Premium Brands (PRBZF) Q2 2026 Earnings Report

The call conveyed a broadly positive operational and financial inflection: strong top-line growth (+26.3%), robust organic volume expansion (10.7% specialty, 25% U.S. protein), an 83.2% surge in meat sticks, materially higher adjusted EBITDA (+29.5%), and the first positive net free cash flow ($68M) after years of negative cash flow. These gains are tempered by near-term headwinds — guidance revisions, timing delays for launches and promotions, a $53.1M shutdown loss and ongoing costs tied to new capacity — but management presented a clear path to leverage new capacity, improve margins, and reduce leverage, supporting an overall constructive outlook.

Management guided 2026 revenue of $9.1–$9.3 billion and adjusted EBITDA of $840–$870 million, reaffirmed its five‑year targets of $10 billion in sales and $1 billion of EBITDA by end‑2027, and said it expects strong back‑half growth; supporting metrics from the quarter include record Q2 sales of $2.4 billion (+26.3%), Q2 adjusted EBITDA of $225 million, Q2 net free cash flow of $68 million (first positive after four years), organic volume growth of 10.7% for Specialty U.S. (25% in U.S. protein) and meat sticks growth of 83.2%; balance‑sheet and CapEx metrics: debt/EBITDA down to 3.8:1 (from 4.3:1), short‑term targets reached (senior debt ≤3:1 and total debt ≤4:1) with a goal of total debt/EBITDA ≤3:1 by early–mid‑2027, Q2 CapEx $59 million (project CapEx $18.3M of the $1.1B plan + $21.6M other project + $19.1M maintenance), $41.6 million remaining to complete the $1.1B plan, and plans to close 4 older facilities and commission 2 new plants in the next 12 months while startup/restructuring costs continue to decline.