Seneca Foods Corp

Previous wording

Net sales totaled $460.0 million for the three months ended September 27, 2025 as compared with $425.5 million for the three months ended September 28, 2024. The overall net sales increase of $34.5 million, or 8.1%, as compared to the prior year quarter was driven by higher sales volume contributing an increase of $33.8 million and a $0.7 million increase from the impact of selling prices and product mix.

Current wording

Net sales totaled $508.3 million for the three months ended December 27, 2025 as compared with $502.9 million for the three months ended December 28, 2024. The overall net sales increase of $5.4 million, or 1.1%, as compared to the prior year quarter was driven by a $11.2 million increase from the impact of selling prices and product mix, which was partially offset by a $5.8 million decrease resulting from lower sales volume.

Previous wording

Net sales of canned vegetables and frozen vegetables increased by a combined $23.1 million over the prior year. The categories experienced an increase in sales volume equating to $20.0 million and a $3.1 million increase from the impact of pricing and product mix. Net sales in the fruit products category had a slight decrease of $0.3 million largely resulting from lower sales volume. The snack products category contributed a net sales increase of $1.6 million mainly due to higher sales volume. Lastly, net sales attributable to the other category increased $2.9 million as compared to the prior year for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Current wording

Net sales of canned vegetables and frozen vegetables increased by a combined $6.4 million over the prior year quarter. The categories experienced an increase of $8.9 million from the impact of pricing and product mix, partially offset by a decrease of $2.5 million due to lower sales volume. Net sales in the fruit products category decreased by $0.9 million largely driven by lower sales volume. The snack products category contributed a net sales decrease of $1.3 million which was also driven by lower sales volume. Lastly, net sales attributable to the other category increased $1.3 million as compared to the prior year quarter for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Previous wording

Net sales totaled $757.5 million for the six months ended September 27, 2025 as compared with $730.2 million for the six months ended September 28, 2024. The overall net sales increase of $27.3 million, or 3.7%, as compared to the prior year six-month interim period was driven by higher sales volume contributing an increase of $21.2 million and a $6.1 million increase from the impact of selling prices and product mix.

Current wording

Net sales totaled $1,265.8 million for the nine months ended December 27, 2025 as compared with $1,233.0 million for the nine months ended December 28, 2024. The overall net sales increase of $32.8 million, or 2.7%, as compared to the prior year nine-month interim period was driven by higher sales volume contributing an increase of $16.5 million and a $16.3 million increase from the impact of higher selling prices and product mix.

Previous wording

Net sales of canned vegetables and frozen vegetables increased by a combined $31.8 million over the prior year quarter. The categories experienced an increase in sales volume equating to $33.1 million, partially offset by a decrease of $1.3 million from the impact of pricing and product mix. Net sales in the fruit products category remained relatively consistent with a slight increase of $0.5 million largely driven by higher selling prices. The snack products category contributed a net sales increase of $0.9 million mainly due to higher sales volume. Lastly, net sales attributable to the other category increased $1.3 million as compared to the prior year quarter for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Current wording

Net sales of canned vegetables and frozen vegetables increased by a combined $29.4 million over the prior year. The categories experienced an increase in sales volume equating to $18.5 million and a $10.9 million increase from the impact of pricing and product mix. Net sales in the fruit products category decreased by $1.2 million mainly driven by lower sales volume. The snack products category remained relatively consistent with a net sales increase of $0.3 million. Lastly, net sales attributable to the other category increased $4.2 million as compared to the prior year for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Previous wording

Gross Margin: Gross margin for the three months ended September 27, 2025 was 13.4% as compared to 10.1% for the three months ended September 28, 2024. Gross margin was higher for the current quarter, primarily driven by a LIFO credit that decreased the cost of products sold on a GAAP basis year-over-year. Therefore, although FIFO per unit costs increased at a higher rate than selling prices compared to the prior year quarter, the LIFO credit caused the increase in net sales to outpace the increase in cost of products sold, thus increasing gross margin. Refer to the business trends section above and the material cash requirements section below for additional discussion of the factors impacting the respective seasonal pack.

Current wording

Gross Margin: Gross margin for the three months ended December 27, 2025 was 16.4% as compared to 9.8% for the three months ended December 28, 2024. Gross margin was higher for the current quarter, partially driven by a LIFO credit that decreased the cost of products sold on a GAAP basis year-over-year. In addition, finished goods sold by the Company during the current quarter largely consisted of products produced during the current year seasonal pack, which have a lower cost on a FIFO per unit basis as compared to finished goods sold during the prior year quarter. These factors, along with the net sales increase further discussed in the section above, resulted in a higher gross margin for the current quarter. Refer to the separate business trends section and the material cash requirements section for additional discussion of the factors impacting the respective seasonal pack.

Previous wording

Selling, General, and Administrative: Selling, general and administrative expense for the three months ended September 27, 2025 increased $2.5 million from the three months ended September 28, 2024. Selling, general, and administrative expense as a percentage of net sales for the three months ended September 27, 2025, was 4.5% as compared with 4.2% for the prior year quarter. The percentage remained relatively flat on a comparative basis as net sales increased and selling, general, and administrative expense increased mostly driven by routine workforce related costs.

Current wording

Selling, General, and Administrative: Selling, general and administrative expense for the three months ended December 27, 2025 increased $1.0 million from the three months ended December 28, 2024. Selling, general, and administrative expense as a percentage of net sales for the three months ended December 27, 2025, was 4.6% as compared with 4.5% for the prior year quarter. The percentage remained relatively flat on a comparative basis as net sales increased and selling, general, and administrative expense increased mostly driven by routine workforce related costs.

Previous wording

Other Operating Income, net: The Company had net other operating income of $0.3 million during the six months ended September 27, 2025, which was driven primarily by the sale of various spare equipment. During the six months ended September 28, 2024, the Company had net other operating income of $0.1 million, which was driven primarily by the sale of a small portion of land in the Midwest and partially offset by minimal restructuring charges attributable to equipment moves for the Northeast trucking fleet.

Current wording

Other Operating (Income) Expense, net: The Company had net other operating income of $0.1 million during the three months ended December 27, 2025, which was driven primarily by the sale of various spare equipment and nominal amounts related to the use of Company-owned land. During the three months ended December 28, 2024, the Company had net other operating expense of $0.8 million, which was driven primarily by the disposal of various spare equipment.

Previous wording

Other Non-Operating Income: Other non-operating income totaled $1.9 million and $1.4 million for the three months ended September 27, 2025 and September 28, 2024, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Current wording

Other Non-Operating Income: Other non-operating income totaled $2.8 million and $1.5 million for the three months ended December 27, 2025 and December 28, 2024, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Previous wording

Interest Expense, net: Interest expense as a percentage of net sales was 1.0% for the three months ended September 27, 2025, as compared to 2.1% for the three months ended September 28, 2024. Interest expense decreased from $9.0 million in the prior year quarter to $4.7 million in the current quarter primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility and a lower weighted average interest rate as compared to the prior year quarter.

Current wording

Interest Expense, net: Interest expense as a percentage of net sales was 0.8% for the three months ended December 27, 2025, as compared to 1.6% for the three months ended December 28, 2024. Interest expense decreased from $7.8 million in the prior year quarter to $4.1 million in the current quarter primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility and a lower weighted average interest rate as compared to the prior year quarter.

Previous wording

Gross Margin: Gross margin for the six months ended September 27, 2025 was 13.7% as compared to 11.7% for the six months ended September 28, 2024. Gross margin was higher for the current six-month period, primarily driven by a LIFO credit that decreased the cost of products sold on a GAAP basis year-over-year. Therefore, although FIFO per unit costs increased at a higher rate than selling prices compared to the prior year six-month period, the LIFO credit caused the increase in net sales to outpace the increase in cost of products sold, thus increasing gross margin. Refer to the business trends section above and the material cash requirements section below for additional discussion of the factors impacting the respective seasonal pack.

Current wording

Gross Margin: Gross margin for the nine months ended December 27, 2025 was 14.8% as compared to 10.9% for the nine months ended December 28, 2024. Gross margin was higher for the current nine-month period, partially driven by the net sales increase further discussed in the section above and by a LIFO credit that decreased the cost of products sold on a GAAP basis year-over-year. Offsetting those factors, FIFO per unit costs for finished goods sold during the current nine-month period increased as compared to the prior year nine-month period given that a portion of the products sold in the current period were sourced from the prior year seasonal pack which had a higher per unit cost. However, the impact of the net sales increase and LIFO credit outpaced the increase in cost of products sold, thus resulting in a higher gross margin. Refer to the separate business trends section and the material cash requirements section for additional discussion of the factors impacting the respective seasonal pack.

Previous wording

Selling, General, and Administrative: Selling, general and administrative expense for the six months ended September 27, 2025 increased $3.7 million from the six months ended September 28, 2024. Selling, general, and administrative expense as a percentage of net sales for the six months ended September 27, 2025, was 5.2% as compared with 4.9% for the prior year six-month interim period. The percentage remained relatively flat on a comparative basis as net sales increased and selling, general, and administrative expense increased mostly driven by routine workforce related costs.

Current wording

Selling, General, and Administrative: Selling, general and administrative expense for the nine months ended December 27, 2025 increased $4.7 million from the nine months ended December 28, 2024. Selling, general, and administrative expense as a percentage of net sales for the nine months ended December 27, 2025, was 5.0% as compared with 4.7% for the prior year nine-month interim period. The percentage remained relatively flat on a comparative basis as net sales increased and selling, general, and administrative expense increased mostly driven by routine workforce related costs.

Previous wording

Other Operating (Income) Expense, net: The Company had net other operating income of $0.1 million during the three months ended September 27, 2025, which was driven primarily by the sale of various spare equipment. During the three months ended September 28, 2024, the Company had net other operating expense of $0.1 million, which was driven primarily by minimal restructuring charges attributable to equipment moves for the Northeast trucking fleet.

Current wording

Other Operating (Income) Expense, net: The Company had net other operating income of $0.4 million during the nine months ended December 27, 2025, which was driven primarily by the sale of various spare equipment and nominal amounts related to the use of Company-owned land. During the nine months ended December 28, 2024, the Company had net other operating expense of $0.7 million, which was driven primarily by the disposal of various spare equipment and minimal restructuring charges attributable to equipment moves for the prior Northeast trucking fleet.

Previous wording

Other Non-Operating Income: Other non-operating income totaled $3.8 million and $2.8 million for the six months ended September 27, 2025 and September 28, 2024, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Current wording

Other Non-Operating Income: Other non-operating income totaled $6.6 million and $4.3 million for the nine months ended December 27, 2025 and December 28, 2024, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Previous wording

Interest Expense, net: Interest expense as a percentage of net sales was 1.3% for the six months ended September 27, 2025, as compared to 2.7% for the six months ended September 28, 2024. Interest expense decreased from $19.4 million in the prior year six-month interim period to $10.1 million in the current six-month interim period primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility and a lower weighted average interest rate as compared to the prior year interim period.

Current wording

Interest Expense, net: Interest expense as a percentage of net sales was 1.1% for the nine months ended December 27, 2025, as compared to 2.2% for the nine months ended December 28, 2024. Interest expense decreased from $27.2 million in the prior year nine-month interim period to $14.2 million in the current nine-month interim period primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility and a lower weighted average interest rate as compared to the prior year nine-month period.

Previous wording

The Company’s effective tax rate was 23.6% and 22.7% for the six months ended September 27, 2025 and September 28, 2024, respectively. The increase in the current six-month period is primarily driven by the impact of lower federal credits and higher earnings before income taxes as compared to the prior year six-month period, resulting in an increase of 1.4% to the effective tax rate. Additionally, the prior year six-month period benefited from interest received on a federal income tax refund, which resulted in a 0.3% increase in the current six-month period effective tax rate on a comparative basis. Offsetting those increases, there was a 0.8% decrease to the effective tax rate because of statute expiration for certain uncertain tax benefits during the current six-month period.

Current wording

The Company’s effective tax rate was 23.6% and 23.2% for the nine months ended December 27, 2025 and December 28, 2024, respectively. The increase in the current nine-month period is primarily driven by the impact of lower federal credits and higher earnings before income taxes as compared to the prior year nine-month period, resulting in an increase of 0.7% to the effective tax rate. Additionally, the prior year nine-month period benefited from interest received on a federal income tax refund, which resulted in a 0.2% increase in the current nine-month period effective tax rate on a comparative basis. These increases were partially offset by the impact of statute expirations for a portion of uncertain tax benefits during the current nine-month period which decreased the effective tax rate by 0.4%.

Previous wording

During the initial six months of fiscal year 2026, the Company has completed much of its current seasonal pack for major vegetables, namely peas, sweet corn and green beans. The pack size for 2026 is shaping up to be larger than last year and has benefited from improved crop yields and less challenging growing conditions in certain regions. The Company’s plant locations have run steadily during the harvesting and production process without the periodic interruptions experienced last year. These factors have contributed to an overall lower-cost seasonal pack on a per unit basis thus far. Higher cash requirements were encountered by the Company because of the increased pack size although a strong cash position leading into fiscal year 2026 allowed the Company to minimize use of its revolving credit facility as compared to the prior year six-month interim period.

Current wording

The Company’s current fiscal year 2026 seasonal pack benefited from improved crop yields and less challenging growing conditions in certain regions, which contributed to an overall larger pack size as compared to the prior year. The Company’s plant locations ran more steadily during the harvesting and production process without as many weather-related interruptions experienced in fiscal year 2025. These factors have resulted in an overall lower-cost seasonal pack on a per unit basis for the current nine-month period. A strong cash position leading into fiscal year 2026 allowed the Company to minimize use of its revolving credit facility as compared to the prior year nine-month interim period.

Previous wording

Net Cash Provided by Operating Activities**:** For the six months ended September 27, 2025, cash provided by operating activities was $83.0 million, which consisted of $28.8 million from changes in operating assets and liabilities, coupled with net earnings of $44.6 million and non-cash charges of $9.6 million. The non-cash charges were mainly comprised of $22.5 million of depreciation and amortization, a $5.8 million impact for deferred taxes, and $1.9 million of lease expense, largely offset by a $19.5 million LIFO credit. The change in operating assets and liabilities was largely impacted by working capital needs as the six-month period covered the primary months of the Company’s seasonal pack. Cash utilized for inventories and higher accounts payable activity were the main drivers.

Current wording

Net Cash Provided by Operating Activities**:** For the nine months ended December 27, 2025, cash provided by operating activities was $114.2 million, which consisted of $7.0 million from changes in operating assets and liabilities, coupled with net earnings of $89.4 million and non-cash charges of $17.8 million. The non-cash charges were mainly comprised of $33.4 million of depreciation and amortization, a $6.6 million impact for deferred taxes, and $3.0 million of lease expense, partially offset by a $22.1 million LIFO credit. The change in operating assets and liabilities was largely impacted by working capital needs as the nine-month period covered the primary months of the Company’s seasonal pack. Cash utilized for inventories and accounts payable activity were the main drivers.

Previous wording

For the six months ended September 28, 2024, cash provided by operating activities was $125.9 million, which consisted of $66.4 million from changes in operating assets and liabilities, coupled with net earnings of $26.0 million and non-cash charges of $33.5 million. The non-cash charges were largely driven by $22.0 million of depreciation and amortization, $2.9 million of lease expense, and a $12.1 million LIFO charge. The change in operating assets and liabilities was largely due to working capital needs as the prior six-month period covered the primary seasonal pack harvest months.

Current wording

For the nine months ended December 28, 2024, cash provided by operating activities was $243.6 million, which consisted of $142.8 million from changes in operating assets and liabilities, coupled with net earnings of $40.6 million and non-cash charges of $60.2 million. The non-cash charges mainly comprised of $33.6 million of depreciation and amortization, $4.0 million of lease expense, and a $23.0 million LIFO charge. The change in operating assets and liabilities was impacted by working capital needs during the nine-month period which covered the primary seasonal pack months.

Previous wording

Net Cash Used in Investing Activities**:**Net cash used in investing activities was $18.6 million for the six months ended September 27, 2025, and consisted of cash used for capital expenditures of $18.8 million, partially offset by proceeds from the sale of assets totaling $0.2 million.

Current wording

Net Cash Used in Investing Activities**:**Net cash used in investing activities was $26.5 million for the nine months ended December 27, 2025, and consisted of cash used for capital expenditures of $27.0 million, partially offset by proceeds from the sale of assets totaling $0.5 million.

Previous wording

Net cash used in investing activities was $19.9 million for the six months ended September 27, 2024, and consisted of cash used for capital expenditures of $17.6 million and $2.7 million paid as deposits to vendors for a can manufacturing line. Partially offsetting those amounts, the Company received proceeds from the sale of assets totaling $0.4 million.

Current wording

Net cash used in investing activities was $28.9 million for the nine months ended December 27, 2024, and consisted of cash used for capital expenditures of $26.7 million and $2.7 million paid as deposits to vendors for a can manufacturing line. Partially offsetting those amounts, the Company received proceeds from the sale of assets totaling $0.5 million.

Previous wording

Net Cash Used in Financing Activities**:** Net cash used in financing activities was $96.7 million for the six months ended September 27, 2025, driven primarily by payments of $89.8 million on its term loans and finance obligation. This included full payment of $81.0 million for the Term Loan A-1 upon maturity during the current six-month interim period. The Company also used cash of $4.9 million to purchase treasury stock and made payments of $2.0 million on finance leases. The Company utilized its revolving credit facility, although borrowings and repayments both equated to $48.2 million during the six-month period, thereby resulting in no change to the ending balance as compared to the beginning of the fiscal year.

Current wording

Net Cash Used in Financing Activities**:** Net cash used in financing activities was $104.7 million for the nine months ended December 27, 2025, driven primarily by payments of $94.0 million on its term loans and finance obligation. This included full payment of $81.0 million for the Term Loan A-1 upon maturity during the current nine-month interim period. The Company also used cash of $7.6 million to purchase treasury stock and made payments of $3.0 million on finance leases. The Company utilized its revolving credit facility, although borrowings and repayments both equated to $97.3 million during the nine-month period, thereby resulting in no change to the ending balance as compared to the beginning of the fiscal year.

Previous wording

Net cash used in financing activities was $100.7 million for the six months ended September 28, 2024, driven primarily by a net paydown on the Company’s revolving credit facility of $90.8 million and term loan payments of $9.5 million during the prior six-month interim period. Additionally, the Company used cash of $10.0 million to purchase treasury stock and made payments of $2.8 million on finance leases. Partially offsetting the outflows was a $12.4 million increase in note payable borrowings made by the Company for a can manufacturing line.

Current wording

Net cash used in financing activities was $213.7 million for the nine months ended December 28, 2024, driven primarily by a net paydown on the Company’s revolving credit facility of $195.0 million. The Company also made payments totaling $14.9 million on its term loans and finance obligation during the prior nine-month interim period. Partially offsetting the outflows was a $12.4 million increase in note payable borrowings associated with the Company’s can manufacturing line which was converted to a finance obligation during the nine-month period. Additionally, the Company used cash of $10.8 million to purchase treasury stock and made payments of $3.8 million on finance leases.

Previous wording

A description of the Company's critical accounting estimates is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025. There were no material changes to the Company's critical accounting policies or estimates during the six months ended September 27, 2025.

Current wording

A description of the Company's critical accounting estimates is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025. There were no material changes to the Company's critical accounting policies or estimates during the nine months ended December 27, 2025.