TreeHouse Foods Q2 sales beat guidance on pricing actions

TreeHouse Foods

31/07/2025 12:04

Overview

TreeHouse Q2 adjusted net sales exceed guidance range, driven by tea acquisition

Adjusted EBITDA rises to $73.3 mln, reflecting supply chain savings

Company reports Q2 net loss of $2.9 mln, remains confident in 2025 guidance

Outlook

TreeHouse Foods maintains 2025 adjusted EBITDA guidance at $345 mln to $375 mln

Company updates 2025 adjusted net sales guidance to $3.360 bln-$3.415 bln

Third quarter adjusted net sales expected between $840 mln and $870 mln

Pricing actions expected to provide low-single-digit benefit in 2025, 4% benefit in Q3

Company still expects free cash flow of at least $130 million

Result Drivers

TEA ACQUISITION - Net sales increase driven by acquisition of private brand tea business

PRICING STRATEGY - Favorable pricing actions to recover commodity inflation contributed to sales

RECALL IMPACT - Service impacts from voluntary recall of frozen griddle products affected sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$798 mln
$788.40 mln (8 Analysts)
Q2 EPS
-$0.06
Q2 Net Income From Cont Ops
-$2.90 mln
Q2 Adjusted EBITDA
$73.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "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 TreeHouse Foods Inc is $22.00, about 6.5% above its July 30 closing price of $20.57

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn2Fl5tXa

(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.)