United Natural Foods Inc. reported net income of $35 million for its fourth quarter ended Aug. 1, reversing an $87 million loss in the prior-year period, as the wholesaler closed out a fiscal year defined by network optimization and profitability gains.
Fourth quarter net sales decreased 0.7 percent to $7.6 billion, including an approximately 500-basis-point impact from planned optimization actions and a 150-basis-point headwind from the completed unwind of short-term project work, partially offset by lapping the cybersecurity incident that disrupted last year’s fourth quarter. Adjusted EBITDA increased 48.3 percent to $172 million, and adjusted EPS came in at 69 cents, compared with an adjusted loss of 11 cents a year ago.
Sales in UNFI’s natural segment rose 6.6 percent to $4.3 billion in the quarter, while conventional sales declined 8.6 percent to $3.1 billion and retail sales fell 7.9 percent.
“UNFI delivered a strong fiscal year through disciplined execution of our strategy to add value for customers and suppliers while becoming a more effective and efficient company,” said CEO Sandy Douglas. “We continued strengthening commercial and supply chain capabilities to better serve our partners, while generating solid growth in adjusted EBITDA and free cash flow, enabling us to further reduce net debt.”
Providence, Rhode Island-based UNFI provides natural, organic, specialty, fresh, conventional and private label products to more than 30,000 retail locations in North America.
Full-year results
For the full fiscal year, net sales decreased 2 percent to $31.2 billion, while net income of $84 million reversed a $118 million loss in fiscal 2025. Adjusted EBITDA grew 27 percent to $701 million, adjusted EPS increased to $2.65 and free cash flow rose 35.1 percent to $323 million.
The company reduced net debt by $295 million during the year, ending with a net leverage ratio of 2.2x. Its board approved a new $200 million stock repurchase program on Sept. 3, replacing the program announced in September 2022.
Operationally, UNFI completed the initial deployment of Lean daily management at 44 distribution centers, supporting a fourth consecutive quarter of year-over-year improvement in fill rates, on-time deliveries and throughput. The company said it has begun onboarding additional business from new and existing customers that is expected to produce revenue growth in fiscal 2027 after it cycles larger optimization actions.
Fiscal 2027 outlook
UNFI projects fiscal 2027 net sales of $31.2 billion to $31.8 billion; net income of $105 million to $145 million; adjusted EPS of $3 to $3.50; and adjusted EBITDA of $730 million to $780 million, reflecting high-single-digit growth with a midpoint $25 million higher than the guidance provided at its December 2025 Investor Day. Free cash flow is expected between $275 million and $325 million.
“In fiscal 2027, we remain focused on helping our partners execute their growth strategies, accelerating our operating momentum and returning to revenue growth,” Douglas said.