Campbell Soup Company (CPB) on September 3, 2025 reported results for its fourth quarter and full-year fiscal 2025 ended August 3, 2025.

• Revenue Growth: Revenue in 2025 increased by USD 0.6 billion, representing a 6.4% rise compared to 2024, driven by strong performance in the meals and beverages segment
• EBITDA Improvement: The company reported an EBITDA of USD 1.6 billion in 2025, marking a 10.4% increase from the previous year, reflecting operational efficiencies and cost management
• Capital Expenditure Reduction: Capital expenditures decreased by 17.6% in 2025 to USD 0.4 billion, indicating a strategic focus on optimizing capital allocation
• Acquisition Strategy: The company reduced acquisition spending by USD 2.8 billion in 2025, reflecting a shift in strategic priorities and focus on organic growth
• Dividend Policy: Dividends paid in 2025 increased by 3.1% to USD 0.5 billion, underscoring the company's commitment to returning value to shareholders
• Market Positioning: Management highlighted changes in reporting for certain brands to better reflect in-market performance, aiming to enhance competitive positioning within the chips category.

Company overview

Business model, strategy & markets

Campbell Soup Company manufactures and markets food and beverage products through Meals & Beverages and Snacks segments. It offers soups, sauces, beverages, cookies, crackers, and snacks, selling through various retail channels in the United States, Canada, and Latin America.

Campbell Soup Company operates with a business model focused on two primary segments: Meals and Beverages, and Snacks. The company's strategic priorities include innovation, brand support, and cost savings initiatives. Campbell's product offerings encompass a range of soups, sauces, snacks, and beverages, with key brands such as Rao's, Pepperidge Farm, and Goldfish. The company emphasizes meeting consumer demand for at-home cooking, flavor-forward offerings, and health and wellness benefits. Campbell's geographic focus includes the United States and Latin America, with a management structure that aligns its Latin American retail business under the Meals and Beverages segment. The company is committed to removing FD&C colors from its products by the second half of fiscal 2026, reflecting consumer preferences. Campbell's strategy involves leveraging its growth office to align innovation with consumer needs, aiming to drive sustainable growth and maintain its market-leading positions.

The revenue split across product segments for Campbell Soup Company in 2025 shows that 43.2% of revenue was attributed to a specific segment, marking an increase of 45.5% compared to the previous year.​´

Key risk factors

The Campbell Soup Company faces several operational and strategic risks, including supply chain disruptions and evolving consumer preferences. Financial risks are evident in the company's leverage and exposure to tariffs, particularly Section 232 steel and aluminum tariffs, which impact the cost of goods sold. Legal and regulatory risks include compliance with international trade regulations, notably the IPEA tariffs affecting imports. The company is actively pursuing cost savings and productivity improvements to mitigate these financial pressures. Additionally, Campbell's strategic focus on innovation and brand support aims to address competitive pressures and maintain market relevance.

Financial performance

Revenue in 2025 reached USD 10.3 billion, reflecting an increase of USD 0.6 billion or 6.4% compared to the previous year. Gross profit for the same period amounted to USD 3.1 billion, marking a rise of USD 0.1 billion or 5.0% from 2024. EBITDA was USD 1.6 billion in 2025, representing an increase of USD 0.2 billion or 14.3% over the prior year.

Growth trends

Revenue demonstrates a mixed momentum with a 3-year CAGR of 6.2%, a 5-year CAGR of 3.4%, and a 7-year CAGR of 6.5%. Gross profit shows accelerating growth with a 3-year CAGR of 5.9%, while EBITDA reflects a decelerating trend with a 3-year CAGR of 1.3%, indicating divergence in operational efficiency.

Profitability

Margin profile

Gross profit ratio in 2025 was 30.4%, down 0.4% from 2024. EBITDA ratio in 2025 was 15.2%, up 0.6% from 2024.

Peer margin benchmark

Efficiency metrics

R&D expenditure was 1.0% of revenue in 2025, reflecting a slight decrease from 2024. SG&A expenses constituted 9.0% of revenue, marking a significant reduction from the previous year. This indicates improved cost discipline and efficient overhead management.

Balance sheet strength

Assets & capital

Cash increased by 22.2% to USD 0.1 billion in 2025, while current assets rose by 0.9% to USD 2.1 billion. Non-current assets declined by 2.9% to USD 12.7 billion, down USD 0.4 billion for the year, indicating a reduction in long-term investments.

Liabilities & leverage

Equity increased by 2.8% to USD 3.9 billion in 2025, indicating earnings retention. Debt decreased by 4.4% to USD 7.2 billion, reflecting deleveraging. Short-term debt fell by 47.8% to USD 0.7 billion, reducing liquidity pressure. Accounts payable rose by 1.6% to USD 1.3 billion, suggesting stable cash conversion.

Financial stability

Capital structure

Campbell Soup Company's leverage profile in 2025 shows a reduction in debt ratios compared to 2024. The debt-to-equity ratio decreased to 175.6%, the debt-to-assets ratio to 46.0%, and the debt-to-capital ratio to 63.7%, indicating a move towards a more balanced leverage position.

Liquidity ratios

The current ratio improved to 0.8 in 2025, indicating reduced liquidity pressure compared to 2024. However, the cash ratio remained at 0.0, reflecting a continued weak cash buffer.

Leverage

The financial leverage ratio for 2025 was 3.8, a decrease of 0.2 from the previous year. This high leverage level, exceeding 3.0, indicates potential risks, as it may obscure weak margins despite the slight improvement from 2024.

Debt coverage

Debt service coverage improved significantly in 2025, rising by 66.2% compared to 2024, indicating enhanced ability to meet debt obligations. However, interest coverage declined by 38.3% over the same period, suggesting increased pressure on earnings to cover interest expenses.

Cash flow performance

Operating cash flow in 2025 was USD 1.1 billion, down USD 0.1 billion (-4.6%) from 2024. Investing cash flow was USD -0.2 billion, down USD 2.9 billion (-94.0%) from 2024, reflecting reduced reinvestment activities. Financing cash flow was USD -0.9 billion, down USD 2.8 billion (-149.3%) from 2024, showing significant outflows for debt repayment or returns to shareholders.

Capital allocation

Acquisitions and investments

Acquisitions in 2025 amounted to USD -0.2 billion, reflecting a decrease of USD 2.8 billion compared to 2024. Capital expenditures were USD 0.4 billion, down USD 0.1 billion from the previous year. The combined spending on acquisitions and Capex totaled USD 0.2 billion, a reduction of USD 2.9 billion year-over-year, indicating a significant pullback in investment activities.

Debt repayment

Campbell Soup Company engaged in deleveraging during 2025, reducing net debt issuance by USD 2.8 billion compared to 2024. This strategic move reflects a focus on strengthening the balance sheet and reducing financial leverage.

Dividends

The dividend payout ratio for 2025 was 76.2%, representing a decrease of 2.3 percentage points from 2024. This reduction suggests a potential shift towards retaining earnings for reinvestment, aligning with a strategy to enhance long-term shareholder value.

Share buybacks & issuances

The company's stock repurchase activity in 2025 was minimal, with a slight decrease in weighted average shares outstanding, indicating a focus on enhancing per-share value. There was no stock issuance, suggesting no dilution concerns for shareholders during this period.

Capital returns

ROIC in 2025 was 6.7%, a decrease of 0.8% from 2024, while ROA improved by 0.3% to 4.0%. Despite the decline in ROIC, the increase in ROA suggests improved asset utilization, though overall capital returns remain below the peer median of 9.6%.

Valuation

As of 2025-08-03 (price per share: 32.29 USD)

Trading multiples

EPS in 2025 was USD 2.0, representing a 6.3% increase from 2024. Despite this growth, the stock price declined by 31.3% over the same period, indicating a potential misalignment between the company's earnings fundamentals and market valuation.

The PE ratio in 2025 was USD 16.0, reflecting a decrease of USD 8.9 or 35.7% compared to 2024.

EV to EBITDA decreased to USD 10.5 in 2025, reflecting a 31.2% decline from 2024, indicating a moderate valuation. EV to FCF fell to USD 23.2, a 28.1% reduction, suggesting a decrease in market premium or growth expectations.

Yield metrics

Earnings yield in 2025 was 6.3%, reflecting a 55.6% increase from 2024. The 10-year Treasury yield data for 2025 is unavailable, preventing a direct comparison.

Intrinsic value

The stock price of USD 32.3 in 2025 exceeds the Graham Number of USD 24.4, suggesting a premium valuation. The book value per share increased to USD 13.1, indicating a modest rise in intrinsic value, yet the stock remains priced above this fundamental measure.

Disclaimer

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