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Ingles Markets, Incorporated Reports Results for Second Quarter and First Six Months of Fiscal 2026

Ingles Markets, Incorporated Reports Results for Second Quarter and First Six Months of Fiscal 2026

ASHEVILLE, N.C.–(BUSINESS WIRE)–
Ingles Markets, Incorporated (NASDAQ: IMKTA) today reported its financial results for the three and six months ended March 28, 2026.

Robert P. Ingle II, Chairman of the Board, stated, “We are pleased to announce our financial results that are made possible by our associates’ commitment and dedication to our customers and communities in which we serve.”

Second Quarter 2026 Results

Net sales totaled $1.31 billion for the quarter ended March 28, 2026, a decrease of 1.8% compared with $1.33 billion for the quarter ended March 29, 2025.

Gross profit for the second quarter of fiscal 2026 increased to $325.3 million, or 24.9% of sales, as compared to $311.0 million, or 23.4% of sales, for the second quarter of fiscal 2025.

Operating and administrative expenses for the second quarter of fiscal 2026 was relatively flat at $291.2 million, as compared with $289.1 million for the second quarter of fiscal 2025.

Interest expense totaled $4.5 million for the second quarter of fiscal 2026, as compared with $4.9 million for the second quarter of fiscal 2025.

Net income increased to $24.3 million for the second quarter of fiscal 2026, as compared with $15.1 million for the second quarter of fiscal 2025. Basic and diluted earnings per share for Class A Common Stock increased to $1.31 and $1.28, respectively, for the quarter ended March 28, 2026, as compared with $0.81 and $0.80, respectively, for the quarter ended March 29, 2025.

First Half Fiscal 2026 Results

First half fiscal 2026 net sales totaled $2.68 billion, an increase of 2.4% compared with $2.62 billion for the first half of fiscal 2025.

Gross profit for the six months ended March 28, 2026, increased to $659.8 million, as compared with $612.1 million for the first six months of fiscal 2025. Gross profit, as a percentage of sales, was 24.6% for the first half of fiscal 2026, compared with 23.4% for the first half of fiscal 2025.

Operating and administrative expenses totaled $586.6 million for the six months ended March 28, 2026, as compared to $569.9 million for the six months ended March 29, 2025.

Interest expense decreased to $9.1 million for the six-month period ended March 28, 2026, as compared with $9.9 million for the six-month period ended March 29, 2025. Total debt as of March 28, 2026, was $503.8 million compared with $521.6 million as of March 29, 2025.

Net income increased to $52.4 million for the six months ended March 28, 2026, as compared with $31.7 million for the six months ended March 29, 2025. Basic and diluted earnings per share for Class A Common Stock increased to $2.82 and $2.76, respectively, for the six months ended March 28, 2026, as compared to $1.70 and $1.67, respectively, for the six months ended March 29, 2025.

Capital expenditures for the first half of fiscal 2026 totaled $53.0 million compared with $62.0 million for the first half of fiscal 2025.

About Ingles Markets, Incorporated

Ingles Markets, Incorporatedis a leading grocer with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 194 supermarkets, excluding three stores that remain temporarily closed due to damage sustained in Hurricane Helene but which are expected to reopen at various times during 2026 and 2027. In conjunction with its supermarket operations, the Company operates neighborhood shopping centers, most of which contain Ingles supermarkets. The Company also owns a fluid dairy facility that supplies Ingles supermarkets and unaffiliated customers. To learn more about Ingles Markets visit ingles-markets.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things: business and economic conditions generally in the Company’s operating area, including inflation or deflation; shortages of labor, distribution capacity, and some product shortages; inflation in food, labor and gasoline prices; the Company’s ability to successfully implement our expansion and operating strategies; pricing pressures and other competitive factors, including online-based procurement of products the Company sells; sudden or significant changes in the availability of gasoline and retail gasoline prices; the maturation of new and expanded stores; general concerns about food safety; the Company’s ability to manage technology and data security; the availability and terms of financing; and increases in costs, including food, utilities, labor and other goods and services significant to the Company’s operations. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

INGLES MARKETS, INCORPORATED

(Amounts in thousands except per share data)

 

Unaudited Financial Highlights

Condensed Consolidated Statements of Income (Unaudited)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

March 28,

 

March 29,

 

March 28,

 

March 29,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

 

Net sales

$

1,307,863

$

1,331,273

 

 

$

2,680,841

$

2,619,388

Gross profit

 

325,259

 

 

310,977

 

 

 

659,816

 

 

612,111

 

Operating and administrative expenses

 

291,152

 

 

289,144

 

 

 

586,568

 

 

569,853

 

Gain (loss) from sale or disposal of assets

 

364

 

 

(192

)

 

 

358

 

 

2,954

 

Income from operations

 

34,471

 

 

21,641

 

 

 

73,606

 

 

45,212

 

Other income, net

 

2,765

 

 

2,842

 

 

 

5,683

 

 

6,140

 

Interest expense

 

4,495

 

 

4,879

 

 

 

9,102

 

 

9,890

 

Income tax expense

 

8,474

 

 

4,498

 

 

 

17,791

 

 

9,768

 

Net income

$

24,267

 

$

15,106

 

 

$

52,396

 

$

31,694

 

 

 

 

 

 

 

Basic earnings per common share – Class A

$

1.31

 

$

0.81

 

 

$

2.82

 

$

1.70

 

Diluted earnings per common share – Class A

$

1.28

 

$

0.80

 

 

$

2.76

 

$

1.67

 

Basic earnings per common share – Class B

$

1.19

 

$

0.74

 

 

$

2.56

 

$

1.55

 

Diluted earnings per common share – Class B

$

1.19

 

$

0.74

 

 

$

2.56

 

$

1.55

 

 

 

 

 

 

 

Additional selected information:

 

 

 

 

 

Depreciation and amortization expense

$

30,073

 

$

30,597

 

 

$

60,366

 

$

61,536

 

Rent expense

$

1,822

 

$

1,993

 

 

$

3,462

 

$

3,728

 

 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

March 28,

 

 

 

Sept. 27,

 

 

 

2026

 

 

 

 

 

2025

 

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

$

418,002

 

 

 

$

366,246

 

 

Receivables-net

 

101,218

 

 

 

 

106,355

 

 

Inventories

 

479,406

 

 

 

 

482,979

 

 

Other current assets

 

20,211

 

 

 

 

19,976

 

 

Property and equipment-net

 

1,503,038

 

 

 

 

1,515,070

 

 

Other assets

 

73,041

 

 

 

 

75,429

 

 

TOTAL ASSETS

$

2,594,916

 

 

 

$

2,566,055

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current maturities of long-term debt

$

17,480

 

 

 

$

17,477

 

 

Accounts payable, accrued expenses and current portion of other long-term liabilities

 

287,456

 

 

 

 

285,426

 

 

Deferred income taxes

 

59,950

 

 

 

 

65,040

 

 

Long-term debt

 

486,284

 

 

 

 

497,289

 

 

Other long-term liabilities

 

81,744

 

 

 

 

84,891

 

 

Total Liabilities

 

932,914

 

 

 

 

950,123

 

 

Stockholders’ equity

 

1,662,002

 

 

 

 

1,615,932

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,594,916

 

 

 

$

2,566,055

 

 

 

Pat Jackson, Chief Financial Officer

[email protected]

(828) 669-2941 (Ext. 223)

KEYWORDS: North Carolina United States North America

INDUSTRY KEYWORDS: Supermarket Retail Other Retail Food/Beverage

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