Maple Leaf Foods reports US$100 million Q2 adjusted EBITDA as poultry business lifts earnings

CANADA – Maple Leaf Foods recorded a 4.8% increase in second-quarter adjusted EBITDA to C$137 million (US$100 million), as stronger poultry demand and lower operating costs helped counter weaker performance in its prepared foods business, Reuters reported.

The Canadian protein producer’s adjusted EBITDA margin rose to 13.4%, while quarterly revenue increased 1.6% from a year earlier, although the result came in below analysts’ expectations.

The company maintained its 2026 revenue growth forecast in the mid-single-digit range and its adjusted EBITDA target of C$520 million to C$540 million (US$380 million to US$394 million).

Poultry sales drive growth

Poultry revenue increased 7.1% during the quarter, supported by higher sales volumes, a more favourable mix of distribution channels and pricing changes, although the gains were partly reduced by increased spending on trade promotions.

Prepared foods moved in the opposite direction, with sales declining 2.0% as volumes weakened and promotional costs increased, while pricing and a shift towards a more favourable product mix provided some offset.

The contrasting performances left poultry as the stronger contributor to the quarter, while the prepared foods division continued to face pressure from softer demand and higher promotional activity.

Maple Leaf Foods said its cost management programme and its Fuel for Growth initiative remain part of its efforts to improve profitability as it works towards its 2026 financial targets.

“We are seeing the benefits of the transformation we have made into a purpose-driven, protein-focused, and brand-led CPG company,” said Curtis Frank, president and CEO of Maple Leaf Foods.

Frank said the company would continue to focus on profitable growth, cost controls and measures including Fuel for Growth, which he said were aimed at improving its competitive position and future earnings.

Company maintains financial outlook

Maple Leaf Foods also said it expects to preserve an investment-grade balance sheet through 2026 as it continues to manage spending and pursue its financial targets.

The results come as the company balances stronger demand for poultry with softer conditions in prepared foods, leaving its overall revenue growth below expectations despite the improvement in quarterly earnings.

Maple Leaf Foods’ decision to retain its full-year guidance indicates it expects its stronger poultry business and ongoing operational measures to offset continued weakness in prepared foods for the remainder of 2026.

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