Conagra Brands, Inc. · NYSE:CAG
Conagra Brands — Q2 2026 Earnings Presentation
45 slides from Conagra Brands's earnings presentation, Dec 19, 2025
Slide 1: FY26 Q2 Earnings Presentation
FY26 Q2 Earnings Presentation December 19, 2025 1
Slide 2: Legal Disclosure
Legal Disclosure Note on Forward-Looking Statements The presentation contains forward-looking statements regarding our expected future financial performance or position, results of operations, business strategy, plans and objectives, costs and cost savings, and dividends, and other statements that
Slide 3: Sean Connolly
Sean Connolly President and Chief Executive Officer 3
Slide 4: Q2 Headlines
Q2 Headlines • Challenging macro environment persisted • Underlying trends show momentum continuing to build • Continued upward inflection in growth businesses • On track in cash businesses • Supply chain service levels and productivity strong • Launched Project Catalyst • Expect growth in H2; reaff
Slide 5: Challenging Macro Environment Persisted in Q2
Challenging Macro Environment Persisted in Q2 Government Weak Consumer Shipped Below Shutdown, SNAP Weather Sentiment Consumption Impacts 5
Slide 6: Top Line Atypically Noisy; Underlying Trends Continue to Strengthen
Top Line Atypically Noisy; Underlying Trends Continue to Strengthen FY26 Conagra Brands Weekly Retail Dollar Sales (% Change vs. YA) Q1 FY26 Q2 FY26 (1.3)% (1.8)% SNAP Payment Pause First no- hurricane season in years Source: (Line Chart) Circana Weekly Syndicated Model, Total US MULO+ with Conv, Sy
Slide 7: On a Two-Year Basis, Frozen Returned to Growth With Strong Share Performance
On a Two-Year Basis, Frozen Returned to Growth With Strong Share Performance Conagra Frozen Retail Volume Sales (% Change) 90% % of Frozen Holding or Gaining Volume Share +3.0% vs. 2YA +0.8% (2.0)% (2.1)% Peak Supply Impacts Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY24 FY24 FY24 FY24 FY25 FY25 FY25 FY25 FY26
Slide 8: Frozen Promotional Activity Continues to Recover
Frozen Promotional Activity Continues to Recover Conagra Volume Sales Sold on Promo (Total Frozen, % Change vs YA) (8)% (11)% (25)% Q4 FY25 Q1 FY26 Q2 FY26 Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, Fiscal Quarters Ended November 23, 2025. 8
Slide 9: Solid Momentum in Frozen Single-Serve Meals…
Solid Momentum in Frozen Single-Serve Meals… Conagra Frozen Single-Serve Meals Conagra Frozen Single-Serve Meals Volume % Change Volume Share of Category Peak vs. YA vs. 2YA Supply Impacts 53.5% 52.9% 52.4% +1.0% 50.7% 50.2% 50.2% (1.0)% (2.7)% (1.8)% (2.6)% (3.2)% L52W L13W L5W Q1 FY25 Q2 FY25 Q3 F
Slide 10: …And Similarly in Frozen Vegetables
…And Similarly in Frozen Vegetables Conagra Frozen Vegetables Conagra Frozen Vegetables Volume % Change Volume Share of Category vs. YA vs. 2YA Peak 18.8% Supply Impacts 19.1% 17.6% 17.8% 17.7% +9.1% 17.1% +7.2% +3.3% +1.9% (0.9)% (0.6)% L52W L13W L5W Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26
Slide 11: Snacks Performance Strong and Outperforming Broader Category
Snacks Performance Strong and Outperforming Broader Category Snacks Retail Sales (% Change vs. YA) +3.9% +1.2% +0.2% (2.5)% Volume Dollars Conagra Snacks Categories Conagra Snacks Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, 13 Weeks Ended November 23, 2025. Conagr
Slide 12: Strong Performance in Protein Snacks
Strong Performance in Protein Snacks Meat Snacks Seeds +5% Volume +4% Volume +4% Dollars +4% Dollars Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, 13 Weeks Ended November 23, 2025. 12
Slide 13: Convenience Channel Recovery Benefitting Slim Jim
Convenience Channel Recovery Benefitting Slim Jim Slim Jim Channel Performance (Volumes Sales % Change vs. YA) MULO+ Convenience +4.2% +3.3% FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY25 FY26 FY26 FY26 FY26 FY26 FY26 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P1 P2 P3 P4 P5 P6 Source: Circ
Slide 14: Sweet Treats' Inflation-Justified Pricing Now in Market
Sweet Treats’ Inflation-Justified Pricing Now in Market; Elasticities Better Than Expectations Swiss Miss Snack Pack +5% Volume +1% Volume +14% Dollars +8% Dollars Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, 13 Weeks Ended November 23, 2025. 14
Slide 15: Effectively Managing Canned Products in Dynamic Environment
Effectively Managing Canned Products in Dynamic Environment Canned Products Takeaways Improving Trends Dollars % Change vs. YA Canned Tomatoes ✓ Hurricane lap impacted Q2 +3.5% consumption comparisons ✓ Steel inflation pricing in market— early elasticities on track (3.0%) L13W L5W ✓ Exited Q2 with p
Slide 16: Supply Chain Delivering Strong Performance
Supply Chain Delivering Strong Performance ~99% ~5% Complete Q2 service levels H1 productivity baked chicken project 16
Slide 17: Launched Project Catalyst
Launched Project Catalyst L E V E R A G I N G A I , D AT A , & N E W T E C H N O L O G I E S T O U N L O C K VA L U E Reimagining Transforming Connecting ways of working end to end processes people and technology 17
Slide 18: Plans in Place to Deliver a Return to Organic Net Sales Growth in H2
Plans in Place to Deliver a Return to Organic Net Sales Growth in H2 Strong Increased Increased Innovation Merchandising A&P BUFFALO WILD WINGS® and all related logos and trademarks of BUFFALO WILD WINGS, INC. Manufactured under license. © 2025 Mike’s Hot Honey Dolly Parton owns all rights to the Do
Slide 19: Reaffirming Fiscal 2026 Guidance
Reaffirming Fiscal 2026 Guidance 1 1 Guidance Organic Net Sales1 Change (vs. FY25) (1)% to +1% Adj. Operating Margin1 ~11.0% to ~11.5% Adj. EPS1 (53 Weeks) $1.70 to $1.85 1. Forward-looking non-GAAP financial measure. See the appendix for more information. 19
Slide 20: Dave Marberger
Dave Marberger Executive Vice President and Chief Financial Officer 20
Slide 21: Q2 and H1 FY26 Results Largely On Track
Q2 and H1 FY26 Results Largely On Track Q2 H1 Dollars in millions, except per share data Increase/(Decrease) Q2 FY26 H1 FY26 vs. YA vs. YA Organic Net Sales1 $2,975 (3.0)% $5,586 (1.9)% Adj. Gross Margin1 23.4% (292) bps 23.9% (227) bps Adj. Operating Margin1 11.3% (406) bps 11.5% (330) bps Adj. EPS
Slide 22: Q2 Net Sales Bridge vs. Year Ago
Q2 Net Sales Bridge vs. Year Ago Q2 Drivers of Net Sales Change (% Change vs. YA) Organic Net Sales1: (3.0)% Flat +0.1% (3.0)% (3.9)% (6.8)% Volume Price/Mix Foreign M&A Total Exchange Conagra Brands 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the m
Slide 23: Q2 Net Sales by Segment
Q2 Net Sales by Segment Dollars in millions Increase/(Decrease) Change vs. YA 1 1 Reported Organic Price/Mix Volume Net Sales Net Sales1 Grocery & Snacks $1,209 (1.5)% +0.8% (2.3)% Refrigerated & Frozen 1,251 (5.1)% (2.1)% (3.0)% International 230 (2.9)% +3.5% (6.4)% Foodservice 288 +0.2% +4.2% (4.0
Slide 24: Q2 Adjusted Operating Margin Bridge
Q2 Adjusted Operating Margin1 Bridge Q2 Adjusted Operating Margin1 (% Change vs. YA) 15.3% +0.1% +1.4% 11.3% (0.7)% (0.1)% (4.7)% 1 Q2 FY25 Price/Mix COGS Productivity, Adj. SG&A FX / M&A Q2 FY26 Inflation Net of Operational (incl. A&P) Offsets 1. Non-GAAP financial measure. See the appendix for cer
Slide 25: Q2 Segment Adjusted Operating Profit & Margin
Q2 Segment Adjusted Operating Profit1 & Margin1 Q2 Adjusted Operating Profit1 & Margin1 Dollars in millions Increase/(Decrease) Adj. Op. Profit1 1 Adj. Op. Margin 1 1 Q2 vs. YA Q2 vs. YA Grocery & Snacks $231 (21.8)% 19.1% (326) bps Refrigerated & Frozen 127 (35.6)% 10.2% (461) bps International 32
Slide 26: Q2 Adjusted EPS Bridge
Q2 Adjusted EPS1 Bridge Drivers of Q2 Adjusted EPS1 vs. YA $0.70 $0.01 ($0.21) $0.45 ($0.02) ($0.01) ($0.02) Q2 FY25 Adj. Pension & Adj. Equity Adj. FX / M&A Q2 FY26 1 Adj. EPS Op. Profit 1 Interest Earnings 1 Income Tax Adj. EPS 1 Expense 1 1. Non-GAAP financial measure. See the appendix for certai
Slide 27: Key Balance Sheet & Cash Flow Metrics
Key Balance Sheet & Cash Flow Metrics Q2 FY26 Q2 FY25 Dollars in millions Debt $7,624 $8,464 Cash $47 $37 Ending Net Debt1 $7,577 $8,426 Net Leverage2 3.83x 3.54x H1 FY26 H1 FY25 Dollars in millions Net Cash Flow from Operating $331 $754 Activities Capital Expenditures $219 $215 Free Cash Flow1 $113
Slide 28: Ardent Mills Joint Venture Update
Ardent Mills Joint Venture Update • Ardent Mills core business performing well • Lower volatility in wheat markets resulting in lower commodity trading revenue • Total FY26 adj. equity earnings1 projected at ~$170 mm (vs. ~$200 mm prior) 1. Forward-looking non-GAAP financial measure. See the appendi
Slide 29: Reaffirming Fiscal 2026 Guidance
Reaffirming Fiscal 2026 Guidance 1 1 Guidance Organic Net Sales1 Change (vs. FY25) (1)% to +1% Adj. Operating Margin1 ~11.0% to ~11.5% Adj. EPS1 (53 Weeks) $1.70 to $1.85 1. Forward-looking non-GAAP financial measure. See the appendix for more information. 29
Slide 30: H2 and Full Year Considerations
H2 and Full Year Considerations H2 Considerations: • Return to organic net sales growth driven by wrap of frozen supply constraints, inflation-justified pricing actions, and robust investment slate • Absorption headwind driven by targeted inventory reductions • A&P % of sales increases relative to H
Slide 31: Other Fiscal 2026 Considerations
Other Fiscal 2026 Considerations Guidance Old New Adj. Equity Earnings1 ~$200 mm ~$170 mm Interest Expense ~$390 mm Adj. Tax Rate1 ~24% Pension Income ~$25 mm Capital Expenditures ~$450 mm Unchanged Free Cash Flow Conversion1 ~90% Net Leverage Ratio1 ~3.85x 53rd Week Impact to Adj. EPS1 ~$0.05 1. Fo
Slide 32: Appendix
<b VY wbx CONAGRA “BRANDS -° Appendix
Slide 33: Notes on Non-GAAP Financial Measures
Notes on Non-GAAP Financial Measures Note on Non-GAAP Financial Measures This document includes certain non-GAAP financial measures (organic net sales, adjusted gross margin, adjusted operating margin, adjusted EPS, adjusted equity method investment earnings (or adj. equity earnings), free cash flow
Slide 34: Reconciliation of Q2 FY26 Organic Net Sales by Segment
Reconciliation of Q2 FY26 Organic Net Sales by Segment (in millions) - YOY Change 1. Excludes the impact of foreign exchange related to divested businesses. 34
Slide 35: Reconciliation of YTD FY26 Organic Net Sales by Segment
Reconciliation of YTD FY26 Organic Net Sales by Segment (in millions) - YOY Change 1. Excludes the impact of foreign exchange related to divested businesses. 35
Slide 36: Reconciliation of Q2 FY26 Adj. Operating Profit by Segment
Reconciliation of Q2 FY26 Adj. Operating Profit by Segment (in millions) – YOY Change 36
Slide 37: Reconciliation of YTD FY26 Adj. Operating Profit by Segment
Reconciliation of YTD FY26 Adj. Operating Profit by Segment (in millions) – YOY Change 37
Slide 38: Reconciliation of Q2 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income
Reconciliation of Q2 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change 1. Includes advertising and promotion (A&P) expense of $74.3 million and $69.3 million for Q2 FY26 and Q2 FY25, respectively. A&P as a percentage of net sales was 2.5%
Slide 39: Reconciliation of Q2 FY26 Adj. Gross Margin and Adj. EPS (Cont.)
Reconciliation of Q2 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change Cont. 1. Includes advertising and promotion (A&P) expense of $74.3 million and $69.3 million for Q2 FY26 and Q2 FY25, respectively. A&P as a percentage of net sales was
Slide 40: Reconciliation of YTD FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income
Reconciliation of YTD FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change 1. Includes advertising and promotion (A&P) expense of $127.2 million and $119.7 million for Q2 FY26 YTD and Q2 FY25 YTD, respectively. A&P as a percentage of net sale
Slide 41: Reconciliation of YTD FY26 Adj. Gross Margin and Adj. EPS (Cont.)
Reconciliation of YTD FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change Cont. 1. Includes advertising and promotion (A&P) expense of $127.2 million and $119.7 million for Q2 FY26 YTD and Q2 FY25 YTD, respectively. A&P as a percentage of ne
Slide 42: Reconciliation of YTD FY26 Free Cash Flow and Net Debt
Reconciliation of YTD FY26 Free Cash Flow and Net Debt and YTD FY25 Free Cash Flow and Net Debt (in millions) – YOY Change 42
Slide 43: Reconciliation of Q2 FY26 Net Leverage Ratio
Reconciliation of Q2 FY26 Net Leverage Ratio (in millions) 1. As of November 23, 2025. 2. Excludes comparability items related to depreciation. 3. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve-month (TTM) period. 43
Slide 44: Reconciliation of Q2 FY25 Net Leverage Ratio
Reconciliation of Q2 FY25 Net Leverage Ratio (in millions) 1. As of November 24, 2024. 2. Excludes comparability items related to depreciation. 3. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve-month (TTM) period. 44
Slide 45: Reconciliation of Q2 FY26 and YTD FY26 Adj. Equity Method Investment Earnings
Reconciliation of Q2 FY26 and YTD FY26 Adj. Equity Method Investment Earnings (in millions) 45