Seneca Foods Corporation (SENEA) Q2 2025 Earnings Report

Seneca Foods reported QQ2 2025 revenue of $425.5 million, up 4.41% year over year, with a gross profit of $42.9 million and a gross margin of 10.08%. Operating income reached $24.7 million and net income was $13.3 million, translating to an EPS of $1.92 (diluted $1.90). While top-line growth supported by channel mix and pricing was evident, net income declined materially versus the prior year (YoY net income fell about 46.3%), resulting in a YoY EPS drop of ~42.2%. QoQ, revenue surged roughly 39.6%, reflecting seasonality and product mix in the QQ2 window, while profitability metrics were more muted on a sequential basis. The quarter generated solid operating cash flow of $75.5 million and free cash flow of $69.95 million, aided by working-capital movements that contributed to a positive net change in cash of $4.09 million and a year-to-date net debt position of about $521.6 million. The balance sheet remains levered but stable, with total debt of $531.1 million and a debt-to-capitalization ratio near 0.47, alongside a current ratio of 2.64 and a relatively tight cash balance of $9.55 million at quarter-end. Management commentary was not captured in the provided transcript dataset, limiting explicit forward-looking signals from the call. Looking ahead, Seneca faces typical packaged-food sector headwinds: input-cost volatility, commodity-driven margin pressures, and demand sensitivity to pricing and promotional activity. Near-term optionality rests on cost-control initiatives, favorable mix (private-label and branded portfolio), and working-capital discipline. The absence of explicit forward guidance in the supplied materials necessitates a cautious stance, with investors focusing on margin recovery potential, cash-flow quality, and balance-sheet deleverage progress as critical watch-items. }