Conagra Brands reported a FY26 net sales decline to $11.28 billion and a fourth-quarter net sales of $2.88 billion, with a GAAP net loss of $1.62 billion in Q4 driven largely by non-cash goodwill and brand impairment charges. Adjusted results show Q4 adjusted net income of $228 million (adjusted diluted EPS $0.47) and FY26 adjusted net income of $823 million (adjusted EPS $1.72). The company announced a reduced annualized dividend of $0.70 per share and provided fiscal 2027 guidance including adjusted EPS of $1.40–$1.50 and adjusted operating margin of 10.0%–10.5%.

Financial Highlights

  • Revenue: Total net sales of $2,882.1 million for the fourth quarter and $11,281.6 million for fiscal 2026.
  • Gross profit: Q4 gross profit $704.1 million (gross margin 24.4%); FY26 gross profit $2,698.4 million (gross margin 23.9%).
  • Operating income (loss): Q4 operating loss $(1,658.3) million primarily reflecting $1,611.1 million goodwill impairment and $350.2 million other intangible impairments; FY26 operating loss $(1,628.4) million with total FY26 goodwill and brand impairment charges of $2,929.6 million.
  • Net income (loss): Q4 net loss attributable to Conagra Brands $(1,616.9) million (diluted loss per share $ (3.37)); FY26 net loss $(1,916.2) million (diluted loss per share $ (4.00)).
  • Adjusted results: Q4 adjusted net income attributable $228 million (adjusted diluted EPS $0.47); FY26 adjusted net income attributable $823.3 million (adjusted diluted EPS $1.72). Adjusted EBITDA was $484.4 million in Q4 and $1,840.4 million for FY26.

Business Highlights

  • Organic sales: Q4 organic net sales were essentially flat year-over-year; FY26 organic net sales declined 0.4% versus prior year.
  • Segment performance: Grocery & Snacks organic net sales up 0.5% in Q4 with adjusted operating profit of $216.3 million; Refrigerated & Frozen reported flat-to-down organic volumes with adjusted operating profit of $138.9 million in Q4 after impairment charges; International and Foodservice reported weaker organic volumes in Q4 with adjusted operating profits of $32.9 million and $29.3 million, respectively.
  • Volume and price/mix: Q4 organic performance driven by a 1.6% price/mix gain and a 1.6% volume decline; company gained volume share in frozen single-serve and multi-serve meals, frozen vegetables, meat snacks, seeds, and pudding.
  • Productivity and cost pressures: Productivity and approximately $6 million in tariff refunds partially offset higher cost of goods sold inflation and unfavorable operating leverage; adjusted gross margin declined year-over-year.
  • Capital allocation and balance sheet: FY26 capital expenditures of $423 million; free cash flow $978.7 million; net debt $7.05 billion at May 31, 2026, representing a net leverage ratio of 3.83x; Board approved new annualized dividend rate of $0.70 per share, quarterly dividend $0.175 to be paid Sept. 2, 2026.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.