REGINA, SK, March 16, 2026 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGTF) ("AGT" or the "Company") announces its financial results for the fourth quarter and year ended December 31, 2025.
Overview
The Company recently completed an Initial Public Offering ("IPO") of $449.5 million, and a private placement of shares for $200 million to Fairfax Financial Holdings Ltd. (the "Private Placement") on March 9, 2026. These transactions result in the Company having nominal debt and an Adjusted Net Debt to Adjusted EBITDA ratio of 0.22 with amended credit facilities having approximately $300 million of unused debt capacity.
Revenue, Adjusted EBITDA and Free Cash Flow for both fiscal 2025 and Q4 2025 discussed below are within the guidance provided in the IPO prospectus document.
"We are pleased with AGT's 2025 results which show the consistency of our business throughout a year that was challenging in the context of tariffs and macroeconomic circumstances. I also want to thank those investors who supported our vision for the future during the recent IPO process. We are excited to be a public company and to begin delivering on our business plan. Our clean balance sheet, continued strong growth in Packaged Foods and Ingredients and consistency in our Value Added Processing segment gives us a strong springboard for future free cash flow growth and the creation of shareholder value", said Murad Al-Katib, President and CEO.
Year-end 2025 & Q4 2025 Highlights
Revenues for the year ended December 31, 2025 were $3.0 billion compared to $3.2 billion in 2024 primarily as a result of lower sales in the Distribution segment following the sale of the Company's bulk handling assets ("Mobil") in January 2025, and lower commodity prices and food security sales in Q4 2025 compared to 2024 in the Value Added Processing segment.
Gross profit including net monetary gain of $297.2 million in 2025 decreased from $324.7 million in 2024. Adjusted Gross Profit was $286.7 million in 2025 compared to $296.6 million in 2024. The stronger gross profit in Packaged Foods and Ingredients was led by strong pasta results and was partially offset by reduced South Africa popcorn, beans and seeds sales due to the prolonged rainy season in 2025. Value Added Processing had a reduced gross profit including net monetary gain in 2025 due to the lower positive non-cash impact of the net monetary gain of $18.6 million (Q4, $13.6 million) resulting from hyperinflation accounting. Heightened black sea competition, sales product mix and tariff uncertainty in the first half of the year also impacted margins.
Net loss was $36.3 million in 2025, or a loss of $1.71 per diluted share compared to a net loss of $4.1 million in 2024, or a loss of $0.21 per diluted share. This reduction in net earnings for the year included the recognition in 2025 of additional share-based compensation of $25.5 million (Q4, $20.3 million) in connection with AGT's IPO as well as non-recurring charges of $15.0 million related to litigation.
Adjusted EBITDA in 2025 of $190.2 million was consistent with $190.1 million in 2024. Growth in Packaged Foods and Ingredients margins due to strong pasta and other packaged foods sales was offset by reduced Adjusted EBITDA generated in the Value Added Processing segment due to tariffs, global economic uncertainties and supply chain disruptions earlier in the year with a strong rebound in Q4 despite lower food security sales which shifted into early 2026.
Free Cash Flow was $58.7 million in 2025 compared to $81.0 million in 2024. The key reasons were the sale of the rail assets in January 2025 which produced $7.6 million of Free Cash Flow in 2024 and non-recurring charges of $15.0 million related to the above referenced litigation. Following the IPO, Free Cash Flow will improve significantly with annual interest costs expected to be reduced by approximately $55 million annually. The Company will also be able to shelter in the near term a significant portion of its projected increased income by utilizing tax losses.
This press release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted Gross Profit, Free Cash Flow and Adjusted Net Debt to Adjusted EBITDA Ratio that do not have any standardized meaning as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. For further details, see the sections titled "Non-GAAP Financial Measures" in this release and in the Company's MD&A for the three months and years ended December 31, 2025 and 2024.
Fourth Quarter and Annual Financial Summary
1 The positive Free Cash ...
