-514-328-3117
Media Inquiries1-514-328-3141 / 1-866-648-5902[email protected]
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, strategies, beliefs, expectations, targets, commitments, goals, ambitions and strategic plans including our ability to achieve these targets, commitments, goals, ambitions and strategic plans, and statements other than historical facts. The words "may", "could", "should", "will", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective", "continue", "propose", "aim", "commit", "assume", "forecast", "predict", "seek", "project", "potential", "goal", "target", or "pledge", or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.
By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could significantly differ from those stated, implied, or projected in such forward-looking statements. As a result, we cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to significantly differ from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the "Risks and Uncertainties" section of the Management's Discussion and Analysis dated June 5, 2025, available on SEDAR+ under the Company's profile at www.sedarplus.ca.
Such risks and uncertainties include the following: product liability; the availability and price variations of milk and other dairy ingredients, our ability to transfer input costs increases, if any, to our customers in competitive market conditions; supply chain strain and supplier concentration; the price fluctuation of dairy products in the countries in which we operate, as well as in international markets; continuing economic and geopolitical uncertainties; changes in international trade agreements and policies, including those that may result from tariffs, quotas, trade barriers and other similar restrictions; actual or perceived changes in the condition of the economy or economic slowdowns or recessions; changes in consumer trends; our ability to identify, attract, and retain qualified individuals; the increased competitive environment in our industry; consolidation of clientele; cyber threats and other information technology-related risks relating to business disruptions, confidentiality, data integrity business and email compromise-related fraud; changes to or removal of tariff protection on dairy; unanticipated business disruption; changes in environmental laws and regulations; the potential effects of climate change; increased focus on environmental sustainability matters; public health threats; the failure to execute our growth strategy as expected or to adequately integrate acquired businesses in a timely and efficient manner; the failure to complete capital expenditures as planned; changes in interest rates and access to capital and credit markets. There may be other risks and uncertainties that we are not aware of at present, or that we consider to be insignificant, that could still have a harmful impact on our business, financial state, liquidity, results, or reputation.
Forward-looking statements are based on Management's current estimates, expectations and assumptions regarding, among other things; the projected revenues and expenses; the economic, industry, competitive, and regulatory environments in which we operate or which could affect our activities; international trade policies; our ability to identify, attract, and retain qualified and diverse individuals; our ability to attract and retain customers and consumers; the results of our sustainability efforts; the effectiveness of our environmental and sustainability initiatives; our operating costs; the pricing of our finished products on the various markets in which we carry on business; the successful execution of our growth strategy; our ability to deploy capital expenditure projects as planned; reliance on third parties; our ability to gain efficiencies and cost optimization from strategic initiatives; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; our ability to leverage our brand value; our ability to drive revenue growth in our key product categories or platforms or add products that are in faster-growing and more profitable categories; the market supply and demand levels for our products; our warehousing, logistics, and transportation costs; our effective income tax rate; the exchange rate of the Canadian dollar to the currencies of cheese and dairy ingredients. Our financial performance goals and ambitions are set using assumptions regarding, among others: the absence of significant deterioration in macroeconomic conditions; tariffs, quotas, trade barriers and other similar restrictions; our ability to mitigate inflationary cost pressure; ingredient markets, commodity prices, foreign exchange; labour market conditions; the impact of price elasticity; our ability to increase the production capacity and productivity in our facilities; the efficiency of our network and cost optimization initiatives, and the demand growth for our products. Our ability to achieve our environmental targets, pledges, commitments, and goals (together, our "environmental targets") is further subject to, among others: the development, effectiveness and costs of solutions to reduce emissions in dairy production systems; the ability of the Company and our industry to develop sustainable incentive models to reduce emissions; the availability of and our ability to access and implement the technology necessary to achieve our environmental targets at reasonable and sustainable costs; the development and performance of technology, innovation and the future use and deployment of technology and associated expected future results; the accessibility at sustainable costs of carbon and renewable energy instruments for which a market is still developing and which are subject to risk of invalidation or reversal; environmental regulation, and our ability to leverage our supplier relationships and our sustainability advocacy efforts.
Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide shareholders with information regarding Saputo, including our assessment of future financial plans, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.
Unless otherwise indicated by Saputo, forward-looking statements in this news release describe our estimates, expectations, and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.
OPERATING SECTOR REVIEW
CANADA SECTOR
(in millions of CDN dollars)
For the third quartersended December 31
For the nine-month periodsended December 31
2025
2024
2025
2024
Revenues
1,416
1,359
4,110
3,906
Adjusted EBITDA
189
175
538
490
Adjusted EBITDA margin
13.3
%
12.9
%
13.1
%
12.5
%
Depreciation and amortization
29
30
86
88
Revenues
Revenues for the third quarter of fiscal 2026 totalled $1.416 billion, up $57 million or 4.2%, as compared to $1.359 billion for the same quarter last fiscal year.
In the nine months of fiscal 2026, revenues totalled $4.110 billion, up $204 million or 5.2%, as compared to $3.906 billion for the same period last fiscal year.
In both the third quarter and nine months of fiscal 2026, revenues increased due to higher sales volumes in our retail, foodservice, and industrial market segments. We benefited from higher sales volumes in our cheese, milk, and dairy foods categories, as well as from favourable product mix. Higher butter and everyday cheese sales volumes as well as growth in value-added milk and cultured products, driven by consumer demand for high-protein offerings, contributed positively to revenues.
Revenues also increased in both the third quarter and nine months of fiscal 2026, due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk as raw material.
Adjusted EBITDA
Adjusted EBITDA for the third quarter of fiscal 2026 totalled $189 million, up $14 million or 8.0%, as compared to $175 million for the same quarter last fiscal year. Adjusted EBITDA margin was 13.3%, up from 12.9%.
In the nine months of fiscal 2026, adjusted EBITDA totalled $538 million, up $48 million or 9.8%, as compared to $490 million for the same period last fiscal year. Adjusted EBITDA margin was 13.1%, up from 12.5%.
In both the third quarter and nine months of fiscal 2026, commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix. Additionally, higher pricing, as described above, positively impacted results.
Adjusted EBITDA growth was supported by enhanced manufacturing efficiencies driven by our capital investments in automation and cost-effective production capabilities.
We incurred higher wages and compensation, which were partially offset by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs in the third quarter and nine months of fiscal 2026.
Other elements
Depreciation and amortization for the third quarter of fiscal 2026 totalled $29 million, down $1 million, as compared to $30 million for the same quarter last fiscal year. In the nine months of fiscal 2026, depreciation and amortization totalled $86 million, down $2 million, as compared to $88 million for the same period last fiscal year.
USA SECTOR
(in millions of CDN dollars)
For the third quartersended December 31
For the nine-month periodsended December 31
2025
