UNFI Reports Q4 2025 Adjusted EPS of $(0.11), Exceeding Analyst Estimates

United Natural Foods (UNFI.US) reported adjusted diluted earnings per share (EPS) of $(0.11) for the fourth quarter of fiscal 2025, significantly outperforming analyst estimates of $(0.22). Net sales for the quarter reached $7.7 billion, representing a 1.6% growth on a comparable 13-week basis compared to the fourth quarter of fiscal 2024. The company's net loss for the period was $(87) million.

Key Financial Performance and Drivers

For the fourth quarter of fiscal 2025, UNFI's net sales were $7.7 billion, an increase of 1.6% on a comparable 13-week basis, after adjusting for the additional week in the prior year. Adjusted EBITDA for the quarter was $116 million, down 18.9% from $143 million in the fourth quarter of fiscal 2024. The gross profit rate remained stable at 13.5% of net sales, excluding cyber incident costs and LIFO benefits.

The company also reported a substantial improvement in free cash flow, reaching $86 million in Q4 2025, up 21.1% from $71 million in the comparable prior-year quarter. This contributed to a total free cash flow of $239 million for fiscal year 2025, a significant increase from $(92) million in fiscal 2024. Net debt decreased to $1.83 billion, bringing the net debt to Adjusted EBITDA leverage ratio down to 3.3x from 4.0x at the end of the prior fiscal year.

Management Outlook

UNFI provided its outlook for fiscal year 2026, anticipating net sales between $31.6 billion and $32.0 billion. Adjusted EPS is projected to be in the range of $1.50 to $2.30, with Adjusted EBITDA expected to be between $630 million and $700 million. The midpoint of the fiscal 2026 Adjusted EBITDA range reflects an increase of approximately 20% from fiscal 2025.

Management expects capital and cloud implementation expenditures to be around $250 million, and free cash flow is forecasted at approximately $300 million. CEO Sandy Douglas highlighted the company's focus on accelerating momentum by leveraging its unique ability to provide innovative products and supply chain solutions to drive profitable growth for customers and suppliers.