SunOpta Inc. reported second-quarter 2025 results for the period ended June 28, 2025. All amounts are in US dollars and reported per US GAAP, except where noted.
Revenues for Q2 2025 were US$191.5 million, up 12.9% from US$169.5 million a year earlier, driven by 14.4% volume growth partially offset by a 1.4% price reduction from pass-through pricing for certain raw material cost savings. Earnings from continuing operations were US$4.4 million compared to a loss of US$4.4 million in the prior-year quarter. Adjusted earnings from continuing operations were US$4.4 million versus US$2.2 million a year earlier, with adjusted EPS at US$0.04 compared to US$0.02. Adjusted EBITDA rose 13.9% to US$22.7 million, representing 11.9% of revenues.
© SunOpta
Gross profit increased US$7.2 million, or 34.0%, to US$28.4 million. Gross margin was 14.8% compared with 12.5% a year earlier, while adjusted gross margin fell 80 basis points to 15.2% due to timing lags in passing through tariff costs, investments in labor and infrastructure, and higher depreciation, partially offset by higher volumes and improved plant utilization. Operating income rose to US$10.5 million from US$2.0 million.
As of June 28, 2025, SunOpta had total assets of US$704.9 million and total debt of US$273.4 million, compared with US$668.5 million and US$265.2 million at year-end fiscal 2024. Cash from operating activities of continuing operations was US$17.8 million for the first half of 2025, compared to US$2.0 million in the same period last year, mainly due to improved working capital and higher operating income. Investing activities consumed US$18.6 million versus US$13.9 million a year earlier. Net leverage was 2.9x, with a target of 2.5x by year-end.
During Q2, the company repurchased 163,227 common shares at an average price of US$6.04 for a total of US$1.0 million, leaving US$24.0 million available under the Share Repurchase Program.
Tariffs impacted gross profit by US$1.6 million in Q2, reducing gross margin by 90 basis points. SunOpta expects a similar Q3 impact due to timing lags in passing through tariff adjustments. Pricing changes have been implemented with all customers to mitigate the full amount of known tariff exposure.
For fiscal 2025, revenue guidance has been raised to US$805–815 million from US$788–805 million, reflecting strong Q2 performance and expected pass-through tariff pricing. Adjusted EBITDA guidance remains at US$99–103 million. Revenue growth is now projected at 11–13%, with adjusted EBITDA growth forecast at 12–16%. The revised outlook includes an estimated US$8 million increase in revenue and US$10 million in cost of goods sold in the second half due to tariffs and related pass-through pricing.
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© SunOptaFor more information:
Claudine Galloway
SunOpta
Tel: +1 952 295 9579
Email: [email protected]
www.investor.sunopta.com
