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10-Q2026-02-26· merged:deepseek-v4-flash

SJM · The J. M. Smucker Company

0000091419-26-000016

SEC filing

Summary

Sweet Baked Snacks segment incurred $961.7M impairment charges, eliminating goodwill; debt reduced by $349.4M; no new buyback authorization.

Key takeaways

Full analysis

Notes & Operating Detail

Balance Sheet & Liquidity

As of January 31, 2026, the company held $52.8M in cash and $19.3M in marketable securities. Total debt stood at $7,328.2M (short-term borrowings $486.9M and long-term debt $6,841.3M), down $349.4M from April 30, 2025. Shareholders' equity decreased to $5,236.1M from $6,082.6M, driven by net losses and dividends. Inventory was $1,171.1M, slightly lower than $1,209.4M at year-end.

Commitments & Contractual Obligations

The notes do not disclose a separate purchase commitments table. However, the company has operating lease liabilities of $159.7M and finance lease liabilities of $10.4M as of January 31, 2026. The supplier financing program had $296.1M outstanding obligations sold to a financial institution. Debt maturities are detailed in Note 8, with significant maturities in 2027 ($450M Term Loan) and beyond.

Capital Allocation (buybacks, dividends, debt, capex)

  • Buybacks: No shares were repurchased under the board-authorized plan during the nine months. Only 52,562 shares were repurchased from stock plan recipients for $5.2M. Authorization remaining: 1.1M shares.
  • Dividends: Quarterly dividends of $1.10 per share were declared, up from $1.08 prior year. Total cash dividends paid were $347.9M for the nine months.
  • Debt: Net debt reduction of $349.4M, including $200.0M prepayment on the Term Loan and $200.0M repayment of other long-term debt. Short-term borrowings decreased $153.9M.
  • Capex: Capital expenditures were $222.1M, or 3.27% of sales, primarily in U.S. Retail Frozen Handheld and Spreads ($78.8M) and Sweet Baked Snacks ($46.0M).

Segment / Geographic Mix

For the nine months ended January 31, 2026:

  • U.S. Retail Coffee: $2,474.3M (36.5% of total), segment profit $487.5M (margin 19.7%), revenue +19.6% YoY.
  • U.S. Retail Frozen Handheld and Spreads: $1,399.8M (20.6%), profit $320.0M (22.9%), revenue -1.9%.
  • U.S. Retail Pet Foods: $1,198.3M (17.7%), profit $347.6M (29.0%), revenue -5.5%.
  • Sweet Baked Snacks: $734.1M (10.8%), profit $68.2M (9.3%), revenue -20.9%. This segment recorded $961.7M in impairment charges, fully writing off goodwill.
  • International and Away From Home: $976.3M (14.4%), profit $213.9M (21.9%), revenue +9.5%. Geographically, U.S. net sales were $6,426.2M (94.7% of total), international $356.6M (5.3%), with Canada representing $255.3M.