WK Kellogg lowers 2025 outlook on soft Q1, weak consumer; shares slide

Published 06/05/2025, 13:22
© Reuters

Investing.com -- WK Kellogg Co (NYSE: KLG) shares fell 3% in the U.S. market pre-open after the food company lowered its full-year 2025 (FY25) guidance and reported worse-than-expected earnings and revenue.

The company reported earnings per share (EPS) of $0.20, missing the consensus estimate of $0.36. Revenue for the period stood at $663 million, also notably below the $696.92 million forecasted by analysts.

Adjusted EBITDA fell 4% year-over-year to $72 million, slightly missing the $73.4 million estimate, with an adjusted EBITDA margin of 10.8%.

“Despite the lower than expected first quarter performance which resulted in revising our 2025 outlook, we continue to make great progress on our strategic priorities, including the supply chain modernization initiative," said Gary Pilnick, Chairman and CEO of WK Kellogg. "We remain on track to deliver ~500 bps of margin improvement as we exit 2026."

The company lowered its full-year 2025 guidance, citing softer Q1 performance and weaker-than-expected consumption trends. It now expects organic net sales to decline by approximately 2.0% to 3.0%, compared to a previous forecast of around 1.0% decline.

Adjusted EBITDA growth is now projected to range from flat to down 2.0%, down from earlier guidance of 4.0% to 6.0% growth.

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