Us Foods Holding 2025 Q2 Earnings Strong Performance as Net Income Surges 13.1%

US Foods Holding Corp. (USFD) delivered robust second-quarter results, with net income rising 13.1% to $224 million and EPS increasing by 20.0% to $0.96. The company also raised its full-year guidance for Adjusted EBITDA and Adjusted Diluted EPS, reflecting strong operational execution and strategic initiatives.

Revenue

US Foods Holding reported total revenue of $10.08 billion in Q2 2025, reflecting a 3.8% increase compared to $9.71 billion in Q2 2024. This growth was driven by case volume expansion and food cost inflation of 2.5%. The company's diverse portfolio contributed to the revenue increase, with the Meats and seafood segment leading with $3.55 billion, followed by Dry grocery products at $1.69 billion and Refrigerated and frozen grocery products at $1.68 billion. The Dairy segment contributed $1.10 billion, while Equipment, disposables and supplies generated $971 million. Beverage products accounted for $600 million, and the Produce segment brought in $493 million, rounding out the revenue contributions.

Earnings/Net Income

The earnings performance was equally impressive, with the company's EPS rising 19.8% to $0.97 in Q2 2025 from $0.81 in Q2 2024. The net income of $224 million marked a 13.1% growth from $198 million in the same period last year. This marks a new record high for Q2 net income, the highest in 11 years, underscoring the company's strong profitability and operational efficiency.

Price Action

Following the earnings report, the stock price of US Foods Holding has experienced mixed short-term performance, with a 4.38% drop during the latest trading day and a 3.79% decline over the most recent full trading week. However, the stock edged up 1.95% month-to-date, reflecting some investor confidence despite the recent volatility.

Post-Earnings Price Action Review

A post-earnings investment strategy of buying USFD shares after a revenue increase and holding for 30 days has historically proven effective. Over the past three years, this approach yielded a 141.91% return, significantly outperforming the 51.69% benchmark return. The strategy achieved an excess return of 90.22%, demonstrating its ability to capitalize on USFD's positive earnings momentum. With a compound annual growth rate (CAGR) of 34.83% and no maximum drawdown, the strategy exhibited robust risk-adjusted returns and minimal downside risk.

CEO Commentary

Dave Flitman, CEO of US Foods Holding, expressed optimism about the company’s long-term potential and reiterated the strategic interest in a potential merger with PFG. He highlighted the opportunity to create value through economies of scale, operational efficiencies, and a combined go-to-market offering. Flitman emphasized the benefits of a broader product portfolio, enhanced competition, and a strong, customer-centric salesforce. He also pointed to potential synergies, multi-year growth opportunities, and a thriving company culture supported by associate development.

Guidance

The company has raised its full-year guidance, with Adjusted EBITDA growth projected between 9.5% and 12%, up from previous guidance of 8% to 12%. Adjusted Diluted EPS growth is now expected to range from 19.5% to 23%, compared to the earlier range of 17% to 23%. These updated forecasts reflect US Foods Holding’s confidence in its strategic initiatives and operational execution.

Additional News

On May 7, 2025, the company's board authorized a $1 billion share repurchase program, demonstrating a commitment to returning value to shareholders. During Q2, US Foods repurchased $250 million of shares, repurchasing 3.2 million shares of common stock. The company’s net leverage ratio improved to 2.6x as of the end of Q2 2025, down from 2.8x at the end of FY 2024. Additionally, the company raised its full-year guidance for Adjusted EBITDA and Adjusted Diluted EPS.