Executive Summary
QQ2 2025 marked another period of resilient cash generation for Campbell Soup Company, underpinned by a diversified brand portfolio and disciplined capital allocation. Revenue reached USD 2.685B, up 13.34% year-over-year but down 3.14% quarter-over-quarter, reflecting continued price realization and favorable mix alongside ongoing macro headwinds. Gross profit stood at USD 819M with a margin of 30.50%, while operating income was USD 327M and net income USD 173M, translating to a net margin of 6.44% and an EPS of USD 0.58. EBITDA was USD 437M with an EBITDA margin of 16.28%.
Cash flow remained robust: cash provided by operating activities amounted to USD 512M and free cash flow was USD 411M after USD 101M in capital expenditures. End-of-period liquidity consisted of USD 829M in cash and cash equivalents against USD 7.675B in total debt, with net debt of USD 6.845B. The company paid USD 111M in dividends and repurchased USD 2M of stock, while debt repayments totaled USD 247M during the quarter. The current ratio stood at 0.93 and the balance sheet shows meaningful goodwill and intangible assets (totaling USD ~9.5B). Management continues to emphasize pricing discipline, brand portfolio execution, and cost efficiency as levers to protect profitability in a higher-cost environment, while prioritizing deleveraging and shareholder return. No formal forward-looking guidance was provided in the supplied materials; investors should monitor input costs, currency effects given the global listing, and ongoing efficiency programs.
Key Performance Indicators
QoQ: -10.90% | YoY:18.05%
QoQ: -20.64% | YoY:30.08%
QoQ: -20.55% | YoY:28.89%
Key Insights
Revenue: USD 2.685B; YoY growth 13.34%, QoQ decline -3.14%
Gross Profit: USD 819M; Gross margin 30.50%; YoY margin change +16.34%, QoQ change -5.54%
Operating Income: USD 327M; Operating margin 12.18%; YoY margin change +18.05%, QoQ change -10.90%
Net Income: USD 173M; Net margin 6.44%; YoY margin change +30.08%, QoQ change -20.64%
EPS: USD 0.58; YoY growth +28.89%, QoQ decline -20.55%
EBITDA: USD 437M; EBITDA margin 16.28%
Cash Flow: Net cash provided by operating activities USD 512M; Fre...
Financial Highlights
Revenue: USD 2.685B; YoY growth 13.34%, QoQ decline -3.14%
Gross Profit: USD 819M; Gross margin 30.50%; YoY margin change +16.34%, QoQ change -5.54%
Operating Income: USD 327M; Operating margin 12.18%; YoY margin change +18.05%, QoQ change -10.90%
Net Income: USD 173M; Net margin 6.44%; YoY margin change +30.08%, QoQ change -20.64%
EPS: USD 0.58; YoY growth +28.89%, QoQ decline -20.55%
EBITDA: USD 437M; EBITDA margin 16.28%
Cash Flow: Net cash provided by operating activities USD 512M; Free cash flow USD 411M; capex USD (101)M
Balance Sheet: Cash and equivalents USD 829M; Total assets USD 15.91B; Total debt USD 7.675B; Net debt USD 6.845B; Current liabilities USD 3.413B; Current assets USD 3.181B; Inventory USD 1.289B; Goodwill USD 4.989B; Intangibles USD 4.535B; Equity USD 3.910B
Liquidity & Solvency: Current ratio 0.932; Quick ratio 0.555; Cash ratio 0.243; Debt to capitalization 0.662; Debt to equity 1.963; Interest coverage 3.72x
Efficiency: Receivables turnover 3.78x; Inventory turnover 1.45x; Payables turnover 1.38x; Cash conversion cycle ~20.6 days
Per-Share & Payouts: Operating cash flow per share USD 1.718; Free cash flow per share USD 1.379; Dividend payout ratio 64.2%; P/E ~ 17.22x; Price-to-sales 4.44x; Dividend yield ~0.93%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.69B |
13.34% |
-3.14% |
| Gross Profit |
819.00M |
16.34% |
-5.54% |
| Operating Income |
327.00M |
18.05% |
-10.90% |
| Net Income |
173.00M |
30.08% |
-20.64% |
| EPS |
0.58 |
28.89% |
-20.55% |
Key Financial Ratios
operatingProfitMargin
12.2%
operatingCashFlowPerShare
$1.72
freeCashFlowPerShare
$1.38
dividendPayoutRatio
64.2%
Management Commentary
No earnings call transcript data was provided in the input. As a result, specific management quotes and thematic highlights from the QQ2 2025 earnings call could not be extracted from the supplied material. If you share the transcript or key excerpts, I can incorporate direct quotes and management themes (strategy, operations, market conditions) with proper context.
Forward Guidance
No explicit forward guidance was disclosed in the provided materials. Nevertheless, the QQ2 2025 results underscore several drivers that will shape the near-term outlook: (1) margin recovery will hinge on continued price realization, favorable mix, and ongoing cost savings; (2) input cost volatility and currency movements remain key risk factors given Campbell’s diversified footprint; (3) deleveraging progress via operating cash flow and disciplined capital allocation will support balance-sheet strength. Investors should monitor: commodity/pack cost trends, pricing/mix discipline, working capital dynamics, and the pace of debt reduction. In the absence of formal numeric guidance, sensitivity analysis around inflation, volume trends, and FX will be informative for expectations over the next several quarters.