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P.O. Box 25099 ~ Richmond, VA 23260 ~ Phone: (804) 359-9311 ~ Fax: (804) 254-3584
______________________________________________________________________________________________________
P R E S S R E L E A S E
CONTACT:Universal Corporation Investor RelationsRELEASE:4:16 p.m. ET
Phone: (804) 359-9311
Fax: (804) 254-3584
Email: investor@universalleaf.com

Universal Corporation Reports First Half and Second Quarter 2026 Results

Revenue up 3% and 6% for First Half and Second Quarter 2026, respectively

Operating Income up 18% for First Half and down 2% for Second Quarter 2026

Continued Strong Operational Performance in First Half of Fiscal Year 2026

Richmond, VA November 5, 2025 / BUSINESSWIRE
___________________________________________________________________________________

Universal Corporation (NYSE:UVV) (“Universal” or the “Company”), a global business-to-business agriproducts company, today announced financial results for the six months and quarter ended September 30, 2025.

Preston D. Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, “We are proud of the strong operational performance of both of our business segments in the first half of fiscal year 2026. Our Tobacco Operations segment achieved solid results. Customer demand has remained firm following several years of undersupply, despite significantly larger tobacco crops this fiscal year. Tobacco buying has been completed in most key growing regions, and green tobacco prices have softened in certain regions compared to the previous fiscal year. Shipments are progressing smoothly, and current crop tobacco is being shipped earlier than in the prior fiscal year. Overall, the segment has once again demonstrated effective management in navigating market dynamics."

Mr. Wigner continued, “Our Ingredients Operations segment maintained positive momentum, achieving higher sales and volume in both the quarter and six months ended September 30, 2025. Continued interest
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in new value-added products has translated into an active pipeline, supported by Universal Ingredients' enhanced production and operational capabilities. Demand for our new products remains solid, while fixed costs, product mix, and market challenges, including weakness in the consumer-packaged goods industry and tariff uncertainty, had a negative impact on earnings. The segment’s proactive approach to meeting customers’ strategic needs, focusing on organic growth, and converting customer interest into sales will continue to build scale and generate returns on our investments. We believe the segment continues to be well-positioned to capitalize on its investments and drive future growth."

FINANCIAL HIGHLIGHTS
Three Months Ended September 30,ChangeSix Months Ended September 30,Change
(in millions of dollars, except per share data)20252024%20252024%
Consolidated Results
Sales and other operating revenue$754.2 $710.8 6 %$1,347.9 $1,307.8 3 %
Cost of goods sold$614.3 $567.6 8 %$1,094.0 $1,068.7 2 %
Gross profit margin percentage18.5 %20.1 %-160 bps18.8 %18.3 %50 bps
Selling, general and administrative expenses$72.2 $63.8 13 %$151.4 $142.5 6 %
Restructuring and impairment costs$— $10.6 (100)%$1.1 $10.6 (89)%
Operating income$67.6 $68.7 (2)%$101.5 $86.0 18 %
Adjusted operating income (non-GAAP)*$67.6 $79.3 (15)%$102.6 $96.5 6 %
Net income attributable to Universal Corporation$34.2 $25.9 32 %$42.7 $26.1 64 %
Adjusted net income attributable to Universal Corporation (non-GAAP)*$34.2 $36.4 (6)%$43.8 $36.5 20 %
Diluted earnings (loss) per share$1.36 $1.03 32 %$1.70 $1.04 63 %
Adjusted diluted earnings (loss) per share (non-GAAP)*$1.36 $1.45 (6)%$1.74 $1.46 19 %
Segment Results
Tobacco operations sales and other operating revenues$659.4 $630.2 5 %$1,164.1 $1,142.2 2 %
Tobacco operations operating income$65.2 $77.3 (16)%$100.9 $91.8 10 %
Ingredients operations sales and other operating revenues$94.8 $80.6 18 %$183.8 $165.6 11 %
Ingredients operations operating income (loss)$(0.2)$1.3 (112)%$1.5 $4.2 (64)%
*See Reconciliation of Certain non-GAAP Financial Measures in Other Items below

First Half 2026 Highlights

Consolidated Results
•Revenue up $40 million to $1.3 billion on higher third-party tobacco processing volumes, accelerated tobacco shipments, and higher ingredients sales volumes.
•Operating income up $16 million to $102 million on a favorable product mix in the Tobacco Operations segment.

Tobacco Operations Segment
•Revenue up $22 million on higher third-party tobacco processing volumes.
•Segment operating income up $9 million on a favorable product mix.
•Tobacco sales volumes slightly down, about 1%, as higher sales and earlier shipments of current crop tobacco largely offset lower sales of carryover crop tobacco.
•Tobacco sales prices relatively flat.
•Tobacco Operations segment results reflected:
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◦Continued firm customer demand;
◦A favorable product mix;
◦Larger current crops, particularly in Brazil and African origins;
◦Earlier shipments of current crop tobacco;
◦Lower sales of carryover crop tobacco;
◦Increased third-party tobacco processing revenue; and
◦Higher inventory write-downs.
•Uncommitted tobacco inventory levels have remained low at approximately 13% at September 30, 2025.
•Currently tobacco supply and demand is generally in a balanced position but is expected to move to an oversupply position by fiscal year-end.

Ingredients Operations Segment
•Revenue up 11% on increased sales volumes.
•Lower operating income reflected product mix and higher fixed costs, including additional depreciation from our recently expanded production facility, as well as inventory write-downs. Weakness in the consumer-packaged goods industry and tariff uncertainty also impacted the segment.
•Despite market challenges, continued high level of interest in value-added products.
•Ongoing focus on organic growth and building scale through our product pipeline.

Select Balance Sheet Items, Liquidity, and Debt
•Increased working capital usage on seasonal tobacco purchases.
•Total debt down $39 million at September 30, 2025, compared to September 30, 2024.
•Net debt (non-GAAP) down $52 million at September 30, 2025, compared to September 30, 2024.
•Approximately $340 million available under revolving credit facility as of September 30, 2025.

Additional Items
•Restructuring and impairment costs of $1.1 million in the first half of fiscal year 2026, compared to $10.6 million in the first half of fiscal year 2025.
•Interest expense down $4 million, compared to the same period in the prior fiscal year.

Second Quarter 2026 Highlights

Consolidated Results
•Revenue up $43 million, to $754 million, on higher tobacco and ingredient sales volumes.
•Operating income down $1 million to $68 million on higher sales volumes and lower restructuring and impairment costs, slightly offset by unfavorable foreign currency comparisons, higher inventory write-downs, and higher provisions for farmer advances.

Tobacco Operations Segment
•Revenue up $29 million, or 5%, on higher tobacco sales volumes.
•Segment operating income down $12 million on unfavorable foreign currency comparisons, higher inventory write-downs, and a less favorable product mix.

Ingredients Operations Segment
•Revenue up 18% on increased sales volumes.
•Lower operating income reflected product mix and higher fixed costs, including additional depreciation from our recently expanded production facility, as well as inventory write-downs. Weakness in the consumer-packaged goods industry and tariff uncertainty also impacted the segment.

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Additional Items
•Restructuring and impairment costs of $10.6 million in the quarter ended September 30, 2024.

Sustainability Update

Universal Corporation continues to make meaningful progress in its transition to renewable and lower emission energy sources. The Company has significantly expanded its use of clean electricity as an important element of its carbon transition plan.

“Our continued progress in expanding renewable electricity use demonstrates Universal’s commitment to operational efficiency and environmental stewardship,” said Mr. Wigner. “Investing in clean energy supports our sustainability goals and strengthens the resilience of our operations while creating long-term value for our stakeholders.”

Expanded solar capacity has played a central role in this progress. On-site solar installations in Italy, the Dominican Republic, and the Philippines have further strengthened Universal’s clean energy footprint.

Other Items

Reconciliation of Certain Non-GAAP Financial Measures
Adjusted operating income (loss), adjusted net income (loss) attributable to Universal Corporation, adjusted diluted earnings (loss) per share, and the total for segment operating income (loss) are non-GAAP financial measures. These measures are not financial measures calculated in accordance with generally accepted accounting principles ("GAAP") and should not be considered as substitutes for operating income (loss), net income (loss) attributable to Universal Corporation, diluted earnings (loss) per share, cash from operating activities or any other operating or financial performance measure calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of adjusted operating income (loss) to consolidated operating (income), adjusted net income (loss) attributable to Universal Corporation to consolidated net income (loss) attributable to Universal Corporation and adjusted diluted earnings (loss) per share to diluted earnings (loss) per share are provided below. In addition, a reconciliation of the total for segment operating income (loss) to consolidated operating income (loss) is provided in Note 3. "Segment Information" to the consolidated financial statements. Management evaluates the consolidated Company and segment performance excluding certain significant charges or credits. Management believes these non-GAAP financial measures, which exclude items that it believes are not indicative of its core operating results, can provide investors with important information that is useful in understanding its business results and trends.

Net debt, net capitalization, and net debt to net capitalization ratio are also non-GAAP financial measures. These measures are not financial measures calculated in accordance with GAAP and should not be considered substitutes for total debt, total capitalization, total debt to total capitalization ratio, or any other operating or financial performance measures calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of net debt to total debt and net capitalization to total capitalization are provided below. Management believes these non-GAAP measures are meaningful indicators of liquidity and financial position.

The following tables set forth certain non-recurring items included in reported results to reconcile adjusted operating income to consolidated operating income and adjusted net income to net income attributable to Universal Corporation:
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Adjusted Operating Income Reconciliation
Three Months Ended September 30,Six Months Ended September 30,
(in thousands)2025202420252024
As Reported: Consolidated operating income$67,649 $68,736 $101,462 $85,961 
Restructuring and impairment costs(1)
— 10,573 1,122 10,573 
As Adjusted operating income (non-GAAP)$67,649 $79,309 $102,584 $96,534 
Adjusted Net Income Attributable to Universal Corporation and Adjusted Diluted Earnings Per Share Reconciliation
(in thousands except for per share amounts)
Three Months Ended September 30,Six Months Ended September 30,
2025202420252024
As Reported: Net income attributable to Universal Corporation$34,169 $25,940 $42,666 $26,070 
Restructuring and impairment costs(1)
— 10,573 1,122 10,573 
Total of non-GAAP adjustments to income before income taxes— 10,573 1,122 10,573 
Non-GAAP adjustments to income taxes
Income tax benefit from restructuring and impairment costs(2)
— (132)(35)(132)
Total of income tax impacts for non-GAAP adjustments to income before income taxes— (132)(35)(132)
As adjusted: Net income attributable to Universal Corporation (non-GAAP)$34,169 $36,381 $43,753 $36,511 
As reported: Diluted earnings per share$1.36 $1.03 $1.70 $1.04 
As adjusted: Diluted earnings per share (non-GAAP)$1.36 $1.45 $1.74 $1.46 
(1)    Restructuring and impairment costs are included in Consolidated operating income in the consolidated statements of income, but excluded for purposes of Adjusted operating income, Adjusted net income available to Universal Corporation, and Adjusted diluted earnings per share.
(2)    The income tax effect of non-GAAP adjustments was determined based on the timing and nature of the specific non-GAAP adjustments and their relevant jurisdictional income tax rates (foreign, state, and local) and the applicable U.S. federal income tax rates. The Company considers current and deferred income tax rates to calculate the impact to income taxes for the non-GAAP adjustments.

The following table reconciles total debt to net debt and net capitalization:
Net Debt and Net Capitalization Reconciliation
September 30,September 30,March 31,
(in thousands)202520242025
Add: Notes payable and overdrafts$539,583 $579,132 $455,039 
Add: Long-term obligations618,196 617,641 617,918 
Add: Current portion of long-term obligations— — — 
Total Debt 1,157,779 1,196,773 1,072,957 
Add: Customer advances and deposits2,782 6,837 3,763 
Less: Cash and cash equivalents88,652 80,118 260,115 
Net Debt (non-GAAP)$1,071,909 $1,123,492 $816,605 
Add: Total Universal Corporation shareholders' equity1,469,982 1,420,566 1,458,556 
Net Capitalization (non-GAAP)$2,541,891 $2,544,058 $2,275,161 
Net Debt/Net Capitalization (non-GAAP)42 %44 %36 %
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Investor Conference Call

At 10:00 a.m. (Eastern Time) on November 6, 2025, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting www.universalcorp.com at that time. A replay of the webcast will be available at that site through February 6, 2026. A taped replay of the call will also be available through November 20, 2025, by dialing (800) 770-2030 (Playback ID: 5786366#).

About Universal Corporation

Universal Corporation (NYSE: UVV) is a global agricultural company with over 100 years of experience supplying products and innovative solutions to meet our customers’ evolving needs and precise specifications. Through our diverse network of farmers and partners across more than 30 countries on five continents, we are a trusted provider of high-quality, traceable products. We leverage our extensive supply chain expertise, global reach, integrated processing capabilities, and commitment to sustainability to provide a range of products and services designed to drive efficiency and deliver value to our customers. For more information, visit www.universalcorp.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Among other things, these statements include statements made in Mr. Wigner’s quotations, statements regarding expectations with respect to our fiscal year 2026 performance, our strategic plans, ingredients business, tobacco business, including expectations with respect to size, shipments and sales and purchases of tobacco crops. These forward-looking statements are generally identified by the use of words such as we “expect,” “believe,” “anticipate,” “could,” “should,” “may,” “plan,” “will,” “predict,” “estimate,” and similar expressions or words of similar import. These forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results, performance, or achievements to be materially different from any anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: product purchased not meeting quality and quantity requirements; reliance on a few large customers; anticipated levels of demand for and supply of our products and services; tobacco growing conditions and customer requirements; major shifts in customer requirements for leaf tobacco; higher inflation rates, tariffs and other pressures on costs; weather and other conditions; exposure to certain legal, regulatory and financial risks related to climate change; industry-specific risks related to our plant-based ingredients businesses; disruption of our supply chain for our plant-based ingredients; success in pursuing strategic investments or acquisitions and integration of new businesses and the impact of these new businesses on future results; our ability to maintain effective information technology systems and safeguard confidential information; our inability to attract, develop, retain, motivate, and maintain good relationships with our workforce; our dependence on a seasonal workforce; epidemics, pandemics or similar widespread public health concerns; government efforts to regulate the production and consumption of tobacco products; government actions on the sourcing of leaf tobacco; economic and political conditions in the countries in which we and our customers operate, including the ongoing impacts from international conflicts; sustainability considerations from governments and other stakeholders; changes in tax laws in the countries where we do business; material weaknesses in our internal control over financial reporting; our inability to use a Form S-3 registration statement; failure of our customers or suppliers to repay extensions of credit; changes in exchange rates; changes in interest rates; and low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions. Please also refer to the risks and
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uncertainties as discussed in Part I, Item 1A. “Risk Factors” of Universal’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, and related disclosures in other filings that Universal files with the Securities and Exchange Commission (the "SEC") which are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. Universal cautions investors not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made, and it undertakes no obligation to update any forward-looking statements made, except as required by law.










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UNIVERSAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per share data)

Three Months Ended September 30,Six Months Ended September 30,
2025202420252024
(Unaudited)(Unaudited)
Sales and other operating revenues$754,177 $710,762 $1,347,939 $1,307,812 
Costs and expenses
Cost of goods sold614,347 567,617 1,093,982 1,068,746 
Selling, general and administrative expenses72,181 63,836 151,373 142,532 
Restructuring and impairment costs— 10,573 1,122 10,573 
Operating income67,649 68,736 101,462 85,961 
Equity in pretax earnings (loss) of unconsolidated affiliates(2,561)(642)(126)(502)
Other non-operating income (expense)582 461 1,168 925 
Interest income778 295 1,425 1,103 
Interest expense20,438 21,273 38,215 42,007 
Income (loss) before income taxes and other items46,010 47,577 65,714 45,480 
Income taxes11,207 13,608 16,544 14,335 
Net income (loss)34,803 33,969 49,170 31,145 
Less: net loss (income) attributable to noncontrolling interests in subsidiaries(634)(8,029)(6,504)(5,075)
Net income (loss) attributable to Universal Corporation$34,169 $25,940 $42,666 $26,070 
Earnings per share:
Basic$1.36 $1.04 $1.71 $1.05 
Diluted$1.36 $1.03 $1.70 $1.04 

See accompanying notes.


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UNIVERSAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
September 30,September 30,March 31,
202520242025
(Unaudited)(Unaudited)
ASSETS
Current assets
Cash and cash equivalents$88,652 $80,118 $260,115 
Accounts receivable, net445,257 537,602 625,876 
Advances to suppliers, net121,569 139,766 169,385 
Accounts receivable—unconsolidated affiliates114,071 66,646 7,143 
Inventories—at lower of cost or net realizable value:
Tobacco1,138,630 1,070,655 806,332 
Other222,505 211,476 189,610 
Prepaid income taxes23,066 20,771 19,595 
Other current assets85,928 84,884 78,041 
Total current assets2,239,678 2,211,918 2,156,097 
Property, plant and equipment
Land26,285 25,972 26,113 
Buildings335,300 330,407 333,398 
Machinery and equipment746,284 705,246 723,935 
1,107,869 1,061,625 1,083,446 
Less accumulated depreciation(735,473)(685,883)(710,472)
372,396 375,742 372,974 
Other assets
Operating lease right-of-use assets37,319 32,487 34,260 
Goodwill, net213,815 213,872 213,840 
Other intangibles, net52,650 63,263 57,836 
Investments in unconsolidated affiliates84,526 78,774 79,317 
Deferred income taxes18,238 15,526 16,539 
Pension asset13,393 12,293 12,819 
Other noncurrent assets38,424 41,711 45,870 
458,365 457,926 460,481 
Total assets$3,070,439 $3,045,586 $2,989,552 

See accompanying notes.





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UNIVERSAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
September 30,September 30,March 31,
202520242025
(Unaudited)(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Notes payable and overdrafts$539,583 $579,132 $455,039 
Accounts payable99,599 87,106 98,036 
Accounts payable—unconsolidated affiliates299 174 1,999 
Customer advances and deposits2,782 6,837 3,763 
Accrued compensation30,776 29,266 44,646 
Income taxes payable14,573 7,948 12,586 
Current portion of operating lease liabilities11,809 10,325 10,742 
Accrued expenses and other current liabilities129,210 128,634 123,350 
Current portion of long-term debt— — — 
Total current liabilities828,631 849,422 750,161 
Long-term debt618,196 617,641 617,918 
Pensions and other postretirement benefits36,490 36,734 35,336 
Long-term operating lease liabilities23,584 19,038 20,608 
Other long-term liabilities26,228 28,425 22,901 
Deferred income taxes33,160 36,322 42,090 
Total liabilities1,566,289 1,587,582 1,489,014 
Shareholders’ equity
Universal Corporation:
Preferred stock:
Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding— — — 
Common stock, no par value, 100,000,000 shares authorized 24,913,747 shares issued and outstanding at September 30, 2025 (24,715,625 at September 30, 2024 and 24,715,625 at March 31, 2025)
352,909 349,064 351,626 
Retained earnings1,188,283 1,158,658 1,186,981 
Accumulated other comprehensive loss(71,210)(87,156)(80,051)
Total Universal Corporation shareholders' equity1,469,982 1,420,566 1,458,556 
Noncontrolling interests in subsidiaries34,168 37,438 41,982 
Total shareholders' equity1,504,150 1,458,004 1,500,538 
Total liabilities and shareholders' equity$3,070,439 $3,045,586 $2,989,552 

See accompanying notes.



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UNIVERSAL CORPORATION     
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
Six Months Ended September 30,
20252024
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$49,170 $31,145 
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization27,198 29,420 
Net provision for losses (recoveries) on advances to suppliers(2,810)(5,562)
Inventory writedowns9,780 5,231 
Stock-based compensation expense8,481 6,583 
Foreign currency remeasurement (gain) loss, net1,195 1,334 
Foreign currency exchange contracts(2,531)3,225 
Deferred income taxes(9,726)153 
Equity in net loss (income) of unconsolidated affiliates, net of dividends991 404 
Restructuring and impairment costs1,122 10,573 
Restructuring payments(2,774)(350)
Other, net37 (217)
Changes in operating assets and liabilities, net:(252,491)(129,352)
Net cash used by operating activities(172,358)(47,413)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment(21,099)(38,796)
Proceeds from sale of property, plant and equipment881 1,412 
Net cash used by investing activities(20,218)(37,384)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of short-term debt, net82,781 161,611 
Dividends paid to noncontrolling interests(14,063)(8,960)
Dividends paid on common stock(40,426)(39,646)
Other(7,727)(3,716)
Net cash provided by financing activities20,565 109,289 
Effect of exchange rate changes on cash, restricted cash and cash equivalents548 33 
Net increase (decrease) in cash, restricted cash and cash equivalents(171,463)24,525 
Cash, restricted cash and cash equivalents at beginning of year260,115 55,593 
Cash, restricted cash and cash equivalents at end of period$88,652 $80,118 
See accompanying notes.
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NOTE 1. BASIS OF PRESENTATION

Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is a global business-to-business agri-products supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

NOTE 2.   EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended September 30,Six Months Ended September 30,
(in thousands, except share and per share data)2025202420252024
Basic Earnings (Loss) Per Share
Numerator for basic earnings (loss) per share
Net income (loss) attributable to Universal Corporation$34,169 $25,940 $42,666 $26,070 
Denominator for basic earnings (loss) per share
Weighted average shares outstanding25,035,110 24,946,632 25,017,765 24,911,681 
Basic earnings (loss) per share$1.36 $1.04 $1.71 $1.05 
Diluted Earnings (Loss) Per Share
Numerator for diluted earnings (loss) per share
Net income (loss) attributable to Universal Corporation$34,169 $25,940 $42,666 $26,070 
Denominator for diluted earnings (loss) per share:
Weighted average shares outstanding25,035,110 24,946,632 25,017,765 24,911,681 
Effect of dilutive securities
Employee and outside director share-based awards143,436 189,341 137,862 189,614 
Denominator for diluted earnings (loss) per share25,178,546 25,135,973 25,155,627 25,101,295 
Diluted earnings (loss) per share$1.36 $1.03 $1.70 $1.04 

NOTE 3. SEGMENT INFORMATION

Management regularly evaluates the Company’s global business activities, including product and service offerings to its customers, as well as senior management’s operational and financial responsibilities. Assessments include an analysis of how its Chief Operating Decision Maker (“CODM”) measures business performance and allocates resources. As a result of this analysis, senior management has determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations.
The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also used in the manufacture of next generation tobacco products that are intended to provide consumers with
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an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing for tobacco customers. A substantial portion of the Company’s Tobacco Operations’ revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers.
The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, dehydrated products, botanical extracts, and flavorings. Customers for the Ingredients Operations segment include large multinational food and beverage companies, smaller independent manufacturers, and retail organizations. FruitSmart, Inc. (“FruitSmart”), Silva International, Inc. (“Silva”), and Shank’s Extracts, LLC d/b/a Universal Ingredients–Shank’s (“Universal Ingredients–Shank’s”) are the primary operations for the Ingredients Operations segment. FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally. Silva procures dehydrated vegetables, fruits, and herbs from around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products. Universal Ingredients–Shank’s offers a diversified portfolio of botanical extracts, distillates, natural flavors, and color for industrial and private label customers worldwide, and is known for their significant vanilla expertise. Universal Ingredients–Shank’s is also equipped to offer customers custom bottling and packaging for their products.
Universal incurs corporate overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of projected annual financial and operational performance, including volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The CODM, which has been identified as a group comprised of the Company’s Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, currently evaluates the performance of the operating segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates (“Segment Operating Income”). The CODM also uses Segment Operating Income for planning, forecasting, and allocating capital and other resources to the operating segments.
Reportable segment data as of, or for, each period presented in the consolidated statements of income and comprehensive income, the consolidated balance sheets, and the consolidated statements of cash flows is as follows:
Three Months Ended September 30, 2025Three Months Ended September 30, 2024
Tobacco OperationsIngredients OperationsConsolidatedTobacco OperationsIngredients OperationsConsolidated
Sales and other operating revenues$659,423 $94,754 $754,177 $630,212 $80,550 $710,762 
Cost of goods sold(534,668)(79,679)(614,347)(503,147)(64,470)(567,617)
Selling, general and administrative expenses(40,057)(12,041)(52,098)(33,657)(11,873)(45,530)
Corporate overhead allocated to the segments(16,889)(3,194)(20,083)(15,432)(2,874)(18,306)
Equity in pretax earnings (loss) of unconsolidated affiliates (1)
(2,561)— (2,561)(642)— (642)
Segment operating income65,248 (160)65,088 77,334 1,333 78,667 
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (1)
2,561 642 
Restructuring and impairment costs (2)
— (10,573)
Consolidated total$67,649 $68,736 
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Universal Corporation
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Six Months Ended September 30, 2025Six Months Ended September 30, 2024
Tobacco OperationsIngredients OperationsConsolidatedTobacco OperationsIngredients OperationsConsolidated
Sales and other operating revenues$1,164,119 $183,820 $1,347,939 $1,142,167 $165,645 $1,307,812 
Cost of goods sold(942,535)(151,447)(1,093,982)(937,912)(130,834)(1,068,746)
Selling, general and administrative expenses(84,811)(24,078)(108,889)(80,205)(24,652)(104,857)
Corporate overhead allocated to the segments(35,729)(6,755)(42,484)(31,760)(5,915)(37,675)
Equity in pretax earnings (loss) of unconsolidated affiliates(1)
(126)— (126)(502)— (502)
Segment operating income100,918 1,540 102,458 91,788 4,244 96,032 
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates(1)
126 502 
Restructuring and impairment costs (2)
(1,122)(10,573)
Consolidated operating income$101,462 $85,961 

(1)Equity in pretax earnings (loss) of unconsolidated affiliates is included in segment operating income (Tobacco Operations), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income and comprehensive income.
(2)Restructuring and impairment costs are excluded from segment operating income, but are included in consolidated operating income in the consolidated statements of income and comprehensive income.

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