Sysco : Presentation (q3 fy26 earnings slides)

Published: 2026-04-28 10:05:28 ET SYY

Published on 04/28/2026 at 10:05 am EDT

Fiscal Q3 2026 Earnings Results

April 28, 2026

CHAIR OF THE BOARD AND CHIEF EXECUTIVE OFFICER

Q3: Strong Revenue Growth Across USFS, International, SYGMA and Accelerating Local Case Performance

Fiscal Q3 2026 Highlights

+4.7%

Sales growth to $20.5 billion

+6.5%

Gross profit dollar growth

to $3.8 billion

+3.3%

USFS Local Case Growth improved

sequentially by +210 bps

$0.94

Adjusted EPS1 declined 2.1%

+5.1% $768 million $460 million +12.4% +12.5%

USFS adjusted

Adjusted operating

Returned to shareholders via

International segment

operating income

growth to

$830 million

income1

declined 0.6%

share repurchases and

dividends in the quarter

International segment

revenue growth

adjusted operating

income1 growth to

$144 million

Note: Growth rates compared to fiscal Q3 2025 unless otherwise noted

1 See Non-GAAP reconciliations at the end of the presentation.

Wallet Share

Food Away From Home Continues to Gain Share

Multi-Decade Trend of Consumer Spending Favoring

Food Away From Home Occasions Remains Intact

70%

65%

60%

55%

50%

45%

40%

35%

30%

Grocery Stores

Food Services and Drinking Places

Mar-95

Mar-96

Mar-97

Mar-98

Mar-99

Mar-00

Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

Mar-25

Mar-26

Sysco is #1 in an Attractive, Growing Industry

Total Addressable Market Since 2000

$350 B $355 B $366 B

$298 B

$264 B

$377 B

18%

$161 B

$220 B

$197 B

$230 B

2000 2005 2010 2015 2020 2021 2022 2023 2024 2025

Source: Technomic U.S. Foodservice Industry Wallchart for Calendar Year as of January 2026 Estimated Sysco share for 2025 of 17.6%

Sysco's Recipe For Growth is Creating Multiple Vectors to Drive Long-term, Profitable Growth

DIGITAL

Enrich the customer experience through personalized digital tools that reduce

friction in the purchase experience and introduce innovation to our customers

PRODUCTS AND SOLUTIONS

Customer focused marketing and merchandising solutions that inspire increased sales of our broad assortment of fair priced products and services

SUPPLY CHAIN

Efficiently and consistently serve our customers with the products they

need, when and how they need them, through a flexible delivery framework

CUSTOMER TEAMS

Our greatest strength is our people. People who are passionate about food and food service. Our diverse team delivers expertise and differentiates services designed to help our customers grow their business

FUTURE HORIZONS

We are committed to responsible growth. We will cultivate new channels, segments, and capabilities while being stewards of our company and our planet for the longterm. We will fund our journey through cost-out and efficiency improvements

Sysco is Regaining Momentum Through Local Performance

Projecting at least +2.5%

4.0%

3.0%

2.0%

1.0%

0.0%

(1.0%)

(2.0%)

(3.0%)

(4.0%)

+2.5%

1.2%

(0.2%)

(1.4%)

(3.4%)

3.3%

local case growth in Q4, reflecting a sequentially improved 2-year stack of +120 bps driven by:

Sysco-Specific Initiatives

Productivity Improvements

Sequentially Improved New Account Penetration

Sequentially Lower Customer

Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026E

In Q3 2026, Local Case Growth

Improved +210 bps Sequentially

Data represents USFS local case growth.

Churn

Strengthened Retention Levels

Q3 2026 Consolidated Results

Sales growth of 4.7% YoY

USFS sales growth +3.1%

International sales1 growth +12.4% YoY

Net Sales

in Billions

4.7%

YoY

$19.6

$20.5

Q3 2025 Q3 2026

Gross Profit

6.5%

YoY

in Billions

$3.6

$3.8

Q3 2025 Q3 2026

Adj. Operating Income1

-0.6%

YoY

in Millions

$773 $768

Q3 2025 Q3 2026

SYGMA sales growth +2.5%

Gross profit dollar growth of 6.5% was driven by positive volumes, strategic sourcing efficiencies, and effective management of product cost inflation

Adj. operating income1 decreased 0.6% YoY to $768 million, GAAP operating income decreased 9.1% YoY and includes the negative impact of lapping $63 million in incentive compensation in the prior year.

Adj. EPS1 of $0.94 decreased

1 See Non-GAAP reconciliations at the end of the presentation.

2.1% YoY

Acquisition of Restaurant Depot: A Highly Compelling Transaction

Local Revenue

Increase

1.5x+

Customer Value Proposition

Future Geographic Expansion

125+

New Locations1

Foodservice Distributor

Cash & Carry Operator

Creating a Preeminent Multi-Channel Foodservice Distribution Platform

Revenue

Adj. EBITDA3

~45%

FCF3,4

~55%

~20%

Sysco Pro Forma

Sysco

Pro Forma

Sysco

Pro Forma

13.0%

5.2%

6.7%5

Sysco

Restaurant Depot

Pro Forma

80%+

Combined with

90%+

85%+

Pro Forma

Delivering Significantly Enhanced Financial Profile2

Higher FCF Conversion6

Step Up in

Adj. EBITDA

Margins3

Greater Scale

>$2 Billion

Additional Longer-Term Annual FCF

Low to Mid-Teens

Year 2 Adj. EPS Accretion7

Mid to High Single Digit

Year 1 Adj. EPS Accretion7

Unlocking Meaningful Value Creation

Source: Investor Presentation from 3/30/26 1 Over at least the next two decades in the U.S. 2 Based on Dec-25 LTM financials. 3 See Non-GAAP reconciliations in the appendix of this presentation. 4 Free Cash Flow

defined as Adj. EBITDA - Capex. 5 Includes $250M annualized net cost synergies. 6 FCF Conversion defined as Free Cash Flow divided by Adj. EBITDA. 7 Does not include transaction-related D&A. 10

Creating a Multi-Channel Foodservice Distribution Platform

Strategic Benefits

Expanded Product Portfolios

Reaching New Customers

Fulfill All Customer Purchase Occasions

Better Solutions for Local Customer Needs

Complementary Geographic Footprint

Improved Service to Local Businesses, Restaurants and Customers

Value Creation

Opportunity

National foodservice delivery network Network of 166 cash and carry stores

Comprehensive service offering for all customers and purchase occasions

Broadest assortment and premium quality products, including specialty

National network of 300+ DCs to hold product and inbound freight network

Value tier and other products popular with Cash & Carry customers

Strong track record of new store growth

Best of both product offerings for each customer base

Supply chain synergies and ability to open 125+ Restaurant Depot stores in new geographies

Large spend base and extensive private label program

Strong sourcing relationships and buying programs

Procurement synergies to drive value for customers and efficiency for both businesses

Large, diverse base of 730K delivery customers Loyal base of 725K cash and carry customers

Dedicated white glove service #1 option for value-seeking customers

A loyalty program that rewards customers for their purchases across all channels

Long-term growth opportunities that represent upside beyond cost synergies

Source: Investor Presentation from 3/30/26

INTERIM CHIEF FINANCIAL OFFICER

Q3 2026 Consolidated Results

Sales growth of 4.7% YoY

USFS sales growth

+3.1%

Net Sales

in Billions

4.7%

YoY

$19.6

$20.5

Q3 2025 Q3 2026

Gross Profit

6.5%

YoY

in Billions

$3.6

$3.8

Q3 2025 Q3 2026

Adj. Operating Income1

-0.6%

YoY

in Millions

$773 $768

Q3 2025 Q3 2026

International sales growth +12.4% YoY

SYGMA sales growth

+2.5%

Gross profit dollar growth of 6.5% was driven by positive volumes, strategic sourcing efficiencies and effective management of product cost inflation

Adj. EPS1 of $0.94 decreased 2.1% YoY

Q3 2026 U.S. Foodservice Results

USFS sales growth +3.1%

Total case volume +2.3%

Local case volume

Net Sales

3.1%

YoY

in Billions

$13.8

$14.2

Q3 2025 Q3 2026

Adj. Operating Income1

5.1%

YoY

in Millions

$790 $830

Q3 2025 Q3 2026

+3.3%, a 210-basis point sequential improvement

Gross profit dollar growth of 5.2% to $2.7 billion driven by effective management of product cost inflation and strategic sourcing efficiencies

Adj. operating income1 increased 5.1% YoY to $830 million, GAAP operating income increased 2.4% YoY

Q3 2026 International Results

Sales increased 12.4% YoY;

increased 5.2% on a constant currency basis1

Net Sales

12.4%

YoY

in Billions

$3.5

$3.9

Q3 2025 Q3 2026

Adj. Operating Income1

12.5%

YoY

in Millions

$144

$128

Q3 2025 Q3 2026

Gross profit dollar growth of 14.6% to $834 million; increased 6.7% on a constant currency basis1

Adj. operating income1 increased 12.5%; GAAP operating income decreased 13.5% driven by higher restructuring and transformational costs

Q3 2026 SYGMA Results

Net Sales

in Billions

2.5%

YoY

Operating Income

5.9%

YoY

$18

in Millions

Sales growth of 2.5% YoY despite continued challenged foot traffic environment for chains

$2.1

Strong sales growth in Food Service Management, travel and entertainment, and healthcare businesses

$17

Operating income growth of 5.9% YoY driven by continued optimization of portfolio

Q3 2025 Q3 2026 Q3 2025 Q3 2026

Restaurant Depot is the Undisputed U.S. Leader in Wholesale Cash & Carry

#1 U.S. Cash & Carry Wholesaler to Restaurants and Small Businesses

Unique value proposition to small businesses as a low-cost provider with a wide assortment of high-quality, foodservice products

Whitestone, NY

Headquarters

~10,000

Employees

~$16B

2025 Revenue

~$2.1B

2025 Adj. EBITDA

~$1.9B

Free Cash Flow1

90%+

FCF Conversion2

Highly Diversified Customer Base

Large Store Footprint and Local Customer Base

Track Record of Consistent Growth

2025 Sales Mix Breakdown by Customer

All Other3 20%

Other Foodservice 6%

Jobbers 8%

Local Restaurants / Caterers

57%

Grocery 10%

166

Total Locations

~725K

Local Customers

Revenue growth in

28 of the last 30 years

Adj. EBITDA growth in

30 of the last 30 years

Source: Investor Presentation from 3/30/26 Note: Dec-FYE financials. 1 Free Cash Flow calculated as Adj. EBITDA - Capex. 2 Calculated as Free Cash Flow / Adj. EBITDA. 3 Reflects miscellaneous and retail customers,

such as temporary IDs, street vendors, donut and bagel shops, ice cream shops, tax exempt institutions, home businesses, retail distributors and concessions. 17

Strong Cash Generation Drives Shareholder Returns

$19.5

$17.2

$15.0

$13.5

$12.0

Dividends

Share Repurchase

$11.1

$9.4

$7.6

$5.9

$3.3

$0.7

$20.7

Temporarily pausing share repurchase program as part of Restaurant Depot integration

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E

Cumulative Cash Returned to Shareholders

in billions

On-Track to return approximately

$20.7 billion

in cumulative cash to shareholders over 12 years

Strong Commitment to Rapid Deleveraging

Net Debt to Adjusted EBITDA1 Leverage Trajectory

4.5x

3.5x

2.9x 2.8x

2.75x

5x 4x 3x 2x 1x

Investment grade credit ratings maintained

Committed to ~1.0x net leverage reduction within 24 months post-close

Long-term target remains

2.75x

No large-scale M&A until target leverage achieved

$250M in net cost synergies fully ramping in year 3

Unlocking >$2B in additional longer-term annual FCF for

Q2 2026 Q3 2026 At Close

(Est.)

Year 2E

Post-close

Target

investors by year four

Fiscal Year 2026 Guidance

Modeling Details

Incentive Compensation Headwind By Quarter1

$100

Dollars in Millions

$75

$16

$10

$11

$63

$50

$25

Q1 2026 Q2 2026 Q3 2026 Q4 2026

FY26 adjusted EPS1 guidance includes approximately $100 million in carry over impact from incentive comp for the year, impacting year over year comparability

Excluding this impact, our outlook reflects adjusted EPS growth at the high end of the range of approximately 5% to 7%, in-line with our long-term growth algorithm

At the heart of

food and service

NON-GAAP RECONCILIATIONS

Impact of Certain Items

The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Adjustments provided herein for fiscal 2026 results of operations also remove the impact of a charge associated with a legal matter. No similar charge was applicable in fiscal 2025.

The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

Management believes that adjusting its operating expenses, operating income, operating margin, net earnings and diluted earnings per share to remove these Certain Items and presenting its results on a constant currency basis provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company's underlying operations and (2) facilitates comparisons on a year-over-year basis.

Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco's results for fiscal year 2026 and fiscal year 2025.

Set forth on the following page is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

Illustrative pro forma results are included, which show the impact of the combination of Sysco and Restaurant Depot, of which some metrics are Non-GAAP metrics. We believe these provide an important perspective related to underlying and potential pro forma business trends on the proposed combined organization. These pro forma metrics are produced using the same basis of adjustments, where applicable, for Sysco Corporation and Restaurant Depot.

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Impact of Certain Items Q3 FY26 vs. Q3 FY25

(Dollars in Millions, Except for Share and Per Share Data)

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars %/bps Change

Sales (GAAP) $ 20,519 $ 19,598 $ 921 4.7 %

Impact of currency fluctuations (1) (252) (252) (1.3)

Comparable sales using a constant currency basis (Non-GAAP) $ 20,267 $ 19,598 $ 669 3.4 %

Cost of sales (GAAP) $ 16,707 $ 16,017 $ 690 4.3 %

Gross profit (GAAP) $ 3,812 $ 3,581 $ 231 6.5 %

Impact of currency fluctuations (1) (58) (58) (1.7)

Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 3,754 $ 3,581 $ 173 4.8 %

Gross margin (GAAP) 18.58 % 18.27 % 31 bps

Impact of currency fluctuations (1) (0.06) -6 bps

Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 18.52 % 18.27 % 25 bps

Operating expenses (GAAP) $ 3,193 $ 2,900 $ 293 10.1 %

Impact of restructuring and transformational project costs (2) (94) (50) (44) (88.0)

Impact of acquisition-related costs (3) (55) (42) (13) (31.0)

Operating expenses adjusted for Certain Items (Non-GAAP) 3,044 2,808 236 8.4

Impact of currency fluctuations (1) (51) (51) (1.8)

Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 2,993 $ 2,808 $ 185 6.6 %

Operating expense as a percentage of sales (GAAP) 15.56 % 14.80 % 76 bps

Impact of certain item adjustments (0.72) (0.47) -25 bps

Adjusted operating expense as a percentage of sales (Non-GAAP) 14.84 % 14.33 % 51 bps

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Impact of Certain Items Q3 FY26 vs. Q3 FY25

(Dollars in Millions, Except for Share and Per Share Data) continued

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars %/bps Change

Operating income (GAAP) $ 619 $ 681 $ (62) (9.1) %

Impact of restructuring and transformational project costs (2) 94 50 44 88.0

Impact of acquisition-related costs (3) 55 42 13 31.0

Operating income adjusted for Certain Items (Non-GAAP) 768 773 (5) (0.6)

Impact of currency fluctuations (1) (7) (7) (1.0)

Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 761 $ 773 $ (12) (1.6) %

Operating margin (GAAP) 3.02 % 3.47 % -45 bps

Operating margin adjusted for Certain Items (Non-GAAP) 3.74 % 3.94 % -20 bps

Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 3.75 % 3.94 % -19 bps

Net earnings (GAAP) $ 340 $ 401 $ (61) (15.2) %

Impact of restructuring and transformational project costs (2) 94 50 44 88.0

Impact of acquisition-related costs (3) 55 42 13 31.0

Tax impact of restructuring and transformational project costs (4) (23) (13) (10) (76.9)

Tax impact of acquisition-related costs (4) (14) (11) (3) (27.3)

Net earnings adjusted for Certain Items (Non-GAAP) $ 452 $ 469 $ (17) (3.6) %

Diluted earnings per share (GAAP) $ 0.71 $ 0.82 $ (0.11) (13.4) %

Impact of restructuring and transformational project costs (2) 0.20 0.10 0.10 100.0

Impact of acquisition-related costs (3) 0.11 0.09 0.02 22.2

Tax impact of restructuring and transformational project costs (4) (0.05) (0.03) (0.02) (66.7)

Tax impact of acquisition-related costs (4) (0.03) (0.02) (0.01) (50.0)

Diluted earnings per share adjusted for Certain Items (Non-GAAP) (5) $ 0.94 $ 0.96 $ (0.02) (2.1) %

Diluted shares outstanding 481,188,586 489,331,460

(1) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results.

Fiscal 2026 includes $43 million related to restructuring and severance charges and $51 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal 2025 includes $15 million related to restructuring and

(2) severance charges and $35 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy.

(3) Fiscal 2026 includes $42 million of intangible amortization expense and $13 million in acquisition and due diligence costs. Fiscal 2025 includes $32 million of intangible amortization expense and $10 million in acquisition and due diligence costs.

(4) The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.

(5) Individual components of diluted earnings per share may not equal the total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

Sysco Corporation and its Consolidated Subsidiaries Segment Results

Non-GAAP Reconciliation (Unaudited) Impact of Certain Items Q3 FY26 vs Q3 FY25 (Dollars in Millions)

13-Week Period Ended Mar.

28, 2026

13-Week Period Ended Mar.

29, 2025

Change in Dollars

%/bps Change

U.S. FOODSERVICE OPERATIONS

Sales (GAAP)

14,234

13,800

$ 434

3.1 %

Gross profit (GAAP)

2,738

2,603

135

5.2 %

Gross margin (GAAP)

19.24 %

18.86 %

38 bps

Operating expenses (GAAP)

1,966

1,849

$ 117

6.3 %

Impact of restructuring, transformational project, and other costs (1)

(39)

(16)

(23)

Impact of acquisition-related costs (2)

(19)

(20)

5.0

Operating expenses adjusted for Certain Items (Non-GAAP)

$ 1,908

$ 1,813

$ 95

5.2 %

Operating income (GAAP)

772

754

2.4 %

Impact of restructuring, transformational project, and other costs (1)

Impact of acquisition-related costs (2)

(1)

(5.0)

Operating income adjusted for Certain Items (Non-GAAP)

$ 830

$ 790

$ 40

5.1 %

INTERNATIONAL FOODSERVICE OPERATIONS

Sales (GAAP)

$ 3,885

$ 3,457

$ 428

12.4 %

Impact of currency fluctuations (3)

(249)

(7.2)

Comparable sales using a constant currency basis (Non-GAAP)

$ 3,636

$ 3,457

$ 179

5.2 %

Gross profit (GAAP)

$ 834

$ 728

$ 106

14.6 %

Impact of currency fluctuations (3)

(57)

(7.9)

Comparable gross profit using a constant currency basis (Non-GAAP)

$ 777

$ 728

$ 49

6.7 %

Gross margin (GAAP)

21.47 %

21.06 %

41 bps

Impact of currency fluctuations (3)

(0.10)

-10 bps

Comparable gross margin using a constant currency basis (Non-GAAP)

21.37 %

21.06 %

31 bps

Sysco Corporation and its Consolidated Subsidiaries Segment Results

Non-GAAP Reconciliation (Unaudited) Impact of Certain Items Q3 FY26 vs Q3 FY25 (Dollars in Millions) continued

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars %/bps Change

Operating expenses (GAAP) $ 751 $ 632 $ 119 18.8 %

Impact of restructuring and transformational project costs (4) (39) (13) (26) NM

Impact of acquisition-related costs (2) (22) (19) (3) (15.8)

Operating expenses adjusted for Certain Items (Non-GAAP) 690 600 90 15.0

Impact of currency fluctuations (3) (50) (50) (8.3)

Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 640 $ 600 $ 40 6.7 %

Operating income (GAAP) $ 83 $ 96 $ (13) (13.5) %

Impact of restructuring and transformational project costs (4) 39 13 26 NM

Impact of acquisition-related costs (2) 22 19 3 15.8

Operating income adjusted for Certain Items (Non-GAAP) 144 128 16 12.5

Impact of currency fluctuations (3) (7) (7) (5.5)

Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 137 $ 128 $ 9 7.0 %

SYGMA

Sales (GAAP) $ 2,137 $ 2,084 $ 53 2.5 %

Gross profit (GAAP) 163 166 (3) (1.8) %

Gross margin (GAAP) 7.63 % 7.97 % -34 bps

Operating expenses (GAAP) $ 145 $ 149 $ (4) (2.7)%

Operating income (GAAP) 18 17 1 5.9 %

OTHER

Sales (GAAP) $ 263 $ 257 $ 6 2.3 %

Sysco Corporation and its Consolidated Subsidiaries Segment Results

Non-GAAP Reconciliation (Unaudited) Impact of Certain Items Q3 FY26 vs Q3 FY25 (Dollars in Millions) continued

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars %/bps Change

Gross profit (GAAP) 68 60 8 13.3 %

Gross margin (GAAP) 25.86 % 23.35 % 251 bps

Operating expenses (GAAP) $ 61 $ 63 $ (2) (3.2) %

Operating income (GAAP) 7 (3) 10 NM

GLOBAL SUPPORT CENTER

Gross profit (GAAP) $ 9 $ 24 $ (15) (62.5) %

Operating expenses (GAAP) $ 270 $ 207 $ 63 30.4 %

Impact of restructuring and transformational project costs (5) (16) (21) 5 23.8

Impact of acquisition-related costs (6) (14) (3) (11) NM

Operating expenses adjusted for Certain Items (Non-GAAP) $ 240 $ 183 $ 57 31.1 %

Operating loss (GAAP) $ (261) $ (183) $ (78) (42.6) %

Impact of restructuring and transformational project costs (5) 16 21 (5) (23.8)

Impact of acquisition-related costs (6) 14 3 11 NM

Operating loss adjusted for Certain Items (Non-GAAP) $ (231) $ (159) $ (72) (45.3)%

TOTAL SYSCO

Sales (GAAP) $ 20,519 $ 19,598 $ 921 4.7 %

Gross profit (GAAP) 3,812 3,581 231 6.5 %

Gross margin (GAAP) 18.58 % 18.27 % 31 bps

Sysco Corporation and its Consolidated Subsidiaries Segment Results

Non-GAAP Reconciliation (Unaudited) Impact of Certain Items Q3 FY26 vs Q3 FY25 (Dollars in Millions) continued

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars %/bps Change

TOTAL SYSCO

Operating expenses (GAAP)

$ 3,193

$ 2,900

$ 293

10.1 %

Impact of restructuring, transformational project, and other costs (1) (4) (5)

(94)

(50)

(44)

(88.0)

Impact of acquisition-related costs (2) (6)

(55)

(42)

(13)

(31.0)

Operating expenses adjusted for Certain Items (Non-GAAP)

$ 3,044

$ 2,808

$ 236

8.4 %

Operating income (GAAP)

619

681

$ (62)

(9.1) %

Impact of restructuring, transformational project, and other costs (1) (4) (5)

88.0

Impact of acquisition-related costs (2) (6)

31.0

Operating income adjusted for Certain Items (Non-GAAP)

$ 768

$ 773

$ (5)

(0.6) %

(1) Primarily represents severance charges, transformation initiative costs, and costs associated with a legal matter.

(2) Fiscal 2026 and fiscal 2025 include intangible amortization expense and acquisition costs.

(3) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.

(4) Includes restructuring and transformation initiative costs primarily in Europe.

(5) Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.

(6) Represents due diligence costs.

NM Represents that the percentage change is not meaningful.

Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company's financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Q3 FY26 vs. Q3 FY25)

(Dollars in Millions)

13-Week Period Ended Mar. 28, 2026 13-Week Period Ended Mar. 29, 2025 Change in Dollars % Change

Net earnings (GAAP)

340

401

(61)

(15.2) %

Interest (GAAP)

168

149

12.8 %

Income taxes (GAAP)

105

122

(17)

(13.9) %

Depreciation and amortization (GAAP)

251

238

5.5 %

EBITDA (Non-GAAP)

Certain Item adjustments:

Impact of restructuring, transformational project, and other costs (1)

864

910

(46)

(5.1)%

89.8 %

Impact of acquisition-related costs (2)

30.0 %

EBITDA adjusted for Certain Items (Non-GAAP) (3)

970

969

0.1 %

Other expense (income), net, as adjusted (Non-GAAP)

(3)

(33.3) %

Depreciation and amortization, as adjusted (Non-GAAP) (4)

(208)

(205)

(3)

(1.5)%

Operating income adjusted for Certain Items (Non-GAAP)

768

773

(5)

(0.6)%

(1) Fiscal 2026 and fiscal 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, fiscal 2026 includes charges associated with a legal matter.

(2) Fiscal 2026 and fiscal 2025 include acquisition and due diligence costs.

(3) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $6 million and $7 million or non-cash stock compensation expense of $31 million and $15 million in fiscal 2026 and fiscal 2025, respectively.

(4) Fiscal 2026 includes $251 million in GAAP depreciation and amortization expense, less $43 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2025 includes $238 million in GAAP

depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.

NM Represents that the percentage change is not meaningful.

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Net Debt to Adjusted EBITDA

(In Millions)

Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. It is an important measure used by management to evaluate our access to liquidity, and we believe it is a representation of our financial strength. Our Net Debt to Adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of Adjusted EBITDA. In the table that follows, we have provided the calculation of our debt and net debt as a ratio of Adjusted EBITDA.

March 28, 2026

Current maturities of long-term debt $ 1,190

Long-term debt

12,818

Total Debt (GAAP)

14,008

Cash & Cash Equivalents

(1,900)

Net Debt (Non-GAAP)

$ 12,108

Net Earnings for the previous 12 months (GAAP)

$ 1,736

Adjusted EBITDA for the previous 12 months (Non-GAAP) (1)

$ 4,327

Total Debt/Net Earnings Ratio (GAAP)

8.07

Total Debt/Adjusted EBITDA Ratio (Non-GAAP)

3.24

Net Debt/Adjusted EBITDA Ratio (Non-GAAP)

2.80

(1) Refer to Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months) Non-GAAP Reconciliation

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)

(In Millions)

13-Week Period Ended Mar. 28, 2026

13-Week Period Ended Dec. 27, 2025

13-Week Period Ended Sep. 27, 2025

13-Week Period Ended

Jun. 28, 2025 Total

Net earnings (GAAP)

340

389

476

531

1,736

Interest (GAAP)

168

173

172

166

679

Income taxes (GAAP)

105

121

124

186

536

Depreciation and amortization (GAAP)

251 240 233

234

958

EBITDA (Non-GAAP)

$ 864 $ 923 $ 1,005

1,117

3,909

Certain Item adjustments:

Impact of restructuring, transformational project, and other

costs (1)

276

Impact of acquisition-related costs (2)

Impact of goodwill impairment

EBITDA adjusted for Certain Items (Non-GAAP) (3)

$ 970

$ 1,001

$ 1,070

1,286

4,327

(1) Includes charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, the 13-week period ended Mar. 28, 2026 includes charges associated with a legal matter.

(2) Includes acquisition and due diligence costs.

(3) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $6 million or non-cash stock compensation expense of $31 million in Q3 fiscal 2026, interest income of $5 million or non-cash stock compensation expense of $33 million in Q2 fiscal 2026, interest income of $6 million or non-cash stock compensation expense of $31 million in Q1 fiscal 2026, nor interest income of $8 million or non-cash stock compensation expense of $19 million in Q4 fiscal 2025.

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Net Debt to Adjusted EBITDA

(In Millions)

December 27, 2025

Current maturities of long-term debt $ 1,150

Long-term debt

12,440

Total Debt (GAAP)

13,590

Cash & Cash Equivalents

(1,222)

Net Debt (Non-GAAP)

$ 12,368

Net Earnings for the previous 12 months (GAAP)

$ 1,797

Adjusted EBITDA for the previous 12 months (Non-GAAP) (1)

$ 4,326

Total Debt/Net Earnings Ratio (GAAP)

7.56

Total Debt/Adjusted EBITDA Ratio (Non-GAAP)

3.14

Net Debt/Adjusted EBITDA Ratio (Non-GAAP)

2.86

(1) Refer to Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months) Non-GAAP Reconciliation

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)

(In Millions)

13-Week Period Ended Dec. 27, 2025

13-Week Period Ended Sep. 27, 2025

13-Week Period Ended Jun. 28, 2025

13-Week

Mar. 29, 2025

Total

Net earnings (GAAP)

389

476

531

401

1,797

Interest (GAAP)

173

172

166

149

660

Income taxes (GAAP)

121

124

186

122

553

Depreciation and amortization (GAAP)

240

233

234

238

945

EBITDA (Non-GAAP)

Certain Item adjustments:

923

1,005

1,117

910

3,955

Impact of restructuring and transformational project costs (1)

232

Impact of acquisition-related costs (2)

Impact of goodwill impairment

EBITDA adjusted for Certain Items (Non-GAAP) (3)

$ 1,001

$ 1,070

$ 1,286

$ 969

$ 4,326

Period Ended

(2) Includes acquisition and due diligence costs.

(2) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $5 million or non-cash stock compensation expense of $33 million in Q2 fiscal 2026, interest income of $6 million or non-cash stock compensation expense of $31 million in Q1 fiscal 2026, interest income of $8 million or non-cash stock compensation expense of $19 million in Q4 fiscal 2025, and interest income of $7 million or non-cash stock compensation expense of $15 million in Q3 fiscal 2025.

Projected Adjusted EBITDA Guidance

Adjusted EBITDA is a non-GAAP financial measure; however, we cannot predict with certainty the particular certain items that would be excluded from the calculation of this measure for future periods. Due to these uncertainties, we cannot provide a quantitative reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted EBITDA for future periods in the same manner as the reconciliations provided for the historical periods herein.

Net Debt to Adjusted EBITDA Leverage Ratio Targets

We expect to achieve our net debt to adjusted EBITDA leverage forecast ratio forecast in fiscal 2025. We cannot predict with certainty when we will achieve these results or whether the calculation of our EBITDA will be on an adjusted basis in future periods to exclude the effect of certain items. Due to these uncertainties we cannot provide a quantitative reconciliation of these potentially non-GAAP measures to the most directly comparable GAAP measure without unreasonable effort. However, we expect to calculate these adjusted results, if applicable, in the same manner as the reconciliations provided for the historical periods that are presented herein.

Form of calculation:

Current maturities of long-term debt Long term debt

Total Debt (GAAP)

Less cash and cash equivalents

Net Debt (Non-GAAP)

Net Earnings (GAAP) Interest (GAAP) Income taxes (GAAP)

Depreciation and amortization (GAAP)

EBITDA (GAAP)

Certain item Adjustments:

Impact of restructuring and transformational project costs Impact of acquisition-related intangible amortization EBITDA adjusted for Certain Items (GAAP)

Total Debt to Earnings Ratio (GAAP)

Total Debt to Adjusted EBITDA Ratio (Non-GAAP) Net Debt to Adjusted EBITDA Ratio (Non-GAAP)

Projected Adjusted EPS Guidance

Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty the magnitude or scope of certain items that would be included in the most directly comparable GAAP measure for the relevant future periods, and such items may be significant. Due to these uncertainties, we cannot provide a quantitative reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein.

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Adjusted EBITDA to Free Cash Flow Conversion

(Trailing Twelve Months Ended Dec. 27, 2025, Dollars in Millions)

13-Week Period Ended Mar. 29, 2025

13-Week Period Ended Jun. 28, 2025

13-Week Period Ended Sep. 27, 2025

13-Week Period Ended Dec. 27, 2025

52- Week Period Ended Dec. 27, 2025

Sales (GAAP) $ 19,598 $ 21,138 $ 21,148 $ 20,762 $ 82,646

Operating Income (GAAP) $ 681 $ 889 $ 800 $ 692 $ 3,062

Net earnings (GAAP) $ 401 $ 531 $ 476 $ 389 $ 1,797

Interest (GAAP) 149 166 172 173 660

Income taxes (GAAP) 122 186 124 121 553

Depreciation and amortization (GAAP) 238 234 233 240 945

EBITDA (Non-GAAP) $ 910 $ 1,117 $ 1,005 $ 923 $ 3,955

Certain Item adjustments:

Impact of restructuring and transformational project costs (1) $ 49 $ 74 $ 54 $ 55 $ 232

Impact of acquisition-related costs 10 3 11 23 47

Impact of goodwill impairment - 92 - - 92

EBITDA adjusted for Certain Items (Non-GAAP) (2) $ 969 $ 1,286 $ 1,070 $ 1,001 $ 4,326

Other expense (income), net 9 6 28 9 52

Depreciation and amortization, as adjusted (Non-GAAP) (3) (205) (197) (200) (203) (805)

Operating income adjusted for Certain Items (Non-GAAP) $ 773 $ 1,095 $ 898 $ 807 $ 3,573

Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited)

Adjusted EBITDA to Free Cash Flow Conversion

(Trailing Twelve Months Ended Dec. 27, 2025, Dollars in Millions) continued

13-Week Period Ended

Mar. 29, 2025

13-Week Period Ended

Jun. 28, 2025

13-Week Period Ended

Sep. 27, 2025

13-Week Period Ended

Dec. 27, 2025

52- Week Period Ended

Dec. 27, 2025

Operating margin (GAAP) 3.5 % 4.2 % 3.8 % 3.3 % 3.7 %

EBITDA margin adjusted for Certain Items (Non-GAAP) 4.9 % 6.1 % 5.1 % 4.8 % 5.2 %

Additions to plant and equipment

$ (199)

$ (374)

$ (160)

$ (140)

$ (873)

Proceeds from sales of plant and equipment

150

Capex (Non-GAAP)

$ (196)

$ (329)

$ (136)

$ (62)

$ (723)

Free Cash Flow (Adj. EBITDA minus Capex, Non-GAAP)

773

957

934

939

$ 3,603

Free Cash Flow Conversion (Free Cash Flow divided by EBITDA, Non-GAAP)

79.8 %

74.4 %

87.3 %

93.8 %

83.3 %

(3) Q2 fiscal 2026 includes $240 million in GAAP depreciation and amortization expense, less $37 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Q1 fiscal 2026 includes $233 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Q4 fiscal 2025 includes $234 million in GAAP depreciation and amortization expense, less $37 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Q3 fiscal 2025 includes $238 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.

Disclaimer

Sysco Corporation published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 14:04 UTC.