Utz Brands, Inc. reported its preliminary fourth‑quarter and full‑year 2025 results on January 12, 2026. Retail sales rose 3.5 % in the 13‑week period ending December 28, 2025, but net sales fell short of the same‑period growth because channel partners pulled inventory in response to SNAP payment delays and a federal government shutdown. The company said shipment trends normalized as the year closed, and its productivity and operational‑efficiency programs remain on track, with a California expansion slated for early 2026.
In comparison, Q4 2024 net sales were $341.0 million and full‑year 2024 net sales were $1,409.3 million. The 3.5 % retail sales growth in Q4 2025 represents a modest acceleration from the 2.8 % retail sales growth reported in Q4 2024, while net sales growth of 1.1 % in the same period reflects the inventory‑reduction headwind that dampened top‑line performance.
The company’s “Power Four” brands—Utz, On the Border, Zapp’s, and Boulder Canyon—contributed a 5.3 % increase in retail sales in Q4 2025, underscoring the strength of its core branded portfolio. Management noted that the mix shift toward higher‑margin branded products helped offset the impact of lower net sales, and the company is continuing to expand these brands through new product launches and geographic expansion.
Margin performance improved as Adjusted EBITDA grew 17‑21 % in Q4 2025 and 8‑9 % for the full year, driven by disciplined cost control and the productivity initiatives that have been underway since the company’s manufacturing transformation. Net leverage fell to approximately 3.4× at year‑end, a sign of steady deleveraging that supports free‑cash‑flow generation. The company’s CFO highlighted that the cash‑generation gains have allowed it to exit the year with a stronger balance sheet.
Management guided that full audited results and detailed 2026 guidance will be released on February 12, 2026. While the company’s revenue guidance for 2026 remains unchanged, it reiterated confidence in maintaining margin expansion and free‑cash‑flow inflection as capital spending peaks in 2025. The guidance signals that Utz expects to sustain its operational improvements while navigating the short‑term inventory headwinds.
Analysts at Piper Sandler and B of A Securities lowered their price targets for Utz—Piper Sandler to $13.00 from $15.00 and B of A to $14.00 from $15.00—citing weaker‑than‑expected fourth‑quarter sales driven by retailer destocking. Both firms maintained an “Overweight” or “Buy” rating, indicating that the market views the company’s underlying profitability and strategic initiatives as resilient despite the short‑term sales miss.
Howard Friedman, Utz’s CEO, said the company was pleased with the 3.5 % retail sales growth, noting that the salty‑snack category had returned to growth. He added that net sales lagged due to channel partners’ inventory reductions amid SNAP payment delays and the government shutdown, but that shipment trends had normalized as the year closed. BK Kelley, CFO, emphasized that the company’s Adjusted EBITDA margin expansion and a net leverage ratio of 3.4× at year‑end demonstrate strong cash‑generation and a path to further deleveraging.
The combination of solid retail sales growth, margin expansion, and a clear path to deleveraging positions Utz to capitalize on its Power Four brands and geographic expansion while managing the inventory‑related headwinds that temporarily dampened net sales.
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