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  • 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


Universal (UVV:NYSE) | 0 0 0.0%


  • Sidoti & Company
    • Daniel Harriman

    • 10 pages


 

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.

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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


Universal (UVV:NYSE) | 0 0 0.0%


  • Published: 26 May 2026
  • Author: Daniel Harriman
  • Pages: 10
  • Sidoti & Company


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.

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Core Business Remains Durable As Isolated Charges Weigh On Results; Reduce Estimates While Maintaining Long-Term Conviction; Lower Price Target to $74 (From $78)

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Tobacco Stability And Ingredients Execution Reinforce Cash Flow Visibility; Reliable Dividend And Expanding Platform Underscore Undervalued Shares, In Our View; Maintain $78 Price Target

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Universal Normalizes From Elevated Prior-Year Comparison While Ingredients Scales Toward Improved Profitability; We Expect Growth To Shift Toward F2028; Maintain $78 Price Target

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We Expect Universal To Deliver Consistent Tobacco Performance While Advancing Its Ingredients Platform Strategy Through Disciplined Execution; Maintain $78 Price Target

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F2026–F2027 Preview: Universal Enters Second Half Of F2026 With Steady Execution As Ingredients Progress And A Stable Tobacco Base Shape F2027 Outlook; Maintain $78 Price Target

Companies: Universal

Sidoti & Company
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