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Kraft Heinz 8-K Report, Financial Results (Oct 29, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 29, 2025
Period End
October 29, 2025
Security
KHC
In the record · 2016–202610-K1110-Q348-K161

KHC filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 161 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Feb ’19Feb ’19
  2. Material agreement8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.

The Kraft Heinz Company reported third-quarter 2025 results for the period ended September 27, 2025, with net sales of $6,237 milliona, down 2.3% from $6,383 million a year earlier, and Organic Net Sales down 2.5%.

Volume/mix declined 3.5 percentage points, partly offset by 1.0 percentage point of price increases, with declines in coffee, cold cuts, frozen snacks, certain condiments, and Indonesia. Operating income was $1,025 millionb versus a loss of $(101) million in the prior-year quarter, which included $1.4 billion of impairment losses. Adjusted Operating Income fell 16.9% to $1,106 million, driven by commodity and manufacturing inflation outpacing efficiency initiatives, unfavorable volume/mix, and higher advertising.

Diluted EPS was $0.52c, while Adjusted EPS was $0.61, down 18.7%. For the nine months, net cash provided by operating activities was $3,086 million, up 10.4%, and Free Cash Flow was $2,490 million, up 23.3%, with Free Cash Flow Conversion of 109%. The company paid $1.4 billion in dividends and repurchased $435 million of stock year to date.

Kraft Heinz also updated its full-year 2025 outlook: Organic Net Sales are now expected to decline 3.0% to 3.5%, Constant Currency Adjusted Operating Income to decline 10% to 12%, and Adjusted EPS to fall in a range of $2.50 to $2.57d, down from $2.51 to $2.67. Free Cash Flow Conversion guidance was raised to at least 100% from at least 95%. The company also reaffirmed its plan, announced September 2, 2025, to separate into two independent public companies through a tax-free spin-off, expected to close in the second half of 2026.

The two companies are Global Taste Elevation Co. and North American Grocery Co., whose names will be determined later. Management expects Net Leverage to stay near 3.0x during the separation and will consider using excess cash to pay down debt before completion.

02—Key points

Key Highlights

  1. Net sales of $6,237 million fell 2.3%, with Organic Net Sales down 2.5% and volume/mix down 3.5 percentage points, partly offset by 1.0 percentage point of price.
  2. Adjusted Operating Income fell 16.9% to $1,106 million, driven by commodity and manufacturing cost inflation, unfavorable volume/mix, and higher advertising.
  3. Diluted EPS was $0.52 versus a loss of $(0.24) a year earlier, which included impairment losses; Adjusted EPS was $0.61, down 18.7%.
  4. Year-to-date net cash from operating activities was $3,086 million, up 10.4%, and Free Cash Flow was $2,490 million, up 23.3%, with Free Cash Flow Conversion of 109%.
  5. Full-year 2025 Adjusted EPS guidance was narrowed to $2.50 to $2.57 from $2.51 to $2.67, and Organic Net Sales guidance was lowered to a decline of 3.0% to 3.5%.
  6. Free Cash Flow Conversion guidance was raised to at least 100% from at least 95%, reflecting working capital efficiencies and lower variable compensation outflows.
  7. The planned separation into Global Taste Elevation Co. and North American Grocery Co. remains on track for the second half of 2026, with Net Leverage targeted near 3.0x.

03—Questions

Frequently Asked Questions

  1. Why did Adjusted Operating Income decline in the third quarter?

    The company attributed the 16.9% decline to commodity and manufacturing inflation that outpaced efficiency initiatives, unfavorable volume/mix, and increased selling, general and administrative expenses, primarily from higher advertising. Higher pricing and a favorable foreign currency impact of 0.1 percentage point partly offset these pressures.

  2. What changed in the full-year 2025 outlook?

    Organic Net Sales are now expected to decline 3.0% to 3.5%, versus the prior expectation of a decline of 1.5% to 3.5%. Constant Currency Adjusted Operating Income is now expected to decline 10% to 12%, versus 5% to 10% previously. Adjusted EPS is expected at $2.50 to $2.57, versus $2.51 to $2.67 previously.

  3. What is the planned separation?

    On September 2, 2025, the Board approved a plan to split the company into two independent, publicly traded companies through a tax-free spin-off. The companies would be Global Taste Elevation Co., anchored by Heinz, Philadelphia, and Kraft Mac & Cheese, and North American Grocery Co., anchored by Oscar Mayer, Kraft Singles, and Lunchables. The transaction is expected to close in the second half of 2026, subject to customary conditions including final Board approval and a tax opinion.

  4. How is the company returning capital and managing debt?

    Year to date, the company paid $1.4 billion in cash dividends and repurchased $435 million of common stock. About $1.5 billion of repurchase authorization remained as of September 27, 2025. The company said it will actively consider using excess cash to pay down debt before the separation is completed.

04—Continue

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