US Foods Holding Corp. reported its third‑quarter fiscal 2025 results, posting net sales of $10.2 billion—up 4.8% year‑over‑year from $9.7 billion in Q3 2024—while adjusted EBITDA rose 11% to $505 million and adjusted diluted earnings per share climbed to $1.07. The company also completed a $335 million share‑repurchase during the quarter and signed a definitive agreement to acquire independent food distributor Shetakis, a deal expected to close in Q4 2025 and broaden US Foods’ geographic reach.
The revenue increase was driven largely by a 3.9% rise in independent restaurant case volume, which offset modest growth in other customer segments. Compared with the prior year, the 4.8% sales lift reflects a combination of higher case volumes and modest price gains, while the 6.8% YoY growth in Q3 2024 underscores the company’s ability to maintain momentum in a soft macro environment.
Adjusted EBITDA expanded to $505 million, a 28‑basis‑point lift in margin to 5.0% from 4.72% in the prior quarter. Management attributes the margin improvement to share gains, continued growth across its three target customer types, and progress on self‑help initiatives that have reduced operating costs. The 11% rise in EBITDA, coupled with the margin expansion, signals that the company is effectively leveraging scale and cost discipline.
Adjusted diluted EPS of $1.07 beat the consensus of $1.05 by $0.02 (1.9%), driven by the company’s disciplined cost management and the positive impact of share gains. However, the reported diluted EPS of $0.67 fell short of the $0.91 estimate, a shortfall largely attributable to the higher share count from options and warrants that were exercised during the quarter.
The company updated its fiscal 2025 guidance, raising adjusted EBITDA growth to 10%‑12% (up from 9.5%‑12%) and adjusted diluted EPS growth to 24%‑26% (up from 19.5%‑23%) while narrowing net sales growth to 4%‑5% (down from 4%‑6%). The guidance shift reflects confidence in maintaining margin strength while acknowledging modest volume growth and macro uncertainty.
Management emphasized the results as evidence of “continued growth across our three target customer types and further progress on our self‑help initiatives.” CEO Dave Flitman highlighted the company’s focus on long‑term shareholder value and disciplined capital allocation, while CFO Dirk Locascio noted the company’s strong cash flow, which is being deployed to invest in the business, execute share repurchases, and pursue opportunistic tuck‑in M&A. Market reaction was mixed; investors praised the adjusted EPS beat and margin expansion but tempered enthusiasm with concerns about modest volume growth and the diluted EPS miss.
The share‑repurchase program and the Shetakis acquisition underscore US Foods’ confidence in its cash‑flow generation and its strategy to expand geographic reach and customer relationships. Together, these moves position the company to sustain its competitive advantage in the fragmented food‑service distribution market while continuing to deliver shareholder value.
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