General Mills Inc (0R1X.L) Q4 2025 Earnings Report

General Mills Inc reported Q4 2025 results reflecting a modest topline decline alongside a compression in profitability, set against a backdrop of persistent input-cost pressures and a challenging mix. Revenue for the quarter was $4.556 billion, down 3.35% year over year and 5.91% quarter over quarter, with gross margin of 32.03% and an operating margin of 12.40%. Net income totaled $283.5 million and diluted earnings per share were $0.53. Operating cash flow of $611.6 million supported free cash flow of $391.4 million, underscoring the company’s ability to convert earnings into cash despite margin headwinds. Management continued to return capital to shareholders, with dividends paid of $330.3 million and share repurchases of $301.0 million contributing to a net cash outflow from financing of $570.4 million in the period. The company finished the quarter with cash and cash equivalents of $364 million and total debt of approximately $15.3 billion, leaving net debt around $14.9 billion. The balance sheet remains sizable and asset-light in core operations, though goodwill and intangibles together exceed $22.7 billion, indicating substantial non-cash asset intensity. From a business mix perspective, General Mills’ scale and brand portfolio continue to underpin durable cash generation, including strong staples franchises (e.g., cereals, baking mix brands, and pet products such as Blue Buffalo). However, the quarterly results signal ongoing margin pressure from input costs and channel/mix dynamics. In the near term, the investment thesis hinges on price realization, ongoing cost discipline, and selective international and pet-food growth to stabilize profitability, while balancing leverage and capital allocation flexibility.