US fruit and vegetable processor Seneca Foods has reported increased sales and improved profitability for both the third quarter and the first nine months of its 2025/26 financial year, supported by stronger pricing, improved product mix, and more normalised input costs following the previous year’s poor harvest.

Net sales for the nine months ended 27 December 2025 rose to $1.27 billion, up from $1.23 billion in the prior-year period, an increase of $32.8 million driven by higher sales volumes alongside favourable pricing and mix. Gross margin improved significantly to 14.8% of net sales compared with 10.9% a year earlier.

President and chief executive Paul Palmby said the business benefited from a strong holiday season and improved cost conditions.

“The third quarter delivered record sales and near-record FIFO profitability, driven by an excellent holiday selling season and more normalized costs following a poor 2024 harvest season,” he said. “Strong operating results and necessary reductions in working capital have driven robust cash flow and continued decreases in net debt.”

Third-quarter net sales increased modestly to $508.3 million from $502.9 million in the comparable period last year. The $5.4 million rise reflected improved selling prices and product mix, partially offset by lower volumes. Profitability improved sharply, with gross margin rising to 16.4% from 9.8% in the prior-year quarter.

For the metal packaging sector, Seneca Foods’ performance is closely linked to demand for canned fruit and vegetable products, private-label retail lines, and foodservice packaging. The company remains one of North America’s largest processors of packaged produce, supplying products sourced from more than 1,100 farms and distributing to approximately 55 countries.

Seneca holds a significant share of the private-label and contract packaging markets, alongside branded products sold under names including Libby’s, Green Giant, Aunt Nellie’s, Green Valley, CherryMan, READ, and Seneca. The company also supplies industrial and ingredient markets, as well as snack and cherry products.

The improved margins and cash flow position reported for the period reflect both operational performance and working capital reductions, contributing to ongoing net debt reduction.