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Innovative Industrial Properties offers a compelling AFFO yield of 13.7% on common stock and over 10% current yield on preferreds. IIPR trades at a P/B of 0.91, reflecting market skepticism due to troubled tenants and cannabis sector uncertainty despite strong asset coverage and low leverage. Portfolio diversification into life sciences increases credit risk, with new investments yielding 14% but reducing fixed charge coverage and raising Net Debt/EBITDA to 2.09x.

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Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketBeat

MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

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Top Marijuana REITs Positioned for Long-Term Growth in 2026 The cannabis sector continues attracting investors in 2026. However, many traders now prefer cannabis REITs over traditional marijuana stocks. These companies offer exposure to the industry while also generating income through dividends. Additionally, cannabis REITs typically exhibit lower volatility than many cannabis operators.

The United States cannabis market also keeps expanding across several states. New legalization efforts and reform discussions continue to help overall industry sentiment. Furthermore, cannabis companies still face limited access to traditional banking services. As a result, REITs and lenders remain extremely important to the sector. Many cannabis REITs use long-term leases or secured lending agreements. As a result, they often create stable recurring cash flow. Investors seeking both growth and income continue to watch the sector closely. Here are three top cannabis REITs to watch in May 2026.

[Read More] Here Are Some Ways Marijuana Stocks Can Make You A Profit

Top Cannabis REITs to Watch in May 2026 for Growth and Dividends Innovative Industrial Properties (NYSE: IIPR) NewLake Capital Partners (OTC: NLCP) Chicago Atlantic Real Estate Finance (NASDAQ: REFI) Innovative Industrial Properties (IIPR) Innovative Industrial Properties remains the largest cannabis REIT in the United States. The company focuses on owning specialized cannabis cultivation and processing facilities. It purchases properties from operators and leases them back under long-term agreements. The company has built a large footprint across many legalized states. Its largest presence is in Pennsylvania, Illinois, and Massachusetts. Additionally, the company works with major multistate operators nationwide. Those tenants include Curaleaf, Cresco Labs, and PharmaCann.

IIPR does not directly operate the dispensaries itself. However, its tenants collectively manage hundreds of dispensaries nationwide. The company owns facilities connected to many of the industry’s largest operators. Furthermore, most leases include annual rent increases. That structure helps support predictable long-term revenue growth. Investors continue to follow IIPR due to its strong dividend history. Since its public launch, the company has paid substantial dividends to shareholders. Additionally, it remains one of the most recognized cannabis REITs in the market today.

The company has also started expanding into life sciences real estate. That move could help reduce future cannabis-specific risk exposure. Meanwhile, management continues focusing on disciplined acquisitions and portfolio management. Financially, Innovative Industrial Properties delivered stable results in the early part of 2026. Revenue remained solid despite ongoing challenges within the cannabis sector. Additionally, adjusted funds from operations continued to support the company’s dividend payout.

Latest Financials The company maintained its quarterly dividend during the latest quarter. That payout continues to attract income-focused investors seeking high yields. Furthermore, management strengthened liquidity through additional financing activities earlier this year. Some investors remain concerned about tenant payment issues and industry pricing pressure. Several cannabis operators still face declining wholesale prices and margin compression. However, IIPR continues to work through those challenges through restructuring efforts and lease modifications.

The company also maintains one of the strongest balance sheets in the cannabis real estate sector. That financial stability may become increasingly important during uncertain market conditions. Additionally, federal reform discussions could improve tenant profitability in future years. Overall, IIPR remains one of the top cannabis REITs to watch in May 2026. Its large portfolio, dividend yield, and national footprint continue attracting long-term investors.

[Read More] Marijuana Stocks to Watch Before the Next Cannabis Rally

NewLake Capital Partners (NLCP) NewLake Capital Partners has become another popular cannabis REIT among investors. The company owns cultivation facilities and dispensary properties leased to cannabis operators. Additionally, NewLake focuses heavily on long-term triple-net lease agreements. The company has carefully expanded into several important cannabis markets. Its largest exposure includes Pennsylvania, Florida, and Ohio. Furthermore, NewLake works with established multistate operators throughout the United States.

Its tenants collectively operate many dispensaries nationwide. Meanwhile, the company owns both retail and cultivation properties. That diversified portfolio gives investors broader exposure to the cannabis industry. Management has also built a reputation for disciplined underwriting standards. The company remains selective before approving acquisitions or investments. As a result, many investors view NewLake as one of the more conservative cannabis REITs.

Another attractive feature is the company’s dividend payout. NewLake continues paying steady quarterly dividends despite cannabis market volatility. Additionally, the company carries relatively low leverage compared to some competitors. That conservative balance sheet could become valuable if industry conditions remain difficult. Furthermore, limited access to traditional cannabis financing continues to support demand for REIT partnerships.

Latest Financials Financially, NewLake Capital reported stable operating results during recent quarters. Revenue remained consistent even while several facilities stayed temporarily vacant. Additionally, adjusted funds from operations continued to support dividend payments. The company maintained its quarterly dividend during the latest reporting period. Management also highlighted strong liquidity and financial flexibility entering mid-2026. Those factors continue to help investor confidence.

Some revenue pressure came from vacant cultivation properties in certain markets. However, rent escalators and recently acquired dispensaries helped offset part of the weakness. Furthermore, the company continues to carefully explore new investment opportunities. NewLake also benefits from its strong tenant relationships and disciplined growth strategy. Management appears focused on protecting shareholder value during uncertain industry conditions. That cautious approach has helped the company stand out from weaker cannabis businesses.

Overall, NLCP remains a cannabis REIT worth watching closely this year. Investors seeking dividends and lower leverage continue showing interest in the stock.

[Read More] 3 Marijuana Stocks To Know About Now In 2026

Chicago Atlantic Real Estate Finance (REFI) Chicago Atlantic Real Estate Finance operates differently from many cannabis REITs. Instead of primarily owning properties, the company focuses on lending capital to cannabis operators. Those loans are usually secured by real estate and business assets. The company provides financing to licensed cannabis businesses throughout the United States. Its portfolio includes senior secured loans tied to cultivation facilities, dispensaries, and equipment. Additionally, management focuses heavily on risk management and collateral protection.

Chicago Atlantic has become one of the largest institutional cannabis lenders in the market. The company works with several established multistate cannabis operators nationwide. Those operators collectively manage many dispensaries across legalized states. Demand for cannabis lending remains strong because traditional banking access remains limited. Therefore, operators still rely heavily on private credit providers like REFI. Additionally, the company benefits from relatively high loan interest rates.

Latest Financials One reason investors continue to watch REFI is its high dividend yield. The company pays strong quarterly dividends supported by interest income from its lending portfolio. That combination of income and cannabis exposure attracts many speculative investors. Financially, Chicago Atlantic reported stable portfolio growth entering 2026. The company managed hundreds of millions in active cannabis-related loans during the latest quarter. Additionally, the portfolio maintained a strong weighted average yield.

Management also highlighted healthy liquidity levels and continued lending opportunities nationwide. The company expects demand for cannabis financing to remain elevated throughout the year. Furthermore, federal reform discussions could eventually improve industry growth. However, investors should still recognize the risks tied to cannabis lending. Some operators continue facing pricing pressure and profitability issues. Therefore, lenders must carefully monitor borrower performance and repayment trends.

The company also increased reserves for potential credit losses during recent quarters. That cautious approach reflects ongoing uncertainty within parts of the cannabis market. Still, management remains optimistic about long-term industry growth. Overall, REFI remains one of the highest-yielding cannabis REITs available today. Investors comfortable with higher risk continue watching the stock closely in May 2026.

MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

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SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) announced today it has fully repaid its outstanding $282 million of 5.50% Senior Notes Due May 2026, satisfying a significant public debt maturity for the Company. The repayment was completed through cash on hand, availability under the Company’s revolving credit facilities and proceeds from recently closed term loans.

“Repaying this bond maturity represents a meaningful milestone for IIP, which reflects the strength of our balance sheet, disciplined capital allocation strategy and the execution capabilities of our best-in-class management team. As part of this process, we have added multiple new lending relationships to the Company that provided attractively priced debt capital at a blended interest rate of approximately 8.3%,” said Alan Gold, Executive Chairman of IIP. “With this obligation now behind us, we have strengthened our already strong balance sheet and positioned us to focus on strategic growth opportunities.”

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

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Key Takeaways IIPR repaid $282M of 5.50% senior notes due May 2026, clearing a major debt maturity.IIPR used cash, revolvers and new secured loans: $56.5M SOFR 500 (3yr) plus $44.9M at 6.67%.IIPR leased 389k sq ft through May 4, 2026; its 110-property portfolio averages 12.4-year leases. Innovative Industrial Properties (IIPR - Free Report) has removed a sizable debt maturity from its balance sheet by fully repaying $282 million of 5.50% senior notes due May 2026. The cannabis-focused real estate investment trust funded the repayment with cash on hand, borrowings under its revolving credit facilities and proceeds from recently completed secured term loans.

With this, IIPR has reduced near-term refinancing pressure at a time when capital remains costly for many real estate companies and improves financial flexibility. A large public debt obligation is now behind the REIT, giving management more room to focus on leasing, portfolio management and selective growth.

The repayment was supported by fresh secured financing. IIPR recently closed a $56.5 million secured term loan with a three-year initial term and a floating rate of one-month SOFR plus 500 basis points. It also completed four secured term loans totaling $44.9 million, carrying five-year initial terms and a fixed interest rate of 6.67%. Together, these deals helped fund the note repayment while adding new lending relationships.

Operationally, IIPR entered this refinancing period with some support from its core business. In the first quarter of 2026, the company reported total revenues of $69.0 million and AFFO of $53.4 million, or $1.88 per share. It also declared common dividends of $1.90 per share. 
Leasing progress was another positive, with 389,000 square feet leased since the beginning of the year through May 4, 2026 across California, Illinois and Ohio. IIPR’s portfolio of 110 properties across 19 states, a weighted-average lease length of 12.4 years and $2.5 billion of invested capital gives the company a sizable platform.

The repayment removes a clear overhang and shows capital-market access, while leasing activity and long lease terms remain upsides. At the same time, investors should watch the cost of newer debt, tenant health in the regulated cannabis market and execution around IIPR’s life-science commitments. The balance sheet looks steadier after this step, but the stock still depends on consistent rent collection, disciplined capital use and tenant demand holding up.

Over the past three months, shares of this Zacks Rank #4 (Sell) company have gained 7.7%, outperforming the industry's rise of 3.3%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Industrial Logistics Properties Trust (ILPT - Free Report) and STAG Industrial, Inc. (STAG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus mark for Industrial Logistics Properties Trust’s 2026 FFO per share has been revised 6.3% upward to $1.34 over the past month.

The Zacks Consensus Estimate for STAG Industrial’s 2026 FFO per share suggests a 3.14% increase year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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Published in finance marijuana reit

Innovative Industrial Properties is deeply undervalued, trading at a double-digit yield despite a strong, low-leverage balance sheet. Recent cannabis rescheduling to Schedule III is a major regulatory tailwind, poised to enhance tenant credit quality and reduce portfolio risk. IIPR has successfully refinanced its May debt maturity and is actively re-tenanting properties, with tentative agreements in place for all troubled assets.

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SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (the “Company”) (NYSE: IIPR) announced today the pricing of a private offering of $350.0 million aggregate principal amount of 6.0% exchangeable senior notes due 2029 (the “notes”) of its operating partnership, IIP Operating Partnership, LP (the “Operating Partnership”). The offering was upsized from the previously announced offering size of $250.0 million in aggregate principal amount of notes. The offering is expected to close on June 15, 2026, subject to the satisfaction of customary closing conditions.

The initial purchasers of the notes have been granted a 13-day option to purchase up to an additional $52.5 million aggregate principal amount of notes to cover over-allotments, if any.

The notes will be senior unsecured obligations of the Operating Partnership, will be fully and unconditionally guaranteed by the Company and will be exchangeable for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Operating Partnership’s option. The initial exchange rate for the notes will be 14.4113 shares of the Company’s common stock per $1,000 principal amount of notes and the initial exchange price will be approximately $69.39 per share of the Company’s common stock. The initial exchange rate and initial exchange price are subject to adjustment in certain circumstances. The notes will pay interest semiannually at a rate of 6.0% per annum and will mature on June 15, 2029, unless earlier exchanged or repurchased in accordance with their terms. The Operating Partnership will not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances.

The Operating Partnership intends to use up to $70.0 million of the net proceeds from this offering (or up to $80.5 million of the net proceeds if the initial purchasers exercise their option to purchase additional notes) to fund the repurchase of shares of common stock of the Company from certain purchasers of the notes in privately negotiated transactions and intends to use the remaining net proceeds from this offering for working capital and general corporate purposes, which may include repayment of indebtedness, and funding investments that are consistent with its investment strategy, or a combination of the foregoing. The share repurchases, and any other repurchases of shares of the Company’s common stock, may increase, or reduce the size of any decrease in, the market price of the Company’s common stock, and repurchases executed concurrently with the pricing of the offering may have affected the initial terms of the notes, including the initial conversion price.

The notes (and the related guarantee) will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The notes and the related guarantee, and any shares issuable upon conversion of the notes, have not and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the offered securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate.

This press release contains statements that are “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding the offering, the terms of the notes, and the use of proceeds from the offering, including the share repurchase, are forward-looking statements. When used in this press release, words such as the Company or the Operating Partnership “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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The company introduces a unified SAP Business AI Platform, deepening partnerships with Anthropic, Amazon Web Services, Google Cloud, Microsoft, NVIDIA and Palantir

, /PRNewswire/ -- At SAP Sapphire in 2026, SAP SE (NYSE: SAP) introduced the Autonomous Enterprise to help enhance the world's most critical business workflows, so that humans and AI work together to meet the accelerating demands of global business profitably, strategically and safely.

"For the mission-critical processes of our customers, 'almost right' just isn't good enough," said Christian Klein, CEO of SAP SE. "By uniting SAP Business AI Platform with SAP Autonomous Suite, we anchor AI agents in the business processes, data and governance so they can deliver accurate, compliant and secure outcomes, unlocking new sources of revenue and meaningful cost savings."

The Autonomous Enterprise includes a unified AI platform for building, contextualizing and governing agents, an autonomous suite that executes core business operations and a new user experience that redefines how people work with enterprise software.

Introducing SAP Business AI Platform

SAP Business AI Platform is a new foundation for building and deploying enterprise AI grounded in real business context. SAP Business AI Platform now unifies SAP Business Technology Platform, SAP Business Data Cloud and SAP Business AI into a single, governed environment.

At its core is the SAP Knowledge Graph solution, which gives AI agents a structured map of business entities, processes and relationships across a customer's SAP landscape. Joule Studio is SAP's AI-first solution for building enterprise agents, applications and agentic workflows. Developers can build using the no-code, pro-code and AI frameworks of their choice on SAP-managed infrastructure that is secure, scalable and optimized for enterprise AI.

Deploying SAP Autonomous Suite Across Every Business Function and Industry

Building on this foundation, SAP also introduced SAP Autonomous Suite, which enables SAP's existing business applications with AI agents capable of running processes from start-to-finish.

The suite will deploy more than 50 domain-specific Joule Assistants across finance, supply chain, procurement, human capital management and customer experience. These assistants will automate end-to-end processes by orchestrating a subset of over 200 specialized agents to execute precise tasks. For example, the new Autonomous Close Assistant can compress the financial close process from weeks to days by automating journal entries, reconciliation and error resolution across the entire process.

SAP also launched Industry AI, expanding its deep industry portfolio through seven autonomous solutions that will enable start-to-finish industry processes and embed sector-specific process logic, data models and regulatory requirements. At SAP Sapphire, SAP showcased its work with European energy giant RWE to leverage Industry AI, helping reduce unplanned downtime across its offshore wind turbines. With SAP's Autonomous Asset Management scenario, AI agents are designed to analyze data from thousands of past incidents, identify the likely root cause and generate pre-filled work orders with the right tools and proven fixes from other sites.

Designing the Autonomous User Experience

The company also revealed Joule Work, redefining how users engage with SAP software. Instead of navigating individual applications and entering data across several screens, users will now interact primarily with Joule. By describing a desired business outcome, Joule will orchestrate the right combination of workflows, data and agents to get it done.

Joule Work goes beyond conversation, proactively surfacing relevant insights and automating routine tasks behind the scenes so work moves forward even when humans aren't actively steering it. It will be available on desktop, mobile and voice across SAP and non-SAP systems.

Accelerating the Customer Journey Toward Autonomy with €100 Million Infusion

SAP evolved its customer and partner programs to help accelerate the organization's journey to the Autonomous Enterprise. To catalyze adoption, the company has launched a €100 million fund for SAP partners to help customers deploy SAP-built AI assistants and agents. The fund is also available to partners that extend or build new partner agents on the new SAP Business AI Platform using Joule Studio.

SAP has enhanced its RISE with SAP and SAP GROW offerings to accelerate AI adoption. Both include access to the Joule Assistants portfolio; RISE with SAP customers will have three assistants activated within their first year, while SAP GROW customers receive full portfolio access at onboarding. SAP S/4HANA, on-premise and SAP ERP Central Component (SAP ECC) customers are not excluded: those that commit to transitioning the majority of their current landscape to SAP Cloud ERP gain access to select AI scenarios, bridging the gap between their current landscape and their cloud destination.

SAP also introduced new agent-led transformation tooling that can reduce ERP migration efforts by more than 35 percent, driving faster and more predictable projects by automating system analysis, code remediation, configuration and testing at scale.

Lastly, SAP announced a full slate of strategic partnerships across each category:

Platform and suite partnerships include Anthropic, with Claude among the foundation models SAP's AI platform will leverage to power Joule agents across HR, procurement and supply chain; Amazon Web Services, bringing zero-copy data integration between SAP Business Data Cloud and Amazon Athena; Google Cloud and Microsoft, enabling bidirectional agent-to-agent interoperability between Joule and external agent frameworks; Mistral AI and Cohere, delivering sovereign model options on SAP's cloud infrastructure; n8n, providing visual AI workflow orchestration inside Joule Studio; NVIDIA, whose OpenShell provides the trusted secure runtime for Joule Studio; and Parloa, bringing AI agents into SAP Service Cloud to handle customer interactions with full access to business data and service processes. Implementation partnerships include Palantir and Accenture, partnering on complex data migration scenarios, and Conduct for AI-powered cloud ERP migrations. Learn more in the SAP Sapphire 2026 Innovation News Guide.

Visit the SAP News Center. Get SAP news via LinkedIn and Bluesky.

About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2025 Annual Report on Form 20-F.

© 2026 SAP SE. All rights reserved.
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SOURCE SAP SE

SAP has unveiled its new "Autonomous Enterprise" platform at this year's SAP Sapphire conference, expanding its push into AI agents across business operations. SAP CEO Christian Klein joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.

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SAP has launched a program to help businesses integrate artificial intelligence (AI) agents into their operations.

The German software giant’s “Autonomous Enterprise” initiative, announced Tuesday (May 12), focuses on a new unified platform and specialized tools intended to automate end-to-end tasks across various corporate functions.

“For the mission-critical processes of our customers, ‘almost right’ just isn’t good enough,” Christian Klein, SAP’s chief executive, said in a news release. “By uniting SAP Business AI Platform with SAP Autonomous Suite, we anchor AI agents in the business processes, data and governance so they can deliver accurate, compliant and secure outcomes, unlocking new sources of revenue and meaningful cost savings.”

SAP Business AI Platform, the release added, unifies the company’s SAP Business Technology Platform, SAP Business Data Cloud and SAP Business AI into a “single, governed environment.” At its center is the SAP Knowledge Graph solution, which gives AI agents a “structured map of business entities, processes and relationships.”

In addition to the new product rollouts, SAP is also announcing a series of AI partnerships tied to its various tools, with companies that include Anthropic, Amazon Web Services and Nvidia.

SAP began this year by rolling out a series of agentic artificial intelligence enhancements for its retailer customers.

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“Retailers face a landscape where AI is no longer optional,” Balaji Balasubramanian, SAP’s chief product officer for customer experience and consumer industries, said at the time. “SAP provides one closed-loop, AI-enhanced retail operating system that ties planning, execution and engagement together. We put data and AI at the heart of retail, delivering speed, personalization and growth across every channel and segment.”

The company is launching these tools at a moment when “agentic artificial intelligence is moving from frontier technology to operational table stakes,” as PYMNTS wrote recently.

Agentic AI, that report said, marks a shift from tools that help shape decisions to systems that carry them out.

“For CFOs, this changes the calculus,” PYMNTS added. “The question is no longer whether artificial intelligence can improve finance operations, but whether it can do so within a framework of control and accountability.”

That’s where the “agentic AI harness” comes in. This term may sound technical, but its implications are chiefly operational. The harness isn’t the model itself, but the system that controls how models perform in the real world. It sets the parameters for what an AI agent can access, what it is permitted to do, how it is monitored and when it needs to defer to a human.

“For chief financial officers, understanding this layer is becoming as important as understanding internal controls or capital allocation,” the report added.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

See More In: Agentic AI, AI, AI Agents, B2B, B2B Payments, commercial payments, News, PYMNTS News, SAP, What's Hot, What's Hot In B2B

Item 1 of 3 National flags of China and the United States flutter on a road, ahead of the U.S. President Donald Trump's state visit to China, in Beijing, China, May 13, 2026. REUTERS/Tingshu Wang

[1/3]National flags of China and the United States flutter on a road, ahead of the U.S. President Donald Trump's state visit to China, in Beijing, China, May 13, 2026. REUTERS/Tingshu Wang Purchase Licensing Rights, opens new tab

SummaryCompaniesAnthropic's Mythos model has intensified need for US-China AI talksTrump-Xi summit takes place amid heightened mistrust and US push for chip controlsBoth sides could discuss an AI hotline or guardrails for advanced models, analysts sayBEIJING, May 13 (Reuters) - U.S. President Donald Trump will put artificial intelligence at the forefront of talks this week with Chinese leader Xi Jinping, a first that highlights ​the technology's strategic heft but substantive commitments are unlikely, said two U.S. officials with knowledge of preparations.

Trump's Beijing visit unfolds as the U.S.-China AI rivalry intensifies ‌into a contest some observers have compared to a Cold War-style nuclear arms race. Pressure to engage has grown after Claude maker Anthropic's launch of the powerful Mythos model, analysts say, raising the stakes for both sides.

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China was excluded from early access to a Mythos preview, raising concerns the technology could be exploited by bad actors to penetrate Chinese software and financial systems.

However, Nvidia (NVDA.O), opens new tab CEO Jensen Huang and top White House tech policy advisor ​Michael Kratsios are joining Trump's delegation, suggesting that more substantive conversations on AI and Nvidia's powerful H200 chips could be on the summit agenda.

China has also floated to the ​U.S. a formal mechanism for AI dialogue led by Treasury Secretary Scott Bessent and Chinese vice finance minister Liao Min, according to one ⁠source briefed on China's outreach. The Wall Street Journal first reported on the dialogue last week.

But expectations are low since both agencies do not specialise in AI and the Trump administration ​has only recently shifted towards pursuing safety vetting for advanced AI models.

AI CHANNEL OF COMMUNICATION NEEDED AS STAKES RISEWhite House officials acknowledged cutting-edge AI systems like Mythos made a "channel of communication" with China ​essential to avoid conflicts arising from their deployment.

Market intelligence firm IDC China warns that shutting Chinese companies out of Mythos risks deepening a "generational gap" in AI defence capabilities between China and the West.

Anthropic said last month Mythos had found "thousands" of major vulnerabilities in operating systems and other software, triggering a scramble by banks and governments worldwide to shore up their cybersecurity defences.

Washington has struck guardrails on advanced tech with Beijing before, on nuclear proliferation, and in ​2024 both sides agreed that humans, not AI, must control nuclear-use decisions.

Now researchers warn the stakes are rising: advanced AI could accelerate bioweapons design, trigger financial shocks, supercharge cyber and disinformation ​campaigns, and even slip beyond human control to "rogue" systems acting on their own.

Both sides could set up a no-blame hotline to flag suspected AI-driven incidents, said Kwan Yee Ng, head of international AI governance at ‌Beijing-based AI ⁠safety consultancy Concordia AI.

"Getting senior Western figures to engage directly with China (on AI) has become increasingly difficult, though a positive signal from the Xi-Trump summit could change that."

A military hotline already exists, but U.S. officials have complained that China has often not picked up.

Other analysts suggest establishing guardrails for frontier AI models or committing to reduce AI-enabled malicious activity, similar to the 2015 U.S.-China Cybersecurity Agreement.

"China likely hopes the U.S. will appropriately distinguish between AI governance and technological containment," said Sun Chenghao of Tsinghua University, who has participated in U.S.-China unofficial Track II AI talks.

COMMON GROUND ​PROVES ELUSIVEAmid growing rivalry in the AI race, ​U.S. lawmakers are pushing sweeping new limits ⁠on China's access to semiconductor supply chains, even as the Trump administration eases some curbs on advanced chip exports to China.

The MATCH Act has drawn protests from Beijing and could surface in summit discussions, in addition to existing U.S. chip export controls, said three sources familiar with the ​matter.

"This is a really crucial window for Beijing to act and try to get the U.S. to commit to shutting it down," ​said Reva Goujon, geopolitical ⁠strategist at Rhodium Group.

While Chinese AI firms like DeepSeek increasingly tout their reliance on domestic chips, U.S. curbs on chip equipment sales continue to choke Beijing's push for self-sufficiency just when domestic fabs are struggling to scale output. Computing power shortages have forced many Chinese AI models to ration user access in recent months.

Tensions are also escalating on another front: the White House has accused China of industrial-scale theft of ⁠U.S. AI labs' ​intellectual property.

In a pointed article last week, the Communist Party's flagship journal warned that Western AI measures have ​moved beyond targeted restrictions to what it called a "systematic ecosystem blockade" against China.

"When one side sees AI as a proliferation risk to be contained and the other sees containment as an attack on a general-purpose technology, that makes it ​really difficult to find common ground," said Ng.

Reporting by Laurie Chen; Additional reporting by Trevor Hunnicutt in Washington, Fanny Potkin and Ben Blanchard in Taipei; Editing by Miyoung Kim and Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Laurie Chen is a China Correspondent at Reuters in Beijing, whose coverage focuses on the nexus of frontier technology, strategic emerging industries and geopolitics. She has reported on China for almost a decade, having previously covered China's government, defence, security and foreign policy. She has broken multiple global scoops on U.S.-China relations and the trade war 2.0, elite Chinese politics and diplomacy. She is particularly interested in Chinese frontier AI, tech and industrial policy, semiconductor supply chains, robotics, aerospace and grand strategy.

SAP SE (SAP) Shareholder/Analyst Call Transcript

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The award was presented at SAP’s North America Partner Summit 2026

MIAMI--(BUSINESS WIRE)--Answerthink®, a Hackett Group Company (NASDAQ: HCKT), today announced it is the recipient of an SAP® Partner Award North America 2026 for SAP Business Data Cloud Success. Awards were presented by SAP (NYSE: SAP) to the top-performing SAP partners in the North America region that have made outstanding contributions to driving digital transformation for businesses that use SAP solutions. Recipients of this year's awards have been – in partnership with SAP – helping customers adopt innovation easily, gain results rapidly, grow sustainably and run more simply with SAP solutions.

"For nearly 30 years, Answerthink® has been a trusted SAP partner – and our commitment to that partnership has never been stronger. SAP Business Data Cloud is an exciting frontier for our clients, and we’re honored that SAP recognizes the work we’re doing"

Share “Winning this award is a proud moment for our entire team, but more than anything it reflects the confidence our clients have placed in us,” said John McGrath, principal and managing director, SAP Solutions at Answerthink®. “For nearly 30 years, Answerthink® has been a trusted SAP partner – and our commitment to that partnership has never been stronger. SAP Business Data Cloud is an exciting frontier for our clients, and we’re honored that SAP recognizes the work we’re doing to help them harness its full potential.”

Selected from SAP’s wide-ranging partner base, nominations for the SAP Partner Awards were based on internal SAP sales data. A steering committee composed of regional and global SAP representatives determined winning partners in each category according to numerous criteria such as sales achievement and performance. Awards were presented in a variety of categories, including overall sales, innovation, technology, services and solution-specific areas.

“Our success in North America is driven by the strength of our collaborations. Throughout 2025, we focused on empowering our partners to lead with innovation, leveraging RISE and GROW with SAP to solve our customers’ most complex challenges,” said Annie Busch, chief commercial officer, Partners and Alliances at SAP. “The partners we honor today have shown incredible dedication to our shared vision, demonstrating that when we are fully aligned, we can accelerate growth for businesses of every size. I am proud to celebrate an ecosystem that remains as resilient as it is innovative.”

Founded in 1997 as an SAP consultancy, Answerthink® has been a cornerstone of the SAP partner ecosystem in North America for nearly three decades. The company was among the first 12 SAP partners in North America authorized to resell SAP software – a distinction that reflects the depth of its technical expertise and the trust SAP placed in Answerthink® from the earliest days of the partnership. That foundation has only grown stronger over time, with multiple SAP Pinnacle Awards, including Value-Added Reseller of the Year, followed by the SAP North America Award for Partner Excellence in Service in 2024 and the SAP North America Award for Partner Excellence in Indirect Marketing in 2025.

“SAP Business Data Cloud gives our clients something they’ve always needed – a unified, intelligent foundation for their data that connects seamlessly with the SAP solutions they already rely on,” said Richard Rodriguez, associate principal, SAP Business Data Cloud and Analytics at Answerthink®. “Our team has invested deeply in understanding this platform inside and out, and the results we’re seeing for clients make that investment worthwhile. This award is a great acknowledgment of our work, but the real reward is watching our clients unlock new levels of insight and performance.”

Answerthink® received its award during Kick-off 2026 – a gathering of SAP executives, SAP field employees and partners.

About Answerthink®

Answerthink®, a division of The Hackett Group® (NASDAQ: HCKT), is an SAP Platinum Partner that develops and offers partner solutions, including industry-specific software, analytics, mobility, cloud services, training, and support. It also uses SAP technologies such as SAP S/4HANA® to implement efficient and composable solutions for the digital transformation of intelligent enterprises. Learn more at www.answerthink.com.

About The Hackett Group®

The Hackett Group, Inc. (NASDAQ: HCKT) is an ROI-led, AI enterprise transformation firm that helps clients enable AI world-class performance. Its experts and engineers leverage proprietary AI delivery platforms – Hackett AI XPLR™, ZBrain™, XT™, AIXelerator™ and AskHackett™ – to accelerate and enhance the delivery of the company’s solutions and services.

The AI platforms are powered by the company’s domain-specific Hackett Solution Language Model informed by Hackett Process and Performance Intelligence – including Digital World Class® benchmark metrics, best-practice process flows and service delivery model solution frameworks, which accelerate and enhance the delivery of its services. The Hackett Group’s proprietary insights are based on benchmarking results from leading global organizations, including 98% of Dow Jones Global Titans, 97% of the Dow Jones Industrials and 90% of the Fortune 100. Visit www.thehackettgroup.com

Trademarks

The Hackett Group®, quadrant logo, and Digital World Class® are the registered marks of The Hackett Group®.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. See http://www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies.

Cautionary Statement Regarding “Forward-Looking” Statements

This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group® to effectively market its digital transformation, our ability to transition our capabilities to support generative artificial intelligence (AI)-related consulting services and solutions and other consulting services, our ability to effectively integrate acquisitions into our operations, our ability to manage joint ventures and successfully cooperate with our joint venture partners, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group® and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group® does not undertake any duty to update this release or any forward-looking statements contained herein.

More News From The Hackett Group, Inc.

Back to Newsroom

On May 29, 2026, SAP SE SAP shares rose 3.6% today, closing at $181.79. This move comes amid a 52-week range that has seen a high of $313.28 and a low of $158.58. The stock has had a turbulent year, with a year-to-date decline of 23.9% and a year-over-year drop of 37.7%.

GF Value™ verdict: SAP is currently priced at $181.79, which is 27.7% below its GF Value™ estimate of $251.56.GF Score™: The stock has a GF Score™ of 78/100, indicating it is above average in terms of its long-term performance potential.Most notable signal: There have been no insider transactions in the last 3 months, highlighting a lack of insider activity. Is SAP Overvalued or Undervalued? According to the GF Value™, SAP is currently undervalued at a price of $181.79, which is significantly lower than the intrinsic value estimate of $251.56. This implies a potential upside of approximately 27.7%. The GF Valuation label classifies SAP as modestly undervalued, presenting an opportunity for investors who may be looking to enter the stock at a lower price point. However, investors should remain cautious, as market conditions and company performance can affect the stock price.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The margin of safety provided by the current price relative to the GF Value™ suggests that there could be a favorable risk-reward scenario for potential investors, although market volatility and external economic factors should also be taken into account.

How Does SAP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 24.5x 33.7x Forward P/E 21.6x - The current P/E ratio of SAP is 24.5x, which is approximately 27% below its 5-year median P/E of 33.7x. This indicates that the stock is trading at a lower valuation compared to its historical averages. The forward P/E of 21.6x further supports this undervaluation perspective. Thus, the P/E analysis aligns with the GF Value™ verdict, suggesting that SAP is indeed undervalued at its current price.

What Does SAP's GF Score™ Tell Us? Metric Rating GF Score™ 78 Financial Strength 8/10 Profitability 8/10 Growth 8/10 Valuation 4/10 Momentum 2/10 The GF Score™ of 78/100 indicates that SAP is positioned above average when it comes to long-term returns. Its strongest areas are Financial Strength, Profitability, and Growth, each scoring 8/10, reflecting a solid operational foundation and growth potential. However, the Valuation score of 4/10 and the Momentum score of 2/10 highlight areas of concern, suggesting that while the company is financially strong, the stock may not be experiencing favorable price momentum at this time.

What Are Insiders Doing with SAP Stock? In the last three months, there have been no insider transactions reported for SAP. This lack of insider activity may suggest that insiders are either confident in the current operational performance and future prospects, or they may be waiting for more favorable market conditions before making any transactions. Without recent insider buying or selling, it can be challenging to gauge insider sentiment toward the stock.

What This Means for Investors Based on the GF Value™ analysis, SAP is currently undervalued with a significant margin of safety. This presents a potential opportunity for investors to assess the stock's long-term value, especially in light of its financial strength and growth potential. However, caution should be exercised due to the lack of recent insider activity and the stock's current momentum.

For the complete analysis, visit the SAP SE SAP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SAP's GF Score™?

SAP has a GF Score™ of 78/100, indicating above-average potential for long-term returns based on key fundamental factors.

Is SAP overvalued or undervalued?

SAP is currently undervalued, with a GF Value™ estimate suggesting it is 27.7% below its intrinsic value.

What is SAP's P/E ratio?

The P/E ratio for SAP is 24.5x, which is 27% below its 5-year median of 33.7x, indicating that the stock is trading below its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

, /PRNewswire/ -- Tata Technologies Limited (BSE: 544028) (NSE: TATATECH), a leading global product engineering and digital services company, today announced it has secured SAP PartnerEdge Sell authorization across the United States & India. This milestone expands Tata Technologies' strategic role within the broader SAP ecosystem, enabling the company to deliver end to end enterprise solutions from sales and adoption to implementation and value realization.

Tata Technologies secures SAP PartnerEdge Sell authorization across India and the US to strengthen enterprise digital transformation capabilities The SAP PartnerEdge Sell authorization marks a significant evolution in Tata Technologies' go-to-market strategy, shifting from a services-led to a solution-led, outcome-driven model. Under this approach, Tata Technologies leads end-to-end customer engagements across advisory, cloud ERP transformation, solution design, and the realization of business outcomes.

This authorization strengthens Tata Technologies' ability to accelerate enterprise wide transformation powered by the SAPBusiness Suite portfolio. The company will enable customers to modernize their digital core with SAP Cloud ERP, supporting real-time, data-driven decision-making and scalable processes aligned with SAP's vision of the Autonomous Enterprise.

With a proven track record in manufacturing, Tata Technologies helps global OEMs and enterprises reduce implementation risk and accelerate SAP Cloud ERP migrations, ensuring a single partner across the SAP journey, from advisory and business case development through implementation and value realization.

As part of this collaboration, Tata Technologies will help organizations harness SAP Business AI, embedding AI driven capabilities into enterprise workflows, including Joule, SAP's AI-enabled business assistant, to boost productivity, automate processes, and accelerate decision making.

Connecting directly to SAP Business AI Platform, Tata Technologies empowers enterprises to integrate, and innovate across their SAP landscapes, unlocking data driven insights and enabling innovation while maintaining a resilient core.

Aligned with SAP's Clean Core strategy, Tata Technologies helps organizations to adopt innovations without legacy disruption, ensuring standardized, upgrade stable environments that are agile, scalable, and future ready.

Mr. Warren Harris, MD & CEO, Tata Technologies, said, "The future belongs to enterprises that innovate faster, operate smarter, and scale sustainably. Expanding our SAP PartnerEdge partnership with a Sell authorization enables us to deliver transformative solutions that help customers reimagine their businesses and stay ahead in a digital world."

This authorization reinforces Tata Technologies' position as a trusted global transformation partner.

About Tata Technologies

Tata Technologies (BSE: 544028, NSE: TATATECH) is a global product engineering and digital services company helping manufacturers design, develop, and deliver better products. The company partners with global OEMs and enterprises across automotive, aerospace, industrial heavy machinery, and other manufacturing sectors.

Driven by its vision of #EngineeringABetterWorld, Tata Technologies enables enterprises to innovate faster and deliver differentiated customer experiences through engineering excellence and digital transformation.

With deep domain expertise in Embedded Systems and Software Solutions, Engineering Research & Development (ER&D) Services, and Digital Enterprise Solutions, Tata Technologies helps enterprises accelerate time-to-market, optimize product development costs, improve operational efficiency, and build smarter, safer, and more sustainable products.

For more information, visit www.tatatechnologies.com

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SOURCE Tata Technologies

MONTREAL, June 04, 2026 (GLOBE NEWSWIRE) -- Saputo Inc. (TSX: SAP) (we, Saputo or the Company) reported today its financial results for the fourth quarter and fiscal year ended on March 31, 2026. All amounts in this news release are in millions of Canadian dollars (CDN), except per share amounts, unless otherwise indicated, and are presented according to International Financial Reporting Standards (IFRS) Accounting Standards. The results of the Dairy Division (Argentina), which were previously reported under the International Sector, have been classified as discontinued operations, with comparative information presented accordingly, and with its assets and liabilities presented as held for sale.

Commenting on full-year results, Carl Colizza, President and CEO, said: “This year marks a meaningful step forward in advancing our long-term strategy and strengthening the foundation of our business. As we progress through the realization phase of the capital program we initiated in 2021, we are seeing tangible benefits in our cost structure, network capabilities, and overall performance consistency. We have also sharpened our portfolio to focus on higher return opportunities, positioning Saputo to compete more effectively in attractive segments. With financial flexibility and a clear set of priorities — including operational efficiency, commercial effectiveness, and selective investment — we are well positioned to create long-term value for our shareholders.”

Mr. Colizza added: “We delivered a solid finish to the year, reflecting disciplined execution across the business. Fourth quarter performance was largely driven by actions within our control, including effective pricing strategies, enhanced product mix, and consistent delivery against our operational priorities. The underlying trajectory of our business continues to improve. Importantly, strong cash flow generation in the quarter underscores the resilience of our model and our ability to fund both near-term priorities and future growth.”

 For the fourth quarters
ended March 31 For the years
ended March 31  2026
 20253 2026 20253 CONTINUING OPERATIONS2    Revenues4,173 4,414 17,551 17,812 Adjusted EBITDA1386 367 1,659 1,503 Adjusted EBITDA margin19.2%8.3%9.5%8.4%Net earnings (loss) from continuing operations2157 87 690 (147)Net earnings (loss) per share (EPS) from continuing operations2    Basic0.39 0.21 1.68 (0.35)Diluted0.38 0.21 1.67 (0.35)Adjusted net earningsfrom continuing operations1,2169 145 751 635 Adjusted EPSfrom continuing operations1,2    Basic0.42 0.34 1.83 1.50 Diluted0.41 0.34 1.82 1.50 Net cash from operating activities from continuing operations2510 340 1,508 1,194 Capital expenditures2127 136 339 386   For the fourth quarters
ended March 31
 For the years
ended March 31  2026
 20253 2026 20253 Revenues4,585 4,753 18,825 19,061 Discontinued operations4412 339 1,274 1,249 Continuing operations24,173 4,414 17,551 17,812 Adjusted EBITDA1409 376 1,777 1,565 Discontinued operations423 9 118 62 Continuing operations2386 367 1,659 1,503 Net Earnings (loss)5102 74 672 (176)Discontinued operations4(55)(13)(18)(29)Continuing operations2157 87 690 (147) 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Continuing operations excludes the Dairy Division (Argentina).3 Comparative information has been re-presented to reflect discontinued operations.4 Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.5 Refers to the total of continuing operations and discontinued operations.
FOURTH QUARTER FINANCIAL HIGHLIGHTS

Revenues of $4.173 billion, down $241 million or 5.5%, driven by lower US dairy commodity market pricing3. However, fourth quarter revenues reflected higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets, consistent with recent quarters.Adjusted EBITDA1 of $386 million, up $19 million or 5.2%, with an adjusted EBITDA margin1 of 9.2%, up from 8.3%. Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes;A favourable product mix, driven by growth in value-added and dairy foods categories and core branded products;Operational improvements and warehouse efficiencies, primarily driven by ongoing efficiency initiatives, and proactive cost management supported margin improvement;In our domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance; andOngoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities were incurred in the quarter. Net earnings from continuing operations4 totalled $157 million or $0.39 per share (basic) and $0.38 per share (diluted), up $70 million. The increase in net earnings was mainly due to higher adjusted EBITDA1 , as discussed above, and lower restructuring costs, partially offset by a gain on disposal of assets recorded in the same quarter last fiscal year and higher income tax expense. The increase in EPS also reflects a reduction in weighted average common shares outstanding resulting from shares purchased under our normal course issuer bid (NCIB).Adjusted net earnings from continuing operations1,4 totalled $169 million or $0.42 per share1 (basic) and $0.41 per share1 (diluted), up $24 million or $0.08 and $0.07 per share, respectively. The increase in adjusted EPS1 was mainly due to higher net earnings, as discussed above, and reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.Net earnings6 totalled $102 million, up $28 million. The increase in net earnings was mainly due to an increase in net earnings from continuing operations4, as discussed above, partially offset by an increase in net loss from discontinued operations5. Refer to the Consolidated Results section below for more information. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.3 Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.4 Continuing operations excludes the Dairy Division (Argentina).5 Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.6 Refers to the total of continuing operations and discontinued operations.
FISCAL 2026 FINANCIAL HIGHLIGHTS

Revenues of $17.551 billion, down $261 million or 1.5%, driven by lower US dairy commodity market pricing3. However, fiscal 2026 revenues reflected higher sales volumes, mainly in North America, and higher selling prices in both domestic and international cheese and dairy ingredient markets.Adjusted EBITDA1 of $1.659 billion, up $156 million or 10.4%, with an adjusted EBITDA margin1 of 9.5%, up from 8.4%. Results improved across all our sectors in fiscal 2026.Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix, driven by growth in cheese and value-added categories and core branded products;Operational improvements, primarily driven by ongoing efficiency initiatives stemming from our recent capital investments, and proactive cost management supported margin improvement;In our export markets, the relation between the international cheese and dairy ingredient market prices and the cost of milk as raw material had a positive impact on our results;In our domestic markets, higher selling prices implemented across key product categories to mitigate inflationary pressures preserved margin performance;Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year; andUnfavourable US dairy commodity market conditions3 compared to last fiscal year. Adjusted EBITDA from continuing and discontinued operations1 reached $1.777 billion, up $212 million or 13.5%, with an adjusted EBITDA margin1 of 9.4%, up from 8.2%. The increase is due to higher adjusted EBITDA1 from continuing operations, as discussed above, and higher adjusted EBITDA1 from discontinued operations, mainly due to a more favourable alignment between inflation and the devaluation of the Argentine peso, notably through lower milk costs.Net earnings from continuing operations4 totalled $690 million or $1.68 per share (basic) and $1.67 per share (diluted), up $837 million. The increase in net earnings was mainly due to the absence of the non-cash goodwill and intangible assets impairment charge recorded in our Dairy Division (UK) in the third quarter of last fiscal year of $684 million ($674 million after tax), higher adjusted EBITDA1, lower restructuring costs and depreciation and amortization, partially offset by a gain on disposal of assets recorded in last fiscal year and higher income tax expense. The increase in EPS also reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.Adjusted net earnings from continuing operations1,4 totalled $751 million or $1.83 per share1 (basic) and $1.82 per share1 (diluted), up $116 million or $0.33 and $0.32 per share, respectively. The increase in adjusted EPS1 was mainly due to higher net earnings, as discussed above, and reflected a reduction in weighted average common shares outstanding resulting from shares purchased under our NCIB.Net earnings6 totalled $672 million, up $848 million. The increase in net earnings was mainly due to an increase in net earnings from continuing operations, as discussed above, and from a decrease in net loss from discontinued operations5. Refer to the Consolidated Results section below for more information.Net cash from operating activities from continuing operations4 totalled $1.508 billion, up $314 million or 26.3%. The increase is mainly due to lower working capital usage and higher adjusted EBITDA1.The Company returned capital to shareholders through the purchase of approximately 19.2 million common shares for a total purchase price of $679 million and the payment of dividends totalling $324 million.Capital expenditures4 totalled $339 million and the balance of operating cash was directed primarily toward the reduction of net debt2. 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Refer to the ‘‘Glossary’’ section of the Management's Discussion and Analysis.3 Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.4 Continuing operations excludes the Dairy Division (Argentina).5 Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.6 Refers to the total of continuing operations and discontinued operations.
KEY EVENTS

On February 12, 2026, the Company entered into a definitive agreement with Gloria Foods, the dairy and food holding company of Grupo Gloria, to sell an 80% interest in its Dairy Division (Argentina). The transaction is expected to close in the first half of fiscal 2027, subject to certain customary closing conditions, including applicable regulatory approvals. Upon closing, the Company expects to receive net proceeds, after tax, of approximately $557 million ($400 million USD). See Caution Regarding Forward-Looking Statements. As a result of the definitive agreement, the results of the Dairy Division (Argentina), which were previously reported under the International Sector, have been classified as discontinued operations, with comparative information presented accordingly, and with its assets and liabilities presented as held for sale.In December 2025, we permanently closed our Green Bay, Wisconsin, facility as part of the consolidation activities related to our previously announced network optimization initiatives in our USA Sector.
 On November 19, 2025, we renewed our NCIB to purchase up to 5% of our issued and outstanding common shares, which will end no later than November 18, 2026. This NCIB reflects our continued commitment to returning capital to shareholders, while maintaining the flexibility to allocate capital for growth opportunities.
 On July 2, 2025, the Company issued Series 12 unsecured medium term notes through a private placement for an aggregate principal amount of $400 million due July 2, 2030, bearing interest at 3.879% per annum. The proceeds from this issuance were used to repay, on July 14, 2025, the $350 million aggregate principal amount of the Company’s Series 5 senior unsecured notes and the remainder was used for general corporate purposes.
 In June 2025, we announced our environmental objectives through to 2030, including our science-based targets, which have been validated by the Science-Based Targets initiative (SBTi). On August 7, 2025, we published our Climate Roadmap, which provides additional details on our action plan to achieve our science-based targets, and is available in the “Our Promise” section of the Company’s website at www.saputo.com.On June 1, 2025, the new milk pricing formula approved for all US federal milk marketing orders in which we operate became effective. The new milk pricing formula contributed positively to our results, in line with our expectations.The Board of Directors approved a dividend of $0.20 per share, payable on June 25, 2026, to shareholders of record on June 16, 2026. The Saputo Promise

On June 4, 2026, we published our 2026 Saputo Promise Report, reaffirming our commitment to transparency and accountability in relation to our progress in managing key Environmental, Social, and Governance (ESG) aspects to our business.

This report provides a comprehensive overview of the progress achieved throughout fiscal 2026 in alignment with our three-year strategic plan. It outlines our performance across the seven Pillars of the Saputo Promise and includes a detailed assessment of our advancement toward meeting our 2030 Environmental Pledges, including our science-based targets, which have been validated by the Science Based Targets initiative (SBTi).

The 2026 Saputo Promise Report is available in the “Our Promise” section of the Company’s website at www.saputo.com.

Additional Information

For more information on the fourth quarter and year-end results for fiscal 2026, reference is made to the audited consolidated financial statements, the notes thereto and to the Management’s Discussion and Analysis for the fiscal year ended March 31, 2026. These documents can be obtained on SEDAR+ at www.sedarplus.ca and in the “Investors” section of the Company’s website, at www.saputo.com.

Webcast and Conference Call

A webcast and conference call will be held on Friday, June 5, 2026, at 8:30 a.m. (Eastern Time).

The webcast will begin with a short presentation followed by a question and answer period. The speakers will be Carl Colizza, President and CEO, and Maxime Therrien, CFO and Secretary.

To participate:

Webcast: A live webcast of the event can be accessed using this link.
Presentation slides will be included in the webcast and can also be accessed in the “Investors” section of Saputo's website (www.saputo.com), under “Calendar of Events”.Conference line: 1-800-715-9871; Conference ID: 5005277 Please dial in five minutes prior to the start time. Replay of the conference call and webcast presentation
For those unable to join, the webcast presentation will be archived on Saputo’s website (www.saputo.com) in the “Investors” section, under “Calendar of Events”.

About Saputo

Saputo, one of the top ten dairy processors in the world, produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is a leading cheese manufacturer and fluid milk and cream processor in Canada, and a leading dairy processor in Australia. In the USA, Saputo is a leading cheese producer and extended shelf-life and cultured dairy products manufacturer. In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads. Until completion of the previously announced divestiture, Saputo remains the leading dairy processor in Argentina. In addition to its dairy portfolio, Saputo produces, markets, and distributes a range of dairy alternative products. Saputo products are sold in several countries under market-leading brands, as well as private label brands. Saputo Inc. is a publicly traded company and its shares are listed on the Toronto Stock Exchange under the symbol “SAP”. Follow Saputo’s activities at www.saputo.com or via Facebook, Instagram, and LinkedIn.

Investor Inquiries
Nicholas Estrela
Senior Director, Investor Relations 1-514-328-3117

Media Inquiries
1-514-328-3141 / 1-866-648-5902
[email protected]

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release contains statements which are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, among others, statements with respect to our objectives, outlook, business projects, strategies, beliefs, expectations, targets, commitments, goals, ambitions and strategic plans including our ability to achieve these targets, commitments, goals, ambitions and strategic plans, statements with respect to the pending sale of an 80% interest in our Dairy Division (Argentina), and statements other than historical facts. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan”, “expect”, “intend”, “anticipate”, “estimate”, “foresee”, “objective”, “continue”, “propose”, “aim”, “commit”, “assume”, “forecast”, “predict”, “seek”, “project”, “potential”, “goal”, “target”, or “pledge”, or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.

By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could significantly differ from those stated, implied, or projected in such forward-looking statements. As a result, we cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to significantly differ from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the “Risks and Uncertainties” section of the Management's Discussion and Analysis dated June 4, 2026, available on SEDAR+ under the Company's profile at www.sedarplus.ca.

Such risks and uncertainties include the following: product liability; the availability and price variations of milk and other dairy ingredients, our ability to transfer input costs increases, if any, to our customers in competitive market conditions; supply chain strain and supplier concentration; the price fluctuation of dairy products in the countries in which we operate, as well as in international markets; continuing economic and geopolitical uncertainties; changes in international trade agreements and policies, including those that may result from tariffs, quotas, trade barriers and other similar restrictions; actual or perceived changes in the condition of the economy or economic slowdowns or recessions; changes in consumer trends; our ability to identify, attract, and retain qualified individuals; the increased competitive environment in our industry; consolidation of clientele; cyber threats and other information technology-related risks relating to business disruptions, confidentiality, data integrity business and email compromise-related fraud; changes to tariff protection on dairy; unanticipated business disruption; changes in environmental laws and regulations; the potential effects of climate change; increased focus on environmental sustainability matters; public health threats; the failure to execute our growth strategy as expected or to adequately integrate acquired businesses in a timely and efficient manner; the failure to complete capital expenditures as planned; changes in interest rates and access to capital and credit markets; and any delay or failure to close the pending sale of an 80% interest in the Company’s Dairy Division (Argentina) or the Company’s inability to realize the anticipated benefits from such sale transaction. There may be other risks and uncertainties that we are not aware of at present, or that we consider to be insignificant, that could still have a harmful impact on our business, financial state, liquidity, results, or reputation.

Forward-looking statements are based on Management’s current estimates, expectations and assumptions regarding, among other things; the projected revenues and expenses; the economic, industry, competitive, and regulatory environments in which we operate or which could affect our activities; international trade policies; our ability to identify, attract, and retain qualified and diverse individuals; our ability to attract and retain customers and consumers; the results of our sustainability efforts; the effectiveness of our environmental and sustainability initiatives; our operating costs; the pricing of our finished products on the various markets in which we carry on business; the successful execution of our growth strategy; our ability to deploy capital expenditure projects as planned; reliance on third parties; our ability to gain efficiencies and cost optimization from strategic initiatives; our ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; our ability to leverage our brand value; our ability to drive revenue growth in our key product categories or platforms or add products that are in faster-growing and more profitable categories; the market supply and demand levels for our products; our warehousing, logistics, and transportation costs; our effective income tax rate; the exchange rate of the Canadian dollar to the currencies of cheese and dairy ingredients. Our financial performance goals and ambitions are set using assumptions regarding, among others: the absence of significant deterioration in macroeconomic conditions; tariffs, quotas, trade barriers and other similar restrictions; our ability to mitigate inflationary cost pressure; ingredient markets, commodity prices, foreign exchange; labour market conditions; the impact of price elasticity; our ability to increase the production capacity and productivity in our facilities; the efficiency of our network and cost optimization initiatives, and the demand growth for our products. Our ability to achieve our environmental targets, pledges, commitments, and goals (together, our “environmental targets”) is further subject to, among others: the development, effectiveness and costs of solutions to reduce emissions in dairy production systems; the ability of the Company and our industry to develop sustainable incentive models to reduce emissions; the availability of and our ability to access and implement the technology necessary to achieve our environmental targets at reasonable and sustainable costs; the development and performance of technology, innovation and the future use and deployment of technology and associated expected future results; the accessibility at sustainable costs of carbon and renewable energy instruments for which a market is still developing and which are subject to risk of invalidation or reversal; environmental regulation, and our ability to leverage our supplier relationships and our sustainability advocacy efforts.

Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide shareholders with information regarding Saputo, including our assessment of future financial plans, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.

Unless otherwise indicated by Saputo, forward-looking statements in this news release describe our estimates, expectations, and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo does not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.

OPERATING SECTOR REVIEW

CANADA SECTOR
(in millions of CDN dollars)

 For the fourth quarters
ended March 31
 For the years
ended March 31  2026
 2025 2026 2025 Revenues1,313 1,258 5,423 5,164 Adjusted EBITDA159 157 697 647 Adjusted EBITDA margin12.1%12.5%12.9%12.5%Depreciation and amortization29 30 115 118 
Revenues

Revenues for the fourth quarter of fiscal 2026 totalled $1.313 billion, up $55 million or 4.4%, as compared to $1.258 billion for the same quarter last fiscal year.

Revenues increased due to higher sales volumes in our retail, foodservice, and industrial market segments. Higher sales volumes in our value-added categories generated a favourable product mix. Higher butter sales volumes, as well as volume growth in value-added beverages and cultured products driven by consumer demand for high-protein offerings, contributed positively to revenues.

Revenues also increased due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk as raw material.

In fiscal 2026, revenues totalled $5.423 billion, up $259 million or 5.0%, as compared to $5.164 billion last fiscal year.

Revenues increased due to higher sales volumes in our retail, foodservice, and industrial market segments. We benefited from higher sales volumes in our cheese, milk, and dairy foods categories, as well as from favourable product mix. Higher butter sales volumes, as well as volume growth in value-added beverages and cultured products driven by consumer demand for high-protein offerings, contributed positively to revenues. Cheese volumes rose due to increases in both everyday cheese and specialty cheese categories. In our everyday cheese category, Armstrong became the national volume category leader, reflecting strong brand momentum and effective commercial execution.

Revenues also increased due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk as raw material.

Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of fiscal 2026 totalled $159 million, up $2 million or 1.3%, as compared to $157 million for the same quarter last fiscal year. Adjusted EBITDA margin was 12.1%, down from 12.5%.

The Canada Sector continued to deliver a solid performance. 

Higher sales volumes, a favourable product mix, and higher pricing, as described above, positively impacted results.

Enhanced manufacturing efficiencies driven by our capital investments in automation and cost-effective production capabilities supported adjusted EBITDA growth.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the quarter. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs .

In fiscal 2026, adjusted EBITDA totalled $697 million, up $50 million or 7.7%, as compared to $647 million last fiscal year. Adjusted EBITDA margin was 12.9%, up from 12.5%.

The Canada Sector results continued to outperform previous years, remaining above historical levels.

Commercial initiatives and disciplined execution on customer fulfillment supported higher sales volumes and a favourable product mix. Additionally, higher pricing, as described above, positively impacted results.

Adjusted EBITDA growth was supported by enhanced manufacturing efficiencies driven by our capital investments in automation and cost-effective production capabilities.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

Other elements

Depreciation and amortization for the fourth quarter of fiscal 2026 totalled $29 million, down $1 million, as compared to $30 million for the same quarter last fiscal year. In fiscal 2026, depreciation and amortization totalled $115 million, down $3 million, as compared to $118 million last fiscal year.

USA SECTOR
(in millions of CDN dollars)

 For the fourth quarters
ended March 31
 For the years
ended March 31  2026 
 2025 2026 2025 Revenues1,868 2,140 8,291 8,755 Adjusted EBITDA149 148 672 615 Adjusted EBITDA margin8.0 %6.9 %8.1 %7.0 %Depreciation and amortization66 75 272 275 
Revenues

Revenues for the fourth quarter of fiscal 2026 totalled $1.868 billion, down $272 million or 12.7%, as compared to $2.140 billion for the same quarter last fiscal year.

Revenues were negatively impacted by lower US dairy commodity market pricing3, primarily driven by the lower average block and butter market prices2. However, higher selling prices implemented to mitigate inflationary pressures and higher dairy ingredient market prices contributed positively to revenues.

Revenues were positively impacted by higher sales volumes across cheese, dairy foods, and value-added dairy ingredients, and by a favourable product mix. Within these categories, growth in string cheese, export cheese, and cream represented key contributors to the volume increase.

The conversion of the US dollar to the Canadian dollar had an unfavourable impact.

In fiscal 2026, revenues totalled $8.291 billion, down $464 million or 5.3%, as compared to $8.755 billion last fiscal year.

Revenues were negatively impacted by lower US dairy commodity market pricing3, primarily driven by the lower average butter and block market prices2. However, higher selling prices implemented to mitigate inflationary pressures and higher dairy ingredient market prices contributed positively to revenues.

Revenues were positively impacted by higher sales volumes in both our retail and foodservice market segments, and by a favourable product mix. Volume growth was supported by stronger demand from several of our largest customers, reflecting the strength of our commercial relationships, the continued relevance of our offering, and our ability to serve their evolving needs. Growth in the retail market segment was mainly driven by higher dairy foods and string cheese sales volumes, while growth in the foodservice market segment was supported by higher sales volumes to key customers and increased cheese exports. Industrial market segment sales volumes also increased, driven by demand for our value-added ingredients.

The conversion of the US dollar to the Canadian dollar had an unfavourable impact.

2 Refer to the ‘‘Glossary’’ section of the Management's Discussion and Analysis.3  Refer to the section "Discussion of factors impacting the Company's operations and results" of the Management's Discussion and Analysis.
Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of fiscal 2026 totalled $149 million, up $1 million or 0.7%, as compared to $148 million for the same quarter last fiscal year. Adjusted EBITDA margin was 8.0%, up from 6.9%.

Higher sales volumes and a favourable product mix, supported by our commercial initiatives, positively impacted results.

The increases in adjusted EBITDA reflected ongoing fiscal 2026 operational improvements, including efficiencies achieved from our new consolidated warehousing facility in the Midwest. However, elevated transportation and fuel prices resulted in increased logistics expenses.

Variations in US dairy commodity market conditions3 were not a material contributor to results, as compared to the corresponding quarter last fiscal year.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the quarter. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

The conversion of the US dollar to the Canadian dollar had an unfavourable impact.

In fiscal 2026, adjusted EBITDA totalled $672 million, up $57 million or 9.3%, as compared to $615 million last fiscal year. Adjusted EBITDA margin was 8.1%, up from 7.0%.

Higher sales volumes and a favourable product mix, supported by our commercial initiatives, positively impacted results.

Adjusted EBITDA increased, reflecting operational improvements driven by ongoing efficiency initiatives stemming from our recent capital investments. These gains were supported by a reduction in duplicate operating costs in our plants, incurred during the implementation of previously announced network optimization initiatives. At the end of the third quarter of fiscal 2026, we permanently closed our Green Bay, Wisconsin, facility and completed the transfer of production into our Franklin, Wisconsin, facility. In addition, disciplined execution on customer fulfillment and proactive cost management supported margin improvement. Our results also benefited from the continued execution of our ingredients strategy, including investments to expand capacity and upgrade our production network, which have enabled us to meet demand for higher-margin, value-added dairy ingredients.

Our new consolidated warehousing facility in the Midwest was commissioned in the second quarter of fiscal 2026. It is designed to streamline our supply network and deliver long-term improvements in scale and operational leverage. In fiscal 2026, we incurred transitional implementation costs associated with this initiative. However, efficiencies achieved in the second half of the fiscal year began to mitigate the effect of these implementation costs.

US dairy commodity market conditions3 were unfavourable, as compared to last fiscal year. This was due to the unfavourable fluctuations of US dairy commodity market prices3 this year in comparison to those market prices last fiscal year. The new milk pricing formula, effective June 1, 2025, contributed positively to our results, in line with our expectations.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

The conversion of the US dollar to the Canadian dollar had an unfavourable impact.

Other elements

Depreciation and amortization for the fourth quarter of fiscal 2026 totalled $66 million, down $9 million, as compared to $75 million for the same quarter last fiscal year. In fiscal 2026, depreciation and amortization totalled $272 million, down $3 million as compared to $275 million last fiscal year.

These fluctuations were mainly attributable to the net effect of the commissioning and decommissioning of assets in connection with our strategic capital projects.

Restructuring costs for the fourth quarter of fiscal 2026 and fiscal 2026 comprised a gain on disposal of assets totalling $4 million and related to the sale of a closed facility, in connection with previously announced consolidation initiatives in our USA Sector.

Restructuring costs for the fourth quarter of fiscal 2025 and in fiscal 2025 totalled $3 million and $4 million, respectively, and were mainly comprised of severance costs incurred relative to the optimization of selling, general, and administrative costs.

INTERNATIONAL AND EUROPE SECTORS

The results of the Dairy Division (Argentina) have been classified as discontinued operations and are therefore excluded from continuing operations and from the International Sector results. Comparative figures have been re-presented to reflect this classification. Refer to Note 6 to the consolidated financial statements for further information.

(in millions of CDN dollars)

 For the fourth quarters
ended March 31
 For the years
ended March 31  2026
 20252 2026 20252 Revenues International Sector702 681 2,570 2,706 Revenues Europe Sector290 335 1,267 1,187 Revenues International Sector and Europe Sector1992 1,016 3,837 3,893          Adjusted EBITDA International Sector41 38 162 135          Adjusted EBITDA margin International Sector5.8 %5.6 %6.3 %5.0 %Adjusted EBITDA Europe Sector37 24 128 106 Adjusted EBITDA margin Europe Sector12.8 %7.2 %10.1 %8.9 %Adjusted EBITDA International Sector and Europe Sector178 62 290 241 Adjusted EBITDA margin International Sector and Europe Sector17.9%6.1%7.6%6.2%         Depreciation and amortization International Sector27 25 104 99 Depreciation and amortization Europe Sector27 30 107 113 Depreciation and amortization International Sector and Europe Sector154 55 211 212  1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the primary financial statements, as applicable.2 Comparative information has been re-presented to reflect discontinued operations.
INTERNATIONAL SECTOR

The International Sector consists of the Dairy Division (Australia).

Revenues

Revenues for the fourth quarter of fiscal 2026 totalled $702 million, up $21 million or 3.1%, as compared to $681 million for the same quarter last fiscal year.

Higher international cheese and dairy ingredient market prices for our products in our export markets had a favourable impact, supported by growth in value-added ingredients.

Higher domestic sales volumes were partially offset by lower export sales volumes. The gain in domestic sales volumes was offset by unfavourable product mix.

The conversion of Australian dollars to Canadian dollars had a favourable impact.

In fiscal 2026, revenues totalled $2.570 billion, down $136 million or 5.0%, as compared to $2.706 billion last fiscal year.

Our sales volumes were lower mainly due to the divestitures of our two fresh milk plants and the King Island Dairy business. Export sales volumes decreased, aligning with our product mix optimization strategy.

Higher international cheese and dairy ingredient market prices for our products in our export markets had a favourable impact , supported by growth in value-added ingredients.

The conversion of Australian dollars to Canadian dollars had a favourable impact.

Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of fiscal 2026 totalled $41 million, up $3 million or 7.9%, as compared to $38 million for the same quarter last fiscal year. Adjusted EBITDA margin was 5.8%, up from 5.6%.

The favourable impact of higher international cheese and dairy ingredient market prices was partially offset by higher milk costs.

Reduced milk availability impacted efficiencies and the absorption of fixed costs. This impact was mitigated by our product mix optimization strategy.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the quarter. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

In fiscal 2026, adjusted EBITDA totalled $162 million, up $27 million or 20.0%, as compared to $135 million last fiscal year. Adjusted EBITDA margin was 6.3%, up from 5.0%.

The favourable impact of higher international cheese and dairy ingredient market prices was partially offset by higher milk costs as of July 1, 2025.

Reduced milk availability, due mostly to ongoing drought conditions in key milk-producing regions, negatively impacted efficiencies and the absorption of fixed costs. This impact was mitigated by our product mix optimization strategy.

Ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities, were incurred in the fiscal year. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

Other elements

Depreciation and amortization for the fourth quarter of fiscal 2026 totalled $27 million, up $2 million, as compared to $25 million for the same quarter last fiscal year. In fiscal 2026, depreciation and amortization totalled $104 million, up $5 million, as compared to $99 million last fiscal year.

There were no restructuring costs in fiscal 2026. In the fourth quarter of fiscal 2025, restructuring costs totalled $2 million and were comprised of severance costs relative to the optimization of selling, general, and administrative costs. In fiscal 2025, restructuring costs totalled $6 million, which related to severance and site closure costs incurred mainly in connection with the sale of the King Island Dairy facility and the optimization of selling, general, and administrative costs.

In the fourth quarter of fiscal 2025, we recorded a gain on disposal of assets of $24 million from the sale of land owned by the Dairy Division (Australia). There were no disposal of assets in fiscal 2026.

EUROPE SECTOR

Revenues

Revenues for the fourth quarter of fiscal 2026 totalled $290 million, down $45 million or 13.4%, as compared to $335 million for the same quarter last fiscal year.

Revenues decreased due to lower sales volumes of bulk cheese, as a result of lower milk intake, as well as lower dairy ingredients sales volumes, reflecting the change to our ingredient strategy. Retail market segment sales volumes in non-cheese categories were partially offset by higher branded cheese sales volumes.

Higher selling prices, implemented to mitigate inflationary pressures, partially offset the decline in revenues. The conversion of the British pound sterling to the Canadian dollar had a favourable impact.

In fiscal 2026, revenues totalled $1.267 billion, up $80 million or 6.7%, as compared to $1.187 billion last fiscal year.

Revenues increased due to higher selling prices implemented to mitigate inflationary pressures and the higher cost of milk and other input costs. Retail market segment sales volumes in non-cheese categories decreased. Bulk cheese sales volumes increased, as a result of higher milk intake. Dairy ingredients sales volumes also increased at higher selling prices. Incremental advertising and promotional activity supported growth in branded cheese sales volumes. These variations in sales volumes across product categories and market segments had a limited overall impact on revenues.

The conversion of the British pound sterling to the Canadian dollar had a favourable impact.

Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of fiscal 2026 totalled $37 million, up $13 million or 54.2%, as compared to $24 million for the same quarter last fiscal year. Adjusted EBITDA margin was 12.8%, up from 7.2%.

The improved performance was mainly driven by favourable product mix, which resulted from lower bulk cheese and higher branded cheese sales volumes. The consolidation of cheese packing operations at Nuneaton and the transition of our ingredients strategy, which occurred in the second quarter of the fiscal year, delivered operational efficiencies and cost savings.

We incurred ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities to support our commercial initiatives. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

The conversion of the British pound sterling to the Canadian dollar had a favourable impact.

In fiscal 2026, adjusted EBITDA totalled $128 million, up $22 million or 20.8%, as compared to $106 million last fiscal year. Adjusted EBITDA margin was 10.1%, up from 8.9%.

The improved performance was mainly driven by the more favourable relation between selling prices and input costs, which supported overall margin recovery, partially offset by the negative impacts of elevated operating expenses and unfavourable product mix.

The Sector's results were impacted by a planned maintenance shutdown in the second quarter, which temporarily constrained production, as well as costs associated with the commissioning and decommissioning of assets relative to the transition of its ingredients strategy and the relocation of cheese packing operations to Nuneaton. Those initiatives began delivering operational efficiencies and cost savings in the second half of the fiscal year.

We incurred ongoing increases in wages and compensation, including higher stock-based compensation, as well as planned strategic investments in advertising and promotional activities to support our commercial initiatives. Those cost increases were mitigated to some extent by the benefits from our ongoing cost optimization measures on selling, general, and administrative costs.

The conversion of the British pound sterling to the Canadian dollar had a favourable impact.

Other elements

Depreciation and amortization for the fourth quarter of fiscal 2026 totalled $27 million, down $3 million, as compared to $30 million for the same quarter last fiscal year. In fiscal 2026, depreciation and amortization totalled $107 million, down $6 million, as compared to $113 million last fiscal year. The decreases in depreciation are attributed to the decommissioning of assets in connection with our strategic capital projects.

There were no restructuring costs in the fourth quarter of fiscal 2026. In the fourth quarter of fiscal 2025 restructuring costs totalled $68 million, and comprised a non-cash assets write-down of $63 million mainly relating to fixed assets in connection with the our decision to stop manufacturing certain functional dairy ingredient products in our Dairy Division (UK) by mid-fiscal 2026. Restructuring costs for the fourth quarter of fiscal 2025 and in fiscal 2025 also included severance and site closure costs totalling $5 million and $7 million, respectively, incurred relative to the optimization of selling, general, and administrative costs, and the relocation of cheese packing operations from one site to another in our Dairy Division (UK). In fiscal 2026, restructuring costs totalled $6 million, and comprised severance costs, as well as the optimization of selling, general, and administrative costs. In fiscal 2025, restructuring costs totalled $70 million.

In fiscal 2025, a non-cash goodwill and intangible assets impairment charge of $684 million ($674 million after tax) was recorded for our Europe Sector's Dairy Division (UK).

In performing our annual goodwill impairment testing as at December 31, 2024, for our Dairy Division (UK) cash generating unit (the UK CGU), estimates of future discounted cash flows were reduced primarily due to challenging market conditions in the United Kingdom, including inflation and elevated interest rates. See Note 9 to the consolidated financial statements for additional information.

FY27 OUTLOOK

The operating environment continues to be shaped by macroeconomic and geopolitical uncertainty, including inflationary pressures, volatile consumer sentiment, tariff uncertainty, and ongoing geopolitical conflicts, particularly in the Middle East, which continue to influence input costs, energy prices, supply chains, and end-market demand across regions.
 Higher volumes and improved product mix are anticipated in certain categories, supported by an enhanced commercial strategy increasingly centered on disciplined, category-led growth, prioritizing returns, customer quality, and long-term brand strength over undifferentiated volume expansion. This approach is supported by enhanced commercial capabilities, pricing governance, and focused investment, positioning Saputo to navigate market uncertainty while pursuing sustainable and value-accretive growth.
 Demand for protein-rich and value-added dairy products continues to exhibit solid underlying momentum, despite evolving consumption patterns and variability across markets, reinforcing the importance of portfolio and market segment diversification.
 Operating efficiencies are expected to continue to improve as recent capital investments scale, supporting productivity, cost absorption, and network optimization, while maintaining Saputo’s focus on operating as a low-cost manufacturer of high-quality dairy products, through ongoing investment in technology and automation, as well as cost discipline.
 US dairy commodity markets and international pricing is expected to be influenced by timing differences between input costs and pricing mechanisms, inventory realization cycles, and market supply-demand conditions.
 Capital expenditures are expected to increase relative to FY26, reflecting disciplined investment in high-return projects focused on fast-growing dairy segments, capacity optimization and operational efficiency, with timing and returns subject to execution, and project phasing.
 Selling, general, and administrative expenses are expected to reflect higher labour costs and planned increases in advertising and promotional spending to support our brands and commercial and growth initiatives. Those increases are expected to be partially offset by ongoing administrative cost optimization, structural simplification, and efficiency initiatives.
 Saputo maintains a disciplined approach to capital allocation, with a focus on reinvesting cash flows into organic growth initiatives, capital expenditures, and disciplined M&A aligned with its strategic priorities. Capital deployment decisions are guided by cash flow generation, enabling disciplined investment in growth while maintaining balance sheet strength and capacity to return capital to shareholders over time.
 Overall, Saputo’s outlook reflects a disciplined approach centered on operating efficiency, a more focused and integrated commercial strategy, and continued investment to capture the long-term opportunity in dairy. By strengthening its cost position, supporting market-leading brands and value-added innovation, and expanding its portfolio across products and market segments, the Company believes it is well positioned to navigate market uncertainty while creating sustainable value for stakeholders. See Caution Regarding Forward-Looking Statements.

SELECTED QUARTERLY FINANCIAL INFORMATION

The results of the Dairy Division (Argentina) have been classified as discontinued operations and are therefore excluded from continuing operations and from the International Sector results. Comparative figures have been re-presented to reflect this classification. Refer to Note 6 to the Company's consolidated financial statements for further information.

(in millions of CDN dollars, except per share amounts and ratios)

Fiscal years20262 20252  Q4 Q3
 Q2 Q1 Q4 Q3 Q2 Q1 CONTINUING OPERATIONS3 Revenues

4,173

 4,590

 4,432

 4,356

 4,414

 4,648

 4,406

 4,344

 Adjusted EBITDA1386 466 410 397 367 419 370 347 Adjusted EBITDA margin19.2%10.2%9.3%9.1%8.3%9.0%8.4%8.0%Net earnings (loss) from continuing operations157
 209
 167
 157
 87 (496)137 125 Earnings (loss) per share (EPS) from continuing operations                 Basic0.39 0.51 0.41 0.38 0.21 (1.17)0.32 0.30 Diluted0.38 0.51 0.40 0.38 0.21 (1.17)0.32 0.30                  Adjusted net earnings from continuing operations1 169 224 182 176 145 193 157 140 Adjusted EPS from continuing operations1                 Basic0.42
 0.55
 0.44
 0.42
 0.34 0.46 0.37 0.33 Diluted0.41 0.54 0.44 0.42 0.34 0.46 0.37 0.33 CONTINUING AND DISCONTINUED OPERATIONS Net earnings (loss)4

102

 220

 185

 165

 74

 (518

)

126

 142

 EPS
                Basic0.25 0.54 0.45 0.40 0.18 (1.22)0.30 0.33 Diluted0.25 0.53 0.45 0.40 0.18 (1.22)0.30 0.33  1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the Company's primary financial statements, as applicable.2 Comparative information has been re-presented to reflect discontinued operations.3 Continuing operations excludes the Dairy Division (Argentina).4 Refers to the total of continuing operations and discontinued operations.
Quarterly financial information by sector

Fiscal years2026220252 Q4Q3
Q2Q1Q4Q3Q2Q1Revenues        Canada1,3131,4161,3731,3211,2581,3591,2941,253USA1,8682,1422,1532,1282,1402,3052,2252,085International702696582590681673610742Europe290336324317335311277264Total4,1734,5904,4324,3564,4144,6484,4064,344 Fiscal years2026220252 Q4Q3
Q2Q1Q4Q3Q2Q1Adjusted EBITDA        Canada159189179170157175162153USA149185167171148160145162International415639263853359Europe3736253024312823Total1386466410397367419370347 1 This is a total of segments measure, a non-GAAP financial measure, or a non-GAAP ratio. See the “Non-GAAP Measures” section of this news release for more information, including the definition and composition of the measure or ratio as well as the reconciliation to the most comparable measure in the Company's primary financial statements, as applicable.2 Comparative information has been re-presented to reflect discontinued operations.
NON-GAAP MEASURES

We report our financial results in accordance with GAAP and generally assess our financial performance using financial measures that are prepared using GAAP. However, this news release also refers to certain non-GAAP and other financial measures which do not have a standardized meaning under GAAP, and are described in this section.

We use non-GAAP measures and ratios to provide investors with supplemental metrics to assess and measure our operating performance and financial position from one period to the next. We believe that those measures are important supplemental metrics because they eliminate items that are less indicative of our core business performance and could potentially distort the analysis of trends in our operating performance and financial position. We also use non-GAAP measures to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and forecasts, and to determine components of management compensation. We believe these non-GAAP measures, in addition to the financial measures prepared in accordance with GAAP, enable investors to evaluate the Company's operating results, underlying performance, and future prospects in a manner similar to management. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution of GAAP results.

These non-GAAP measures have no standardized meaning under GAAP and are unlikely to be comparable to similar measures presented by other issuers. Our method of calculating these measures may differ from the methods used by others, and, accordingly, our definition of these non-GAAP financial measures may not be comparable to similar measures presented by other issuers. In addition, non-GAAP financial measures should not be viewed as a substitute for the related financial information prepared in accordance with GAAP. This section provides a description of the components of each non-GAAP measure used in this news release and the classification thereof.

NON-GAAP FINANCIAL MEASURES AND RATIOS

A non-GAAP financial measure is a financial measure that depicts the Company's financial performance, financial position, or cash flow and either excludes an amount that is included in or includes an amount that is excluded from the composition of the most directly comparable financial measures disclosed in the Company's financial statements. A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage, or similar representation and that has a non-GAAP financial measure as one or more of its components.

Below are descriptions of the non-GAAP financial measures and ratios that we use as well as reconciliations to the most comparable GAAP financial measures, as applicable.

Adjusted net earnings from continuing operations

Adjusted net earnings from continuing operations is defined as net earnings (loss) from continuing operations before the following items (when they occur): restructuring costs, amortization of intangible assets related to business acquisitions, (gain) loss on disposal of assets, and goodwill and intangible assets impairment charge, net of applicable income taxes. We believe that adjusted net earnings from continuing operations provides useful information to investors because this financial measure provides precision with regards to our ongoing operations by eliminating the impact of non-operational or non-cash items. We believe that in the context of our history of business acquisitions, adjusted net earnings from continuing operations provides a more effective measure to assess performance against the Company's peer group, including due to the application of various accounting policies in relation to the amortization of acquired intangible assets.

We also believe adjusted net earnings from continuing operations is useful to investors because it helps identify underlying trends in our business that could otherwise be masked by certain write-offs, charges, income, or recoveries that can vary from period to period. We believe that securities analysts, investors, and other interested parties also use adjusted net earnings to evaluate the performance of issuers. Excluding these items does not imply they are non-recurring. This measure does not have any standardized meanings under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies.

The following table provides a reconciliation, net of applicable income taxes, of net earnings to adjusted net earnings:

 For the fourth quarters
ended March 31
 For the years
ended March 31 2026
  20253 202620253 20243
Net earnings (loss) from continuing operations157 87 690(147) 152Amortization of intangible assets related to business    acquisitions116 15 6060 60Goodwill and intangible assets impairment charge2— — —674 265(Gain) on disposal of assets2— (17)—(17)—Restructuring costs2(4)60 165 19Adjusted net earnings from continuing operations169 145 751635 496 1  Amortization of intangible assets related to business acquisitions is included in Depreciation and amortization, as presented on the Company's consolidated income statements.2 Items presented on the Company's consolidated income statements. Continuing operations excludes the Dairy Division (Argentina).3 Comparative information has been re-presented to reflect discontinued operations.
Adjusted EPS basic and adjusted EPS diluted from continuing operations

Adjusted EPS basic from continuing operations (adjusted net earnings from continuing operations per basic common share) and adjusted EPS diluted from continuing operations (adjusted net earnings from continuing operations per diluted common share) are non-GAAP ratios and do not have any standardized meaning under GAAP. Therefore, these measures are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EPS basic from continuing operations and adjusted EPS diluted from continuing operations as adjusted net earnings from continuing operations divided by the basic and diluted weighted average number of common shares outstanding for the period. Adjusted net earnings from continuing operations is a non-GAAP financial measure. For more details on adjusted net earnings, refer to the discussion above in the adjusted net earnings section.

We use adjusted EPS basic from continuing operations and adjusted EPS diluted from continuing operations, and we believe that certain securities analysts, investors, and other interested parties use these measures, among other ones, to assess the performance of our business without the effect of restructuring costs, amortization of intangible assets related to business acquisitions, (gain) loss on disposal of assets, and goodwill and intangible assets impairment charge. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted EPS is also a component in the determination of long-term incentive compensation for management.

Adjusted EBITDA from continuing and discontinued operations

Adjusted EBITDA from continuing and discontinued operations is defined as consolidated adjusted EBITDA, as described below, plus the adjusted EBITDA from discontinued operations, which includes the Dairy Division (Argentina) as presented in Note 6 to the consolidated financial statements. A reconciliation of adjusted EBITDA from continuing and discontinued operations to the most directly comparable financial measure used by the Company, namely net earnings (loss), is provided under adjusted EBITDA and adjusted EBITDA margin below.

We believe that adjusted EBITDA from continuing and discontinued operations provides investors with useful information regarding the Company's operational and financial performance before the decision to discontinue the Dairy Division (Argentina). Including discontinued operations in adjusted EBITDA is useful for comparative purposes, as it enables investors to evaluate trends in operational performance without the variation that might result from excluding the Dairy Division (Argentina) that was part of the company’s operations for the fiscal year. This transparency is important because it helps users of the financial statements see the impact of all business activities, including those that are no longer part of the ongoing operations, to evaluate the historical performance of the Company. Adjusted EBITDA from continuing operations and discontinued operations is also a component in the determination of short-term incentive compensation for management.

TOTAL OF SEGMENTS MEASURES

A total of segments measure is a financial measure that is a subtotal or total of two or more reportable segments and is disclosed within the notes to Saputo's consolidated financial statements, but not in its primary financial statements. Consolidated adjusted EBITDA and consolidated adjusted EBITDA from continuing and discontinued operations are total of segments measures.

Consolidated adjusted EBITDA is the total of the adjusted EBITDA of our four geographic sectors. We report our business under four sectors: Canada, USA, International, and Europe. The Canada Sector consists of the Dairy Division (Canada), the USA Sector consists of the Dairy Division (USA), the International Sector consists of the Dairy Division (Australia), and the Europe Sector consists of the Dairy Division (UK). Consolidated adjusted EBITDA from continuing and discontinued operations includes consolidated adjusted EBITDA and the adjusted EBITDA from discontinued operations, which includes the Dairy Division (Argentina). We sell our products in three different market segments: retail, foodservice, and industrial.

Adjusted EBITDA and adjusted EBITDA margin

Adjusted EBITDA is defined as net earnings (loss) from continuing operations before the following items (when they occur): income taxes, financial charges, restructuring costs, (gain) loss on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization. Net earnings (loss) from continuing operations before income taxes, financial charges, restructuring costs, (gain) loss on disposal of assets, goodwill and intangible assets impairment charge, and depreciation and amortization is a measure which is presented on the consolidated income statements. Adjusted EBITDA margin consists of adjusted EBITDA expressed as a percentage of revenues.

We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with useful information because they are common industry measures. These measures are also key metrics of the Company's operational and financial performance without the variation caused by the impacts of the elements itemized below and provide an indication of the Company's ability to seize growth opportunities in a cost-effective manner, finance its ongoing operations, and service its long-term debt. Adjusted EBITDA is the key measure of profit used by management for the purpose of assessing the performance of each sector and of the Company as a whole, and to make decisions about the allocation of resources. We believe that securities analysts, investors, and other interested parties also use adjusted EBITDA to evaluate the performance of issuers. Adjusted EBITDA is also a component in the determination of short-term incentive compensation for management.

The following tables provide a reconciliation of net earnings to adjusted EBITDA and adjusted EBITDA from continuing and discontinued operations on a consolidated basis.

Fiscal years20262 20252  Continuing Operations1
 Continuing Operations1  Q4 Q3
 Q2
 Q1
 Q4 Q3 Q2 Q1 Net earnings (loss) 157
 209
 167
 157
 87 (496)137 125 Income taxes 52
 72
 58
 51
 30 47 43 42 Financial charges 32
 33
 34
 37
 35 30 35 37 Restructuring costs(4
)—
 —
 6
 79 — 7 — (Gain) on disposal of assets—
 —
 —
 —
 (24)— — — Goodwill and intangible assets impairment charge1—
 —
 —
 —
 — 684 — — Depreciation and amortization149 152
 151
 146 160 154 148 143 Adjusted EBITDA386 466 410
 397 367 419 370 347 Revenues                             4,173 4,590 4,432 4,356 4,414 4,648 4,406 4,344 Adjusted EBITDA margin9.2
%
10.2
%
9.3
%
9.1
%
8.3%
9.0
%8.4
%
8.0% 1 Items presented on the Company's consolidated income statements. Continuing operations excludes the Dairy Division (Argentina).2 Comparative information has been re-presented to reflect discontinued operations. For the years ended March 31
  2026
 20252 20242  
Continuing
Operations1  Discontinued Operations3 
 Continuing and discontinued operations
 Continuing Operations1

 Discontinued Operations3

 Continuing and discontinued operations Continuing Operations1

 Net earnings (loss)690 (18)672 (147)(29)(176)152 Income taxes233 93 326 162 (5)157 123 Financial charges136 26 162 137 59 196 149 (Gain) Loss on hyperinflation— (2
)(2
)— 12 12 — Restructuring costs2 — 2 86 1 87 25 (Gain) on disposal of assets— — — (24
)— (24
)— Goodwill and intangible assets impairment charge
— — — 684 — 684 265 Depreciation and amortization598 19 617 605 24 629 576 Adjusted EBITDA1,659 118 1,777 1,503 62 1,565 1,290 Revenues             17,551  1,274
 18,825
              17,812 1,249 19,061 16,350 Adjusted EBITDA margin9.5%9.3 %9.4 %8.4% 5.0%8.2%7.9% 1 Items presented on the Company's consolidated income statements. Continuing operations excludes the Dairy Division (Argentina).2 Comparative information has been re-presented to reflect discontinued operations.3 Refers to the Dairy Division (Argentina). Refer to Note 6 to the Company's consolidated financial statements for further information.
Revenues, adjusted EBITDA, and depreciation and amortization of International Sector and Europe Sector Subtotals are total of segments measures, as reconciled to total consolidated measures in the below tables.

 For the fourth quarter ended March 31, 2026
   International and Europe
  Canada
USA
International
Europe
Subtotal
Consolidated
Revenues1,3131,8687022909924,173Adjusted EBITDA159149413778386Depreciation and amortization2966272754149 For the fourth quarter ended March 31, 20251   International and Europe  CanadaUSAInternationalEuropeSubtotalConsolidatedRevenues1,2582,1406813351,0164,414Adjusted EBITDA157148382462367Depreciation and amortization3075253055160 1 Comparative information has been re-presented to reflect discontinued operations. For the year ended March 31, 2026
   International and Europe
  CanadaUSAInternationalEuropeSubtotalConsolidatedRevenues5,4238,2912,5701,2673,83717,551Adjusted EBITDA6976721621282901,659Depreciation and amortization115272104107211598 For the year ended March 31, 20251   International and Europe  CanadaUSAInternationalEuropeSubtotalConsolidatedRevenues5,1648,7552,7061,1873,89317,812Adjusted EBITDA6476151351062411,503Depreciation and amortization11827599113212605 1 Comparative information has been re-presented to reflect discontinued operations.

SAP SE (SAP) Presents at Bank of America Global Research C-Suite TMT Conference Transcript

The Fidelity High Dividend ETF (FDVV) and the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) both focus on dividend-paying U.S. stocks, but their portfolios are built very differently. That difference can shape not just how much income investors receive, but how reliable that income may be over time.

Linde (LIN) came out with quarterly earnings of $4.33 per share, beating the Zacks Consensus Estimate of $4.27 per share. This compares to earnings of $3.95 per share a year ago.

On May 1, 2026, Linde PLC LIN released its 8-K filing detailing first-quarter 2026 results. The company reported sales of $8.78 billion, operating profit of $2.44 billion, adjusted operating profit of $2.63 billion, GAAP diluted EPS of $3.98, and adjusted EPS of $4.33. Linde is the largest industrial gas supplier in the world, operating in over 100 countries. Its core offerings include atmospheric gases (oxygen, nitrogen, argon), process gases (hydrogen, carbon dioxide, helium), and related equipment, serving end markets such as chemicals, manufacturing, healthcare, and steelmaking. Linde generated approximately $34 billion in revenue in 2025.

Quarterly recap and estimates check Adjusted EPS was $4.33, which is higher than the estimated EPS of $4.23. GAAP diluted EPS was $3.98, which is below the estimated EPS of $4.23.

Sales were $8,781 million, which is below the estimated revenue of $8,893.50 million.

Year over year, sales increased 8% with a 5% favorable currency impact. Underlying sales rose 3% from 2% price attainment and 1% volume, primarily from project start-ups. Acquisitions added 1% to sales. Adjusted operating margin was 30.0%, down 10 basis points year over year, reflecting resilient pricing and productivity gains offset by mix and regional margin pressure.

Management commentaryLinde employees delivered another solid quarter with 10% EPS growth, 30% operating margin and 24% return on capital under increasingly challenging global conditions. These results underscore the resiliency of our operating model, discipline of capital allocation and perseverance of management actions.What drove the quarter: performance and emerging challenges Price discipline and productivity initiatives supported profit growth, with adjusted operating profit up 8% year over year. Currency provided a notable tailwind to reported sales growth. However, volume growth was modest at 1%, indicating uneven demand across end markets.

Regional dynamics were mixed. The Americas benefited from pricing and higher volumes in electronics, manufacturing, and metals and mining. Asia Pacific delivered strong volume growth tied to electronics and chemicals and energy plus project start-ups, but segment margin contracted. EMEA faced lower volumes in chemicals and energy and manufacturing, pointing to softer industrial activity. Linde Engineering experienced an 8% sales decline, though margin remained healthy.

Segment performance Segment Sales ($M) YoY Change Underlying Sales Operating Profit Margin Notes Americas 4,025 Up 10% Up 6% (4% price, 2% volume) 31.6% Strength in electronics, manufacturing, metals and mining APAC 1,701 Up 11% Up 6% (6% volume) 28.0% Electronics and chemicals and energy; project start-ups; margin down 130 bps YoY EMEA 2,171 Up 7% Down 2% (1% price, 3% lower volume) 36.1% Volume softness in chemicals and energy and manufacturing Linde Engineering 517 Down 8% N/A 19.5% Order intake $640M; third-party sale of equipment backlog $2.8BCash generation and capital allocation Operating cash flow was $2,240 million, up 4% year over year. Capital expenditures were $1,342 million, reflecting ongoing growth and maintenance investments. Free cash flow was $898 million, calculated as operating cash flow less capital expenditures.

Linde returned $1,545 million to shareholders through dividends and stock repurchases, net of issuances. Shareholder returns exceeded free cash flow in the quarter, indicating additional funding beyond period FCF. The company noted a $7.1 billion contractual sale of gas project backlog, highlighting sustained project activity that supports long-duration cash flows typical in the industrial gases model.

Key financial statement highlights and industry context Income statement: Operating profit was $2,439 million, with adjusted operating profit of $2,630 million driven by price realization and productivity. Adjusted EPS grew 10% year over year to $4.33, indicating operating leverage despite modest volumes and slight margin compression.

Balance sheet and liquidity: While detailed balance sheet figures were not disclosed in the press release, the company’s non-GAAP framework and 24% return on capital, referenced by management, point to efficient asset utilization consistent with capital-intensive gases businesses that emphasize on-site contracts and long-term returns.

Cash flow statement: The 4% increase in operating cash flow and nearly $0.9 billion in free cash flow underscore strong cash conversion. This is critical in chemicals and industrial gases, where steady cash flow supports multi-year capex pipelines, engineering backlogs, and shareholder distributions.

Analysis Linde PLC LIN delivered an adjusted EPS beat against consensus alongside an 8% revenue increase aided by currency. The underlying 3% sales growth, consisting of 2% price and 1% volume, suggests a healthy pricing environment but only modest demand growth. Mixed regional performance—APAC margin contraction and EMEA volume declines—highlights macro variability that could weigh on near-term mix and margins.

Even so, the 30.0% adjusted operating margin and 24% return on capital (per management commentary) indicate durable competitive positioning. Cash generation remained solid, funding significant capex while still enabling sizable shareholder returns. The Engineering order intake and backlog, coupled with the broader sale-of-gas project backlog, reinforce visibility into future activity, a hallmark of the industrial gases model.

GuruFocus Valuation Check Based on GuruFocus’s GF Value, Linde PLC LIN appears overvalued at the current price. The GF Value is $473.92, while the current price is $514.20, implying the shares trade about 8.5% above estimated fair value.

The GF Score of 94/100 is strong, supported by a 9/10 Profitability Rank, 9/10 Growth Rank, and 4.5-star Predictability. For investors, this combination typically signals a high-quality compounder with consistent execution and favorable growth characteristics. A Moat Score of 8/10 aligns with the industry’s high switching costs and long-term contracts that can provide earnings durability. Financial Strength at 6/10 is solid but suggests balance-sheet prudence remains important given the sector’s capital intensity.

Insider Activity shows $10.3 million in insider sales over the last three months and no insider buying, which can be a note of caution when shares screen as overvalued. For a deeper dive, visit the Linde PLC stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from Linde PLC for further details.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Linde reported Q1 EPS of $4.33, up 10% YoY, beating estimates on strong pricing.Linde's revenue rose 8% to $8.78B, supported by project start-ups and volumes.LIN holds a $10.1B backlog and raised its dividend by 7%, marking 33 straight years of growth. Linde plc (LIN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $4.33, up 10% from $3.95 a year ago. The figure topped the Zacks Consensus Estimate of $4.27 by 1.41%.

Total quarterly revenues of $8.78 billion rose 8% from $8.11 billion recorded in the year-ago period. The top line beat the Zacks Consensus Estimate of $8.51 billion by 3.17%.

The strong quarterly results can be attributed to higher pricing and incremental project start-ups, which supported underlying growth.

LIN Leans on Price Attainment and Project Start-UpsThe top-line beat was driven by a mix of operational factors. Compared with the prior-year quarter, underlying sales increased 3%, supported by 2% price attainment and 1% volume growth, driven by project start-ups. Acquisitions added another 1% to sales growth.

LIN Protects Operating Leverage Despite Macro FrictionLinde reported operating profit of $2.44 billion and adjusted operating profit of $2.63 billion, up from $2.18 billion and $2.44 billion, respectively, recorded in the prior-year quarter.

Net income attributable to Linde increased from the year-ago figure of $1.67 billion to $1.86 billion. The company’s adjusted net income was $2.02 billion, up 7% year over year from $1.88 billion, reflecting stronger operating profit and ongoing productivity initiatives across segments.

LIN’s Segmental HighlightsGeographically, the Americas remained the key growth contributor, with segment sales of $4.03 billion, up 10% year over year from $3.67 billion. The increase was supported by stronger pricing and higher volumes, with electronics and manufacturing highlighted as key end markets. Segment operating profit reached $1.27 billion, up from $1.14 billion recorded in the year-ago quarter.

APAC sales rose to $1.70 billion, reflecting an 11% increase from $1.54 billion a year ago. Volumes were the main driver, aided by project start-ups and demand in electronics, as well as chemicals and energy. Segment operating profit increased from $451 million to $477 million for the quarter.

EMEA sales amounted to $2.17 billion, up 7% from the year-ago quarter’s figure of $2.03 billion. Underlying performance was less favorable, with volume pressure in chemicals, energy and manufacturing offsetting pricing gains. Segment operating profit improved to $784 million from $722 million recorded in the prior-year quarter.

Engineering sales decreased from $565 million in the prior-year quarter to $517 million. Operating profit in the Engineering segment declined to $101 million from $114 million in the prior-year quarter.

LIN’s BacklogsAt the end of the first quarter, the company’s high-quality project backlog amounted to $10.1 billion, comprising a sale-of-gas backlog of $7.1 billion.

Linde’s Cash Generation Supports Shareholder ReturnsCash flow remained supportive of capital returns and investment priorities. First-quarter operating cash flow was $2.24 billion, up 4% from $2.16 billion in the prior-year quarter. Capital expenditures totaled $1.34 billion, resulting in free cash flow of $898 million.

Capital deployment was directed toward returning cash to shareholders alongside continued growth investment. During the quarter, Linde returned $1.55 billion through dividends and stock repurchases, net of issuances. The company has raised its dividend by 7% in 2026, marking 33 consecutive years of dividend increases.

LIN’s 2026 GuidanceManagement’s near-term and full-year guidance remained centered on steady execution rather than a sharp demand rebound. For the second quarter of 2026, Linde expects EPS to be in the range of $4.40-$4.50, implying 8% to 10% growth versus the prior-year quarter, or 7% to 9% excluding an estimated 1% currency benefit.

For full-year 2026, EPS is expected to be in the range of $17.60-$17.90, suggesting 7-9% growth and assuming a 1% favorable currency impact.

Capital expenditures are expected to be between $5.0 billion and $5.5 billion, reflecting both maintenance needs and growth spending tied to the company’s contractual project pipeline.

LIN’s Zacks Rank & Key PicksLIN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials sector are Dow Inc. (DOW - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Nutrien Ltd. (NTR - Free Report) . Both DOW and CF sport a Zacks Rank #1 (Strong Buy) at present, while NTR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow reported a first-quarter 2026 loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 39 cents.

As of March 31, 2026, DOW reported $4.1 billion in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $17.3 billion.

CF Industries is the largest producer of ammonia globally. The company is scheduled to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for CF’s earnings is pegged at $2.35 per share, which implies an increase of 27% from the prior-year reported figure.

Nutrien, based in Canada, is a leading integrated provider of crop inputs and services. NTR is scheduled to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for NTR’s earnings is pegged at 48 cents per share, which implies an increase of 336.4% from the prior-year reported figure.

WOKING, England--(BUSINESS WIRE)--Linde (Nasdaq: LIN) today announced it has been included in the Dow Jones Best-in-Class Indices (previously known as Dow Jones Sustainability Indices) for the 23rd consecutive year.

The Dow Jones Best-in-Class World Index comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA). It represents the top 10% of the largest 2,500 companies in the S&P Global BMI based on long-term economic, environmental and social criteria. Linde scored in the 98th percentile in its CSA and was recognized by S&P Global for 25 years of active engagement.

Linde was also included in the S&P 2026 Sustainability Yearbook, following a rigorous assessment of sustainability performance and reporting. Of more than 9,200 companies eligible for inclusion, only 848 qualified for Yearbook membership.

“These distinctions validate Linde's pragmatic approach to sustainability built over more than two decades. They also confirm our strong track record in transparent reporting in alignment with global disclosure standards,” said Erin Catapano, Linde Vice President Sustainability. “Linde’s focus on creating long-term value extends from helping customers to decarbonize and managing Linde’s own environmental footprint to investing in the communities where we live and work.”

“Reaching 25 years of participation in the S&P Global CSA is a testament to Linde’s long-standing commitment to meaningful sustainability action,” said Robert Dornau, S&P Global Senior Director, Head of Corporate Solutions & Engagement.

With its products, technologies and services, Linde helped its customers avoid more than 90 million metric tons of carbon dioxide equivalents in 2025. Linde’s climate goals include its 2035 science-based absolute greenhouse gas emissions reduction target and its 2050 climate neutrality ambition.

About Linde

Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.

Linde serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and technologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions.

For more information about the company and its products and services, please visit www.linde.com

The conflict in Iran has disrupted the supply of helium, which is crucial to chipmaking and other industries.

As the global financial community eagerly awaits SpaceX's historic initial public offering (IPO) – rumoured to command some $1.7 trillion valuation on June 12 – a wave of capital is flooding into public space stocks. This unprecedented offering promises to shine a “blinding spotlight” on the entire commercial space ecosystem, resetting industry benchmarks and driving institutional demand to a fever pitch.