Del Monte Q3 Swings to $18.3M Profit; Cash Flow Slumps on Acquisition Inventory Build
DMC is trading near its 52-week low of $26.47 (9.6% above the low) on elevated volume (2.6× avg).
Summary
Del Monte's Q3 10-Q confirms the $18.3M profit ($0.39/share) already reported, but shows nine-month operating cash flow of just $53.1M versus $234.2M a year ago and debt up to $499.6M after the Del Monte Foods deal. It also discloses a $4.7M CEO tax-withholding accrual and $282.6M of contested foreign tax assessments.
Key Events · Earnings and Guidance · DMC
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Q3 Profit Reverses Year-Ago Loss
Net income attributable to Del Monte was $18.3M, or $0.39 per diluted share, versus a $29.1M loss ($0.61) in Q3 2025; net sales rose to $1,095.3M from $1,021.9M.
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Operating Cash Flow Collapses
Nine-month operating cash flow fell to $53.1M from $234.2M, driven by a $101.1M inventory build and a $36.8M receivables increase tied to the Del Monte Foods acquisition.
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Debt Nearly Triples After Acquisition
Total debt and finance leases reached $499.6M versus $177.7M at December 26, 2025, with $477.2M drawn on the revolver; the leverage covenant ceiling is 4.25x through the next three quarters.
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CEO Tax Withholding Accrual Disclosed
The company recorded a $4.7M accrual for historical U.S. tax withholding on CEO compensation, of which only about $1.9M is expected to be reimbursed.
Analysis · DMC · Industrial Applications And Services
The quarter itself was already public this morning, but the full 10-Q carries the balance-sheet and cash-flow detail that reframes the story: operating cash flow collapsed to $53.1M from $234.2M a year ago as the Del Monte Foods acquisition loaded up inventory and receivables, and total debt nearly tripled to $499.6M. Two items disclosed here for the first time are worth flagging — a $4.7M accrual for unpaid U.S. tax withholding on the CEO's compensation, only about $1.9M of which the company expects to recover, and $282.6M of proposed foreign transfer-pricing deficiencies that remain under appeal, including an unfavorable withholding-tax ruling received October 16, 2026. Neither is new to the risk profile in kind, but the hard numbers are. Leverage is the thing to track: the credit agreement's consolidated leverage ceiling steps up to 4.25x through the next three quarters, and the company says it is in compliance.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DMC was trading at $29.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $26.47 to $43.58. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.