Nomad Foods lowers 2026 earnings outlook after Q2 results

Nomad Foods Limited (NYSE: NOMD ) stock fell in premarket trading Thursday after the frozen-food company lowered its full-year earnings outlook despite reporting better-than-expected second-quarter results.

Nomad Foods reported adjusted earnings of 45 cents per share, beating the analyst estimate of 37 cents.

Sales of $841.34 million also topped the consensus estimate of $832.90 million.

Earnings Snapshot Reported revenue fell 3.1% year over year to 724 million euros.

Organic revenue declined 2.9%, reflecting a 5.9% drop in volume, partly offset by a 3% positive contribution from price and mix.

Adjusted gross profit increased 0.7% to 209 million euros, while adjusted gross margin expanded 110 basis points to 28.9%.

The company attributed the improvement to pricing and continued supply-chain productivity.

Adjusted EBITDA declined 4.3% to 124 million euros, while adjusted profit fell 9% to 55 million euros.

Adjusted operating expenses rose 7.8% to 111 million euros, reflecting the rebuild of the company’s employee performance incentive program.

CEO Dominic Brisby said the quarter marked “an important step forward” as the company secured price increases, expanded gross margins and restored momentum with key retail partners.

Cash Flow And Balance Sheet Nomad Foods generated 119.7 million euros in net cash from operating activities during the first six months of 2026, roughly flat with 120.2 million euros a year earlier.

Cash and cash equivalents stood at 273.4 million euros at the end of June.

The company said cash generation remained strong, with adjusted free cash flow conversion improving year over year.

It continues to expect full-year adjusted free cash flow conversion of at least 90%.

Nomad Foods Cuts 2026 Earnings Outlook Nomad Foods lowered its fiscal 2026 adjusted earnings guidance to $1.60-$1.78 per share from $1.72-$1.90 previously, compared with the $1.75 analyst estimate.

In its earnings release, the company said adjusted EPS is now expected at 1.38 euros to 1.53 euros, down from its previous forecast of 1.47 euros to 1.62 euros.

The reduction reflects higher interest expense tied to recently completed refinancing activity and higher variable interest rates.

Nomad Foods maintained its forecast for organic revenue to decline 2% to 5% in 2026 and adjusted EBITDA to fall 5% to 10%.

NOMD Price Action: Nomad Foods shares were down 7.42% at $10.55 during premarket trading on Thursday, according to Pro data.

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