Q4 2026 United Natural Foods Inc Earnings Call Transcript
Key Points
- United Natural Foods Inc (UNFI) delivered strong fiscal 2026 results, with adjusted EBITDA growing 27% to $701 million and free cash flow reaching a record $323 million.
- The company significantly strengthened its balance sheet, reducing net leverage to 2.2 times, a full turn improvement year-over-year, and net debt fell below $1.6 billion for the first time since fiscal 2018.
- UNFI's fiscal 2027 guidance is robust, projecting high single-digit adjusted EBITDA growth and an adjusted EPS increase of 23% at the midpoint, exceeding its Investor Day targets.
- The company is making solid progress on its operational efficiency initiatives, including the rollout of Lean Daily Management to 44 distribution centers and the deployment of an AI-powered supply chain platform, which has driven four consecutive quarters of improvement in fill rates and on-time deliveries.
- UNFI is returning capital to shareholders, having repurchased shares and announcing a new $200 million share repurchase program, reflecting confidence in its long-term strategy.
- United Natural Foods Inc (UNFI) reported a decline in fourth-quarter sales of less than 1%, impacted by planned network optimization actions, the unwind of short-term project work, and the cycling of last year's cyber event.
- The company's Conventional product segment experienced a mid-single-digit decline in underlying sales, and its Retail segment saw total sales fall by 8% due to strategic store actions.
- UNFI faces ongoing headwinds from higher fuel costs, which it expects to continue impacting results, although it is employing countermeasures like hedging and route optimization.
- The company's fiscal 2027 sales outlook is modest, with growth expected to be weighted to the second half of the year, and sales are projected to decline in the first quarter as it cycles prior optimization actions.
- The transition to a new automated distribution facility in Illinois is in its early stages and has experienced some 'growing pains,' indicating potential short-term operational disruptions.
Thank you for standing by. At this time, I would like to welcome everyone to the UNFI fourth quarter fiscal 2026 earnings call. (Operator Instructions)
I would now like to turn the call over to Jeremy Perrone, Senior Vice President of Investor Relations and Corporate Development. You may begin.
Good morning, and welcome to UNFI's fourth quarter and full year fiscal 2026 earnings conference call.
Our earnings press release and presentation, which management will speak to, are available under the Investor section of the company's website. We have also included a supplemental disclosure file with key financial information. Joining me for today's call are Sandy Douglas, our Chief Executive Officer; and Matteo Tarditi, our President and Chief Operating Officer.
Before we begin, I would like to remind everyone that comments made by management during today's call may contain forward-looking statements. These forward-looking
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