Overview

* Universal Corp fiscal Q1 2026 revenue down $3 mln on lower tobacco sales volumes

* Operating income for fiscal Q1 up $17 mln due to favorable product mix

* Ingredients segment sees higher sales volumes, but lower operating income

Outlook

* Universal expects flue-cured tobacco crop size to increase by 25% in FY 2026

* Company anticipates burley tobacco crop size to rise by 45% in FY 2026

* Universal foresees potential oversupply of flue-cured and burley tobacco by fiscal year-end

* Company focuses on organic growth for Ingredients Operations amid tariff uncertainty

Result Drivers

* TOBACCO OPERATIONS - Improved performance driven by favorable product mix despite lower carryover crop sales, says CEO Preston D. Wigner

* INGREDIENTS SEGMENT - Achieved higher sales volumes, but faced challenges from less favorable product mix and tariff uncertainty

* INVENTORY LEVELS - Low uncommitted tobacco inventory levels at about 11% as of June 30, 2025

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 $0.38

Adjusted

EPS

Q1 EPS $0.34

Q1 Net $8.50

Income mln

Q1 Gross 19.2%

Margin

Q1 $34.90

Adjusted mln

Operatin

g Income

Q1 $33.80

Operatin mln

g Income

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)