John B. Sanfilippo & Son reported net sales of $314.8 million for the quarter ended December 25, 2025, a 4.6% year-over-year increase driven by a 15.8% rise in average selling price per pound. Gross profit climbed 13.2% to $59.2 million, lifting gross margin to 18.8% from 17.4%, as selling prices more closely tracked elevated commodity acquisition costs. Diluted earnings per share rose 31.9% to $1.53, outpacing consensus estimates, reflecting disciplined cost management, operational efficiencies and strategic pricing actions in a challenging volume environment.

Total sales volume declined 9.7% to 87.0 million pounds. Consumer distribution volume fell 8.4%, led by a 7.9% drop in private brand sales of bars, nuts and trail mix due to higher retail prices and reduced distribution at a major mass merchandiser. Commercial ingredients were essentially flat with a 1.1% decrease, while contract manufacturing volume plunged 26.5% as granola processing at the Lakeville facility tapered off. Core walnut, almond and pecan volumes grew modestly, partially offsetting declines in non-core contract business.

Ending inventories rose 14.4% to support anticipated demand, driven by higher on-hand quantities of raw nuts and finished goods and an 11.8% increase in average input cost per pound. For the first six months, net sales advanced 6.3% to $613.5 million, gross margin expanded to 18.5%, and operating expenses decreased by $2.1 million to $60.3 million. Management authorized a special dividend of $1.00 per share at the start of Q3 and launched one of the largest capital expenditure programs in Company history to expand production capacity and drive long-term shareholder value.