ROSEMONT, IL - US Foods Holding Corp., one of the largest foodservice distributors in the United States, announced results for the second quarter of fiscal year 2025.

Second Quarter Fiscal 2025 Highlights

• Total case volume increased 0.9%; independent restaurant case volume increased 2.7%
• Net sales increased 3.8% to $10.1 billion
• Gross profit increased 4.2% to $1.8 billion
• Net income increased 13.1% to $224 million
• Adjusted EBITDA1 increased 12.1% to $548 million
• Diluted EPS increased 20.0% to $0.96; Adjusted Diluted EPS1 increased 28.0% to $1.19

“Our second quarter performance underscores the strength of our team's continued focus on execution and delivering value to our customers. This momentum has fueled further market share gains with independent restaurant, healthcare, and hospitality customers, resulting in record Adjusted EBITDA of $548 million and a 40 basis point increase in Adjusted EBITDA margin to a record 5.4%,” said Dave Flitman, CEO, in the recent release. “Looking ahead, we have a long runway of growth and profitability as we pursue our ambition to become the undisputed best in our industry. I am incredibly proud and appreciative of our talented team of 30,000 associates, whose dedication and hard work are delivering on our promise to help our customers Make It.”

“Our results demonstrate the consistent execution of our strategy and continued progress on our self-help initiatives,” added Dirk Locascio, CFO. “We delivered top-line growth and margin expansion combined with accretive share buybacks, which resulted in 28% Adjusted EPS growth. US Foods continues to generate strong cash flow, funding record capital investment to support growth and drive attractive returns, while delivering on our commitment to return capital to shareholders through share repurchases.”

Second Quarter Fiscal Year 2025 Results

Total case volume increased 0.9% from the prior year, driven by a 2.7% increase in independent restaurant case volume, a 4.9% increase in healthcare volume, and a 2.4% increase in hospitality volume, partially offset by a 4.0% decrease in chain volume. Total organic case volume increased 0.5%, which includes 2.3% organic independent restaurant case volume growth. Net sales of $10.1 billion for the quarter increased 3.8% from the prior year, driven by case volume growth and food cost inflation of 2.5%.

Gross profit of $1.8 billion increased by $71 million, or 4.2%, from the prior year, primarily as a result of an increase in total case volume, improved cost of goods sold and inventory management, partially offset by an unfavorable year-over-year LIFO adjustment. Gross profit as a percentage of net sales was 17.6%. Adjusted Gross profit was $1.8 billion, an increase of $85 million, or 5.0% from the prior year. Adjusted Gross profit as a percentage of net sales was 17.8%.

Operating expenses of $1.4 billion increased by $52 million, or 3.8%, from the prior year, primarily as a result of an increase in total case volume and higher distribution, selling, and administrative costs, partially offset by continued distribution productivity improvement as well as actions to streamline administrative processes and costs. Operating expenses as a percentage of net sales were 13.9%. Adjusted Operating expenses were $1.2 billion, an increase of $31 million, or 2.6% from the prior year. Adjusted Operating expenses as a percentage of net sales were 12.3%.

Net income of $224 million, increased by $26 million, or 13.1%, from the prior year. Net income margin was 2.2%, an increase of 18 basis points compared to the prior year. Adjusted EBITDA of $548 million, increased by $59 million, or 12.1%, from the prior year. Adjusted EBITDA margin was 5.4%, an increase of 40 basis points compared to the prior year. Diluted EPS was $0.96; Adjusted Diluted EPS was $1.19.

See the full report here.