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Seneca Foods Reports Sales and Earnings for the Quarter and Six Months Ended September 27, 2025

1. Seneca Foods' net sales increased 3.8% year-over-year to $757.5 million. 2. The gross margin improved to 13.7%, up from 11.7% last year. 3. Net earnings for six months were $44.6 million, up from $26.0 million. 4. Higher sales volumes and better product mix drove sales increase. 5. The company forecasts a favorable harvest and normalized cost levels.

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Why Bullish?

Seneca's strong sales growth and improved earnings indicate solid financial health, reminiscent of historical trends in consumer demand amidst improved price conditions, which positively affected share prices in previous fiscal periods.

How important is it?

The article outlines significant financial improvements which could impact stock performance and investor sentiment positively.

Why Short Term?

Recent financial results may lead to immediate investor confidence, likely impacting stock price in the next quarter.

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SENEBSENEA
November 05, 2025 16:14 ET  | Source: Seneca Foods Corp. FAIRPORT, N.Y., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the second quarter and six months ended September 27, 2025. Executive Summary (vs. year-ago, year-to-date results): Net sales for the six months ended September 27, 2025 totaled $757.5 million compared to $730.2 million for the six months ended September 28, 2024. The year-over-year increase of $27.3 million was driven by higher sales volumes and the impact of selling prices and product mix.Gross margin as a percentage of net sales is 13.7% for the six months ended September 27, 2025, as compared to 11.7% for the six months ended September 28, 2024. “We are very pleased with our unit volumes and net sales for the quarter, up 10.2% and 8.1%, respectively. We are also enjoying a near budget harvest for most crops this year, a welcome change from last year’s poor crop, and delivering more normalized costs and inventory levels in order to support customer demand,” stated Paul Palmby, President and Chief Executive Officer of Seneca Foods Corporation. “Net earnings were better than we had budgeted but FIFO gross margin was slightly lower than last year, reflecting continued sell-through of the higher cost 2024 inventory.” Executive Summary (vs. year-ago, second quarter results): Net sales for the second quarter of fiscal 2026 totaled $460.0 million compared to $425.5 million for the second quarter of fiscal 2025. The year-over-year increase of $34.5 million was driven by higher sales volumes and the impact of selling prices and product mix.Gross margin as a percentage of net sales is 13.4% for the three months ended September 27, 2025, as compared to 10.1% for the three months ended September 28, 2024. About Seneca Foods Corporation Seneca Foods is one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from more than 1,100 American farms and are distributed to approximately 55 countries. Seneca holds a large share of the market for retail private label, food service, restaurant chains, international, contracting packaging, industrial, chips and cherry products.  Products are also sold under the highly regarded brands of Libby’s®, Green Giant®, Aunt Nellie’s®, Green Valley®, CherryMan®, READ®, and Seneca labels, including Seneca snack chips.  Seneca’s common stock is traded on the Nasdaq Global Select Market under the symbols “SENEA” and “SENEB”. SENEA is included in the S&P SmallCap 600, Russell 2000 and Russell 3000 indices. Non-GAAP Financial Measures Adjusted net earnings excludes the non-cash charges related to the last-in, first-out (LIFO) inventory valuation method, net of applicable income taxes. The Company believes this non-GAAP financial measure provides for a better comparison of year over year operating performance. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP. Set forth below is a reconciliation of reported earnings before income taxes to adjusted net earnings (in thousands).  Three Months Ended Six Months Ended September 27, September 28, September 27, September 28,  2025 2024 2025 2024Earnings before income taxes, as reported$38,694  $17,068  $58,405  $33,569 LIFO (credit) charge (7,674)  14,977   (19,472)  12,059 Adjusted earnings before income taxes 31,020   32,045   38,933   45,628 Income taxes 7,052   7,434   8,952   10,559 Adjusted net earnings$23,968  $24,611  $29,981  $35,069            Set forth below is a reconciliation of reported net earnings to EBITDA and FIFO EBITDA (earnings before interest, income taxes, depreciation, amortization and non-cash charges related to the LIFO inventory valuation method). The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP (in thousands).  Three Months Ended Six Months Ended September 27, September 28, September 27, September 28, 2025 2024 2025 2024Net earnings$29,739  $13,303  $44,624  $25,964 Income taxes 8,955   3,765   13,781   7,605 Interest expense, net 4,684   9,013   10,094   19,358 Depreciation and amortization 12,423   12,516   24,445   24,962 Interest amortization (148)  (116)  (302)  (231)EBITDA 55,653   38,481   92,642   77,658 LIFO (credit) charge (7,674)  14,977   (19,472)  12,059 FIFO EBITDA$47,979  $53,458  $73,170  $89,717          Forward-Looking Information This release contains “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments, and results and do not relate strictly to historical facts. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain the words "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "seeks," "should," "likely," "targets," "may," "can” and variations thereof and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed. We believe important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following: the effects of rising costs and availability of raw fruit and vegetables, steel, ingredients, packaging, other raw materials, distribution and labor;crude oil prices and their impact on distribution, packaging and energy costs;the impact of tariffs and other governmental trade restrictions;an overall labor shortage, ability to retain a sufficient seasonal workforce, lack of skilled labor, labor inflation or increased turnover impacting our ability to recruit and retain employees;climate and weather affecting growing conditions and crop yields;our ability to successfully implement sales price increases and cost saving measures to offset cost increases;the loss of significant customers or a substantial reduction in orders from these customers;effectiveness of our marketing and trade promotion programs;competition, changes in consumer preferences, demand for our products and local economic and market conditions;the impact of a pandemic on our business, suppliers, customers, consumers and employees;unanticipated expenses, including, without limitation, litigation or legal settlement expenses;product liability claims;the anticipated needs for, and the availability of, cash;the availability of financing;leverage and the ability to service and reduce debt;foreign currency exchange and interest rate fluctuations;the risks associated with the expansion of our business;the ability to successfully integrate acquisitions into our operations;our ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption;other factors that affect the food industry generally, including: recalls if products become adulterated or misbranded, liability if product consumption causes injury, ingredient disclosure and labeling laws and regulations and the possibility that consumers could lose confidence in the safety and quality of certain food products;competitors’ pricing practices and promotional spending levels;fluctuations in the level of our customers’ inventories and credit and other business risks related to our customers operating in a challenging economic and competitive environment; andthe risks associated with third-party suppliers, including the risk that any failure by one or more of our third-party suppliers to comply with food safety or other laws and regulations may disrupt our supply of raw materials or certain finished goods products or injure our reputation; and changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including health, environmental, and safety regulations. Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events. Contact: Michael Wolcott, Chief Financial Officer585-495-4100  Seneca Foods CorporationUnaudited Selected Financial DataFor the Periods Ended September 27, 2025 and September 28, 2024(In thousands of dollars, except share data)                 Three Months Ended Six Months Ended September 27, September 28, September 27, September 28, 2025 2024 2025 2024        Net sales$460,022  $425,465  $757,480  $730,192         Operating income (note 1) 41,472   24,679   64,687   50,122 Other non-operating income (1,906)  (1,402)  (3,812)  (2,805)Interest expense, net 4,684   9,013   10,094   19,358 Earnings before income taxes$38,694  $17,068  $58,405  $33,569         Income taxes 8,955   3,765   13,781   7,605         Net earnings$29,739  $13,303  $44,624  $25,964         Basic earnings per common share (note 2)$4.33  $1.92  $6.49  $3.74 Diluted earnings per common share$4.29  $1.90  $6.43  $3.70  Note 1: The effect of the LIFO inventory valuation method on the second quarter pre-tax results increased operating income by $7.7 million and decreased operating income by $15.0 million for the three months ended September 27, 2025 and September 28, 2024, respectively. The effect of the LIFO inventory valuation method on YTD six month pre-tax results increased operating income by $19.5 million and decreased operating income by $12.1 million for the six months ended September 27, 2025 and September 28, 2024, respectively. Note 2: The Company used the “two-class” method for basic earnings per share by dividing the earning attributable to common shareholders by the weighted average of common shares outstanding during the period. 

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