General Mills reported a solid QQ2 2025 performance with meaningful year-over-year growth in revenue and earnings, supported by favorable pricing, product mix, and ongoing operating discipline. Revenue reached $5.240 billion, up approximately 11% year over year, while gross margin stood at 36.85% and operating margin at 20.57%, underscoring leverage in the cost base and price realization. Net income of $795.7 million and diluted EPS of $1.42–$1.43 reflected strong profitability alongside disciplined cost management and share repurchases. Cash generation remained robust, with operating cash flow of $1.151 billion and free cash flow of about $0.990 billion, enabling continued capital allocation to dividends and buybacks.
The balance sheet shows a cash position of $2.2928 billion and total debt of $14.5216 billion, yielding a net debt of $12.2288 billion. Liquidity metrics are modest by some consumer staples standards (current ratio roughly 0.92, quick ratio ~0.68, cash ratio ~0.29), indicating a near-term liquidity profile that relies on ongoing operating cash flow and disciplined working capital management. The company demonstrated strong profitability and cash profitability relative to revenue, but carries a meaningful debt load that must be managed as the business cycles.
Management commentary (as implied by results and typical guidance) emphasizes pricing power, efficiency programs, and a focus on returning capital to shareholders. While no explicit forward guidance is included in the provided data, the quarterly results underscore General Mills’ ability to sustain margins and generate cash flow, supporting a constructive long-term investment thesis contingent on commodity dynamics, currency effects, and continued execution on cost and mix optimization.