SunOpta 2025 Q2 Earnings Strong Performance as Net Income Surges 181.6%

SunOpta (STKL) reported better-than-expected results in Q2 2025, with a significant turnaround in profitability and revenue growth. The company reaffirmed its 2025 Adjusted EBITDA guidance and highlighted strong operational and volume performance across its beverage and fruit snack segments.

Revenue
SunOpta achieved a 12.9% year-over-year increase in total revenue, reaching $191.49 million in 2025 Q2 compared to $169.54 million in 2024 Q2. This growth was driven by volume expansion across the company’s beverage, broth, and fruit snack portfolios. Specifically, the Beverages and broths segment led with $149.15 million in revenue, reflecting robust consumer demand and successful product innovations. The Fruit snacks segment also contributed significantly, reporting $38.18 million in revenue, driven by growing interest in better-for-you snacking options. Meanwhile, the Ingredients segment brought in $4.16 million, supporting the company’s diversified product offerings. Overall, the revenue gains reflect SunOpta’s strategic focus on market expansion and operational efficiency.

Earnings/Net Income
SunOpta returned to profitability with net income of $4.35 million in 2025 Q2, representing a 181.6% positive swing from a net loss of $-5.33 million in 2024 Q2. Earnings per share (EPS) also improved, reaching $0.04 in the latest quarter compared to a loss of $0.04 per share in the prior year period. This marked a 200.0% positive change in EPS, underscoring the company’s successful turnaround. The significant improvement in earnings highlights SunOpta’s effective cost management and margin enhancement initiatives.

Price Action
Following the earnings report, SunOpta’s stock price experienced downward pressure. During the latest trading day, the stock dropped 5.12%, while it tumbled 14.92% during the most recent full trading week. Over the month-to-date period, the stock plummeted 16.69%, indicating investor concerns in the short term.

Post-Earnings Price Action Review
The investment strategy of buying SunOpta (STKL) shares after its revenue-positive quarter-on-quarter report and holding for 30 days resulted in poor performance, with a negative return of -18.33%. This significantly underperformed the benchmark, which achieved a 48.58% return over the same period. The strategy’s excess return was -66.91%, and it delivered a CAGR of -6.75% over a three-year period. Additionally, the approach was marked by a maximum drawdown of 0.00% and a Sharpe ratio of -0.12, reflecting a high-risk profile with considerable volatility (55.54% volatility rate). These metrics suggest that the strategy was ineffective and highly volatile, offering limited downside protection and poor risk-adjusted returns.

CEO Commentary
Brian Kocher, Chief Executive Officer of SunOpta, highlighted the company’s strong second-quarter performance driven by robust volume growth across beverages, broths, and fruit snacks. He emphasized that the company achieved double-digit revenue and Adjusted EBITDA growth, along with notable margin improvements through capacity unlocking and yield optimization. Kocher noted that the “new business pipeline has never been stronger,” expressing confidence in meeting 2026 growth requirements using existing assets. He also announced the launch of a new fruit snack line in Omak, Washington, expected to support demand through 2027 and beyond, reflecting the company’s forward-looking and optimistic outlook.

Guidance
SunOpta reaffirmed its 2025 Adjusted EBITDA outlook and expressed confidence in continued growth through 2026. The company plans to leverage existing assets in key categories like better-for-you fruit snacks to drive long-term value. However, no specific Adjusted EBITDA range or revenue target was provided in the guidance section. The company expects the new Omak manufacturing line to come online in late 2026 to meet demand beyond 2027, further supporting its long-term growth strategy.

Additional News
SunOpta announced that its second-quarter fiscal 2025 results included a 13% increase in revenue from continuing operations to $191.5 million, driven by volume growth. Earnings from continuing operations surged 198% to $4.4 million, and Adjusted EBITDA from continuing operations increased 13.9% to $22.7 million. The company also reaffirmed its 2025 Adjusted EBITDA outlook. During the second quarter, the company repurchased 163,227 common shares at an average price per share of $6.04, with $24.0 million remaining available under the Share Repurchase Program. The company also announced its plans to host a conference call on August 6, 2025, to discuss the results and provided details for investors to access the webcast and replay.