Overview
- Q2 profitability rebounded, with adjusted EBITDA up about 23% to $179 million and adjusted EPS at $0.62.
- Net sales declined 2.6% to roughly $7.9–$8.0 billion, which management linked chiefly to network optimization creating an estimated ~500 bps headwind.
- Cash generation strengthened to $283 million in operating cash flow and $243 million in free cash flow, while net debt fell to $1.68 billion and net leverage to 2.7x.
- FY2026 guidance now targets adjusted EBITDA of $680–$710 million, adjusted EPS of $2.30–$2.70, free cash flow near $330 million, and lower sales of $31.0–$31.4 billion.
- The company repurchased about 742,622–750,000 shares for roughly $25 million and prepaid $115 million of senior notes as initiatives like RELEX, lean DC practices and private brands advance.