United Natural Foods' 2026 outlook depends on execution offsetting uneven revenue trends, as profitability and cash flow improve while reported sales remain pressured. Natural segment sales, which represented 50.4% of fiscal 2025 revenues, rose 4.4% year over year to $4.34 billion in the fiscal third quarter, while the Conventional segment declined 13.6% to $3.14 billion and Retail sales fell 10.1% to $515 million due to store closures. Adjusted earnings rose 75% to 77 cents per share and adjusted EBITDA increased 16.6% to $183 million, supported by a 20-basis-point gross margin improvement to 13.6% and a nearly 40-basis-point reduction in the expense ratio to 12.4% of net sales. Management maintained fiscal 2026 outlook midpoints, including adjusted EBITDA of $685-$705 million and adjusted earnings of $2.40-$2.60 per share, while free cash flow reached $243 million year to date, helping reduce net leverage to 2.5X.
United Natural Foods IncAdjusted earnings rose 75%, EBITDA up 16.6%, gross margin improved, and free cash flow reached $243M, with management maintaining fiscal 2026 outlook midpoints.
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