Turning Point Brands Sees 29% Sales Gain as Modern Oral Jumps 266%, Shares Fall
Net sales rose 29.2% year-over-year to $121 million driven by a 266% surge in Modern Oral sales, while Zig-Zag segment revenue fell 12.8%, pushing shares down 16.5%. It raised its dividend to $0.08 and forecasts FY26 Modern Oral revenue of $180–190 million and Q1 adjusted EBITDA of $24–27 million.
1. Fourth-Quarter Financial Highlights
Turning Point Brands delivered net sales of $121 million in Q4, a 29.2% year-over-year increase, with gross profit of $67.7 million and adjusted EBITDA of $30 million, while adjusted EPS reached $0.95, exceeding consensus estimates.
2. Segment Performance Breakdown
The Modern Oral segment saw revenue soar 266% year-over-year, Stoker’s segment sales increased 69.5%, and Zig-Zag segment sales declined 12.8%, highlighting strong growth in nicotine pouches but weakness in traditional rolled tobacco products.
3. Outlook, Dividend, and Investments
The company raised its dividend to $0.08 per share and forecasts FY26 Modern Oral net revenue of $180–190 million and Q1 adjusted EBITDA of $24–27 million, noting that sales and marketing investments will be lumpy as it prepares the ALP brand launch into bricks-and-mortar stores.