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Post Holdings’ 15% Share Count Cut: Can Buybacks Offset Category Weakness?

Post Holdings reported a second quarter fiscal 2026 performance marked by robust adjusted EBITDA results that surpassed expectations, benefiting from a diversified portfolio. Despite ongoing headwinds linked to uncertainties from geopolitical tensions in the Middle East, the company chose to maintain its prior adjusted EBITDA guidance. The firm also emphasized aggressive share repurchase activity, having reduced its share count by 15% fiscal year-to-date, supported by strong cash flow, liquidity, and credit metrics, all of which provide flexibility for future capital allocation. Operationally, the foodservice segment is expected to return to a steady EBITDA run rate after fluctuations caused by prior periods’ supply constraints and pricing dynamics. The company highlighted challenges in controlling rising fuel and packaging costs, especially with significant increases in diesel prices, which have affected the North American operations.