US Foods Holding Corp. Reports Strong Fourth Quarter and Full-Year Fiscal 2025 Results
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, announced financial results for the fourth quarter and full fiscal year ended 2025, highlighting solid operational execution, market share gains, and double-digit Adjusted EBITDA growth despite a softer macroeconomic backdrop.
The company delivered improvements across key financial and operational metrics, supported by growth in independent restaurant, healthcare, and hospitality segments, along with disciplined cost management and productivity initiatives.
Fourth Quarter Fiscal 2025 Highlights
During the fourth quarter, US Foods demonstrated continued momentum across its core business segments.
Volume and Sales Performance
Total case volume increased 0.8% year over year, driven primarily by a 4.1% increase in independent restaurant case volume. Healthcare volume rose 2.9%, while hospitality volume grew 3.1%. These gains were partially offset by a 3.4% decline in chain volume. Total organic case volume increased 0.3%, including 3.7% organic growth in independent restaurant case volume.
Net sales for the quarter reached $9.8 billion, up 3.3% compared to the prior year period. Growth was fueled by case volume gains and food cost inflation of approximately 1.8%.
Profitability and Margins
Gross profit totaled $1.7 billion, an increase of $54 million, or 3.2%, from the prior year. The improvement was largely attributable to higher case volumes, better cost of goods sold management, and improved inventory control. These gains were partially offset by an unfavorable year-over-year LIFO adjustment. Gross profit margin remained steady at 17.6%.
Adjusted gross profit increased 3.7% to $1.7 billion, maintaining an adjusted margin of 17.6%.
Operating expenses rose 2.6% to $1.4 billion, reflecting higher distribution, selling, and administrative costs tied to volume growth. However, ongoing distribution productivity improvements and administrative streamlining initiatives helped mitigate expense growth. Operating expenses represented 14.3% of net sales.
Adjusted operating expenses increased only 1.2% to $1.2 billion, with adjusted operating margin improving to 12.6% of net sales.
Earnings and EBITDA
Net income surged 178.8% to $184 million, compared to the prior year, reflecting improved operating performance and favorable comparisons. Net income margin improved 118 basis points to 1.9%.
Adjusted EBITDA increased 11.1% to $490 million, with adjusted EBITDA margin expanding 35 basis points to 5.0%.
Diluted earnings per share (EPS) were $0.82, while Adjusted Diluted EPS rose 23.8% to $1.04.
Full Fiscal Year 2025 Performance
US Foods closed fiscal 2025 with strong year-over-year growth in sales, profitability, and cash generation.
Volume and Revenue Growth
Total case volume increased 1.0% for the year, supported by a 3.3% increase in independent restaurant case volume, 4.4% growth in healthcare volume, and 2.9% growth in hospitality volume. Chain volume declined 3.5%. Organic case volume increased 0.4%, including 2.7% organic growth in independent restaurant volume.
Net sales rose 4.1% to $39.4 billion, driven by case volume gains and food cost inflation of 2.6%.
Gross Profit and Operating Performance
Gross profit increased 5.1% to $6.9 billion, primarily due to higher volumes and effective cost of goods and inventory management. Gross profit margin was 17.4%.
Adjusted gross profit also increased 5.1% to $6.9 billion, with adjusted margin at 17.6%.
Operating expenses increased 4.2% to $5.7 billion, reflecting higher distribution and administrative costs related to volume growth. Operating expenses were 14.4% of net sales.
Adjusted operating expenses increased 3.2% to $5.0 billion, representing 12.7% of net sales.
Net Income and EPS Growth
Net income for fiscal 2025 totaled $676 million, up 36.8% year over year. Net income margin improved 41 basis points to 1.7%.
Adjusted EBITDA rose 11.0% to $1.93 billion, with adjusted EBITDA margin expanding 30 basis points to 4.9%.
Diluted EPS increased 45.5% to $2.94, while Adjusted Diluted EPS grew 26.3% to $3.98, marking record performance levels for the company.
Cash Flow and Capital Investments
US Foods generated $1.37 billion in cash flow from operating activities during fiscal 2025, an increase of $195 million from the prior year. The improvement was primarily driven by higher net income and reduced tax payments.
Cash capital expenditures totaled $410 million, up $69 million year over year. Investments focused on information technology enhancements, property and equipment upgrades, and distribution facility construction and improvements.
At the end of fiscal 2025, net debt stood at $5.2 billion. The ratio of net debt to Adjusted EBITDA improved to 2.7x, compared to 2.8x at the end of fiscal 2024, reflecting continued balance sheet discipline.
Share Repurchase Activity
During the fourth quarter, the company repurchased 4.2 million shares of common stock for $327 million. For the full fiscal year, US Foods repurchased 11.9 million shares totaling $934 million.
As of year-end, approximately $1.09 billion remained authorized under existing share repurchase programs. Of this amount, roughly $90 million was available under the program approved on May 8, 2025, and $1 billion remained under the authorization approved on November 24, 2025. The company’s recently announced $1 billion share repurchase authorization underscores management’s confidence in long-term value creation.
Strategic Acquisition
In the fourth quarter, US Foods acquired Shetakis, an independent food distributor based in Las Vegas, Nevada. The transaction closed on November 24, 2025, and was funded with cash on hand. The acquisition strengthens the company’s regional distribution footprint and enhances its ability to serve independent customers in the Southwest market.
Leadership Commentary
Chief Executive Officer Dave Flitman described 2025 as a strong start to the company’s three-year long-range plan, citing record Adjusted EBITDA of $1.9 billion, expanded margins, and significant Adjusted EPS growth.
He emphasized that the company delivered these results by focusing on controllable factors, including capturing incremental market share across targeted customer segments and executing operational excellence and productivity initiatives.
Chief Financial Officer Dirk Locascio highlighted disciplined capital allocation, strong fourth-quarter execution, and confidence in the company’s financial trajectory. He also noted the expectation to generate more than $4 billion in cumulative operating cash flow between 2025 and 2027.
Fiscal Year 2026 Outlook
Looking ahead, US Foods provided guidance for fiscal year 2026, reflecting continued growth momentum. The company expects:
- Net sales growth of 4% to 6%
- Adjusted EBITDA growth of 9% to 13%
- Adjusted Diluted EPS growth of 18% to 24%
The outlook includes the impact of a 53rd week in fiscal 2026, which is expected to contribute approximately 1% to total case growth and Adjusted EBITDA growth.
With strong execution, disciplined cost management, and strategic capital deployment, US Foods enters 2026 positioned to sustain double-digit Adjusted EPS growth and deliver on its long-range financial targets.
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