Utz Brands achieves massive margin expansion, sets growth targets for 2026

Utz Brands (NYSE:UTZ) reported fourth-quarter results defined by significant operational efficiency and a sharp increase in profitability, even as the broader salty snack category faced a muted demand environment.

While GAAP net income saw a decline due to one-time costs, the company’s "Power Four" brands—Utz, On The Border, Zapp’s, and Boulder Canyon—continued to gain market share.

The company announced fourth-quarter net sales of $342.2 million, a modest 0.4% increase.

However, the internal health of the business showed substantial improvement; adjusted gross profit margins expanded by a remarkable 560 basis points to 36.5%.

This gain was fueled by aggressive productivity initiatives that reached 7% of adjusted cost of goods sold for the full year, surpassing management’s original targets.

Profitability metrics also reflected these gains, with adjusted EBITDA rising 17.5% to $62.4 million for the quarter.

Adjusted earnings per share climbed 18.2% to $0.26, meeting analyst expectations.

Despite these operational wins, the company reported a GAAP net loss of $3.3 million for the quarter, primarily driven by higher interest expenses and depreciation related to its multi-year supply chain transformation.

Looking ahead, Utz issued guidance for fiscal 2026 that forecasts organic net sales growth of 2% to 3%.

The company expects adjusted EBITDA to grow between 5% and 8%, a figure that includes the benefit of a 53rd week in the 2026 fiscal calendar.