General Mills reported a solid QQ2 2025 performance characterized by revenue growth, robust gross and operating margins, and strong free cash flow generation. Revenue reached $5.240B, up 2.76% year over year and 8.09% quarter over quarter, while gross profit of $1.931B yielded a gross margin of 36.85%. Operating income totaled about $1.078B with an operating margin near 20.57%, and net income was $795.7M (EPS $1.43). These results reflect a favorable product mix, continued pricing discipline, and ongoing efficiency initiatives that support profitability even as input costs fluctuate.
The company generated healthy free cash flow of approximately $0.990B for the period, supported by $1.151B of operating cash flow and modest capital expenditure of $160.9M. Cash balance at quarter end stood at $2.293B, with total debt of $14.522B and net debt of $12.228B, yielding a net-debt-to-EBITDA profile that remains manageable given the quarterly earnings power. Shareholder-friendly capital allocation continued through a $338.0M dividend, a $300.4M share repurchase, and $1.516B in debt repayments, contributing to positive financing cash flow of $0.852B.
From a qualitative standpoint, management communications (where available in the dataset) have historically emphasized brand investments, portfolio optimization, and disciplined cost management to protect margins amid input-cost volatility and currency movements. While there is no earnings call transcript provided in the data, the quantitative trajectory suggests General Mills remains well-positioned to defend market share in core U.S. cereals and pet foods, while gradually improving margin dynamics through ongoing efficiency programs and favorable mix. Given the current valuation metrics (P/E around 11.5x, P/S about 6.96x, dividend yield roughly 0.9%), the stock presents a defensive income-and-cash-flow orientation with potential upside if input costs stabilize and pricing actions stick.