B&G Foods (DHR) Q3 2026 Earnings Report

The call was predominantly positive. Management reported strong third-quarter volume-led sales growth, adjusted EBITDA and margin expansion, improved performance across several segments, continued momentum in alternative channels, and increased fiscal 2026 guidance. Offsetting concerns included a wider GAAP net loss from impairment and non-recurring charges, higher interest expense, elevated leverage, lower Specialty segment EBITDA, ongoing input-cost pressure, and the need to improve Green Giant Canada profitability and core retail consumption. Overall, the number and significance of the operating improvements and raised guidance outweighed the stated challenges.

For fiscal 2026, B&G Foods expects net sales in the range of $1.76 billion-$1.8 billion, adjusted EBITDA in the range of $280 million-$290 million, adjusted EBITDA as a percentage of net sales in the range of approximately 15.9%-16.1%, and reaffirmed adjusted diluted earnings per share in a range of $0.575-$0.675; it also expects full-year interest expense of $160 million-$165 million, including cash interest expense of $152.5 million-$157.5 million, depreciation expense of $40 million-$45 million, amortization expense of $17 million-$19 million, cash taxes of approximately $5 million or less, an effective tax rate of 26%-27%, and CapEx of approximately $25 million or less. The company has an annual incremental productivity target of approximately three percent of cost of goods sold, aims to reduce its consolidated leverage ratio to below 6x by middle of 2027 and to less than five and a half times over time, and described its organic-growth strategy as zero or flat, two percent up with some type of M&A activity; 2027 guidance will be provided after fourth quarter results.