Rogers Sugar ((TSE:RSI)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Rogers Sugar’s recent earnings call painted a picture of robust financial performance, marked by record adjusted EBITDA and net earnings. The company showcased significant growth in its Maple segment, despite facing challenges such as delays in the LEAP project, reduced sugar sales volumes, and trade policy pressures. Nevertheless, Rogers Sugar demonstrated resilience by maintaining a stable dividend and strong cash flow generation.
Record Adjusted EBITDA
Rogers Sugar achieved a significant milestone by surpassing $150 million in adjusted EBITDA for the first time in its history. This represents a 6% increase over the previous year, highlighting the company’s strong operational performance.
Increase in Adjusted Net Earnings
The company’s adjusted net earnings for fiscal 2025 exceeded $72 million, marking a 9% increase from the previous year. This growth underscores Rogers Sugar’s ability to enhance profitability despite market challenges.
Maple Segment Growth
The Maple segment experienced remarkable growth, with sales volume increasing by 14%. The adjusted EBITDA for this segment reached $21.3 million, reflecting over a 60% improvement in profitability over the last three years.
Strong Free Cash Flow
Rogers Sugar reported a significant improvement in free cash flow, which increased by 23% in 2025 to reach $90 million. This boost in cash flow supports the company’s financial stability and capacity for shareholder returns.
Continued Dividend Payout
The company maintained its quarterly dividend of $0.09 per share, returning a total of $46 million to shareholders. This consistent dividend payout reflects Rogers Sugar’s commitment to rewarding its investors.
Lower Sugar Segment Volume
The sugar segment faced a 4% decline in sales volume during the fourth quarter, attributed to production issues with an industrial customer and the loss of two customers in Western Canada.
Delays in LEAP Project
The LEAP project’s expected in-service date has been pushed to the first half of 2027, marking the second delay. This extension poses challenges for the company’s future growth plans.
Decline in Q4 Revenues
Rogers Sugar’s consolidated revenues for the fourth quarter were $323 million, down about 3% from the previous year. This decline was primarily due to lower average sugar prices and sales volumes.
Pressure from Tariffs and Trade Policies
The company continues to face pressure from U.S. trade policy and tariffs, impacting its export capabilities and adding uncertainty to its operations.
Forward-Looking Guidance
Looking ahead, Rogers Sugar anticipates stable profitability in 2026, with sugar segment volumes projected between 750,000 and 770,000 metric tons. The company plans to continue advancing its LEAP project, with the in-service date now extended to the first half of 2027, while maintaining a disciplined capital allocation strategy to support growth and shareholder returns.
In summary, Rogers Sugar’s earnings call reflected a strong financial performance, with record achievements in adjusted EBITDA and net earnings. Despite facing challenges such as project delays and trade policy pressures, the company showed resilience through stable dividends and robust cash flow. Looking forward, Rogers Sugar aims to maintain its profitability and advance strategic projects to ensure continued growth.