MZTI Fiscal Q4 2026 Earnings Call: Margin Growth and FY2027 Outlook
Source Tradingkey
Key Takeaways
- The Marzetti Company reported fiscal Q4 2026 net sales of $465 million, down 2.2%. Excluding prior-year temporary supply agreement sales, adjusted net sales increased 0.4%.
- Gross profit rose 7.4% to $114 million. Reported gross margin expanded 220 basis points, marking the 12th consecutive quarter of year-over-year gross margin improvement.
- Reported operating income increased 48.2%, partly reflecting an $18.5 million gain from the sale of the closed Milpitas, California facility. Adjusted operating income grew 17.5%.
- Reported diluted EPS increased 49.2% to $1.76, while adjusted diluted EPS rose $0.12 to $1.46.
- Management expects fiscal 2027 revenue to grow at a mid-single-digit rate and consolidated gross margin to expand by approximately 100 basis points, supported by Bachan’s and productivity initiatives.
- Fiscal Q1 2027 faces a roughly 250-basis-point sales headwind from the Cyclospora outbreak. Management expects approximately flat net sales, no gross margin expansion and a roughly 15% decline in operating income for the quarter.
Key Financial Data
| Metric | Fiscal Q4 2026 | Year-over-year change | Key context |
|---|---|---|---|
| Reported net sales | $465 million | -2.2% | TSA discontinuation reduced growth by 260 basis points |
| Adjusted net sales | — | +0.4% | Excludes prior-year TSA sales |
| Gross profit | $114 million | +7.4% | Productivity savings and Bachan’s contribution |
| Reported gross margin | — | +220 bps | 12th consecutive quarter of improvement |
| Adjusted gross margin | — | +160 bps | Supported by network, procurement and manufacturing savings |
| Reported operating income | — | +48.2% | Included the Milpitas facility sale gain |
| Adjusted operating income | — | +17.5% | Driven by gross margin performance |
| Reported diluted EPS | $1.76 | +49.2% | Up $0.58 year over year |
| Adjusted diluted EPS | $1.46 | +$0.12 | Excludes acquisition and restructuring-related items |
| Full-year operating cash flow | $283.8 million | +8.5% | A company record |
| Full-year capital spending | $77.7 million | — | Property additions |
| Long-term debt | Slightly below $200 million | — | Primarily related to the Bachan’s acquisition |
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