CalMaine Foods Inc (CALM) Q2 2025 Financial Results – Strong Revenue Growth, Margin Expansion, and a Robust Balance Sheet in the Egg Market
Executive Summary
CalMaine Foods delivered a standout Q2 2025 performance, with revenue of $954.7 million and net income of $219.1 million, translating to EPS of $4.49. The quarter showed dramatic margin expansion, with gross margin of 37.3% and operating margin of 29.1%, supported by favorable product mix and egg-market pricing dynamics. YoY and QoQ comparisons were exceptionally strong: revenue rose 82.5% year over year and 21.5% sequentially; net income climbed roughly 1,188% YoY and 46% QoQ. The company also generated robust operating cash flow of $122.7 million and free cash flow of $92.9 million, while maintaining a healthy balance sheet with net cash (no long-term debt) and a large cash/short-term investment position of $797.2 million. Management commentary is not available in the provided data, but the financials imply disciplined cost control, favorable pricing/mix, and effective capital allocation. Looking ahead, CalMaine appears well-positioned to fund continued capex, dividends, or modest buybacks from its strong liquidity, though the primary macro risk remains egg price volatility and input costs driven by avian health and regulatory factors.
Revenue and profitability metrics show a year of meaningful improvement alongside strong cash generation and balance sheet strength. Highlights include:
- Revenue: $954.671 million; YoY growth 82.46%; QoQ growth 21.48%.
- Gross Profit: $356.042 million; YoY growth 290.70%; QoQ growth 44.02%; Gross margin 37.29%.
- Operating Income: $278.061 million; YoY growth 1,853.50%; QoQ growth 48.73%; Operating margin 29.13%.
- Net Income: $219.064 million; YoY growth 1,187.93%; QoQ growth 46.07%; Net margin 22.95%.
- EPS: $4.49; Diluted $4.47; YoY EPS growth 1,182.86%; QoQ 45.78%.
- Cash Flow: Net cash provided by operating activities $122.699 million; free cash flow $92.884 million; CFO per share $2.52; FCF per share $1.91.
- Balance Sheet: Total assets $2.490 billion; total liabilities $438.6 million; stockholders’ equity $2.045 billion; cash and equivalents $140.3 million; short-term investments $656.9 million; cash and short-term investments $797.2 million; net cash position (net cash) of $-140.3 million (i.e., net debt negative).
- Liquidity and capital allocation: Strong liquidity with no long-term debt; dividends paid of $50.016 million; modest share repurchase activity; Capex of $29.815 million.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
954.67M
82.46%
21.48%
Gross Profit
356.04M
290.70%
44.02%
Operating Income
278.06M
1 853.50%
48.73%
Net Income
219.06M
1 187.93%
46.07%
EPS
4.49
1 182.86%
45.78%
Key Financial Ratios
currentRatio
5.46
grossProfitMargin
37.3%
operatingProfitMargin
29.1%
netProfitMargin
22.9%
returnOnAssets
8.8%
returnOnEquity
10.7%
operatingCashFlowPerShare
$2.52
freeCashFlowPerShare
$1.91
dividendPayoutRatio
22.8%
priceToBookRatio
2.33
priceEarningsRatio
5.43
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data were provided in the input. Consequently, no management quotes or thematic highlights from the QQ2 2025 call could be extracted. If available, these would be grouped by themes such as strategy, operations, and market conditions with context and implications for investors.
Transcript not provided.
— N/A
Transcript not provided.
— N/A
Forward Guidance
Management guidance for QQ2 2025 is not included in the provided data. In the absence of formal guidance, the forward outlook relies on quantitative trends and industry context. Potential drivers include: (1) Egg price dynamics and demand mix (shaped by consumer preferences for cage-free/organic eggs and private-label volumes), (2) input cost volatility (feed, energy), (3) production efficiency and scale advantages, and (4) competitive dynamics in the egg market. Based on current results, a base-case view would expect continued favorable pricing/mix and solid cash flow, supporting a prudent capital-allocation stance (ongoing dividend support, modest capital expenditures, potential selective repurchases). A bull case would require sustained pricing strength and volume growth, while a bear case would center on volatility in egg prices or supply disruptions from avian health events. Key factors for investors to monitor include egg commodity prices, broiler feed costs, hen flock management, regulatory changes affecting production, and regional demand shifts.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CALM Focus
37.29%
29.10%
10.70%
5.43%
BG
5.01%
1.43%
0.70%
54.28%
TSN
4.59%
0.77%
0.04%
790.76%
DOLE
9.44%
4.04%
5.84%
3.61%
AGRO
24.80%
10.50%
0.70%
132.05%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
CalMaine’s QQ2 2025 results demonstrate exceptional profitability and a strong balance sheet. The company generated 22.95% net margins and 4.99x price-to-sales-like leverage with a dividend yield near 1.05% and meaningful free cash flow generation. The absence of long-term debt and a substantial liquidity buffer provide resilience against near-term volatility and optionality for capital allocation. Relative to listed peers in broad agribusiness, CALM’s reported gross margin (~37%) and profitability appear favorable, but cross-sector comparability is limited given CALM’s focused egg business. Risks include disease-driven supply disruptions and input-cost pressure. Overall, the investment thesis favors a cautiously constructive stance: CALM could offer attractive downside protection through cash generation and dividends, with upside if egg-price dynamics sustain favorable pricing/mix and if capital can be allocated to sustaining volume growth and efficiency gains. Investors should monitor egg-price trends, flock health, feed costs, regional demand, and any formal future guidance from management.
Key Investment Factors
Growth Potential
CalMaine benefits from ongoing demand for branded eggs and higher-margin specialty eggs (cage-free, organic, and nutritionally enhanced varieties). The company’s margin resilience, strong brand portfolio, and capacity to capitalize on private-label opportunities support incremental earnings power. With a robust balance sheet and strong free cash flow generation, CalMaine has the runway to fund modest capacity expansion, product mix upgrades, and shareholder-friendly actions.
Profitability Risk
Key risks include egg-price volatility driven by disease outbreaks (e.g., avian influenza), feed-cost fluctuations, regulatory pressures, and competitive pricing in a relatively fragmented market. Operating leverage in a seasonally sensitive business could exacerbate earnings volatility. The lack of disclosed forward guidance adds some uncertainty to the medium-term trajectory.
Financial Position
The company presents a fortress-like liquidity position: cash and short-term investments of $797.2 million and a net cash position of $-140.3 million (net cash). No long-term debt is reported, and current liabilities are modest relative to current assets (current ratio about 5.46x). This enables flexible capital allocation, potential dividend stability, and selective investments in capex or acquisitions if strategic opportunities arise.
SWOT Analysis
Strengths
Strong net cash position with no long-term debt and ample liquidity (cash and short-term investments of $797.2M).
Very high gross margin (about 37.3%) and solid operating margin (about 29.1%), indicating pricing power and cost control.
Large, diversified brand portfolio (EggLands Best, Land O Lakes, Farmhouse Eggs, etc.) and a ready-to-play national/private-label footprint.
Substantial free cash flow generation ($92.9M) supports dividends and potential capital allocation options.
Weaknesses
Business is tied to egg-market cycles; results can be sensitive to disease outbreaks and regulatory changes affecting supply/demand.
Seasonality and agricultural risk can lead to earnings volatility absent hedges or diversified product mix beyond eggs.
Opportunities
Expansion of higher-margin products (cage-free, organic, nutritionally enhanced eggs) and private-label growth.
Potential capital redeployment toward capacity expansion, technology-driven efficiency, or selective acquisitions.
Strengthening of distribution channels and geographic reach to capture additional volume in key regions.
Threats
Avian influenza and other animal-health events can disrupt supply and price dynamics.
Feed-cost volatility and agricultural input price swings may compress margins if not fully passed through to customers.
intensely competitive egg market with pricing pressure in some segments or regions.
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