We expect 4Q:F26 sales of $728.2 million, up 3.7% year over year. We expect results to be driven by Tobacco sales of $634.1 million, up 3.5% year over year, reflecting continued normalization in the global leaf market, and Ingredients sales of $94.1 million, up 5.0% year over year, supported by ongoing customer engagement and gradual pipeline conversion within the Ingredients platform.
We project gross profit of $135.9 million, representing an 18.7% consolidated gross margin. We expect a Tobacco gross margin of 18.8%, reflecting disciplined sourcing and efficient throughput in a more balanced supply environment, and an Ingredients gross margin of 17.7%, reflecting ongoing fixed-cost absorption associated with the Lancaster facility expansion as the platform continues to scale.
We expect adjusted EPS of $1.08 in 4Q:F26, up 35% year over year, reflecting a more favorable comparison base relative to the prior year period and continued earnings contribution from Tobacco Operations.
Liquidity remains solid following the refinancing and upsizing of the senior unsecured credit facility by $250 million during the third quarter. As of December 31, 2025, net debt was $995 million and total liquidity totaled $917 million, reflecting a conservative and well-positioned balance sheet as the company enters fiscal year end.
We maintain our $78 price target on UVV shares, based on 17x our F2028 adjusted EPS estimate of $4.61. The company's consistent free cash flow generation, conservative leverage, and reliable operating performance continue to support our moderate risk rating.
26 May 2026
Universal Enters Fiscal Year End On Solid Footing As Tobacco Provides Earnings Durability And Ingredients Platform Continues To Scale, In Our View; Maintain $78 Price Target
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Universal Enters Fiscal Year End On Solid Footing As Tobacco Provides Earnings Durability And Ingredients Platform Continues To Scale, In Our View; Maintain $78 Price Target
We expect 4Q:F26 sales of $728.2 million, up 3.7% year over year. We expect results to be driven by Tobacco sales of $634.1 million, up 3.5% year over year, reflecting continued normalization in the global leaf market, and Ingredients sales of $94.1 million, up 5.0% year over year, supported by ongoing customer engagement and gradual pipeline conversion within the Ingredients platform.
We project gross profit of $135.9 million, representing an 18.7% consolidated gross margin. We expect a Tobacco gross margin of 18.8%, reflecting disciplined sourcing and efficient throughput in a more balanced supply environment, and an Ingredients gross margin of 17.7%, reflecting ongoing fixed-cost absorption associated with the Lancaster facility expansion as the platform continues to scale.
We expect adjusted EPS of $1.08 in 4Q:F26, up 35% year over year, reflecting a more favorable comparison base relative to the prior year period and continued earnings contribution from Tobacco Operations.
Liquidity remains solid following the refinancing and upsizing of the senior unsecured credit facility by $250 million during the third quarter. As of December 31, 2025, net debt was $995 million and total liquidity totaled $917 million, reflecting a conservative and well-positioned balance sheet as the company enters fiscal year end.
We maintain our $78 price target on UVV shares, based on 17x our F2028 adjusted EPS estimate of $4.61. The company's consistent free cash flow generation, conservative leverage, and reliable operating performance continue to support our moderate risk rating.