Post Holdings 2025 Q4 Earnings Beats Revenue Estimates, Misses EPS Despite 37.4% Net Income Drop

Post Holdings (POST) reported fiscal 2025 Q4 earnings on Nov 20th, 2025, with revenue surpassing expectations but EPS and net income declining. The company provided in-line guidance for 2026, citing strategic acquisitions and cost discipline as growth drivers.

Revenue

Post Holdings’ total revenue rose 11.8% year-over-year to $2.25 billion, driven by $249.4 million in acquisition-related sales, particularly from 8th Avenue and Potato Products of Idaho. The Post Consumer Brands segment led with $1.16 billion in revenue, while Foodservice and Refrigerated Retail segments contributed $718 million and $228.20 million, respectively. Weetabix added $145 million, and favorable foreign currency exchange rates further boosted performance. However, declines in the Post Consumer Brands segment, attributed to pet food distribution losses and cereal category declines, partially offset gains.

Earnings/Net Income

The company’s EPS fell 32.4% to $0.94, and net income dropped 37.4% to $51.10 million, reflecting higher operating costs and a $29.8 million goodwill impairment. Adjusted earnings per share, excluding non-recurring items, rose to $2.09, surpassing estimates, while adjusted EBITDA increased 22% to $425.4 million. The EPS decline underscores margin pressures despite top-line growth.

Post-Earnings Price Action Review

Following the earnings report, shares edged up 0.07% in the latest trading day but declined 1.8% in premarket trading, reflecting mixed investor sentiment. The stock gained 0.70% for the week but fell 0.10% month-to-date. Analysts remain divided, with Wall Street maintaining a “Buy” rating while Seeking Alpha analysts lean toward “Hold.” The stock’s performance highlights the tension between revenue momentum and profitability concerns.

CEO Commentary

CEO Robert V. Vitale emphasized $8.2 billion in net sales and $1.54 billion in Adjusted EBITDA for fiscal 2025, noting strategic acquisitions and cost efficiency. Challenges in the Post Consumer Brands segment, including pet food distribution losses, were acknowledged, but growth in Foodservice and Refrigerated Retail—driven by avian influenza-related pricing and egg demand—was highlighted. Vitale cautioned about the $29.8 million goodwill impairment but expressed long-term optimism.

Guidance

Post Holdings forecasts 2026 Adjusted EBITDA of $1.5–$1.54 billion, incorporating a partial-year contribution from 8th Avenue’s pasta business. Capital expenditures are expected to range between $350–$390 million, with investments in cage-free egg facilities and the Norwalk, Iowa plant. Guidance excludes GAAP reconciliation due to forecasting complexities, but management reiterated commitments to operational efficiency and disciplined capital allocation.

Additional News

Post Holdings finalized the acquisition of 8th Avenue Food & Provisions in July 2025, boosting Foodservice segment growth. The company also announced the sale of its pasta business and a $500 million share repurchase authorization, signaling strategic asset reallocation. These moves align with CEO Vitale’s focus on long-term value creation despite near-term margin challenges.

Financial Health Analysis

Post Holdings has demonstrated 15.8% revenue growth over three years but faces declining gross margins (29.2%) and a debt-to-equity ratio of 1.84. A liquidity-boosting current ratio of 2.6 contrasts with an Altman Z-Score of 1.52, indicating potential bankruptcy risk. Investors must weigh these metrics against the company’s strategic acquisitions and capital return initiatives.