Performance Food Group Reports Fourth-Quarter and Full-Year Fiscal 2026 Results
Performance Food Group Company (PFG), a leading foodservice and distribution company, has reported solid financial results for the fourth quarter and full fiscal year 2026, highlighted by higher sales, increased case volumes, stronger profitability and record Adjusted EBITDA. The company said its performance reflected continued market share gains across its business units and positioned the organization to enter fiscal 2027 with meaningful momentum.
PFG’s fourth-quarter results demonstrated continued growth across its operations despite higher costs and ongoing inflationary pressures. During the quarter, total case volume increased 3.5% compared with the prior-year period, while organic case volume rose 1.8%. Organic independent cases increased 5.8%, supported in part by growth in Performance Brands products. Total independent case volume increased 8.0%, underscoring the company’s continued progress in expanding its independent customer base.
Net sales for the fourth quarter reached $18.0 billion, representing an increase of 6.4% from the prior-year period. The company attributed the improvement primarily to higher selling prices per case resulting from inflation, increased organic case volumes, a favorable shift in the mix of cases sold and contributions from recent acquisitions. Overall product cost inflation was approximately 4.7% during the quarter.
Gross profit also strengthened during the quarter, rising 8.3% to $2.2 billion. PFG said the increase was driven by growth and a favorable mix of cases sold, particularly within its independent customer channel. The independent channel generates higher gross profit because of the additional services provided to customers. Recent acquisitions, vendor rebates and promotional incentives also contributed to the improvement in gross profit.
At the same time, operating expenses increased 6.4% to $1.8 billion. Higher expenses reflected the costs associated with recent acquisitions, increased fuel expenses resulting from higher fuel prices and additional miles driven, as well as higher personnel costs tied to wages and commissions. Depreciation and amortization expenses also increased, primarily because of additional transportation equipment and facilities under finance leases.
Despite those cost pressures, PFG delivered higher earnings. Fourth-quarter net income increased by $30.8 million year over year to $162.3 million. The improvement was primarily driven by stronger gross profit, although it was partially offset by increased operating expenses and income tax expense. The company reported an effective tax rate of approximately 26.8%, compared with 25.6% in the fourth quarter of fiscal 2025.
Adjusted EBITDA increased 7.4% to $587.5 million during the quarter. Diluted earnings per share rose 22.6% to $1.03, while Adjusted Diluted EPS increased 2.6% to $1.59 per share. These results reflected the company’s ability to convert higher sales and gross profit into stronger earnings while continuing to manage operating costs.
Full-Year Fiscal 2026 Performance
For the full fiscal year, PFG delivered an even broader improvement across its key financial measures. Total case volume increased 5.1% compared with fiscal 2025, while organic case volume rose 2.8%. Organic independent cases increased 5.9%, supported by continued growth in Performance Brands cases and higher case volumes in Foodservice’s chain business. Total independent case volume increased 10.2% for the year.
Full-year net sales increased 7.2% to $67.8 billion. The company attributed the growth to increased organic case volumes, a favorable mix of products sold, acquisitions and higher selling prices per case associated with inflation. The acquisition of Cheney Bros., Inc. was an important contributor to the company’s fiscal-year performance. Overall product cost inflation for the year was approximately 4.5%.
Gross profit increased 9.1% to $8.1 billion. PFG said the improvement was primarily driven by case volume and mix growth, particularly within its independent channel, as well as acquisitions including the Cheney Brothers transaction. Vendor rebates and promotional incentives also supported the increase.
Operating expenses increased 9.1% to $7.2 billion. The increase reflected higher salaries, wages, commissions and benefits, additional expenses associated with acquisitions, greater depreciation and amortization, higher fuel expenses and legal and professional fees. The company also cited insurance costs related to automobile insurance and workers’ compensation.
Net income for fiscal 2026 increased $19.1 million to $359.3 million. The improvement was primarily supported by higher gross profit and other income associated with gains on fuel collars, partially offset by higher operating and interest expenses. Adjusted EBITDA rose 9.2% to $1.9 billion, while diluted EPS increased 5.0% to $2.29 per share. Adjusted Diluted EPS increased 1.6% to $4.55.
Stronger Cash Flow and Capital Position
PFG also generated substantially higher cash flow during fiscal 2026. Cash flow from operating activities reached $1.4137 billion, compared with $1.2101 billion in the previous fiscal year. The increase was largely attributable to higher cash-based operating income and $52.3 million in income tax refunds received during the year. These benefits were partially offset by advanced inventory purchases made to take advantage of preferred pricing.
Capital expenditures totaled $384.1 million, down $121.9 million from the previous year. As a result of stronger operating cash generation and lower capital spending, PFG delivered free cash flow of $1.0296 billion, substantially above the $704.1 million recorded in the prior year.
The company also continued to maintain an authorized share repurchase program. During the quarter ended June 27, 2026, PFG repurchased and retired fewer than 0.1 million shares for $0.3 million, while fiscal-year repurchases totaled $1.5 million. As of June 27, 2026, approximately $498.5 million remained available under the program.
Foodservice Leads With Independent Customer Growth
PFG’s Foodservice segment generated fourth-quarter net sales of $9.8 billion, an increase of 6.8% from the prior-year period. Growth was supported by acquisitions, higher selling prices per case and organic case volume gains. Total Foodservice case volume increased 4.1%, while independent case volume climbed 8.0%. Organic independent case volume rose 5.8%, reflecting new customer wins and expanded business with existing independent customers.
Adjusted EBITDA for Foodservice increased 2.2% to $395.5 million. Gross profit contributing to the segment’s Adjusted EBITDA increased 7.8%, helped by a favorable product mix, greater sales of Performance Brands products to independent customers, acquisitions and case volume growth. These gains were partially offset by higher personnel, fuel, insurance and acquisition-related expenses.
Convenience and Specialty Segments
The Convenience segment also posted solid fourth-quarter growth. Net sales increased 5.7% to $6.8 billion, supported by higher case volumes from new chain customers and inflation-related increases in selling prices. Total cases sold increased 3.9%. Adjusted EBITDA rose 10.4% to $132.5 million, benefiting from higher gross profit, vendor rebates, promotional incentives, increased case volumes and manufacturer-related distribution income.
The Specialty segment reported fourth-quarter net sales of $1.3 billion, an increase of 6.6%. Growth was supported by higher selling prices, increased cases sold and favorable channel mix across the business. Specialty case volume increased 0.8%, with growth in vending, campus, travel and hospitality. Adjusted EBITDA, however, declined 0.5% to $92.7 million as higher operating expenses partially offset the increase in gross profit.
Overall, PFG’s fiscal 2026 results reflect continued expansion in sales and case volumes, stronger profitability and significant cash-flow generation. The company’s gains in independent customer business, contributions from acquisitions and improved operating performance helped deliver a strong finish to the year. With higher Adjusted EBITDA, more than $1 billion in free cash flow and continued market share gains, PFG enters fiscal 2027 with a solid operating foundation and what management described as significant momentum.
Source Link:https://www.businesswire.com/
