Mon, Apr 21, 8:25 PM (21 days ago)
**Universal Corporation (UVV) Q3 2025 Financial Summary** Universal Corporation (UVV) reported strong financial performance for the quarter and nine months ended December 31, 2024. Revenues and operating income increased by 14% and 19%, respectively, for the quarter, and by 14% and 24%, respectively, for the nine months, driven primarily by strong tobacco sales volumes and prices. **Key Financial Metrics:** - **Revenue:** $937.2 million for Q3 2025, up 14% YoY; $2,245.0 million for the nine months, up 14% YoY. - **Operating Income:** $104.1 million for Q3 2025, up 19% YoY; $190.0 million for the nine months, up 24% YoY. - **Net Income:** $59.6 million for Q3 2025, up 12% YoY; $85.7 million for the nine months, up 8% YoY. - **Earnings per Share (EPS):** $2.37 for Q3 2025, up 12% YoY; $3.41 for the nine months, up 8% YoY. **Segment Performance:** - **Tobacco Operations:** Revenues increased by 15% for both the quarter and nine months. Operating income rose by 17% for the quarter and 31% for the nine months, driven by strong customer demand and successful tobacco procurement and marketing efforts. - **Ingredients Operations:** Revenues increased by 7% for the quarter and 6% for the nine months. Operating income rose by 69% for the quarter and 59% for the nine months, reflecting increased sales of new products and investments in the ingredients business. **Financial Health and Cash Flow:** - **Cash Flow from Operations:** $168.2 million for the nine months, up significantly from the previous year due to lower working capital requirements. - **Cash and Cash Equivalents:** $215.1 million as of December 31, 2024. - **Debt:** Total debt was $1,156.3 million, with net debt at $944.6 million. Net debt to net capitalization ratio was approximately 39%. **Future Operations and Uncertainties:** - **Sustainability Initiatives:** Universal continues to focus on energy efficiency and supply chain resiliency, aiming to reduce greenhouse gas emissions by 30% by 2030. - **Legal and Regulatory:** The company is involved in various legal matters and tax examinations, but management does not expect these to have a material adverse effect. - **Market Risks:** Universal faces risks related to currency fluctuations, interest rates, and regulatory changes, which are managed through hedging strategies and diversified operations. **Stock Repurchase Program:** - A new stock repurchase program was authorized on November 7, 2024, allowing the purchase of up to $100 million in common stock through November 15, 2026. As of December 31, 2024, the program had $100 million of remaining capacity. **Dividends:** - The company declared dividends of $0.81 per share for Q3 2025, reflecting a commitment to returning value to shareholders. Overall, Universal Corporation demonstrated robust financial performance and strategic initiatives aimed at sustainable growth and shareholder value.