Universal Corporation reports Q2 adjusted EPS 38c vs. 1c last year

Reports Q2 revenue $594M vs. $597M last year. Preston D. Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, “We are pleased with our good start for fiscal year 2026. Our Tobacco Operations segment’s improved quarterly performance was driven primarily by a favorable product mix in the first quarter, despite lower carryover crop sales. The reduction in carryover crop sales in the quarter resulted from significant shipment volumes earlier in the prior fiscal year. Current flue-cured and burley tobacco crop sizes have increased significantly, and we are seeing more typical tobacco buying patterns with green tobacco purchases largely completed in Brazil and Africa. Customer demand remains firm, following several years of short tobacco supply, and our uncommitted tobacco inventory levels were low, at about 11%, as of June 30, 2025.Our Ingredients Operations segment maintained positive momentum, achieving higher sales volumes in the quarter. Segment results for the quarter were impacted by a less favorable product mix, some curtailed demand due to tariff uncertainty, and higher fixed costs as we work to fill our recently expanded production facility. We are continuing to see interest in our new value-added products and capabilities. Supported by a foundational customer for our expanded Universal Ingredients facility, we are diligently working on converting interest from existing and new customers into increased volumes for that facility. Our focus for a successful fiscal year 2026 is growing Universal Ingredients organically, while also maximizing and optimizing our tobacco business and strengthening our organization.”