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Performance Food Group Company Reports Fourth-Quarter and Full-Year Fiscal 2025 Results
Strong Case Volume, Sales and Profit Growth; Announces Full-Year 2026 Financial Guidance Fourth-Quarter Fiscal 2025 Highlights Total case volume increased 11.9% Total Independent Foodservice case volume increased 20.4% Organic Independent Foodservice case volume increased 5.9% Net sales increased 11.5% to $16.9 billion Gross profit improved 14.6% to $2.0 billion Net income decreased 21.0% to $131.5 million Adjusted EBITDA increased 19.9% to $546.9 million1 Diluted Earnings Per Share ("EPS") decreased 21.5% to $0.84 Adjusted Diluted EPS increased 6.9% to $1.551 Full-Year Fiscal 2025 Highlights Total case volume increased 8.5% Total Independent Foodservice case volume increased 16.9% Organic Independent Foodservice case volume increased 4.6% Net sales increased 8.6% to $63.3 billion Gross profit improved 12.8% to $7.4 billion Net income decreased 22.0% to $340.2 million Adjusted EBITDA increased 17.3% to $1.8 billion1 Diluted EPS decreased 21.9% to $2.18 Adjusted Diluted EPS increased 4.2% to $4.481 Operating Cash Flow of $1.2 billion Free cash flow of $704.1 million1 RICHMOND, Va., August 13, 2025--(BUSINESS WIRE)--Performance Food Group Company ("PFG" or the "Company") (NYSE: PFGC) today announced its fourth-quarter and full-year fiscal 2025 business results. "Our organization finished fiscal 2025 with strong financial results driven by contributions from each of our three operating segments," said George Holm, PFG's Chairman & Chief Executive Officer. "I am proud of the accomplishments of our 43,000 employees, particularly our sales associates, who continue to drive share gains across our business segments. We enter fiscal 2026 with a stable industry backdrop and significant business momentum and we are on track to achieve the 3-year financial targets we announced in May. The PFG team continues to execute our strategic plan, headlined by growth, market share gains and operational execution, leading to enhanced profitability. As we progress with the integration of Cheney Brothers and José Santiago, we believe the Company will continue to create enhanced shareholder value. We are confident in our ability to achieve the fiscal 2026 targets that we announced today." 1 This earnings release includes several metrics, including Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Free Cash Flow, that are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). Please see "Statement Regarding Non-GAAP Financial Measures" at the end of this release for the definitions of such non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their respective most comparable financial measures calculated in accordance with GAAP. Fourth-Quarter Fiscal 2025 Financial Summary Total case volume increased 11.9% for the fourth quarter of fiscal 2025 compared to the prior year period. Total organic case volume increased 3.9% for the fourth quarter of fiscal 2025 compared to the prior year period, benefiting from a 5.9% increase in organic independent cases and growth in cases sold to Foodservice's chain business. Total independent case volume increased 20.4%. Net sales for the fourth quarter of fiscal 2025 grew 11.5% to $16.9 billion compared to the prior year period. The increase in net sales was driven by recent acquisitions, including the acquisition of Cheney Bros., Inc. ("Cheney Brothers"), an increase in cases sold including a favorable shift in the mix of cases sold, and an increase in selling price per case as a result of inflation. Overall product cost inflation for the Company was approximately 4.3% for the fourth quarter of fiscal 2025. Gross profit for the fourth quarter of fiscal 2025 grew 14.6% to $2.0 billion compared to the prior year period. The gross profit increase was driven by recent acquisitions as well as cost of goods sold optimization through procurement efficiencies, partially offset by an increase in the last-in-first-out ("LIFO") inventory reserve. Operating expenses rose 18.3% to $1.7 billion in the fourth quarter of fiscal 2025 compared to the prior year period. The increase in operating expenses was primarily driven by recent acquisitions, an increase in personnel expense primarily related to wages and salaries, commissions, and benefits, an increase in depreciation expense mainly driven by an increase in transportation equipment under finance leases, an increase in insurance expense primarily related to workers' compensation and vehicle liability, and an increase in professional fees primarily related to recent acquisitions, partially offset by a decrease in fuel expense primarily due to lower fuel prices in the fourth quarter of fiscal 2025 as compared to the prior fiscal year period. Net income for the fourth quarter of fiscal 2025 decreased $35.0 million year-over-year to $131.5 million. The decrease was primarily a result of an increase in depreciation and amortization and interest expense primarily related to recent acquisitions, partially offset by a decrease in income tax expense and gross profit contributions from recent acquisitions. The effective tax rate in the fourth quarter of fiscal 2025 was approximately 25.6% compared to 26.0% in the fourth quarter of fiscal 2024. The effective tax rate for the fourth quarter of fiscal 2025 differed from the prior year period primarily due to an increased benefit from stock-based compensation and an increase in income tax credits net of valuation allowance established, partially offset by an increase in non-deductible expenses. For the quarter, Adjusted EBITDA rose 19.9% to $546.9 million compared to the prior year period. Diluted EPS decreased 21.5% to $0.84 per share in the fourth quarter of fiscal 2025 compared to the prior year period. Adjusted Diluted EPS increased 6.9% to $1.55 per share in the fourth quarter of fiscal 2025 compared to the prior year period. Full-Year Fiscal 2025 Financial Summary Total case volume increased 8.5% for fiscal 2025 compared to the prior fiscal year. Total organic case volume increased 2.1% for fiscal 2025 compared to the prior year period, benefiting from a 4.6% increase in organic independent cases sold during fiscal 2025 and growth in cases sold to Foodservice's chain business. Total independent case volume increased 16.9%. Net sales for fiscal 2025 grew 8.6% to $63.3 billion compared to the prior fiscal year. The increase in net sales was driven by recent acquisitions, including the acquisition of Cheney Brothers, an increase in cases sold including a favorable shift in mix of cases sold, and an increase in selling price per case as a result of inflation. Overall product cost inflation for the Company was approximately 4.7% for fiscal 2025. Gross profit for fiscal 2025 grew 12.8% to $7.4 billion compared to the prior fiscal year. The increase in gross profit was primarily driven by recent acquisitions, including the acquisition of Cheney Brothers, cost of goods sold optimization through procurement efficiencies, as well as a favorable shift in the mix of cases sold, including growth in the independent channel. Operating expenses rose 14.8% to $6.6 billion in fiscal 2025 compared to the prior fiscal year. The increase in operating expenses was primarily driven by recent acquisitions, including the acquisition of Cheney Brothers, increases in personnel expenses primarily related to wages and salaries, commissions, and benefits, an increase in depreciation expense mainly driven by an increase in transportation equipment under finance leases, an increase in professional fees and outside services primarily related to recent acquisitions, and an increase in insurance expense primarily related to workers' compensation and vehicle liability compared to prior year. These increases were partially offset by a decrease in fuel expense primarily due to lower fuel prices for fiscal 2025 as compared to the prior fiscal year. Net income for fiscal 2025 decreased $95.7 million year-over-year to $340.2 million driven by an increase in depreciation and amortization and interest expense primarily related to recent acquisitions, partially offset by a decrease in income tax expense and gross profit contributions from recent acquisitions. The increase in interest expense was primarily the result of an increase in average borrowings, including finance lease obligations, during fiscal 2025 compared to the prior fiscal year. The effective tax rate in fiscal 2025 was approximately 25.8% compared to 27.0% in fiscal 2024. The effective tax rate for fiscal 2025 differed from the prior fiscal year primarily due to an increased benefit from stock-based compensation and an increase in income tax credits net of valuation allowance established, partially offset by an increase in non-deductible expenses and an increase in state taxes as a percentage of income. For fiscal 2025, Adjusted EBITDA rose 17.3% to $1.8 billion compared to the prior year period. Diluted EPS decreased 21.9% to $2.18 per share in fiscal 2025 compared to the prior year period. Adjusted Diluted EPS increased 4.2% to $4.48 per share in fiscal 2025 compared to the prior year period. Cash Flow and Capital Spending In fiscal 2025, PFG provided $1,210.1 million in cash flow from operating activities compared to $1,163.0 million in cash flow from operating activities in the prior year period. The increase in cash flows provided by operating activities in fiscal 2025 compared to fiscal 2024 was largely driven by higher cash-based operating income, partially offset by changes in the timing of advanced purchases of inventory. In fiscal 2025, PFG invested $506.0 million in capital expenditures, an increase of $110.4 million versus the prior year period. In fiscal 2025, PFG delivered free cash flow of $704.1 million compared to free cash flow of $767.4 million in the prior year period.1 Share Repurchase Program In November 2022, the Board of Directors of the Company authorized a share repurchase program for up to $300 million of the Company's outstanding common stock. During the three months ended June 28, 2025, the Company repurchased and subsequently retired 0.2 million shares of common stock, for a total of $13.4 million or an average cost of $75.39 per share. During the fiscal year ended June 28, 2025, the Company repurchased and subsequently retired 0.8 million shares of common stock, for a total of $57.6 million or an average cost of $75.53 per share. On May 27, 2025, the Board of Directors authorized a new share repurchase program for up to $500 million of the Company's outstanding common stock. This authorization replaces the previously authorized $300 million share repurchase program. The new share repurchase program has an expiration date of May 27, 2029 and may be amended, suspended, or discontinued at any time at the Board of Directors' discretion, subject to compliance with applicable laws. As of June 28, 2025, there remains $500 million available for additional share repurchases. Fourth-Quarter Fiscal 2025 Segment Results Foodservice Fourth-quarter fiscal 2025 net sales for Foodservice increased 20.0% to $9.2 billion compared to the prior year period. The increase in net sales was driven by recent acquisitions, including the acquisition of Cheney Brothers, case volume growth, including growth in our independent and Chain business, and an increase in selling price per case as a result of inflation. Total case growth for Foodservice was 17.4% in the fourth quarter of fiscal 2025 compared to the prior year period. New account growth and increased penetration coupled with recent acquisitions resulted in total independent case growth of 20.4% for the fourth quarter of fiscal 2025 compared to the prior year period. Organic independent case growth was 5.9% in the fourth quarter of fiscal 2025 compared to the prior year period. For the fourth quarter of fiscal 2025, independent sales as a percentage of total Foodservice sales were 41.3%. Fourth-quarter fiscal 2025 Adjusted EBITDA for Foodservice increased 26.3% to $386.9 million compared to the prior year period. The increase was the result of an increase in gross profit, partially offset by an increase in operating expenses for the fourth quarter of fiscal 2025 compared to the prior year period. Gross profit contributing to Foodservice's Adjusted EBITDA increased 24.9% driven by recent acquisitions, growth in cases sold, including more Performance Brands products sold to our independent customers, and a favorable shift in the mix of cases sold. Operating expenses impacting Foodservice's Adjusted EBITDA increased 24.4% primarily as a result of recent acquisitions, and an increase in personnel expenses compared to the prior year period. Convenience Fourth-quarter fiscal 2025 net sales for Convenience increased 2.8% to $6.4 billion compared to the prior year period. The increase in net sales for Convenience was driven by higher selling prices per case due to continued inflation, an acquisition completed in the fourth quarter of fiscal 2025, and organic case volume growth of 0.6% in the fourth quarter compared to the prior year period. Fourth-quarter fiscal 2025 Adjusted EBITDA for Convenience increased 4.8% to $120.0 million compared to the prior year period. This increase was a result of an increase in gross profit, partially offset by an increase in operating expenses. Gross profit contributing to Convenience's Adjusted EBITDA increased 3.4% for the fourth quarter of fiscal 2025 compared to the prior year period primarily driven by inventory holding gains, an acquisition completed in the fourth quarter of fiscal 2025, and a favorable shift in the mix of cases sold, partially offset by prior year releases of aged accruals. Operating expenses impacting Convenience's Adjusted EBITDA increased 2.4% in the fourth quarter of fiscal 2025 compared to the prior year period primarily as a result of an increase in personnel expenses and an acquisition completed in the fourth quarter of fiscal 2025, partially offset by a decrease in fuel expense primarily due to lower fuel prices compared to the prior year period. Specialty For the fourth quarter of fiscal 2025, net sales for Specialty increased 4.1% to $1.3 billion compared to the prior year period. This increase was primarily driven by growth in the vending, office coffee, value, and retail channels in the fourth quarter of fiscal 2025 compared to the prior year period. Total case volume growth for Specialty for the fourth quarter of fiscal 2025 was 4.2% compared to the prior year period. Fourth-quarter fiscal 2025 Adjusted EBITDA for Specialty increased 9.0% to $93.2 million compared to the prior year period. This increase was a result of an increase in gross profit, slightly offset by an increase in operating expenses. The 3.7% increase in gross profit contributing to Specialty's Adjusted EBITDA was primarily driven by sales growth and inventory holding gains, and a favorable shift in the mix of cases sold. Operating expenses impacting Specialty's Adjusted EBITDA increased 0.3% primarily due to an increase in variable expense growth in small parcel fulfillment, partially offset by a reduction in lease expense as the segment has transitioned to finance leases for fleet equipment, a decrease in fuel expense, and recovery of bad debt in the fourth quarter of fiscal 2025 compared to the prior year period. Fiscal 2026 Outlook For the first quarter of fiscal 2026, PFG expects net sales to be in a range of approximately $16.6 billion to $16.9 billion. For the first quarter of fiscal 2026, PFG expects Adjusted EBITDA to be in a range of approximately $465 million to $485 million. For the full fiscal year 2026, PFG expects net sales to be in a range of approximately $67 billion to $68 billion. For the full fiscal year 2026, PFG expects Adjusted EBITDA to be in a range of approximately $1.9 billion to $2.0 billion. PFG's Adjusted EBITDA outlook excludes the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, losses on early extinguishments of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. PFG's management cannot estimate on a forward-looking basis the impact of these income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable. As a result, PFG does not provide a reconciliation to the closest corresponding GAAP financial measure for its Adjusted EBITDA outlook. Please see the "Forward-Looking Statements" section of this release for a discussion of certain risks to PFG's outlook. Conference Call As previously announced, a conference call with the investment community and news media will be webcast today, August 13, 2025, at 9:00 a.m. Eastern Time. Access to the webcast is available at About Performance Food Group Company Performance Food Group is an industry leader and one of the largest food and foodservice distribution companies in North America with more than 150 locations. Founded and headquartered in Richmond, Virginia, PFG and our family of companies market and deliver quality food and related products to over 300,000 locations including independent and chain restaurants; businesses, schools and healthcare facilities; vending and office coffee service distributors; and big box retailers, theaters and convenience stores. PFG's success as a Fortune 100 company is achieved through our approximately 43,000 dedicated associates committed to building strong relationships with the valued customers, suppliers and communities we serve. To learn more about PFG, visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and integration of our acquisition of Cheney Bros., Inc. (the "Cheney Brothers Acquisition") and other nonhistorical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. The following factors, in addition to those discussed under the section entitled Item 1A. Risk Factors in PFG's Annual Report on Form 10-K for the fiscal year ended June 29, 2024 filed with the Securities and Exchange Commission (the "SEC") on August 14, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at could cause actual future results to differ materially from those expressed in any forward-looking statements: costs and risks associated with a potential cybersecurity incident or other technology disruption; our reliance on technology and risks associated with disruption or delay in implementation of new technology, including artificial intelligence; economic factors, including inflation or other adverse changes such as a downturn in economic conditions, geopolitical events, tariff increases, or a public health crisis, negatively affecting consumer confidence and discretionary spending; our reliance on third-party suppliers; labor relations and cost risks and availability of qualified labor; competition in our industry is intense, and we may not be able to compete successfully; we operate in a low margin industry, which could increase the volatility of our results of operations; we may not realize anticipated benefits from our operating cost reduction and productivity improvement efforts; our profitability is directly affected by cost inflation and deflation, commodity volatility, and other factors; we do not have long-term contracts with certain customers; group purchasing organizations may become more active in our industry and increase their efforts to add our customers as members of these organizations; changes in eating habits of consumers; extreme weather conditions, including hurricane, earthquake and natural disaster damage and extreme heat or cold; volatility of fuel and other transportation costs; our inability to adjust cost structure where one or more of our competitors successfully implement lower costs; our inability to increase our sales in the highest margin portion of our business; changes in pricing practices of our suppliers; our growth and innovation strategy may not achieve the anticipated results; risks relating to acquisitions, including the risk that we are not able to realize benefits of acquisitions or successfully integrate the businesses we acquire or that we incur significant integration costs; a portion of our sales volume is dependent upon the distribution of cigarettes and other tobacco products, sales of which are generally declining; negative media exposure and other events that damage our reputation; impact of uncollectibility of accounts receivable; the cost and adequacy of insurance coverage and increases in the number or severity of insurance and claims expenses; the potential impacts of shareholder activists or potential bidders; the integration of artificial intelligence into our processes; environmental, health, and safety costs, including compliance with current and future environmental laws and regulations relating to carbon emissions and climate change and related legal or market measures; our inability to comply with requirements imposed by applicable law or government regulations, including increased regulation of e-vapor products and other alternative nicotine products; increase in excise taxes or reduction in credit terms by taxing jurisdictions; the potential impact of product recalls and product liability claims relating to the products we distribute and other litigation; adverse judgments or settlements or unexpected outcomes in legal proceedings; risks relating to our outstanding indebtedness, including the impact of interest rate increases on our variable rate debt; our ability to raise additional capital on commercially reasonable terms or at all; and the possibility that the expected synergies and other benefits from the Cheney Brothers Acquisition will not be realized or will not be realized within the expected time period. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any forward-looking statement, including any contained herein, speaks only as of the time of this release or as of the date they were made and we do not undertake to update or revise them as more information becomes available or to disclose any facts, events, or circumstances after the date of this release or our statement, as applicable, that may affect the accuracy of any forward-looking statement, except as required by law. PERFORMANCE FOOD GROUP COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except per share data) Three Months EndedJune 28, 2025 Three Months EndedJune 29, 2024 Fiscal Year EndedJune 28, 2025 Fiscal Year EndedJune 29, 2024 Net sales $ 16,938.9 $ 15,189.2 $ 63,298.9 $ 58,281.2 Cost of goods sold 14,936.7 13,442.0 55,882.3 51,704.1 Gross profit 2,002.2 1,747.2 7,416.6 6,577.1 Operating expenses 1,734.4 1,465.8 6,600.3 5,750.7 Operating profit 267.8 281.4 816.3 826.4 Other expense, net: Interest expense, net 94.5 57.6 358.4 232.2 Other, net (3.4 ) (1.2 ) (0.9 ) (2.6 ) Other expense, net 91.1 56.4 357.5 229.6 Income before taxes 176.7 225.0 458.8 596.8 Income tax expense 45.2 58.5 118.6 160.9 Net income $ 131.5 $ 166.5 $ 340.2 $ 435.9 Weighted-average common shares outstanding: Basic 155.0 154.3 154.8 154.4 Diluted 156.6 156.0 156.4 156.0 Earnings per common share: Basic $ 0.85 $ 1.08 $ 2.20 $ 2.82 Diluted $ 0.84 $ 1.07 $ 2.18 $ 2.79 PERFORMANCE FOOD GROUP COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) As ofJune 28, 2025 As ofJune 29, 2024 ASSETS Current assets: Cash $ 78.5 $ 20.0 Accounts receivable, less allowances of $69.0 and $55.2 2,833.0 2,478.9 Inventories, net 3,887.7 3,314.7 Income taxes receivable 96.2 71.6 Prepaid expenses and other current assets 239.7 268.1 Total current assets 7,135.1 6,153.3 Goodwill 3,480.1 2,418.3 Other intangible assets, net 1,688.5 971.1 Property, plant and equipment, net 4,458.7 2,788.5 Operating lease right-of-use assets 933.8 875.5 Other assets 185.0 186.2 Total assets $ 17,881.2 $ 13,392.9 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable and outstanding checks in excess of deposits $ 3,165.3 $ 2,594.4 Accrued expenses and other current liabilities 1,025.9 908.3 Finance lease obligations—current installments 221.9 147.2 Operating lease obligations—current installments 104.5 108.2 Total current liabilities 4,517.6 3,758.1 Long-term debt 5,388.8 3,198.5 Deferred income tax liability, net 887.1 497.9 Finance lease obligations, excluding current installments 1,379.9 703.2 Operating lease obligations, excluding current installments 900.7 819.3 Other long-term liabilities 334.7 289.0 Total liabilities 13,408.8 9,266.0 Total shareholders' equity 4,472.4 4,126.9 Total liabilities and shareholders' equity $ 17,881.2 $ 13,392.9 PERFORMANCE FOOD GROUP COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Fiscal Year EndedJune 28, 2025 Fiscal Year EndedJune 29, 2024 Cash flows from operating activities: Net income $ 340.2 $ 435.9 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and intangible asset amortization 717.9 556.7 Provision for losses on accounts receivables 22.7 19.8 Change in LIFO Reserve 88.1 62.3 Other non-cash activities 61.9 57.5 Changes in operating assets and liabilities, net: Accounts receivable (151.9 ) (81.1 ) Inventories (337.9 ) 37.7 Income taxes receivable (17.5 ) (29.9 ) Prepaid expenses and other assets 56.6 (95.8 ) Trade accounts payable and outstanding checks in excess of deposits 372.7 124.0 Accrued expenses and other liabilities 57.3 75.9 Net cash provided by operating activities 1,210.1 1,163.0 Cash flows from investing activities: Purchases of property, plant and equipment (506.0 ) (395.6 ) Net cash paid for acquisitions (2,596.4 ) (307.7 ) Proceeds from sale of property, plant and equipment and other 13.4 20.6 Net cash used in investing activities (3,089.0 ) (682.7 ) Cash flows from financing activities: Net borrowings under ABL Facility 1,194.2 6.8 Repayment of Notes due 2025 (275.0 ) Borrowing of Notes due 2032 1,000.0 — Cash paid for debt issuance, extinguishment and modifications (34.2 ) — Payments under finance lease obligations (188.0 ) (122.2 ) Net cash paid for acquisitions (1.5 ) — Proceeds from exercise of stock options and employee stock purchase plan 43.8 17.7 Cash paid for shares withheld to cover taxes (18.8 ) (21.5 ) Repurchases of common stock (57.6 ) (78.1 ) Other financing activities — (0.3 ) Net cash provided by (used in) financing activities 1,937.9 (472.6 ) Net increase in cash and restricted cash 59.0 7.7 Cash and restricted cash, beginning of period 27.7 20.0 Cash and restricted cash, end of period $ 86.7 $ 27.7 The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (In millions) As ofJune 28, 2025 As ofJune 29, 2024 Cash $ 78.5 $ 20.0 Restricted cash(1) 8.2 7.7 Total cash and restricted cash $ 86.7 $ 27.7 (1) Restricted cash is reported within other assets and represents the amounts required by insurers to collateralize a part of the deductibles for the Company's workers' compensation and liability claims. Supplemental disclosures of cash flow information are as follows: (In millions) Fiscal Year EndedJune 28, 2025 Fiscal Year EndedJune 29, 2024 Cash paid during the year for: Interest net of amounts capitalized $ 344.4 $ 242.1 Income tax payments net of refunds 129.7 177.1 Statement Regarding Non-GAAP Financial Measures This earnings release and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow. Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and are not indicative of net income as determined under GAAP. Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate PFG's liquidity or financial performance. Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation. PFG uses Adjusted EBITDA to evaluate the performance of its business on a consistent basis over time and for business planning purposes. In addition, targets based on Adjusted EBITDA are among the measures we use to evaluate our management's performance for purposes of determining their compensation under our incentive plans. PFG believes that the presentation of Adjusted EBITDA enhances an investor's understanding of PFG's performance. PFG believes this measure is a useful metric to assess PFG's operating performance from period to period by excluding certain items that PFG believes are not representative of PFG's core business. Management measures operating performance based on our Adjusted EBITDA, defined as net income before interest expense, interest income, income and franchise taxes, and depreciation and amortization, further adjusted to exclude certain items we do not consider part of our core operating results. Such adjustments include certain unusual, non-cash, non-recurring, cost reduction and other adjustment items outside of the ordinary course of the Company's operations and not indicative of ongoing performance as permitted in calculating covenant compliance under PFG's $5.0 billion secured credit facility (the "ABL Facility") and indentures governing its outstanding notes (other than certain pro forma adjustments permitted under our ABL Facility and indentures relating to the Adjusted EBITDA contribution of acquired entities or businesses prior to the acquisition date). Under our ABL Facility and indentures, PFG's ability to engage in certain activities such as incurring certain additional indebtedness, making certain investments, and making restricted payments is tied to ratios based on Adjusted EBITDA (as defined in the ABL Facility and indentures). Management also uses Adjusted Diluted EPS, which is calculated by adjusting the most directly comparable GAAP financial measure by excluding the same items excluded in PFG's calculation of Adjusted EBITDA, as well as amortization of intangible assets, to the extent that each such item was included in the applicable GAAP financial measure. For business combinations, the Company generally allocates a portion of the purchase price to intangible assets and such intangible assets contribute to revenue generation. The amount of the allocation is based on estimates and assumptions made by management and is subject to amortization over the useful lives of the intangible assets. The amount of the purchase price from an acquisition allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition, and thus the Company does not believe it is reflective of ongoing operations. Intangible asset amortization excluded from Adjusted Diluted EPS represents the entire amount recorded within the Company's GAAP financial statements; whereas, the revenue generated by the associated intangible assets has not been excluded from Adjusted Diluted EPS. Intangible asset amortization is excluded from Adjusted Diluted EPS because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired, or the estimated useful life of an intangible asset is revised. Management also uses Free Cash Flow, which is defined as net cash provided by operating activities less capital expenditures (purchases of property, plant, and equipment). PFG also believes that the presentation of Free Cash Flow enhances an investor's understanding of PFG's ability to make strategic investments and manage debt levels. PFG believes that the presentation of Adjusted EBITDA, Adjusted Diluted EPS, and Free Cash Flow is useful to investors because these metrics provide insight into underlying business trends and year-over-year results and are frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in PFG's industry. The following tables include a reconciliation of non-GAAP financial measures to the applicable most comparable GAAP financial measures. PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) Three Months Ended (In millions, except per share data) June 28, 2025 June 29, 2024 Change % Net income (GAAP) $ 131.5 $ 166.5 $ (35.0 ) (21.0 ) Interest expense, net 94.5 57.6 36.9 64.1 Income tax expense 45.2 58.5 (13.3 ) (22.7 ) Depreciation 126.2 94.4 31.8 33.7 Amortization of intangible assets 69.4 50.4 19.0 37.7 Change in LIFO reserve (A) 49.2 11.8 37.4 316.9 Stock-based compensation expense 12.2 10.2 2.0 19.6 (Gain) loss on fuel derivatives (0.2 ) 0.5 (0.7 ) (140.0 ) Acquisition, integration & reorganization expenses (B) 11.6 4.6 7.0 152.2 Other adjustments (C) 7.3 1.7 5.6 329.4 Adjusted EBITDA (Non-GAAP) $ 546.9 $ 456.2 $ 90.7 19.9 Diluted earnings per share (GAAP) $ 0.84 $ 1.07 $ (0.23 ) (21.5 ) Impact of amortization of intangible assets 0.44 0.32 0.12 37.5 Impact of change in LIFO reserve 0.31 0.08 0.23 287.5 Impact of stock-based compensation expense 0.08 0.07 0.01 14.3 Impact of (gain) loss on fuel derivatives — — — — Impact of acquisition, integration & reorganization charges 0.07 0.03 0.04 133.3 Impact of other adjustment items 0.05 0.01 0.04 400.0 Tax impact of above adjustments (0.24 ) (0.13 ) (0.11 ) (84.6 ) Adjusted Diluted Earnings per Share (Non-GAAP) $ 1.55 $ 1.45 $ 0.10 6.9 A. Includes increases in the LIFO inventory reserve of $5.6 million for Foodservice and $43.6 million for Convenience for the fourth quarter of fiscal 2025 compared to an increase of $4.4 million for Foodservice and an increase of $7.4 million for Convenience for the fourth quarter of fiscal 2024. B. Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. C. Includes amounts related to favorable and unfavorable leases, litigation-related accruals, severance, franchise tax expense, insurance proceeds due to hurricane and other weather related events, foreign currency transaction gains and losses, gains and losses on disposals of fixed assets, and other adjustments permitted by our ABL Facility. PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) Fiscal Year Ended (In millions, except per share data) June 28, 2025 June 29, 2024 Change % Net income (GAAP) $ 340.2 $ 435.9 $ (95.7 ) (22.0 ) Interest expense, net 358.4 232.2 126.2 54.3 Income tax expense 118.6 160.9 (42.3 ) (26.3 ) Depreciation 455.3 355.2 100.1 28.2 Amortization of intangible assets 262.6 201.5 61.1 30.3 Change in LIFO reserve (A) 88.1 62.3 25.8 41.4 Stock-based compensation expense 47.8 41.9 5.9 14.1 Loss (gain) on fuel derivatives 0.2 (1.8 ) 2.0 111.1 Acquisition, integration & reorganization expenses (B) 87.8 23.7 64.1 270.5 Other adjustments (C) 7.9 (5.7 ) 13.6 238.6 Adjusted EBITDA (Non-GAAP) $ 1,766.9 $ 1,506.1 $ 260.8 17.3 Diluted earnings per share (GAAP) $ 2.18 $ 2.79 $ (0.61 ) (21.9 ) Impact of amortization of intangible assets 1.68 1.29 0.39 30.2 Impact of change in LIFO reserve 0.56 0.40 0.16 40.0 Impact of stock-based compensation 0.31 0.27 0.04 14.8 Impact of loss (gain) on fuel derivatives — (0.01 ) 0.01 100.0 Impact of acquisition, integration & reorganization charges 0.56 0.15 0.41 273.3 Impact of other adjustment items 0.05 (0.03 ) 0.08 266.7 Tax impact of above adjustments (0.86 ) (0.56 ) (0.30 ) (53.6 ) Adjusted Diluted Earnings per Share (Non-GAAP) $ 4.48 $ 4.30 $ 0.18 4.2 A. Includes increases in the LIFO inventory reserve of $6.6 million for Foodservice and $81.5 million for Convenience for fiscal 2025 compared to increases of $3.8 million for Foodservice and $58.5 million for Convenience for fiscal 2024. B. Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. C. Includes a $3.8 million gain on the sale of a Foodservice warehouse facility for fiscal year 2025 and an $8.1 million gain on the sale of a Foodservice warehouse facility for fiscal year 2024, as well as amounts related to favorable and unfavorable leases, litigation-related accruals, severance, franchise tax expense, insurance proceeds due to hurricane and other weather related events, foreign currency transaction gains and losses, gains and losses on disposals of other fixed assets, and other adjustments permitted by our ABL Facility. (In millions) Fiscal Year EndedJune 28, 2025 Fiscal Year EndedJune 29, 2024 Net cash provided by operating activities (GAAP) $ 1,210.1 $ 1,163.0 Purchases of property, plant and equipment (506.0 ) (395.6 ) Free cash flow (Non-GAAP) $ 704.1 $ 767.4 PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) Fiscal Year Ended June 28, 2025 (In millions, except per share data) Q1 Q2 Q3 Q4 Net income (GAAP) $ 108.0 $ 42.4 $ 58.3 $ 131.5 Interest expense, net 66.8 100.2 96.9 94.5 Income tax expense 38.9 14.3 20.2 45.2 Depreciation 97.4 114.1 117.6 126.2 Amortization of intangible assets 55.5 68.4 69.3 69.4 Change in LIFO reserve (A) 12.7 17.8 8.4 49.2 Stock-based compensation expense 11.3 11.7 12.6 12.2 Loss (gain) on fuel derivatives 1.4 (0.8 ) (0.2 ) (0.2 ) Acquisition, integration & reorganization expenses (B) 19.1 51.3 5.8 11.6 Other adjustments (C) 0.8 3.6 (3.8 ) 7.3 Adjusted EBITDA (Non-GAAP) $ 411.9 $ 423.0 $ 385.1 $ 546.9 Diluted earnings per share (GAAP) $ 0.69 $ 0.27 $ 0.37 $ 0.84 Impact of amortization of intangible assets 0.36 0.44 0.44 0.44 Impact of change in LIFO reserve 0.08 0.11 0.05 0.31 Impact of stock-based compensation 0.07 0.08 0.08 0.08 Impact of loss (gain) on fuel derivatives 0.01 — — — Impact of acquisition, integration & reorganization charges 0.12 0.33 0.04 0.07 Impact of other adjustment items 0.01 0.02 (0.02 ) 0.05 Tax impact of above adjustments (0.18 ) (0.27 ) (0.17 ) (0.24 ) Adjusted Diluted Earnings per Share (Non-GAAP) $ 1.16 $ 0.98 $ 0.79 $ 1.55 A. Includes increases (decreases) in the LIFO inventory reserve of $0.9 million, ($0.1) million, $0.2 million, and $5.6 million for Foodservice and $11.8 million, $17.9 million, $8.2 million, and $43.6 million for Convenience for the first quarter, second quarter, third quarter, and fourth quarter of fiscal 2025, respectively. B. Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. C. Includes an $3.8 million gain on the sale of a Foodservice warehouse facility in the third quarter of fiscal 2025, as well as amounts related to favorable and unfavorable leases, litigation-related accruals, severance, franchise tax expense, insurance proceeds due to hurricane and other weather related events, foreign currency transaction gains and losses, gains and losses on disposals of other fixed assets, and other adjustments permitted by our ABL Facility. PERFORMANCE FOOD GROUP COMPANY Non-GAAP Reconciliation (Unaudited) Fiscal Year Ended June 29, 2024 (In millions, except per share data) Q1 Q2 Q3 Q4 Net income (GAAP) $ 120.7 $ 78.3 $ 70.4 $ 166.5 Interest expense, net 56.1 61.4 57.1 57.6 Income tax expense 42.6 33.4 26.4 58.5 Depreciation 83.8 86.3 90.7 94.4 Amortization of intangible assets 45.5 57.0 48.6 50.4 Change in LIFO reserve (A) 19.2 21.8 9.5 11.8 Stock-based compensation expense 10.7 11.0 10.0 10.2 (Gain) loss on fuel derivatives (3.5 ) 1.8 (0.6 ) 0.5 Acquisition, integration & reorganization expenses (B) 9.8 3.9 5.4 4.6 Other adjustments (C) (1.1 ) (9.5 ) 3.2 1.7 Adjusted EBITDA (Non-GAAP) $ 383.8 $ 345.4 $ 320.7 $ 456.2 Diluted earnings per share (GAAP) $ 0.77 $ 0.50 $ 0.45 $ 1.07 Impact of amortization of intangible assets 0.29 0.36 0.31 0.32 Impact of change in LIFO reserve 0.12 0.14 0.06 0.08 Impact of stock-based compensation 0.07 0.07 0.06 0.07 Impact of (gain) loss on fuel derivatives (0.02 ) 0.01 — — Impact of acquisition, integration & reorganization charges 0.06 0.03 0.04 0.03 Impact of other adjustment items — (0.06 ) 0.02 0.01 Tax impact of above adjustments (0.14 ) (0.15 ) (0.14 ) (0.13 ) Adjusted Diluted Earnings per Share (Non-GAAP) $ 1.15 $ 0.90 $ 0.80 $ 1.45 A. Includes increases (decreases) in the LIFO inventory reserve of $1.7 million, ($1.1) million, ($1.2) million, and $4.4 million for Foodservice and $17.5 million, $22.9 million, $10.7 million, and $7.4 million for Convenience for the first quarter, second quarter, third quarter, and fourth quarter of fiscal 2024, respectively. B. Includes professional fees and other costs related to in-progress, completed, and abandoned acquisitions, costs of integrating certain of our facilities, and facility closing costs. C. Includes an $8.1 million gain on the sale of a Foodservice warehouse facility in second quarter of fiscal 2024, as well as asset impairments, insurance proceeds due to hurricane and other weather related events, amounts related to favorable and unfavorable leases, foreign currency transaction gains and losses, franchise tax expense, and other adjustments permitted by our ABL Facility. Segment Results In the third quarter of fiscal 2025, the Company updated its operating segments to reflect the manner in which the business is managed. The Company continues to have three reportable segments: Foodservice, Convenience, and Specialty (formerly Vistar). Management evaluates the performance of these segments based on various operating and financial metrics, including their respective sales growth and Segment Adjusted EBITDA, which is the Company's GAAP measure of segment profit. Segment Adjusted EBITDA is defined as net income before interest expense, interest income, income taxes, depreciation, and amortization and excludes certain items that the Company does not consider part of its segments' core operating results, including stock-based compensation expense, changes in the LIFO reserve, acquisition, integration and reorganization expenses, and gains and losses related to fuel derivatives. Corporate & All Other is comprised of corporate overhead and certain operations that are not considered separate reportable segments based on their size. The presentation and amounts for the three months and fiscal year ended June 29, 2024 have been recast to reflect the updated segments. The following tables set forth net sales and Segment Adjusted EBITDA by segment and the reconciling items for Corporate & All Other and eliminations for the periods indicated (dollars in millions): Net Sales Three Months Ended June 28, 2025 June 29, 2024 Change % Foodservice $ 9,191.5 $ 7,661.1 $ 1,530.4 20.0 Convenience 6,436.3 6,258.5 177.8 2.8 Specialty 1,253.5 1,203.7 49.8 4.1 Total Segments $ 16,881.3 $ 15,123.3 $ 1,758.0 11.6 Corporate & All Other 256.9 238.1 18.8 7.9 Intersegment Eliminations (199.3 ) (172.2 ) (27.1 ) (15.7 ) Total net sales $ 16,938.9 $ 15,189.2 $ 1,749.7 11.5 Fiscal Year Ended June 28, 2025 June 29, 2024 Change % Foodservice $ 33,646.1 $ 29,061.5 $ 4,584.6 15.8 Convenience 24,507.5 24,177.0 330.5 1.4 Specialty 4,905.0 4,789.8 115.2 2.4 Total Segments $ 63,058.6 $ 58,028.3 $ 5,030.3 8.7 Corporate & All Other 955.0 909.2 45.8 5.0 Intersegment Eliminations (714.7 ) (656.3 ) (58.4 ) (8.9 ) Total net sales $ 63,298.9 $ 58,281.2 $ 5,017.7 8.6 Segment Adjusted EBITDA Three Months Ended June 28, 2025 June 29, 2024 Change % Foodservice $ 386.9 $ 306.3 $ 80.6 26.3 Convenience 120.0 114.5 5.5 4.8 Specialty 93.2 85.5 7.7 9.0 Total Segments $ 600.1 $ 506.3 $ 93.8 18.5 Corporate & All Other (53.2 ) (50.1 ) (3.1 ) (6.2 ) Total Adjusted EBITDA $ 546.9 $ 456.2 $ 90.7 19.9 Fiscal Year Ended June 28, 2025 June 29, 2024 Change % Foodservice $ 1,221.6 $ 982.2 $ 239.4 24.4 Convenience 407.3 363.6 43.7 12.0 Specialty 348.2 340.6 7.6 2.2 Total Segments $ 1,977.1 $ 1,686.4 $ 290.7 17.2 Corporate & All Other (210.2 ) (180.3 ) (29.9 ) (16.6 ) Total Adjusted EBITDA $ 1,766.9 $ 1,506.1 $ 260.8 17.3 View source version on Contacts Investors: William S. Marshall SVP, Investor Relations (804) Media: Scott Golden Director, Communications & Engagement (804) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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‘What Tariffs? Who Cares?' as Inflation Data Ignites Risk Assets
(Bloomberg) -- Global investors dived in the riskiest assets after a benign US inflation report dispelled fears of stagflation and lifted a roadblock for the Federal Reserve to cut interest rates. Stocks jumped to fresh record highs, and small-cap stocks, emerging-markets and semiconductors extended a rally. Measures of implied volatility plunged even as President Donald Trump tariffs threaten to disrupt global trade. The crypto rally has also broadened, with Ether notching a 55% jump in the past month. Meme stocks are seeing a resurgence in popularity. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Five Years After Black Lives Matter, Brussels' Colonial Statues Remain For Homeless Cyclists, Bikes Bring an Escape From the Streets The moves underscore the roaring optimism that's been unleashed in the past few months. Fears over a looming trade war, which sparked a selloff in April, have given way to confidence that the economy can keep powering ahead. The latest move has been powered by renewed hopes over imminent rate cuts in the US. 'The mood is surprisingly bullish, it's almost like 'what tariffs, who cares?' said Neil Birrell, chief investment officer at Premier Miton Investors. 'There's this detachment from economic reality on what's happening and there's a wave of either optimism or exuberance in equity markets.' Swaps are now pricing in about a 90% chance of a quarter-point move in September, while some traders loading up on bets on an even bigger move. In an interview Tuesday, Treasury Secretary Scott Bessent suggested that the Fed ought to be open to a bigger, 50 basis-point cut next month. Against that backdrop, the S&P 500 Index is back at record highs as solid corporate earnings highlighted a muted impact from sweeping tariffs. The benchmark has surged almost 30% since a low in April — when Trump's trade shock sparked a flight from US assets. The gauge is also up nearly 12% since Trump won the election in November. In another sign of market confidence: volatility measures have collapsed. The VIX is the lowest since December, while the MOVE Index of bond-market volatility is at its most subdued level since 2022. A measure of implied price swings in FX markets is also at the lowest in a year. 'Do I see a lot of potential risks to dent some of the sentiment and expectations? I do. But I do not think the market is being irrational at this point in time. We could go a lot further before the market gets irrational,' Bernard Ahkong, CIO at UBS O'Connor Global Multi-Strategy Alpha, said in a Bloomberg TV interview. 'It's very expensive right now to be bearish.' In equity markets, sentiment has flipped from fears of a trade-induced recession in April to outright optimism around economic resilience, mild inflation and potential interest rate cuts. Renewed buzz around artificial intelligence has once again put the technology behemoths in the lead. The so-called Magnificent Seven group of tech stocks, which include Nvidia Corp. and Microsoft Corp., have rallied almost 50% since early April after sinking in the first quarter. Most of that is down to robust earnings, which allayed worries that the companies are overspending on AI. Megacap tech stocks almost single-handedly drove earnings growth in the second quarter, accounting for 90% of the overall increase in S&P 500 profits, according to an analysis by Deutsche Bank AG strategists. What Bloomberg Strategists Say 'It would be foolish to fight this stock market rally, even if the fundamental framework underpinning the market seems extremely flimsy. At some point, the rise in US long-end yields will damage equities, if they don't trip themselves up first, or we don't get another Trump curveball. But there's no need to prematurely trade that narrative.' — Mark Cudmore, Markets Live Executive Editor. Click here for the full analysis. The euphoria is even spreading to the riskiest corners of the US equity market. The Russell 2000 index of small-cap stocks — which tend to be more sensitive to interest rates than the large-cap cohort — is tracking a fourth straight month of gains. The erratic moves in stocks this year have caused a frenzy among Wall Street strategists, who broadly struggled to keep with the slump in April as well as the subsequent recovery. Some — such as Morgan Stanley's Michael Wilson and former Wells Fargo strategist Chris Harvey — were among the rare forecasters whose nerves of steel during the April rout proved right in the end. While Wilson warned that the S&P 500 faced further declines in the short term, he held on to his bullish 12-month target and, since May, has been advising clients to buy the dip. His peers at banks such as Goldman Sachs Group Inc. and Citigroup Inc. were less successful. They rushed to slash targets in the aftermath of the trade announcements, only to return to a bullish view as Trump paused the steep levies and earnings proved resilient. Now, Wall Street prognosticators are turning even more optimistic. Citigroup strategist Scott Chronert raised his year-end target for the S&P 500 again this month, partly as he expects tax cuts to offset the impact of tariffs. And while investors have matched that positive mood, positioning data show their equity allocation isn't stretched. In other markets, though, the recovery from April is less assured. US 10-year yields are within five basis points of levels seen at the end of March. Bloomberg's gauge of the dollar is still down more than 9% from its high before inauguration day. 'Rates are going to continue to price in further Fed rate cuts on the back of the increasing debate that we're likely see a 25 or 50 basis point move in September,' said Laura Cooper, head of macro credit and global investment strategist at Nuveen. 'The inflation print yesterday cleared the way for that debate to become a bit move lively.' --With assistance from Freya Jones and Alice Atkins. Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Dubai's Housing Boom Is Stoking Fears of Another Crash The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results A $340 Million New York Office Makeover Is Converting Boardrooms to Bedrooms ©2025 Bloomberg L.P. 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Trump tariffs live updates: World adapts to China truce, US tariff revenue, inflation in check
U.S. and Japanese stock indexes are at all-time highs as the world adapts to President Trump's trade policy, tariffs bring in billions in revenue while not yet causing renewed inflation, and markets price in a 92% chance that the Fed cut rates by 25 basis points in September. On Monday, President Trump signed an executive order extending the tariff truce between the US and China for another 90 days, pushing trade negotiations out to the fall. Average US tariff rates on Chinese goods are currently at about 55%, according to Bloomberg. Last week, Trump's unveiled "reciprocal" tariffs on dozens of US trade partners. The next negotiations to watch are Canada, Mexico, and China in the coming months. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. AI boom could help manufacturers adapt to global tariff landscape Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. GE Appliances to invest over $3B in US, moving from China and Mexico GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. Bessent dismisses China investing in US as part of a trade deal Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Xi takes aim at US 'protectionism' in phone call with Lula Leaders of the BRICS nations seem to be in talks. Brazilian President Lula spoke with China's leader Xi after meeting with India and Russia. This outreach comes after President Trump pulled Brazil into his trade war. During the call, China's Xi urged for coordinated efforts against US protectionism. Bloomberg News reports: Read more here. Soybean futures fall after Trump extends trade truce with China Soybean (ZS=F) prices fell back below $10 a bushel on Tuesday, after news of the US-China trade truce extension. Traders saw this truce as likely delaying major grain-purchasing deals between the two nations until later this year. Bloomberg News reports: Read more here. European Union awaits US follow-up on trade deal promises BRUSSELS (Reuters) - The European Union could not say when a joint statement on tariffs with the United States would be ready, nor when the White House would issue an executive order on European car import duties, a spokesperson said on Tuesday. The EU and U.S. reached a framework trade agreement at the end of July but only the 15% baseline tariff on European exports had so far come into effect, as of last week. EU officials previously said a joint statement would follow the deal "very soon" along with executive orders from U.S. President Donald Trump on key carve-outs. "It is an agreement that we believe is strong and the best we could have ... Of course, we expect the U.S. to take further steps that are part of this agreement but I don't believe at this stage we can put a timeline on these engagements," the European Commission spokesperson said. Read more here. 'Climate of uncertainty' remains after China-US trade extension Zhou Mi, an expert at the Ministry of Commerce-backed Chinese Academy of International Trade and Economic Cooperation, told Bloomberg that there remains a "climate of uncertainty" despite the latest 90-day pause on additional tariffs enacted by the US on Monday. The Trump administration 'frequently sends out a range of signals, often through its negotiation tactics and public statements — some of which even contradict each other,' Zhou told Bloomberg. 'This creates a climate of uncertainty that makes businesses and markets increasingly concerned about the stability and outlook for economic and trade policies between China and the US, as well as the US and other countries." Average US tariffs on good imported from China currently sit at 55%. Read more here. Swiss precious metals group wants 'a formal and binding decision' on Trump gold tariff promise Not everyone is fully satisfied with President Donald Trump's social media statement on not putting tariffs on gold after uncertainty in the bullion market in recent days. "President Trump's statement is an encouraging signal for trade stability," Christoph Wild, president of the the the Swiss precious metals association ASFCMP, stated on Tuesday. "However, only a formal and binding decision will provide the certainty the gold sector and its partners require." Read more here. China urges firms not to use Nvidia H20 chips in new guidance China has told local companies to avoid using Nvidia (NVDA) H20 processors, especially for government work. This makes it harder for Nvidia to recover billions in lost sales in China and affects the US government's plan to benefit from those sales. This latest move by China appears to be in response to the deal Nvidia and AMD (AMD) made with the US government over the weekend to pay the US 15% of the revenue for AI-related chip sales to China, adding a monetization layer to the Trump administration's tariff policy that has reoriented global trade relationships. In recent weeks, Chinese officials warned several firms against using these less advanced chips. The strongest advice was to keep J20 processors out of government national security projects, both for state-owned and private companies. Bloomberg News reports: Read more here. Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. Trump reportedly signs order granting another 90-day extension on harshest China tariffs Yahoo Finance's Ben Werschkul reports: Read more here. Trump says, 'Gold will not be Tariffed!' President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. Small US firms paying Trump tariffs face $202B annual hit Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Trump on China extension: We'll see what happens President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. Swiss government to meet pharma firms to discuss US tariffs The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. New gold tariffs are in effect. Will Costco gold bars be affected? Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. US consumers to bear brunt of tariff hit: Goldman Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Nvidia, AMD to pay 15% on China AI chip sales in US deal Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Why Trump's soybean ask of China is 'highly unlikely' China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. AI boom could help manufacturers adapt to global tariff landscape Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. GE Appliances to invest over $3B in US, moving from China and Mexico GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. Bessent dismisses China investing in US as part of a trade deal Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Xi takes aim at US 'protectionism' in phone call with Lula Leaders of the BRICS nations seem to be in talks. Brazilian President Lula spoke with China's leader Xi after meeting with India and Russia. This outreach comes after President Trump pulled Brazil into his trade war. During the call, China's Xi urged for coordinated efforts against US protectionism. Bloomberg News reports: Read more here. Leaders of the BRICS nations seem to be in talks. Brazilian President Lula spoke with China's leader Xi after meeting with India and Russia. This outreach comes after President Trump pulled Brazil into his trade war. During the call, China's Xi urged for coordinated efforts against US protectionism. Bloomberg News reports: Read more here. Soybean futures fall after Trump extends trade truce with China Soybean (ZS=F) prices fell back below $10 a bushel on Tuesday, after news of the US-China trade truce extension. Traders saw this truce as likely delaying major grain-purchasing deals between the two nations until later this year. Bloomberg News reports: Read more here. Soybean (ZS=F) prices fell back below $10 a bushel on Tuesday, after news of the US-China trade truce extension. Traders saw this truce as likely delaying major grain-purchasing deals between the two nations until later this year. Bloomberg News reports: Read more here. European Union awaits US follow-up on trade deal promises BRUSSELS (Reuters) - The European Union could not say when a joint statement on tariffs with the United States would be ready, nor when the White House would issue an executive order on European car import duties, a spokesperson said on Tuesday. The EU and U.S. reached a framework trade agreement at the end of July but only the 15% baseline tariff on European exports had so far come into effect, as of last week. EU officials previously said a joint statement would follow the deal "very soon" along with executive orders from U.S. President Donald Trump on key carve-outs. "It is an agreement that we believe is strong and the best we could have ... Of course, we expect the U.S. to take further steps that are part of this agreement but I don't believe at this stage we can put a timeline on these engagements," the European Commission spokesperson said. Read more here. BRUSSELS (Reuters) - The European Union could not say when a joint statement on tariffs with the United States would be ready, nor when the White House would issue an executive order on European car import duties, a spokesperson said on Tuesday. The EU and U.S. reached a framework trade agreement at the end of July but only the 15% baseline tariff on European exports had so far come into effect, as of last week. EU officials previously said a joint statement would follow the deal "very soon" along with executive orders from U.S. President Donald Trump on key carve-outs. "It is an agreement that we believe is strong and the best we could have ... Of course, we expect the U.S. to take further steps that are part of this agreement but I don't believe at this stage we can put a timeline on these engagements," the European Commission spokesperson said. Read more here. 'Climate of uncertainty' remains after China-US trade extension Zhou Mi, an expert at the Ministry of Commerce-backed Chinese Academy of International Trade and Economic Cooperation, told Bloomberg that there remains a "climate of uncertainty" despite the latest 90-day pause on additional tariffs enacted by the US on Monday. The Trump administration 'frequently sends out a range of signals, often through its negotiation tactics and public statements — some of which even contradict each other,' Zhou told Bloomberg. 'This creates a climate of uncertainty that makes businesses and markets increasingly concerned about the stability and outlook for economic and trade policies between China and the US, as well as the US and other countries." Average US tariffs on good imported from China currently sit at 55%. Read more here. Zhou Mi, an expert at the Ministry of Commerce-backed Chinese Academy of International Trade and Economic Cooperation, told Bloomberg that there remains a "climate of uncertainty" despite the latest 90-day pause on additional tariffs enacted by the US on Monday. The Trump administration 'frequently sends out a range of signals, often through its negotiation tactics and public statements — some of which even contradict each other,' Zhou told Bloomberg. 'This creates a climate of uncertainty that makes businesses and markets increasingly concerned about the stability and outlook for economic and trade policies between China and the US, as well as the US and other countries." Average US tariffs on good imported from China currently sit at 55%. Read more here. Swiss precious metals group wants 'a formal and binding decision' on Trump gold tariff promise Not everyone is fully satisfied with President Donald Trump's social media statement on not putting tariffs on gold after uncertainty in the bullion market in recent days. "President Trump's statement is an encouraging signal for trade stability," Christoph Wild, president of the the the Swiss precious metals association ASFCMP, stated on Tuesday. "However, only a formal and binding decision will provide the certainty the gold sector and its partners require." Read more here. Not everyone is fully satisfied with President Donald Trump's social media statement on not putting tariffs on gold after uncertainty in the bullion market in recent days. "President Trump's statement is an encouraging signal for trade stability," Christoph Wild, president of the the the Swiss precious metals association ASFCMP, stated on Tuesday. "However, only a formal and binding decision will provide the certainty the gold sector and its partners require." Read more here. China urges firms not to use Nvidia H20 chips in new guidance China has told local companies to avoid using Nvidia (NVDA) H20 processors, especially for government work. This makes it harder for Nvidia to recover billions in lost sales in China and affects the US government's plan to benefit from those sales. This latest move by China appears to be in response to the deal Nvidia and AMD (AMD) made with the US government over the weekend to pay the US 15% of the revenue for AI-related chip sales to China, adding a monetization layer to the Trump administration's tariff policy that has reoriented global trade relationships. In recent weeks, Chinese officials warned several firms against using these less advanced chips. The strongest advice was to keep J20 processors out of government national security projects, both for state-owned and private companies. Bloomberg News reports: Read more here. China has told local companies to avoid using Nvidia (NVDA) H20 processors, especially for government work. This makes it harder for Nvidia to recover billions in lost sales in China and affects the US government's plan to benefit from those sales. This latest move by China appears to be in response to the deal Nvidia and AMD (AMD) made with the US government over the weekend to pay the US 15% of the revenue for AI-related chip sales to China, adding a monetization layer to the Trump administration's tariff policy that has reoriented global trade relationships. In recent weeks, Chinese officials warned several firms against using these less advanced chips. The strongest advice was to keep J20 processors out of government national security projects, both for state-owned and private companies. Bloomberg News reports: Read more here. Japan's Nikkei hits record high on tariff relief, tech rally The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. The Nikkei 225 (^N225) hit a record high Tuesday as easing US tariff fears boosted optimism, led by tech stocks and tariff relief. Bloomberg News reports: Read more here. Trump reportedly signs order granting another 90-day extension on harshest China tariffs Yahoo Finance's Ben Werschkul reports: Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. Trump says, 'Gold will not be Tariffed!' President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. President Trump posted on social media that gold will not be subject to tariffs after a surprise US Customs and Border Protection (CBP) ruling sparked confusion over whether the precious metal faced duties. "A Statement from Donald J. Trump, President of the United States of America: Gold will not be Tariffed!" Trump wrote on Truth Social on Monday afternoon. On Friday, the Financial Times reported that CBP classified Swiss one-kilogram and 100-ounce bars of gold as subject to 39% tariffs recently imposed on Switzerland by the Trump administration. Gold futures (GC=F) declined 2.5% early on Monday as investors awaited clarity from the White House over its trade position on the precious metal amid reports that imports of Swiss gold bars would not be exempt from tariffs. Small US firms paying Trump tariffs face $202B annual hit Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Small US businesses are struggling to comply with President Trump's new tariffs. These companies, which are the source of more than half of the country's job creation are also finding it hard to cope with the growing financial strain from higher import costs. Bloomberg News: Read more here. Trump on China extension: We'll see what happens President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. President Trump said China has been "dealing quite nicely" with the US, a possible hint that his administration is preparing to extend the countries' trade truce past a deadline that expires Tuesday. "We'll see what happens," he said during a White House press conference, adding, "They've been dealing quite nicely." The countries have held multiple rounds of trade talks during the 90-day suspension of sky-high tariffs on each other. Both sides have hailed progress in those talks. An extension into the fall could potentially set up a Trump meeting with Chinese leader Xi Jinping, which Trump has suggested could happen before the end of the year. Swiss government to meet pharma firms to discuss US tariffs The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. The Swiss government is due to meet this week with leaders from Swiss pharmaceutical companies Roche and Novartis, which have faced pressure from President Trump to lower their drug prices in the US. The meeting comes as Switzerland aims to negotiate for a lower tariff rate than the 39% rate the Trump administration imposed last week. And should Trump follow through on pharmaceutical tariffs as well, Roche and Novartis are considered to be more exposed, as they have comparatively fewer US manufacturing sites. From Reuters: Read more here. New gold tariffs are in effect. Will Costco gold bars be affected? Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. Gold (GC=F) has been surging all year, and buying gold bars from Costco is just about the easiest way to get your hands on the precious metal — if you're lucky enough to find them in stock. However, the surprising announcement of additional tariffs on gold bars by US Customs and Border Protection (CBP) left many wondering if the duties applied to Costco's gold bars as well. Yahoo Finance's Hal Bundrick reports: Read more here. US consumers to bear brunt of tariff hit: Goldman Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Goldman Sachs GS) says that President Trump's tariffs are only beginning to raise prices for shoppers, adding more uncertainty to the Treasury market where investors are unsure about how quickly interest rates will be cut. Bloomberg News reports: Read more here. Nvidia, AMD to pay 15% on China AI chip sales in US deal Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Nvidia (NVDA) and AMD (AMD) have agreed to give 15% of their revenue from AI chip sales in China to the US government. This deal helps them get export licenses but is an unusual step that might worry both companies and Beijing. Nvidia will share 15% of earnings from its H20 AI accelerator in China, while AMD will do the same for its MI308 chip. Bloomberg News reports: Read more here. Why Trump's soybean ask of China is 'highly unlikely' China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. China is the world's largest soybean buyer, with nearly a quarter of those purchases coming from the US (and most of the rest coming from Brazil). President Trump's statement that he hopes "China will quickly quadruple its soybean orders" would require China to import the vast majority of its soybeans from the U.S. "It's highly unlikely that China would ever buy four times its usual volume of soybeans from the US," Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters. Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
