Quarterly ResultAug 6, 2026, 04:36 PM
Karat Packaging Q2 Net Sales $136.3M; EPS $1.46; Dividend Up
AI Summary
Karat Packaging Inc. reported record second quarter 2026 financial results, with net sales reaching $136.3 million, a 9.9% increase year-over-year. Net income surged 168.3% to $29.6 million, and diluted EPS was $1.46, significantly boosted by $25.8 million in IEEPA tariff refunds. The company also announced an increase in its quarterly dividend to $0.47 per share and repurchased $2.0 million in shares. Looking ahead, Karat Packaging expects low double-digit net sales growth for Q3 and full-year 2026, with margins normalizing as tariff refunds become insignificant.
Key Highlights
- Record Q2 net sales of $136.3 million, up 9.9% year-over-year.
- Q2 net income increased 168.3% to $29.6 million, including $20.2 million from IEEPA tariff refunds.
- Q2 diluted EPS was $1.46, including $1.00 per share from IEEPA tariff refunds.
- Adjusted EBITDA for Q2 was $41.6 million, with a 30.5% margin, boosted by tariff refunds.
- Board approved an increase in quarterly dividend to $0.47 per share.
- Repurchased 73,510 shares for $2.0 million in Q2; $10.0 million remains for buyback.
- Online business grew 23.6% over prior-year quarter.
- Finalizing lease for a new 47,000 sq ft distribution center in Orlando, Florida.
Price Impact
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