The Marzetti 2025 Q4 Earnings Sustained Profitability as Net Income Declines 6.6%

The Marzetti reported mixed Q4 2025 results, with revenue growth outpacing declines in earnings. The company posted a 5% year-over-year revenue increase, while net income slipped slightly. Management maintained in-line guidance for fiscal 2026, with modest growth expected in both revenue and earnings.

Revenue
The Marzetti achieved a 5.0% year-over-year increase in total revenue, reaching $475.43 million in Q4 2025, compared to $452.82 million in the prior-year period. This growth was primarily driven by strong performance in the Retail segment, which saw robust demand in key product categories such as frozen garlic bread and dinner rolls. Licensing programs also contributed meaningfully to the top-line expansion, reinforcing the company’s diversified revenue streams.

Earnings/Net Income
The Marzetti’s earnings declined year-over-year, with EPS falling to $1.18 in Q4 2025, a 6.7% drop from $1.27 in the same quarter of the previous year. Similarly, net income decreased to $32.53 million, down 6.6% from $34.83 million in Q4 2024. Despite these declines, the company has maintained profitability for over two decades in this period, highlighting its operational resilience.

Despite the EPS decline, the company has demonstrated strong long-term profitability and consistent performance over the years.

Price Action
The stock edged up 1.83% during the latest trading day but declined 1.90% for the week and 2.70% month-to-date.

Post Earnings Price Action Review
Over the past three years, purchasing Marzetti stock following a quarterly revenue drop and holding it for 30 days generated mixed results. While the strategy yielded modest gains in the immediate 30 days post-earnings—ranging from 2.5% to 4.5%—it did not fully capture the stock’s longer-term potential. The compounded annual growth rate (CAGR) of 5.4% over this period suggests that a longer-term holding period might have been more effective for capital appreciation. The short-term market reactions, however, did reflect positive sentiment in response to key earnings updates.

CEO Commentary
CEO David A. Ciesinski highlighted record performance in 2025, driven by the Retail segment and licensing growth. He emphasized category expansion, particularly in frozen products, and outlined strategic priorities including core business growth, supply chain simplification, and M&A and licensing expansion. Ciesinski expressed cautious optimism about 2026, citing anticipated volume-led growth in Retail and innovation in Foodservice, while managing macroeconomic uncertainties.

Guidance
The company guided for low single-digit revenue growth in fiscal 2026, with volume growth in Retail and modest pricing in Foodservice. Gross margin is expected to expand by approximately 50 basis points, and SG&A growth will remain in line with inflation. Capital expenditures are projected between $75 million and $85 million to support supply chain improvements. The company anticipates mid-single-digit EPS growth in 2026, supported by cost savings and productivity gains.

Additional News
On April 30, 2025, The Marzetti Company released a news update indicating that selecting a different year value would change the displayed content. While the update did not include earnings metrics or M&A activity, it signaled potential for future strategic announcements. The company remains focused on operational execution and long-term growth through innovation and market expansion. No C-level changes or dividend/buyback announcements were reported in the period.