Utz Brands 2025 Q2 Earnings Misses Targets as Net Income Declines 60.2%

Utz Brands reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company has missed analyst expectations due to a significant drop in net income and EPS compared to the previous year. Despite an increase in revenue, the decline in profitability has raised concerns among investors. In terms of guidance, Utz has raised its 2025 Organic Net Sales outlook, reflecting stronger revenue trends and confidence in growth drivers. The company remains focused on strategic investments to enhance long-term shareholder value.

Revenue
The total revenue of Utz Brands increased by 2.9% to $366.70 million in 2025 Q2, up from $356.20 million in 2024 Q2.

Earnings/Net Income
Utz Brands's EPS declined 50.0% to $0.12 in 2025 Q2 from $0.24 in 2024 Q2. Meanwhile, the company's net income declined to $10.10 million in 2025 Q2, down 60.2% from $25.40 million reported in 2024 Q2. The decline in EPS indicates a challenging financial performance this quarter.

Post-Earnings Price Action Review
The strategy of buying UTZ shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in a 17.04% return over the past three years. However, this performance significantly underperformed the benchmark, which delivered an 85.57% return. The strategy exhibited a maximum drawdown of 0.00%, a Sharpe ratio of 0.09, and a volatility of 37.39%. This suggests that while the strategy yielded positive returns, it did not match the broader market's performance. Investors may need to reassess this approach considering its historical underperformance and the ongoing volatility associated with Utz's financial results.

CEO Commentary
"I am pleased with our strong performance in the second quarter, with Organic Net Sales growth of nearly 3%. Our Branded Salty Snacks portfolio is accelerating, with 5.4% growth in the quarter. We gained value and volume shares in both our Core and Expansion Geographies. Our proactive approach to cost management and operational excellence has enabled us to achieve significant Adjusted Gross Profit Margin expansion," said Howard Friedman, Chief Executive Officer of Utz. He expressed confidence in sustaining growth and profitability, highlighting the company's ability to capitalize on seasonal demand and strategic investments for long-term shareholder value.

Guidance
"We are raising our 2025 Organic Net Sales outlook to reflect stronger revenue trends through the first half and our confidence in the growth drivers ahead. We now expect Organic Net Sales growth of 2.5% or better, driven by our advantaged portfolio of brands and expansion geographies. We are tightening our Adjusted EBITDA range to 7% to 10% growth, reflecting our confidence in the significant productivity programs ramping in the second half. We believe these strategic investments will position us for sustained Adjusted EBITDA margin expansion and continued geographic expansion in 2026 and beyond," stated Bill Kelley, EVP and Chief Financial Officer.

Additional News
Utz Brands is undergoing a strategic transformation to consolidate its manufacturing footprint by closing its Grand Rapids plant by January 30, 2026. This move aims to shift production to more efficient facilities, enhance automation, and streamline operations. The closure is part of Utz's effort to optimize its supply chain and reduce costs. Additionally, Utz is committed to supporting affected employees through transition assistance and relocation opportunities. This consolidation is expected to generate cost savings during the second half of 2025 and support Utz's ongoing geographic expansion and efficiency goals.