Cal-Maine Foods Net Sales Plunge 53% to $667M in Q3 as Egg Market Softens

Cal-Maine Foods (NASDAQ: CALM), the largest egg producer in the United States, reported net sales of $666.95 million for the quarter ended February 28, 2026, a 53% decline from $1.42 billion in the same quarter of fiscal 2025. Net income for the quarter fell 90% to $50.46 million, or $1.06 per diluted share, compared to $508.53 million, or $10.38 per diluted share, a year earlier. Read more earnings reports.

For the thirty-nine weeks ended February 28, 2026, net sales totaled $2.36 billion, down 25% from $3.16 billion in the prior-year period. Net income for the nine-month period dropped 60% to $352.56 million, or $7.34 per diluted share, versus $877.57 million, or $17.92 per diluted share, in the same period last year.

Gross profit for the most recent quarter came in at $119.28 million, representing an 83% decrease from $716.12 million in the year-ago quarter. The gross profit margin compressed to 17.9% from 50.5% a year earlier. For the thirty-nine week period, gross profit fell 52% to $637.98 million from $1.32 billion.

Cost of sales for the quarter ended February 28, 2026 totaled $547.67 million, down 22% from $701.57 million in the prior-year quarter. However, cost of sales as a percentage of net sales increased to 82.1% from 49.5%, reflecting the margin pressure the company faced during the period.

Selling, general and administrative expenses rose 4% to $83.30 million for the quarter from $79.97 million a year earlier. For the thirty-nine week period, SG&A expenses increased 7% to $235.71 million from $219.53 million.

The company recorded a gain of $480,000 on involuntary conversions during the quarter and a gain of $7.97 million for the thirty-nine week period. Operating income for the quarter totaled $35.94 million, a 94% decline from $635.67 million in the prior-year quarter.

Interest income for the quarter was $11.27 million, down 11% from $12.63 million a year earlier. For the thirty-nine week period, interest income rose 13% to $36.38 million from $32.18 million. The company also received patronage dividends of $11.67 million in both periods.

Income tax expense for the quarter was $7.07 million on income before taxes of $58.19 million, representing an effective tax rate of 12.1%. This compared to income tax expense of $154.88 million on pre-tax income of $663.03 million, or a 23.4% effective rate, in the prior-year quarter.

The company's balance sheet showed cash and cash equivalents of $392.16 million at February 28, 2026, down from $499.39 million at May 31, 2025. Investment securities available-for-sale declined to $759.77 million from $892.71 million. Total current assets decreased to $1.75 billion from $1.97 billion.

Inventories increased to $348.91 million from $295.67 million at the end of fiscal 2025. Property, plant and equipment, net, rose to $1.22 billion from $1.03 billion, reflecting capital investments during the period. Goodwill increased to $87.06 million from $46.78 million, and intangible assets, net, jumped to $53.36 million from $15.16 million, suggesting acquisition activity.

Total assets stood at $3.14 billion at February 28, 2026, up slightly from $3.08 billion at May 31, 2025. Total liabilities decreased to $432.13 million from $518.60 million, driven primarily by a reduction in dividends payable to $16.84 million from $114.16 million.

Stockholders' equity totaled $2.70 billion at quarter-end, up from $2.57 billion at the end of fiscal 2025. Retained earnings increased to $2.80 billion from $2.57 billion. Treasury stock at cost rose to $187.36 million covering 27.69 million shares, compared to $85.89 million covering 26.57 million shares, indicating the company repurchased approximately 1.1 million shares during the period.