01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
The Kraft Heinz Company reported a sharply weaker 2025 for its fiscal year ended December 27, 2025.
Net sales declined 3.5% to $24.9 billiona from $25.8 billion, with Organic Net Sales down 3.4%, driven mainly by unfavorable volume/mix (4.1 pp) that more than offset higher pricing (0.7 pp). The company posted an operating loss of $4.7 billion versus operating income of $1.7 billion in 2024, and a net loss of $5.8 billion, or $(4.93) per diluted share, compared with net income of $2.7 billion, or $2.26 per diluted share, a year earlier. The results were driven primarily by impairment losses of $9.3 billion, including $6.7 billion of goodwill impairments and $2.6 billion of intangible asset impairments.
Adjusted Operating Income fell 11.5% to $4.7 billionb, and Adjusted EPS declined 15.0% to $2.60. The Board has paused work on the previously announced separation of the company into two independent public companies, which had been announced on September 2, 2025. The filing states that if work resumes, completion would be subject to customary conditions, including favorable tax opinions.
Cash flow was steadier: operating cash flow was $4.5 billionc, capital expenditures were $801 million, and dividends paid were $1.9 billion. Cash and cash equivalents rose to $2.6 billion, and total long-term debt, including the current portion, was $21.2 billion. The company declared a quarterly dividend of $0.40 per share in the first quarter of 2026.
Investors should note the concentration and risk profile disclosed in the filing. Walmart Inc. accounted for approximately 21%d of net sales, and Berkshire Hathaway owns approximately 27.5% of the common stock, with a prospectus supplement registering up to 325,442,152 shares for resale.
The filing also discloses goodwill and intangible assets of $59.7 billion, with significant headroom risk for several reporting units and brands, and a pending IRS examination with proposed adjustments. Credit ratings are BBB (S&P), BBB with negative watch (Fitch), and Baa2 under review for downgrade (Moody's) as of the filing date.
02—Key points
Key Highlights
- Net sales fell 3.5% to $24.9 billion in 2025, with Organic Net Sales down 3.4%, as unfavorable volume/mix of 4.1 pp more than offset higher pricing of 0.7 pp.
- Operating loss of $4.7 billion versus operating income of $1.7 billion in 2024, driven by $9.3 billion of impairment losses, including $6.7 billion of goodwill and $2.6 billion of intangible asset impairments.
- Net loss of $5.8 billion, or $(4.93) per diluted share, compared with net income of $2.7 billion, or $2.26 per diluted share, in 2024.
- Adjusted Operating Income decreased 11.5% to $4.7 billion and Adjusted EPS decreased 15.0% to $2.60 for 2025.
- Board paused work on the previously announced separation into two independent public companies on February 11, 2026.
- Operating cash flow was $4.5 billion, and cash and cash equivalents increased to $2.6 billion at year-end.
- Berkshire Hathaway owns approximately 27.5% of common stock, and a prospectus supplement was filed on January 20, 2026 to register up to 325,442,152 shares for resale.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, Kraft Heinz lost $0.23.
- Revenue$24.94B100.0%
- Cost of revenue−$16.63B66.7%
- Gross profit$8.31B33.3%
- Operating costs−$12.98B52.0%
- Operating income−$4.67B18.7%
- Interest, other & tax−$1.18B4.7%
- Net income−$5.85B23.4%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $24.94B$25.85B | −3.5% |
| Cost of Revenue | $16.63B$16.88B | −1.5% |
| Gross Profit | $8.31B$8.97B | −7.3% |
| R&D Expenses | $167.00M$150.00M | +11.3% |
| SG&A Expenses | $12.98B$7.29B | +78.1% |
| Operating Income | -$4.67B$1.68B | −377.4% |
| Interest Expense | $947.00M$912.00M | +3.8% |
| Net Income | -$5.85B$2.74B | −313.0% |
| EPS (Basic) | $-4.93$2.27 | −317.2% |
| EPS (Diluted) | $-4.93$2.26 | −318.1% |
| Shares Outstanding (Basic) | 1.19B1.21B | −1.9% |
| Shares Outstanding (Diluted) | 1.19B1.22B | −2.3% |
05—Questions
Frequently Asked Questions
Why did Kraft Heinz report a net loss in 2025?
The net loss of $5.8 billion was driven mainly by non-cash impairment losses of $9.3 billion, including $6.7 billion of goodwill impairments and $2.6 billion of intangible asset impairments recorded in 2025. Lower Adjusted Operating Income, a higher effective tax rate tied to non-deductible goodwill impairments, and higher interest expense also contributed.
What is the status of the planned company separation?
On February 11, 2026, the Board decided to pause work related to the Separation, which was originally announced on September 2, 2025. If work resumes, the Separation would be subject to customary conditions, including final Board approval, favorable tax opinions on its tax-free nature, and effective SEC filings. The filing states that the timing and completion of the Separation are uncertain.
How is the company's debt and liquidity position?
Long-term debt, including the current portion, was $21.2 billion at December 27, 2025, compared with $19.9 billion a year earlier. The $4.0 billion Senior Credit Facility was undrawn, and the company stated it was in compliance with all financial covenants. Cash and cash equivalents were $2.6 billion, and the company also held $1.1 billion of marketable securities.
What are the main risks to the company's valuation?
Goodwill and intangible assets totaled $59.7 billion at year-end, and the company recorded $9.3 billion of impairments in 2025. Reporting units and brands with 20% or less excess fair value over carrying amount, with an aggregate carrying amount of $37.2 billion as of the 2025 annual test, face a heightened risk of future impairments. The company also faces customer concentration, with Walmart Inc. at approximately 21% of net sales.
Is the dividend being maintained?
Yes. The company paid dividends of $1.9 billion in 2025, and in the first quarter of 2026 the Board declared a cash dividend of $0.40 per share, payable March 27, 2026 to stockholders of record on March 6, 2026. The filing notes that future dividends remain at the Board's discretion.
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