Universal Corp. (NYSE:UVV) reported a sharp decline in third-quarter earnings Monday, as the global leaf tobacco merchant grappled with lower shipment volumes and a shifting supply landscape that has moved from scarcity to a potential market glut.
The Richmond, Virginia-based company posted net income of $33.2 million, or $1.32 per share, for the fiscal quarter ended Dec. 31, 2025—a 44% drop from the $59.6 million reported in the same period last year.
Revenue fell 8% to $861.3 million, missing Wall Street estimates as the company navigated oversupply in several tobacco styles and higher inventory write-downs.
When adjusted for restructuring costs, earnings stood at $1.35 per share, falling well short of the $1.94 consensus estimate.
Despite the headwinds in its core tobacco segment, Universal saw a 7% year-to-date revenue increase in its Ingredients Operations, a key pillar of its diversification strategy into plant-based extracts.
However, margins in that segment remained under pressure due to higher fixed costs at recently expanded facilities and soft consumer demand.