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US Foods Holding Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 4 kept. The quarter’s numbers.

Key takeaways

  • Adjusted EBITDA and EPS both grew: Adjusted EBITDA rose 6.2% to $413 million and Adjusted Diluted EPS rose 14.7% to $0.78. Management said Adjusted Diluted EPS grew faster than Adjusted EBITDA. Source
  • Independent restaurant volume accelerated: Independent restaurant case volume rose 4.6%, or 4.4% on an organic basis, up from 4.1% in the prior quarter. Total case volume rose 1.4% and total organic case volume rose 1.1%. Source
  • Macro and weather pressures cited: Management cited a deteriorating macro environment and weather-related disruptions during the quarter, and said it still delivered 15% Adjusted Diluted EPS growth. Source
  • Operating cash flow fell $97 million: Operating cash flow was $294 million, down $97 million, driven by changes in operating assets and liabilities and higher tax payments for 2026. Source
  • Repurchased $125 million of shares: The company bought back 1.4 million shares for $125 million in the quarter. Source
  • Three fiscal 2026 growth ranges reaffirmed: Net sales growth of 4% to 6%, Adjusted EBITDA growth of 9% to 13% and Adjusted Diluted EPS growth of 18% to 24% were reaffirmed. Source

“During the first quarter, we accelerated year-over-year independent restaurant case growth, gained share with our target customer types and delivered 15% Adjusted Diluted EPS growth despite a deteriorating macro environment and weather-related disruptions”

Dave Flitman, CEO

Guidance

AreaPeriodFigureAgainst last quarter
Net sales growth SourceFiscal year 20264% to 6%Kept
Adjusted EBITDA growth SourceFiscal year 20269% to 13%Kept
Adjusted Diluted EPS growth SourceFiscal year 202618% to 24%Kept
53rd week contribution to case and Adjusted EBITDA growth SourceFiscal year 2026approximately 1%Kept

What changed from last quarter

  • Guidance kept: Fiscal 2026 guidance reaffirmed without change from the February 12, 2026 figures. Source

Results and growth drivers

  • Adjusted EBITDA and EPS both grew: Adjusted EBITDA rose 6.2% to $413 million and Adjusted Diluted EPS rose 14.7% to $0.78. Management said Adjusted Diluted EPS grew faster than Adjusted EBITDA. Source
  • Net income and diluted EPS grew: Net income rose 0.9% to $116 million, with net income margin at 1.2%, down 2 basis points. Diluted EPS rose 6.1% to $0.52 on 223.4 million diluted shares, against 234.2 million a year earlier. Source
  • Gross profit grew on volume: Gross profit rose $39 million, or 2.4%, mainly on higher total case volume and improved cost of goods sold, partly offset by a LIFO adjustment. Source

Customer types and case volume

  • Independent restaurant volume accelerated: Independent restaurant case volume rose 4.6%, or 4.4% on an organic basis, up from 4.1% in the prior quarter. Total case volume rose 1.4% and total organic case volume rose 1.1%. Source
  • Healthcare and hospitality volumes grew: Healthcare volume rose 3.7% and hospitality volume rose 5.0% for the quarter. Source
  • Chain volume declined: Chain customer volume fell 2.3% in the quarter, which the release says partially offset growth in the other customer types. Source

“We continue to deliver solid financial results, fueled by the progress on our self-help initiatives,”

Dirk Locascio, CFO

Costs, margins and pricing

  • Adjusted gross margin was 17.6%: Adjusted gross profit rose 4.4% to $1.7 billion and reported gross margin was 17.2%. Reported gross profit absorbed a $33 million unfavorable year-over-year LIFO adjustment. Source
  • Adjusted operating expenses at 13.3%: Adjusted operating expenses rose 3.9% to $1.3 billion, or 13.3% of net sales. Reported operating expenses rose 3.4%, mainly on volume and higher distribution, selling and administrative costs. Source
  • Adjusted EBITDA margin widened 14 basis points: Adjusted EBITDA margin was 4.3%, up 14 basis points from the prior year. Management said margins expanded, and Adjusted Diluted EPS grew faster than Adjusted EBITDA. Source

Demand and macro backdrop

  • Macro and weather pressures cited: Management cited a deteriorating macro environment and weather-related disruptions during the quarter, and said it still delivered 15% Adjusted Diluted EPS growth. Source
  • Momentum held after weather normalized: Management said weather normalized and the company exited the quarter with sustained momentum. Source
  • Net sales rose on volume and inflation: Net sales rose 2.8% to $9.6 billion, driven by case volume growth and food cost inflation of 1.0%. Source

Cash flow, debt and leverage

  • Operating cash flow fell $97 million: Operating cash flow was $294 million, down $97 million, driven by changes in operating assets and liabilities and higher tax payments for 2026. Source
  • Capital spending rose to $98 million: Cash capital expenditures were $98 million, up $14 million, for information technology, property and equipment and distribution facilities. Source
  • Net debt leverage eased to 2.6x: Net debt was $5.1 billion, a 2.6x ratio to Adjusted EBITDA, down from 2.7x at the end of fiscal year 2025. Source

Share repurchases and authorizations

  • Repurchased $125 million of shares: The company bought back 1.4 million shares for $125 million in the quarter. Source
  • Part of buyback settled prior accelerated share repurchase: Of the $125 million, $50 million settled the accelerated share repurchase entered into in November 2025. Source
  • Authorization remaining after the quarter: Remaining authorization was $14 million under the May 2025 program and $1 billion under the November 2025 program. Source

Strategy and self-help initiatives

  • Investment and buybacks as capital priorities: Management described its capital allocation priorities as investing in the business and repurchasing shares. Source
  • Productivity and streamlining offset costs: Operating expense growth was partly offset by continued distribution productivity improvement and actions to streamline administrative processes and costs. Source
  • Self-help initiatives credited for progress: The CFO attributed the quarter's financial results to progress on self-help initiatives. Source

Fiscal 2026 guidance reaffirmed

  • Three fiscal 2026 growth ranges reaffirmed: Net sales growth of 4% to 6%, Adjusted EBITDA growth of 9% to 13% and Adjusted Diluted EPS growth of 18% to 24% were reaffirmed. Source
  • Guidance reaffirmed, not revised: Management reaffirmed the February 12, 2026 guidance rather than issuing new figures. Source
  • No forward non-GAAP reconciliation provided: No reconciliation of forward-looking Adjusted EBITDA or Adjusted Diluted EPS is given, because certain significant items cannot be predicted with reasonable certainty. Source

Coming up, as management said on 7 May 2026

  • 53rd week lands in fiscal 2026: Management said the fiscal 2026 guidance includes a 53rd week, expected to add about 1% to total case and Adjusted EBITDA growth. Source

Figures management reported

FigureReported
Total case volume growth Source1.4%
Independent restaurant case volume growth Source4.6%
Healthcare volume growth Source3.7%
Hospitality volume growth Source5.0%
Chain volume growth Source-2.3%
Customer locations served Sourceapproximately 250,000

Risks management discussed

  • External: Management cited a deteriorating macro environment and weather-related disruptions during the quarter. Source
  • Financial: Higher tax payments in 2026 and changes in working capital reduced operating cash flow this quarter. Source
  • Financial: A $33 million unfavorable LIFO adjustment reduced gross profit this quarter. Source

Earlier plans management reported on

  • Not stated: Management reaffirmed the fiscal 2026 guidance it gave on February 12, 2026, without stating progress against it. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.