AGT Food and Ingredients Inc. Announces Financial Results for Q2 2026

SYMBOL: TSX: AGTF

REGINA, SK, Aug. 10, 2026 /CNW/ -- AGT Food and Ingredients Inc. (TSX: AGTF) ("AGT" or the "Company") announces its financial results for the three and six months ended June 30, 2026.

Quarter Highlights

Adjusted Free Cash Flow $23.4 million
Adjusted Free Cash Flow conversion 52.0%
Adjusted EBITDA $45.1 million
Adjusted Net Earnings $8.2 million
Net Earnings of $9.6 million or per diluted share $0.14
Adjusted Net Debt to Adjusted EBITDA 0.49x
Quarterly Common Share Dividend of $0.05 declared

Overview

AGT Food and Ingredients Inc. reported solid second quarter 2026 results highlighted by continued growth in its Packaged Foods and Ingredients ("PFI") segment and improved free cash flow generation leveraging its strengthened balance sheet following the Company's Initial Public Offering ("IPO") and Fairfax Private Placement. Adjusted EBITDA was $45.1 million, consistent with the prior year, while Adjusted Free Cash Flow increased 39% to $23.4 million. Growth in Turkish pasta, packaged foods and "Better for You" pasta in the U.S. in Q2 2026 was strong in the PFI segment – revenue up 18% to $207 million and Adjusted EBITDA up 42% to $27 million compared to the prior year. This was primarily offset by lower Value Added Processing ("VAP") results due to higher shipping costs and delays resulting from the ongoing geopolitical challenges in the Middle East affecting global logistics. Food security programs have a strong order book for the back half of 2026 and margins are expected to be consistent with 2025.

"We are thrilled with another quarter of resilient and consistent operating performance in a time of continuing challenges in the global landscape," said Murad Al-Katib, Chief Executive Officer. "Our focus on bringing high quality and affordable staple foods is showing good results with strong order books in our branded, private label and B2B food ingredients, and for the first time our Packaged Foods and Ingredients segment was the Company's largest contributor to Adjusted EBITDA on a year-to-date basis.  This remains our focus: improving our free cash flow by improving sales and enhancing the returns being generated from investments we have made in recent years in pasta in Türkiye and the "Better For You" segment in the U.S. Our capital expansion projects, including India set to begin commissioning in late 2026, are progressing on schedule and on budget and our balance sheet remains strong. We remain optimistic about the second half of 2026 even with continuing challenges in global geopolitical conditions. Let's not forget that food security, nutrition and affordability are high on the minds of consumers and governments around the world.  AGT is uniquely positioned to continue to capitalize on these opportunities in both food security sales and packaged food sales in the coming quarters."

The table below highlights the key metrics utilized by management to operate the business.

Second Quarter Financial Summary

Second Quarter Highlights   

• Adjusted Free Cash Flow was $23.4 million, representing an Adjusted Free Cash Flow Conversion rate of 52.0% (2025 – 37.9%), compared to $16.9 million in the prior year period. The improvement reflected good operating performance together with lower financing costs following debt repayment from the IPO and Fairfax Private Placement in Q1 2026.
• Adjusted EBITDA was $45.1 million in the second quarter of 2026, consistent with the prior year. Growth in higher-margin PFI products, including pasta, packaged foods and "Better for You" pasta and snacks resulted in improved gross profits. This was offset by higher expenses and delayed shipments due to the Middle East War in the VAP segment.
• Adjusted Net Earnings were $8.2 million, or $0.12 per diluted share, compared to $7.5 million, or $0.18 per diluted share, in the second quarter of 2025. The increase year-over-year was due to strong operating performance combined with reduced interest expense in the current year. Net earnings includes $15.3 million in adjustments from favourable tax changes in Türkiye and tax planning which will reduce future cash taxes payable by the Company.
• Gross profit including net monetary gain was $81.7 million, up from $64.6 million in the prior year, including approximately $9.7 million of positive impacts related to hyperinflation accounting (2025 - $0.5 million expense), and the margin expansion in PFI form higher-margin pasta and packaged food products in Türkiye and the U.S. and strong Distribution results, partly offset by impacts from the Middle East conflict in the VAP segment. Adjusted Gross Profit increased to $72.0 million from $65.1 million.
• Adjusted Net Debt to Adjusted EBITDA Ratio was 0.49x for the twelve months ended June 30, 2026, an improvement from 0.54x at March 31, 2026 and 3.35x at December 31, 2025, primarily reflecting debt repayments following the IPO and Fairfax Private Placement.
• Revenues were $634.2 million, up 2% from $623.6 million in the prior year, driven by higher shipment volumes and a more favourable product mix in the PFI segment, partly offset by lower global commodity pricing. 
• Dividend: The Company declared its second quarterly cash dividend for Q3 2026 of $0.05 per common Share, payable on October 15, 2026 to shareholders of record as of the close of business on September 30, 2026. 
• NCIB: AGT's normal course issuer bid ("NCIB") was approved by the TSX and will allow AGT to repurchase up to approximately 3 million shares on an opportunistic basis. During the quarter, AGT purchased and cancelled 28,500 common shares at a weighted average price of $17.31 per share for a total consideration of $0.5 million.

This press release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Free Cash Flow, Adjusted Net Earnings, Adjusted Net Earnings per diluted common share, Adjusted Free Cash Flow conversion and Adjusted Net Debt to Adjusted EBITDA Ratio that do not have any standardized meanings as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. For further details, see the sections titled "Non-GAAP Financial Measures" in this release and in the Company's MD&A for the three and six months ended June 30, 2026. 

Additional Information 

A copy of AGT's Unaudited Condensed Consolidated Interim Financial Statements ("Financial Statements") for the three and six months ended June 30, 2026 and 2025 and related Management's Discussion and Analysis ("MD&A") have been filed with the Canadian Securities Regulatory authorities and are available on SEDAR at sedarplus.ca and AGT's website at agtfoods.com. The Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting using accounting policies that are consistent with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the reporting currency is in Canadian dollars.

Conference Call

A conference call to discuss the Second Quarter 2026 results is scheduled for Tuesday, August 11, 2026 at 8:30 a.m. Eastern time. To join the conference, please dial 1-833-821-0163 (toll free from Canada & the U.S.) or +1-647-846-7232 (from outside Canada & the U.S.). An audio replay of the conference call will be available on AGT's website after the conference call by visiting www.agtfoods.com.

About AGT

AGT is a globally diversified food company that produces high-quality, nutritious products for everyday consumption. Our products reach consumers in 127 countries, and our global footprint consists of 39 state-of-the-art, highly efficient manufacturing facilities operating across 5 continents. These facilities are strategically located near critical freight and logistics infrastructure and in close proximity to key agricultural growing regions, which provides us with the ability to efficiently source, process, and produce healthy plant-based food products that are both tasty and affordable. Our integrated supply chain utilizes the latest manufacturing technologies, allowing us to produce a growing portfolio of packaged food brands in everyday categories including pasta, pulses, rice, and cereals. In addition, AGT is an integral partner to many global packaged food companies and international retailers through production, supply, and innovation partnership agreements to manufacture proprietary, value-added products for their owned global and store brands.

To learn more, please visit: www.agtfoods.com.

Non-GAAP Performance Measures

This press release makes reference to certain non-GAAP measures, including non-GAAP ratios. These measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning under IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies Rather, these measures are provided as additional information to complement those IFRS Standards measures by providing further understanding of AGT's results of operations from management's perspective. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. AGT also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management also uses non-GAAP measures in order to review operating performance and comparisons from period to period, prepare annual operating budgets, and assess AGT's ability to meet future capital expenditure and working capital requirements.

Non-GAAP Measures

Non-GAAP Ratios

The following provides a reconciliation of non-GAAP measures and non-GAAP ratios presented throughout the press release to the nearest measure under GAAP:

Reconciliation of Net Loss to Adjusted Free Cash Flow

Reconciliation of Net Loss to Adjusted EBITDA

Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings

Calculation of Adjusted Gross Profit

Calculation of Adjusted Net Debt

Forward-Looking Information

This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including, without limitation, statements related to our strategy, future results, including adjusted EBITDA and Free Cash Flow, segment performance, expenses, operating costs and capital expenditures. In certain cases, forward-looking statements can be identified by the use of words such as "expects" or variations of such words and phrases, or statements that certain actions, events or results "will" be taken, occur or be achieved. 

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to international operations as well as the factors discussed under "Risk Factors" in AGT's Annual Information Form for the year ended December 31, 2025 dated March 16, 2026 filed on SEDAR+. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Although AGT believes the assumptions inherent in forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as at the date of this press release. In addition to other assumptions identified in this press release, assumptions have been made regarding, among other things, production quality; the volume and quality of crops held on-farm by producers and customers in North America; demand for and supply of open market pulses; movement and sale of pulses in Australia and Türkiye; agricultural commodity prices; demand for crop products and the market share of these products that will be achieved; general financial conditions for Western Canadian, US, Turkish and Australian agricultural producers; the ability of the railways to ship pulses to port facilities for export without labor or other service disruptions; the ability to maintain existing customer contracts and relationships; the impact of competition; the ability to obtain and maintain existing financing on acceptable terms; and currency, exchange and interest rates.

AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required in accordance with applicable securities laws.

SOURCE AGT Food and Ingredients Inc.

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