JM Smucker (SJM) set to report Q3 2025 earnings results this week, a few points to note

Shares of The J.M. Smucker Co. (NYSE: SJM) stayed green on Monday. The stock has dropped 11% over the past 12 months. The branded food company is set to report its earnings results for the third quarter of 2025 on Thursday, February 27, before market open. Here’s a look at what to expect from the earnings report:

Revenue

JM Smucker expects net sales for the third quarter of 2025 to be flat compared to the same period a year ago. In Q3 2024, net sales totaled $2.23 billion. Analysts are projecting the same number for Q3 2025. In the second quarter of 2025, sales increased 17% year-over-year to $2.3 billion.

Earnings

SJM expects adjusted earnings per share to decline mid-single-digits in Q3 2025. The consensus estimate for Q3 2025 EPS is $2.37, which compares to adjusted EPS of $2.48 reported in the year-ago quarter. In Q2 2025, adjusted EPS grew 7% YoY to $2.76.

Points to note

JM Smucker can be expected to benefit from the strength of its iconic brands, which have remained resilient in a dynamic consumer environment. Gains in brands such as Uncrustables, Meow-Mix, Café Bustelo, and Jif helped drive growth in organic sales and earnings last quarter, and this trend can be expected to continue in the to-be-reported quarter as well.

The company’s strategy of focusing its resources on brands that have the highest growth potential is expected to yield benefits. These brands include Uncrustables, Milk-Bone, Meow-Mix, and Café Bustelo. Uncrustables grew net sales by 16% in Q2, and SJM anticipates full-year 2025 sales to be over $900 million. The company’s new Alabama production facility, which is the largest Uncrustables sandwiches manufacturing site, is expected to help this brand cross $1 billion in net sales.

The pet food brands are likely to benefit from the pet humanization trend in the category. Last quarter, Milk-Bone benefited from double-digit sales growth in soft and chewy snacks while Meow-Mix maintained a strong position in the dry cat food category. In coffee, the Café Bustelo brand continues to see strong momentum, growing sales by 20% in Q2.

JM Smucker is facing challenges from inflationary pressures and lower discretionary income which are negatively impacting its sweet baked goods category and the Hostess brand across all channels. These headwinds might continue into the third quarter.

The company is working on expanding distribution, driving innovation, and establishing revenue synergies in order to drive growth for the Hostess brand. It is working on driving cross-brand synergies by pairing the Hostess brand with legacy Smucker brands like Jif peanut butter and Smucker’s fruit spreads. It sees potential in combining brands to drive purchases, like promoting Donettes with one of its top coffee brands.

SJM’s efforts in reshaping its portfolio through acquisitions and divestitures are also expected to pay off. Last month, the company announced its plans to divest its Cloverhill and Big Texas brands, along with certain private label products for approx. $40 million. This deal is expected to help it prioritize resources better within the sweet baked snacks segment.