Utz Brands reports solid sales growth and margin expansion in Q1

Utz Brands (NYSE:UTZ) reported steady top-line momentum for the first quarter of 2026, fueled by the strength of its core snack portfolio and successful efforts to optimize its manufacturing footprint.

The Hanover, Pennsylvania-based company saw net sales reach $361.3 million for the quarter ended March 29, 2026, representing a 2.6% increase over the prior-year period.

The company’s focus on its power brands paid dividends, with Branded Salty Snacks organic net sales increasing 5.2%.

This performance suggests that Utz continues to capture market share within the competitive snack category even as consumer spending remains selective.

Total organic net sales across the company rose 2.6%.

A major highlight of the quarter was the significant improvement in profitability metrics.

Utz achieved a 200-basis-point expansion in its GAAP gross profit margin, while the adjusted gross profit margin expanded by 210 basis points.

On the bottom line, the company reported a GAAP net loss of $2.4 million, or $(0.02) per diluted share, largely impacted by non-recurring items and strategic investments.

Adjusted net income decreased 4.5% to $21.3 million, with adjusted earnings per share (EPS) at $0.15.

While reported EBITDA decreased 12.9% to $30.3 million, adjusted EBITDA—a key indicator of operational health—rose 6.2% to $47.9 million.

Utz also continued to strengthen its financial position.

The company’s net leverage ratio improved significantly, decreasing by 0.4x to end the quarter at 3.6x.

This deleveraging aligns with management’s long-term goal of improving balance sheet flexibility to support future growth initiatives.