Canada's High Liner Foods says restructuring weighs on Q1 profit; sales tops estimates

High Liner Foods

13/05/2026 22:13

Overview

Canada frozen seafood maker's Q1 sales rose 25% yr/yr, beating analyst expectations

Adjusted EPS for Q1 missed consensus, reflecting margin pressure from supply limitations and higher costs

Net income and adjusted net income declined sharply, affected by restructuring and increased expenses

Outlook

Company expects higher year-over-year Adjusted EBITDA in 2026 compared to 2025

High Liner Foods expects raw material costs to remain elevated in 2026

Company outlook excludes potential IEEPA tariff refunds; macroeconomic and geopolitical risks remain

Result Drivers

VOLUME GROWTH - Higher sales volume driven by Lenten period timing, new contract manufacturing, USDA contract, and newly acquired brands

MARGIN PRESSURE - Gross margin declined due to higher raw material costs, tariffs, elevated promotions, unfavorable product mix, and supply chain challenges, especially in whitefish

HIGHER EXPENSES - Increased distribution and SG&A expenses, including freight and storage costs tied to new brands and higher inventory, weighed on profitability

Company press release: ID:nCNWNnSkda

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$334.92 mln
$305.23 mln (5 Analysts)
Q1 Adjusted EPS
Miss
$0.39
$0.44 (5 Analysts)
Q1 EPS
$0.27
Q1 Adjusted Net Income
$11.44 mln
Q1 Net Income
$7.96 mln
Q1 Adjusted EBITDA
$29.26 mln
Q1 Gross Profit
$66.57 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for High Liner Foods Inc is C$16.25, about 19.4% above its May 12 closing price of C$13.61

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)