Universal Corporation (NYSE: UVV) has released its financial results for the nine months and quarter ending December 31, 2025. The company reported solid performance, with sales and other operating revenue totaling $2.2 billion for the nine-month period, a decrease of 2% compared to the prior year. Gross profit margin percentage dropped to 18.7% from 19.3% in the same period. Operating income decreased by 3% to $183.4 million. Net income attributable to Universal Corporation dropped by 11% to $75.9 million, and diluted earnings per share fell by 11% to $3.02.
In the tobacco operations segment, sales and other operating revenues decreased by 3% to $1.94 billion, and operating income decreased by 5% to $185 million. The company's ingredients operations segment saw sales and other operating revenues increase by 7% to $265.2 million, but operating income (loss) decreased to $1.4 million from $7.9 million in the prior year.
During the third quarter of 2026, Universal Corporation's revenue dropped by 8% to $861 million, with operating income decreasing by 21% to $82 million. In the tobacco operations segment, revenue decreased by 9% to $779.9 million, and operating income decreased by 18% to $84 million. The ingredients operations segment saw a 2% decrease in revenue to $81.3 million, with an operating loss of $0.1 million compared to operating income of $3.7 million in the same period last year.
The company highlighted increased renewable electricity consumption, reaching 17.7% of global electricity sourced from renewable energy in fiscal year 2025. Universal Corporation also emphasized its continued efforts to enhance supply chain transparency and farmer engagement through its digital farm data platform, Mobileaf.
In terms of balance sheet items, the company reported increased working capital usage due to larger tobacco crops and the timing of tobacco crop purchases. Total debt decreased by $77 million compared to the previous year, while net debt increased by $51 million. In December 2025, Universal Corporation refinanced and upsized its revolving credit facility by $250 million, extending the maturity to December 2030.
The company also reported restructuring and impairment costs of $2 million in the nine months ended December 31, 2025, compared to $11 million in the same period in 2024. Interest expense decreased by $6 million, and the consolidated effective tax rate increased to 32%.
Universal Corporation will host a conference call on February 9, 2026, at 5:00 p.m. (Eastern Time) to discuss these results, with a webcast available through its website and a replay accessible for a limited time. Following these announcements, the company's shares moved -1.81%, and are now trading at a price of $54.32. For the full picture, make sure to review UNIVER's 8-K report.
