Utz Brands Posts Strong Profit Growth, Unveils Buyback Amid Cautious Outlook

HANOVER, Pa. – February 12, 2026 – Utz Brands, Inc. (NYSE: UTZ) reported a year of strategic progress and solid underlying profitability for fiscal 2025, demonstrating resilience in a competitive snack food landscape. While modest top-line growth and a GAAP net loss painted a complex picture, the company's core brands surged ahead of the market, driving significant gains in adjusted profits and margins. Signaling confidence in its financial footing, Utz also announced its first-ever share repurchase program, even as it issued a cautious earnings forecast for the year ahead.

For the full fiscal year ending December 28, 2025, the snack manufacturer saw net sales climb 2.1% to $1.44 billion. Organic net sales, which strip out the effects of acquisitions and divestitures, grew by a slightly stronger 2.4%.

Core Brands Outpace a Flat Category

The real strength in Utz's performance lies within its portfolio of branded salty snacks. This segment, which accounts for the vast majority of the business, saw organic net sales jump 4.7% for the full year. This growth stands in sharp contrast to the broader U.S. salty snack category, which was reportedly down 0.5% in retail sales dollars during the same period, highlighting Utz's ability to capture consumer attention and market share.

The charge was led by the company's designated “Power Four Brands”—Utz®, On The Border®, Zapp’s®, and Boulder Canyon®—which collectively saw retail sales increase by 5.3% in the fourth quarter. This performance helped the company's overall branded retail sales rise 3.5% in the final quarter, easily beating the 1.1% growth of the salty snack category.

“2025 was a year of solid progress in a dynamic operating environment,” said Howard Friedman, Chief Executive Officer of Utz, in the company's press release. “Branded Salty Organic Net Sales increased nearly 5%, driven by the Power Four Brands and Expansion Geographies.”

The Tale of Two Ledgers: Adjusted Profits Shine

A closer look at the company's financial statements reveals a significant divergence between standard accounting results and the adjusted figures management emphasizes. On a GAAP basis, Utz reported a full-year net loss of $7.7 million, a sharp decline from the $30.7 million net income reported in 2024. Similarly, GAAP EBITDA fell 33% to $122.7 million.

However, the adjusted metrics tell a different story. Adjusted Net Income rose 6.2% to $117.1 million for the year, while Adjusted EBITDA grew 8.1% to $216.5 million. The fourth quarter was particularly strong, with Adjusted EBITDA surging 17.5%.

The gap between these figures is largely attributable to costs related to the company’s ongoing transformation. These include expenses for integrating acquisitions, consolidating its supply chain, and other one-time strategic initiatives. By excluding these items, the adjusted numbers aim to provide a clearer view of the underlying operational health and profitability of the business. A key driver of this adjusted performance was a significant expansion in adjusted gross profit margin, which jumped 560 basis points in the fourth quarter, fueled by what Friedman called “strong productivity.”

A Strategy of Expansion and Efficiency

Utz's growth strategy is twofold: expanding its geographic reach and running its operations more efficiently. The company saw notable success in its “Expansion Geographies,” where retail sales grew by an impressive 7.3%. These markets now represent 45% of total retail sales, and with a market share roughly half that of its core territories, they represent a substantial runway for future growth. Utz is backing this push with a 35% increase in marketing spend in 2025, a trend it plans to continue in 2026.

Simultaneously, the company has been focused on streamlining its supply chain. These efforts delivered 7% in productivity savings in 2025, helping to buffer the impact of inflation and fund growth investments. With many of these major capital projects now complete, capital expenditures are expected to decrease from $102.8 million in 2025 to a range of $60 to $65 million in 2026.

Balancing Growth with Shareholder Returns

Strengthened by its operational performance, Utz is shifting its capital allocation strategy to include more direct shareholder returns. The board approved the company's first-ever share repurchase program, authorizing the buyback of up to $50 million of its Class A common stock. This move, coupled with ongoing dividend payments, reflects management's confidence in its cash flow generation.

This confidence is also supported by a healthier balance sheet. The company reduced its net leverage ratio to 3.4x at year-end, down from previous levels, and is targeting a further reduction to between 3.0x and 3.2x by the end of fiscal 2026. “Our initiatives to improve free cash flow and balance sheet leverage are starting to deliver,” noted CFO BK Kelley in the release.

A Prudent Outlook for 2026

Looking ahead, Utz projects continued momentum but also flags several headwinds. The company forecasts organic net sales growth of 2% to 3% for fiscal 2026, an outlook based on the assumption of a flat overall salty snacks category. Adjusted EBITDA is expected to grow by a healthy 5% to 8%.

However, the company anticipates a 3% to 6% decline in Adjusted Earnings Per Share (EPS). Management attributes this projected dip not to operational weakness, but to financial pressures from higher depreciation and amortization costs stemming from its recent investments, as well as increased interest expense and a higher tax rate. Together, these three items are expected to create a headwind of approximately 12 cents per share.

This guidance suggests a year of disciplined execution, where the benefits of productivity and brand growth will be partially offset by the lingering financial costs of its multi-year transformation. The company's ability to navigate this balance will be a key focus for investors in the coming year.