Post Holdings Inc (POST) Q2 2025 Earnings Report

Post Holdings delivered a challenging QQ2 2025 set of results characterized by revenue modestly down and earnings pressured by elevated Avian influenza costs and cereal category headwinds, even as the company advanced a number of margin- and capacity-focused initiatives. Consolidated net sales declined 2% year over year to $1.952 billion, while adjusted EBITDA was $347 million for the quarter. Net income was $62.6 million and GAAP diluted earnings per share (EPS) was $1.03; reported basic EPS was $1.11. Management highlighted that the quarter benefited from Avian influenza-driven pricing in Foodservice and cost-control actions in Retail/PCB, but also noted elevated costs ahead of pricing that pressured margins in the near term. Importantly, Post raised its full-year adjusted EBITDA guidance to a range of $1.43 billion to $1.47 billion, signaling management's confidence in a mid-year improvement as pricing actions materialize and cost-out programs accrue, offsetting cereal-related volume weakness and Nutrish ramp dynamics.

Strategically, the company is exploiting capacity gains from the PPI acquisition to support growth opportunities in Refrigerated Retail and other channels, while continuing to optimize PCB via plant closures and cost-out initiatives. Weetabix benefited from ERP-related improvements, and Nutrish relaunch momentum appears encouraging. Cash flow remained solid for the quarter, with free cash flow of approximately $299.7 million and operating cash flow of $160.7 million, but net debt rose modestly to about $6.329 billion, pushing net leverage to roughly 4.5x. Looking ahead, investors should monitor: (1) the trajectory of Avian influenza costs and egg pricing, (2) cereal category dynamics and consumer promo intensity, (3) Nutrish relaunch profitability and its impact on Pet, (4) PPI integration progress and synergies, and (5) the durability of PCB margin improvements given ongoing mix and volume pressures.