Universal Reports Q3 Revenue of $861.3M
Reports Q3 revenue $861.3M vs $937.2M last year. Preston Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, "We are pleased with Universal's solid performance in the quarter and nine months ended December 31, 2025. Our tobacco operations continued to deliver strong results, with firm customer demand for most tobacco styles and shipments progressing smoothly. As market dynamics evolve toward oversupply, our long track record in sourcing and local expertise in our operating regions position us well to navigate the environment effectively and optimize results under a range of conditions."
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- Financial Performance Overview: In Q3 2026, Universal Corporation reported consolidated revenue of $861.3 million, down from $937.2 million year-over-year, with operating income at $82 million and net income at $33.2 million, indicating performance challenges amid market pressures.
- Tobacco Segment Resilience: Despite transitioning to an oversupply environment, the Tobacco Operations segment generated $779.9 million in revenue, down from $853.9 million last year, yet maintained operating income at $84 million, demonstrating the company's stability in adversity.
- Ingredients Segment Pressure: The Ingredients Operations segment reported revenue of $81.3 million, slightly down from $83.3 million year-over-year, with an operating loss of $0.1 million, reflecting the impact of rising fixed costs and tariff pressures.
- Enhanced Liquidity: The company successfully upsized its senior unsecured credit facility by $250 million, increasing total liquidity to $917 million, significantly improving financial flexibility and supporting future market challenges.

Universal Corporation's Stock Performance: Universal Corporation's shares have decreased by 7.5% following the release of their Q3 results.
Leadership Change: The company has appointed Steven Diehl as the new Chief Financial Officer (CFO).
- Executive Appointment: Universal has announced the appointment of Steven Diel as the new Senior Vice President and CFO, effective April 1, aiming to strengthen financial management and strategic planning to tackle future market challenges.
- Previous Role: Before joining Universal, Diel served as Vice President and CFO of Universal Ingredients, bringing extensive industry experience that could enhance the company's financial stability and growth potential.
- Transition Plan: Current CFO Johan Kroner will remain as Senior Vice President until July 1, ensuring a smooth transition during the executive handover and maintaining operational continuity for the company.
- Market Reaction: While the new CFO's appointment may positively impact the company's financial strategy, the market remains cautious about Universal's growth expectations, reflecting concerns over the company's future performance.
- Earnings Report Disappointment: Universal Corporation's Q3 Non-GAAP EPS of $1.35 misses expectations by $0.57, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company reported revenue of $861.3 million, an 8.1% year-over-year decrease, falling short of expectations by $65.9 million, reflecting challenges from weak market demand and increased competition.
- Cautious Future Outlook: While Universal Corporation highlighted attractive yields during the investor conference, its conservative growth outlook may heighten investor concerns regarding long-term growth potential.
- Executive Changes: The appointment of a new CFO could introduce fresh financial strategies and management directions, yet the company must first navigate current financial challenges to restore market confidence.
- Universal Q3 Adjusted Operating Income: Universal reported an adjusted operating income of USD 82.7 million for the third quarter.
- Financial Performance: The financial results indicate a significant performance metric for the company during this period.
- Earnings Announcement Date: Universal Corporation is set to release its FQ3 earnings on February 9 before market open, with consensus EPS estimate at $1.92 and revenue estimate at $927.2 million, indicating strong investor interest in the company's financial performance.
- Historical Performance Review: Over the past two years, Universal has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating the company's reliability in financial forecasting and bolstering market confidence.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, which may reflect a cautious market outlook on the company's future performance, prompting investors to closely monitor the upcoming earnings report.
- Executive Changes: Universal recently appointed a new CFO, a move that could influence the company's financial strategy and future direction, making it essential for investors to observe the new executive's implementation of strategic initiatives.






