Overview

• U.S. tobacco alternatives maker's Q1 sales rose 17%, beating analyst expectations

• Adjusted diluted EPS for Q1 fell to $0.76 from $0.91 last year

• Company raised full-year Modern Oral sales guidance and introduced EBITDA guidance

Outlook

• Turning Point Brands raises FY 2026 Modern Oral Gross Sales guidance to $280-$300 mln

• Company expects FY 2026 Modern Oral Net Sales of $210-$225 mln

• Turning Point Brands introduces FY 2026 Adjusted EBITDA guidance of $70-$90 mln

Result Drivers

• MODERN ORAL GROWTH - Sales of Modern Oral products rose 133%, accounting for 42% of total net sales, and drove overall revenue growth

• ZIG-ZAG DECLINE - Zig-Zag segment net sales fell 22.4% due to lower U.S. papers and wraps shipments

• HIGHER SG&A SPENDING - Increased investment in Modern Oral sales and marketing, and higher outbound freight, led to a 53% rise in SG&A expenses

Company press release: ID:nBwbf8fkFa

Key Details

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