Utz Reports Q2 Sales Growth, Earnings Miss Estimates Amid Margin Pressure

Utz Brands reported second-quarter 2025 revenue of $366.7 million, surpassing market expectations with a 3% year-over-year increase driven by strong organic net sales growth of nearly 3% and a 5.4% rise in its Branded Salty Snacks segment. Despite top-line growth, adjusted earnings per share of $0.17 fell short of analysts' estimates, reflecting a 5.6% decline and a downward revision of the full-year earnings growth forecast to 7-10%, from the prior 10-15%, due to higher interest, depreciation, and amortization costs tied to accelerated capital expenditures. The company highlighted operational efficiency and cost management as key factors expanding its adjusted gross profit margin, even as operating margin declined from 6.3% to 1.7% year-over-year, and overheads increased to support expansion efforts. Utz's market presence remains strong with value and volume share gains in core and expansion geographies, supported by a broad portfolio of salty snacks and distribution across multiple retail channels. Financially, Utz faces challenges including a relatively high leverage ratio and an Altman Z-Score indicating distress risk, but ongoing insider buying suggests some confidence in the company’s prospects. Despite earnings misses and margin pressures, Utz raised its organic sales guidance reflecting positive volume trends, underpinned by pricing strategies such as limited-time bonus-pack promotions.