01—Abstract
Summary
Summary of the 8-K filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. (NYSE: USFD) reported results for its fiscal second quarter ended June 28, 2025, in a press release furnished as Exhibit 99.1 to this Item 2.02 Form 8-K.
Net sales rose 3.8% to $10.1 billiona, with total case volume up 0.9% and independent restaurant case volume up 2.7%. Net income increased 13.1% to $224 million and diluted EPS rose 20.0% to $0.96. Adjusted EBITDA grew 12.1% to $548 million, with the Adjusted EBITDA margin reaching a record 5.4%, and Adjusted Diluted EPS increased 28.0% to $1.19.
The company raised its fiscal 2025 Adjusted EBITDA growth guidance to 9.5% to 12% from 8% to 12%, and its Adjusted Diluted EPS growth guidance to 19.5% to 23% from 17% to 23%. Net sales growth guidance of 4% to 6% was unchanged. During the quarter, US Foods repurchased 3.2 million shares for approximately $250 millionb under a new $1 billion authorization approved May 7, 2025.
Net Debt was $4.8 billionc at quarter end, and the net leverage ratio improved to 2.6x from 2.8x at fiscal year-end 2024. The filing states that the information in Item 2.02 and Exhibit 99.1 is not deemed filed for purposes of Section 18 of the Exchange Act. Non-GAAP measures such as Adjusted EBITDA and Adjusted Diluted EPS are used in the release, and the company states it cannot reconcile forward-looking non-GAAP guidance to GAAP because of uncertain significant items.
02—Key points
Key Highlights
- Net sales increased 3.8% to $10.1 billion, driven by 0.9% total case volume growth and food cost inflation of 2.5%.
- Independent restaurant case volume grew 2.7%, healthcare volume rose 4.9% and hospitality volume rose 2.4%, while chain volume fell 4.0%.
- Net income rose 13.1% to $224 million; diluted EPS rose 20.0% to $0.96.
- Adjusted EBITDA increased 12.1% to a record $548 million, with Adjusted EBITDA margin up 40 basis points to a record 5.4%.
- Adjusted Diluted EPS increased 28.0% to $1.19.
- Fiscal 2025 Adjusted EBITDA growth guidance was raised to 9.5% to 12%; Adjusted Diluted EPS growth guidance was raised to 19.5% to 23%; net sales growth guidance of 4% to 6% was unchanged.
- Repurchased $250 million of shares in the quarter; Net Debt of $4.8 billion and net leverage of 2.6x versus 2.8x at fiscal year-end 2024.
03—Questions
Frequently Asked Questions
How did US Foods perform in its fiscal second quarter of 2025?
Net sales grew 3.8% to $10.1 billion, gross profit rose 4.2% to $1.8 billion, and net income increased 13.1% to $224 million. Diluted EPS was $0.96, up 20.0%, and Adjusted Diluted EPS was $1.19, up 28.0%.
What changed in the company's fiscal 2025 guidance?
Adjusted EBITDA growth guidance was raised to 9.5% to 12% from 8% to 12%, and Adjusted Diluted EPS growth guidance was raised to 19.5% to 23% from 17% to 23%. Net sales growth guidance of 4% to 6% remained unchanged.
How much did US Foods return to shareholders and how is its leverage?
During the quarter the company repurchased 3.2 million shares for approximately $250 million under a $1 billion program authorized May 7, 2025. Net Debt was $4.8 billion and the Net Debt to Adjusted EBITDA ratio was 2.6x, compared with 2.8x at the end of fiscal 2024.
Are the Adjusted EBITDA and Adjusted Diluted EPS figures GAAP measures?
No. They are non-GAAP measures that exclude items such as restructuring charges, share-based compensation, LIFO reserve adjustments and business transformation costs. The release includes reconciliations to the GAAP measures, and the company notes its definitions may differ from those used by other companies.
04—Continue