Performance Food Group generated more than $1 billion of free cash flow in fiscal 2026, an increase of approximately 46% from the prior year, as stronger operating cash generation combined with a $121.9 million reduction in capital expenditures.
Free cash flow increased to $1.03 billion from $704.1 million, while capital expenditures declined to $384.1 million from approximately $506 million. Operating cash flow increased to $1.414 billion from $1.210 billion.
The increase in operating cash flow was primarily driven by higher cash-based operating income and $52.3 million of income tax refunds received during the year. That benefit was partly offset by advance inventory purchases made to take advantage of preferred pricing.
PFG’s stronger cash generation accompanied another year of growth across the business. Fiscal 2026 net sales increased 7.2% to $67.8 billion, gross profit increased 9.1% to $8.1 billion and Adjusted EBITDA increased 9.2% to approximately $1.93 billion.
Net income increased 5.6% to $359.3 million, while diluted EPS increased 5% to $2.29. Adjusted diluted EPS increased 1.6% to $4.55.
Volume trends show PFG continuing to gain business with independent foodservice customers. Total case volume increased 5.1% during fiscal 2026, while total independent Foodservice case volume increased twice as quickly at 10.2%. Organic independent Foodservice volume increased 5.9%.
The independent channel is strategically important because PFG says it generates higher gross profit through the additional services provided to those customers. Gross profit growth also benefited from acquisitions, including Cheney Brothers, along with vendor rebates and promotional incentives.
Fourth-quarter results maintained that momentum. Net sales increased 6.4% to $18 billion, gross profit increased 8.3% to $2.2 billion and net income increased 23.4% to $162.3 million. Adjusted EBITDA rose 7.4% to $587.5 million.
Q4 independent Foodservice case volume increased 8%, including 5.8% organic growth. Independent sales represented 43.1% of total Foodservice sales during the quarter. Foodservice revenue increased 6.8% to $9.8 billion, while segment Adjusted EBITDA increased 2.2% to $395.5 million.
PFG’s Convenience business generated stronger profit growth. Q4 revenue increased 5.7% to $6.8 billion, while Adjusted EBITDA increased 10.4% to $132.5 million. Growth benefited from the addition of new chain customers, increased case volumes and higher selling prices, although the mix continued shifting from cigarettes toward alternative nicotine products.
The company retains substantial unused share repurchase capacity. Only $1.5 million of stock was repurchased during fiscal 2026, leaving $498.5 million available under PFG’s $500 million authorization.
PFG expects continued growth in fiscal 2027. Full-year sales are projected between $72.5 billion and $73 billion, while Adjusted EBITDA is expected between $2.125 billion and $2.225 billion. The outlook includes the impact of a 53-week fiscal year.
For the first quarter, PFG expects net sales of approximately $17.9 billion to $18.1 billion and Adjusted EBITDA of $510 million to $530 million.
KEY QUOTES:
“Our solid execution throughout the year produced a strong finish to fiscal 2026.”
“Consistent market share gains across our business units translated into strong revenue growth and record-setting EBITDA results. We enter fiscal 2027 with significant momentum, reflected in the outlook we are providing today.”
Scott McPherson, President And Chief Executive Officer Of Performance Food Group
