Flowers Foods Inc. reported third‑quarter 2025 results for the 12‑week period ended October 4, 2025, showing a year‑over‑year decline in net income to $39.5 million from $65.0 million in Q3 2024. GAAP diluted earnings per share fell to $0.19, while adjusted diluted EPS matched the consensus estimate of $0.23, indicating that the company’s core operating performance met analyst expectations despite the headline net‑income drop.
Revenue for the quarter reached $1.227 billion, a 3.0 % increase from $1.191 billion in Q3 2024 but slightly below the $1.23 billion consensus estimate. The growth was largely driven by the Simple Mills acquisition, which contributed 5.9 % of sales, offsetting a 2.3 % decline in pricing/mix and a 0.6 % drop in volume in the company’s bread and packaged bakery segments.
Adjusted EBITDA margin contracted 160 basis points to 9.6 % of sales, reflecting a combination of higher interest expense, tighter pricing in the bread category, and volume erosion. The company’s management noted that the Simple Mills benefit more than offset the pricing and mix pressures, but the overall margin squeeze signals ongoing cost and pricing challenges in a competitive market.
In its outlook, Flowers Foods narrowed its 2025 financial guidance, projecting net sales of $5.254 billion to $5.306 billion and adjusted diluted EPS of $1.02 to $1.08. The tighter range signals management’s caution about near‑term demand uncertainty while still expressing confidence in maintaining profitability through cost discipline and portfolio realignment.
Market reaction to the results was muted, with the company’s shares falling 3.72 % in aftermarket trading. Investors cited the revenue miss, margin compression, and concerns about razor‑thin margins and execution risk in the company’s transformation strategy as key drivers of the negative sentiment.
CEO Ryals McMullian said, “Flowers’ leading brands continue to demonstrate strong relative performance amid ongoing challenges in the bread category. Our proactive efforts to strategically align our portfolio with consumer demand are yielding positive results, and we are proud of our team’s strong execution as we advance our strategic initiatives to enhance long‑term performance and deliver value to shareholders.”
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