Revenue from continuing operations increased 16.8% to $205.4 million, driven by strong volume growth
Earnings from continuing operations of $0.8 million compared to a loss of $6.2 million in the prior year
Adjusted EBITDA from continuing operations increased 13.4% to $23.6 million
Adjusted EPS of $0.05 compared to $0.02 in the prior year
Updating 2025 revenue growth and adjusted EBITDA growth outlook
MINNEAPOLIS--(BUSINESS WIRE)--November 05, 2025--
SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq: STKL) (TSX:SOY), a company that delivers customized supply chain solutions and innovation for top brands, retailers and foodservice providers across a broad portfolio of beverages, broths and better-for-you snacks today announced financial results for the third quarter ended September 27, 2025.
All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
Third Quarter 2025 highlights:
-- Revenues of $205.4 million increased 16.8% compared to $175.9 million in
the prior year period, driven by strong volume growth across beverages,
broths, and fruit snacks
-- Earnings from continuing operations of $0.8 million compared to a loss of
$6.2 million in the prior year period
-- Adjusted earnings(1) from continuing operations of $6.0 million compared
to $1.8 million in the prior year period
-- Adjusted earnings per share(1) from continuing operations of $0.05
compared to $0.02 in the prior year period
-- Adjusted EBITDA(1) from continuing operations increased 13.4% to $23.6
million compared to $20.8 million in the prior year period
"We delivered outstanding revenue growth in the third quarter and affirmed the strength of our competitive position, the diversity of our revenue streams and the robust demand across our portfolio," said Brian Kocher, Chief Executive Officer of SunOpta. "During the quarter, the combination of category tailwinds and several pipeline opportunities, that were originally anticipated for 2026, accelerated our revenue growth resulting in a 17% volume increase. While the speed and magnitude of the volume growth stressed our supply chain, I'm proud of the team for exceeding our production targets to support this growth and confident in our ability to return to planned gross margin expansion activities by mid-2026."
Kocher continued, "Our new business pipeline and category demand are exceeding expectations. Customers are demanding additional capacity at a rate and speed we had not anticipated. Accordingly, we are announcing a new aseptic manufacturing line at our Midlothian, Texas facility that is already over 50% subscribed and will come online in late 2026. Along with the previously announced fruit snack line in Omak, Washington, we are positioned to meet expected market demand through the end of 2028."
Third Quarter 2025 Results
Revenues increased 16.8% to $205.4 million for the third quarter of 2025 and reflected strong volume growth in beverage, broth, and fruit snack product categories. For the third quarter of 2025, unfavorable pricing impact of lower pass-through pricing for certain raw material cost savings was largely offset by incremental pass-through pricing adjustments for tariff costs.
Gross profit increased $2.6 million, or 11.4%, to $25.5 million for the quarter ended September 27, 2025, compared with $22.9 million for the quarter ended September 28, 2024. Gross margin was 12.4% for the quarter ended September 27, 2025, compared with 13.0% for the quarter ended September 28, 2024, a decrease of 60 basis points. Adjusted gross margin(1) was 13.6% for the quarter ended September 27, 2025, compared with 16.6% for the quarter ended September 28, 2024. The decrease partially reflected investments in labor and infrastructure to improve long-term margins, increased maintenance expense, and higher waste and labor costs as a result of certain manufacturing pressures from tremendous volume growth, together with temporary volume limitations and increased downtime resulting from the excess wastewater issue at our Midlothian, Texas, facility. All of these factors were partially offset by higher sales and production volumes for beverages, broths and fruit snacks driving improved plant utilization.
Operating income increased $6.1 million to $6.9 million for the quarter ended September 27, 2025, compared with $0.8 million for the quarter ended September 28, 2024. The increase in operating income mainly reflected lower employee variable compensation costs based on performance, lower professional fees related to operational productivity initiatives, and the $2.6 million increase in gross profit. These factors were partially offset by non-cash asset impairment charges of $2.6 million in the third quarter of 2025, related to the decommissioning of the tote filling equipment and the early retirement of certain non-production assets.
Earnings from continuing operations were $0.8 million for the third quarter of 2025 compared with a loss of $6.2 million in the prior year period. Diluted earnings per share from continuing operations attributable to common shareholders was $0.01 for the third quarter compared with diluted loss per share of $0.05 in the prior year period.
Adjusted earnings(1) from continuing operations were $6.0 million or $0.05 per diluted share in the third quarter of 2025 compared to adjusted earnings from continuing operations of $1.8 million or $0.02 per diluted share in the third quarter of 2024.
Adjusted EBITDA(1) from continuing operations was $23.6 million in the third quarter of 2025 compared to $20.8 million in the third quarter of 2024, driven by strong volume growth.
Please refer to the discussion and table below under "Non-GAAP Measures".
Balance Sheet and Cash Flow
As of September 27, 2025, SunOpta had total assets of $694.1 million and total debt of $265.8 million compared to total assets of $668.5 million and total debt of $265.2 million at year end fiscal 2024. During the first three quarters of fiscal 2025, cash provided by operating activities of continuing operations was $34.1 million compared to $19.2 million during the first three quarters of fiscal 2024. The increase mainly reflected increased net earnings driven by increased gross profit and reductions in selling, general and administrative expenditures, partially offset by increases in working capital. Investing activities of continuing operations consumed $22.9 million of cash during the first three quarters of fiscal 2025 compared to $16.5 million in the first three quarters of fiscal 2024, reflecting non-recurring proceeds from the sale of the smoothie bowl product line included in the prior year period. Net leverage(1) was 2.8x, compared to 3.0x at the end of fiscal 2024 and we expect to maintain this ratio of net leverage through the end of the fiscal year.
Tariffs
Tariffs continue to be an evolving situation that we continue to monitor. While our employees, production facilities, and customers are predominately located in the U.S. (in 2024, 98% of revenue was to U.S. based customers), we source a portion of our raw material ingredients and packaging globally, and a portion of our fruit snack products are imported into the U.S. from our Niagara, Ontario, facility that are not exempt under USMCA. In response to these new tariffs, we have been implementing alternative sourcing strategies and pricing arrangements that have allowed us to mitigate our known tariff exposure at this time, although the long-term tariff environment remains uncertain.
Financial Outlook(2)
The Company is updating its outlook for 2025 and providing an initial outlook for 2026. The Company now expects:
Updated
Prior 2025 2025 2026
($ millions) Outlook Outlook Outlook
----------- ---------- ----------
Revenue $805 -- 815 $812 - 816 $865 - 880
Adj. EBITDA $99 - 103 $90 - 92 $102 - 108
Conference Call
SunOpta plans to host a conference call at 5:30 P.M. Eastern time on Wednesday, November 5, 2025, to discuss the third quarter financial results. After prepared remarks, there will be a question and answer period. Investors interested in listening to the live webcast can access a link on SunOpta's website at www.sunopta.com under the "Investor Relations" section or directly. A replay of the webcast will be archived and can be accessed for approximately 90 days on the Company's website.
This call may be accessed with the toll free dial-in number (800) 715-9871 or international dial-in number (646) 307-1963 using Conference ID: 8323651.
The quarterly earnings presentation, including the long-term grow algorithm and capital allocation priorities, can be accessed through the live webcast referenced above, and on SunOpta's website at www.sunopta.com under the "Investor Relations" section or directly.
(1) See discussion of non-GAAP measures
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