Swiss Water Decaffeinated Coffee Inc (7RD) Q3 2026 Earnings Report

The call was strongly positive overall. Volume growth, gross profit expansion, record trailing adjusted EBITDA, improved net income, operating cash generation, debt repayment, high utilization, extended order visibility, and planned capacity expansion significantly outweighed the lower nine-month revenue caused by lower coffee prices, higher operating expenses, quarterly risk management losses, lower quarter-end cash, and continued market volatility.

Swiss Water plans to invest approximately $6.2 million within its existing building to expand capacity by approximately 15%, expects to fund it primarily from internally generated cash flow, and expects to have capacity online in mid-2027; the expansion will increase capacity by roughly 15% for about 5% of what Delta originally cost, with one line expected to have about a 2-week shutdown within a normal maintenance window. Customers are booking into the first half of 2027, inventory volumes are expected to remain at or close to current levels in the near term, and the company is not forecasting kind of an additional pipeline fill or expecting a lot of additional coverage; as it looks into 2027, it is pricing as if and for a continued inversion.