US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced its financial results for the second quarter of fiscal year 2025, showcasing a continued trajectory of growth across key customer segments and improved profitability. The company delivered record Adjusted EBITDA, supported by volume growth, disciplined cost management, and the execution of strategic initiatives aimed at long-term value creation.
Second Quarter Fiscal 2025 Highlights:
- Total case volume increased 0.9%
- Independent restaurant case volume up 2.7%
- Net sales rose 3.8% year-over-year to $10.1 billion
- Gross profit climbed 4.2% to $1.8 billion
- Net income increased 13.1% to $224 million
- Adjusted EBITDA grew 12.1% to a record $548 million
- Diluted earnings per share (EPS) increased 20.0% to $0.96
- Adjusted diluted EPS surged 28.0% to $1.19
CEO Commentary: Momentum Across Core Business Segments
“Our second quarter performance underscores the strength of our team’s continued focus on execution and delivering value to our customers,” said Dave Flitman, Chief Executive Officer of US Foods. “This momentum has fueled further market share gains with independent restaurants, healthcare, and hospitality customers. We achieved record Adjusted EBITDA of $548 million and expanded our Adjusted EBITDA margin by 40 basis points to a record 5.4%.”
Flitman further emphasized the company’s growth ambitions: “Looking ahead, we have a long runway of growth and profitability as we pursue our ambition to become the undisputed best in our industry. I am incredibly proud and appreciative of our talented team of 30,000 associates whose dedication and hard work are delivering on our promise to help our customers ‘Make It.’”
CFO Perspective: Margin Expansion, Shareholder Returns, and Capital Investments
Chief Financial Officer Dirk Locascio echoed the optimism, adding, “Our results reflect consistent execution of our strategy and continued momentum in our self-help initiatives. We delivered both top-line growth and margin expansion, while also executing accretive share repurchases, resulting in a 28% increase in adjusted EPS.”
Locascio highlighted the company’s ability to generate strong cash flow, enabling both growth investments and capital returns to shareholders: “We are funding record levels of capital investment to support our expansion and maintain operational excellence. Simultaneously, we are returning capital to shareholders, reinforcing our disciplined approach to long-term value creation.”
Detailed Second Quarter Results
Volume Growth and Sales Performance
Total case volume increased 0.9% compared to the second quarter of fiscal 2024. This growth was primarily driven by:
- A 2.7% increase in case volume from independent restaurants
- A 4.9% increase in healthcare customer volume
- A 2.4% increase in hospitality volume
These gains were partially offset by a 4.0% decrease in volume from chain restaurant customers, reflecting continued shifts in customer mix. Organic case volume, which excludes recent acquisitions, grew by 0.5%, including a 2.3% rise in organic independent restaurant volume.
Total net sales for the quarter reached $10.1 billion, representing a 3.8% increase year-over-year. This was driven by higher case volumes and a 2.5% increase in food cost inflation, particularly in certain protein and produce categories.
Improved Profitability Metrics
Gross profit totaled $1.8 billion, a 4.2% increase or $71 million more than the same period last year. This growth was driven by higher case volumes, better inventory management, and improved cost of goods sold, although partially offset by an unfavorable year-over-year LIFO adjustment.
- Gross profit margin stood at 17.6% of net sales.
- Adjusted Gross Profit grew 5.0% to $1.8 billion, with Adjusted Gross Margin improving to 17.8%.
Operating expenses rose by 3.8% to $1.4 billion, reflecting higher distribution, selling, and administrative costs associated with volume growth. However, this increase was moderated by gains in distribution productivity and ongoing cost control efforts.
- Operating expenses as a percentage of sales remained stable at 13.9%.
- Adjusted operating expenses increased 2.6% to $1.2 billion, representing 12.3% of net sales.
Net income increased 13.1% year-over-year to $224 million, representing a net income margin of 2.2%, up 18 basis points. Adjusted EBITDA reached an all-time high of $548 million, up 12.1% compared to the previous year, with an Adjusted EBITDA margin of 5.4%, a 40 basis point improvement.
Diluted EPS rose 20.0% to $0.96, while Adjusted Diluted EPS surged 28.0% to $1.19, reflecting the strength of underlying operations and the benefit of share repurchases.
Strong Cash Flow and Capital Allocation
For the first six months of fiscal year 2025, cash flow from operating activities was $725 million, up $104 million from the prior year. The increase reflects higher net income and continued operational efficiency.
Capital expenditures totaled $161 million, slightly higher than the prior year, as the company invested in:
- Technology enhancements
- Property and equipment upgrades
- Expansion and optimization of distribution facilities
Net Debt at the end of Q2 was $4.8 billion, with a Net Debt-to-Adjusted EBITDA ratio of 2.6x, down from 2.8x at the end of fiscal 2024, highlighting ongoing balance sheet improvements.
Share Repurchase Program
On May 7, 2025, the company’s Board of Directors authorized a new $1 billion share repurchase program. During the second quarter, US Foods repurchased 3.2 million shares of common stock for approximately $250 million, reflecting confidence in the company’s long-term outlook and commitment to shareholder value creation.
Updated Full-Year 2025 Outlook
US Foods has updated its financial guidance for the full fiscal year 2025 as follows:
- Net sales growth of 4% to 6% (unchanged)
- Adjusted EBITDA growth of 9.5% to 12%, up from previous guidance of 8% to 12%
- Adjusted diluted EPS growth of 19.5% to 23%, up from prior guidance of 17% to 23%
The updated outlook reflects continued strength in operating performance, successful execution of growth initiatives, and efficiency gains across the business.
Conference Call and Webcast Details
US Foods will host a live conference call and webcast to review its second quarter fiscal 2025 financial results on Thursday, August 7, 2025, at 8 a.m. Central Time. Participants may access the webcast and supporting presentation materials through the Investor Relations section of the company’s website.
About US Foods
US Foods Holding Corp. is one of America’s leading foodservice distributors, partnering with approximately 250,000 restaurants and foodservice operators. With more than 70 distribution facilities and a workforce of over 30,000, the company offers a broad and innovative food offering, technology solutions, and business tools to help customers succeed.
