Utz Brands, Inc. Q4 FY2025 earnings call

Trevor Martin began the call, introducing Howard Friedman (CEO) and William J. Kelley (CFO). Topics covered include commercial plans for 2026, focusing on driving geographic white space, achieving distribution gains, investing in marketing and innovation, and competing in a rational promotional environment. Also discussed are revenue management capabilities, productivity in COGS, distribution gains in core and expansion markets, innovations like protein - enriched pretzels and Boulder Canyon offerings, and thoughts on the consumer environment and portfolio construction.

The midpoint of the guide anticipates around 40 to 50 basis points of EBITDA margin expansion. The guidance contemplates a flat category at the midpoint with a range of 200 to 300 basis points. The leverage range is set at 3.0 to 3.2, and there is a long - term goal to delever to 2.5 to 3.0 with a free cash flow goal of $100 million.

Q: Andrew Lazar inquired about a large salty competitor's front - footed approach in the category, its influence on 2026 guidance and investment spend.

A: Howard Friedman stated confidence in the commercial plan for 2026, with the guide's 200 - 300 basis points contemplating a flat category at the midpoint. William J. Kelley mentioned the midpoint expects 40 - 50 basis points of EBITDA margin expansion.

Q: Peter Thomas Galbo asked about price reinvestment commentary for Utz brand and ON THE BORDER.

A: Howard Friedman spoke about revenue management capabilities and the price ladder play.

Q: Scott Michael Marks questioned about the SNAP disruption and volume dynamics.

A: Howard Friedman explained that the SNAP disruption had a more significant impact on the Maryland, Virginia, D.C. area.

Q: Michael Scott Lavery asked about the category view and distribution.

A: Howard Friedman was cautiously optimistic about the category and expected positive distribution gains.

Q: Robert Bain Moskow asked about the leverage ratio target and affordability.

A: William J. Kelley explained the leverage range, and Howard Friedman talked about affordability and the price position.

Q: James Ronald Salera asked about growth drivers and the impact of innovation.

A: Howard Friedman discussed expansion geographies and how innovation is margin - accretive.

Q: Peter K. Grom asked about the organic sales outlook and shelf space.

A: Howard Friedman stated a conservative approach and expected positive distribution gains.

Q: Nik Modi asked about the consumer environment and the portfolio.

A: Howard Friedman talked about growth drivers and portfolio construction.

Q: John Joseph Baumgartner asked about competitive programming noise.

A: Howard Friedman said he picks spots for marketing and expects a fair share in the heightened environment.