Ingles Markets (NASDAQ:IMKTA) kicked off its fiscal 2026 with a powerful performance on Thursday, reporting that net income soared to $28.1 million as the regional grocer successfully expanded margins and lowered interest expenses.
The Black Mountain, North Carolina-based company reported that revenue for the quarter ended December 27, 2025, rose 6.6% to $1.37 billion.
The bottom-line growth was even more dramatic: net income of $28.1 million ($1.48 per diluted share) represented a nearly 70% increase over the $16.6 million ($0.87 per share) reported in the same period last year.
This surge was primarily driven by a 100-basis-point expansion in gross profit margin, which reached 24.4%, up from 23.4% a year ago.
The results signal a robust recovery for the retailer, which had been navigating a "thin margin" period following hurricane-related store closures in late 2024.
Despite a $14.7 million increase in operating and administrative expenses—largely due to labor costs—Ingles benefited from a cleaner balance sheet.
Total debt was trimmed to $511.5 million, down from $529.4 million last year, leading to lower interest expenses.
The company remains in a strong liquidity position, ending the quarter with over $361 million in cash and nearly its entire $150 million credit line untouched.