General Mills Inc (GIS.SW) Q3 2025 Earnings Report

General Mills reported a modestly softer Q3 FY2025, with revenue of $4.842B, down 5% year over year and 7.6% sequentially. Gross margin stood at 33.9%, yielding a gross profit of $1.639B, while operating income was $891.4M (operating margin 18.4%). Net income totaled $625.6M and diluted EPS was $1.12, with a reported EPS of $1.14. The company generated $531.9M of cash from operating activities and delivered free cash flow of $428M, supporting discretionary capital allocation and a path to deleveraging given the leverage profile.

Financial strength is underscored by strong brand breadth and portfolio quality, with cash flow generation robust enough to fund the dividend and some debt reduction, even as debt levels remain elevated. On a balance sheet basis, General Mills reported total debt around $14.19B with net debt of approximately $13.66B, and total stockholders’ equity of $9.26B. The cash balance at period-end was $521.3M, contributing to a cash conversion cycle that remained negative due to extended payables and working capital dynamics. The company’s payout ratio stood at ~53.2%, with a dividend yield near 0.98% and a price-to-earnings multiple around 13.6x, signaling a defensive profile with limited near-term upside but steady income.

Looking ahead, management did not specify explicit quarterly or full-year forward guidance in the provided data. Investors should monitor commodity and input cost trends, pricing realization, volume resilience in North America, and continued productivity initiatives that support margin recovery. General Mills’ diversified portfolio, ongoing cost discipline, and solid FCF generation position it to navigate a fading macro backdrop, yet leverage remains a key risk if top-line pressure persists.