US Foods Secures Major Defense Logistics Agency Contract Until 2031

Ramit Sethi

Author of "I Will Teach You to Be Rich," focusing on psychology and systems for a rich life without guilt.

US Food Holdings Corp. (USFD) recently announced a significant achievement, securing a substantial five-year contract from the Defense Logistics Agency Troop Support. This indefinite-delivery/indefinite-quantity agreement, with a potential value of $124 million, solidifies USFD's role as a key supplier of subsistence items. The contract, awarded after a competitive bidding process with two proposals, will provide critical foodservice support to various branches of the U.S. military, including the Army, Navy, Air Force, Marine Corps, and Coast Guard, as well as other federal civilian organizations. This pivotal contract, which utilizes defense working capital funds, is slated to run through March 4, 2031, underscoring USFD’s ongoing commitment to delivering vital supply chain solutions to government clients, with no further extension options available.

Beyond this major contract win, US Food Holdings Corp. demonstrated robust financial performance in its latest earnings report. On February 12, the company released its fourth-quarter and full-year 2025 results, highlighting considerable expansion across key financial metrics. For the fourth quarter, net income reached $184 million, while net sales climbed to $9.8 billion, generating a gross profit of $1.7 billion. The full-year figures were equally impressive, with net income totaling $676 million, gross profit reaching $6.9 billion, and overall sales hitting $39.4 billion. These strong results reflect the company’s operational efficiency and strategic growth initiatives.

Further reinforcing its positive outlook, US Food Holdings Corp. concluded 2025 with a healthy operating cash flow of $1.37 billion and actively repurchased 11.9 million shares, showcasing its commitment to shareholder value. The company has also issued promising guidance for fiscal year 2026, projecting net sales growth between 4% and 6%, adjusted EBITDA to increase by 9% to 13%, and adjusted earnings per share (EPS) to rise by an impressive 18% to 24%. As a leading U.S. foodservice distributor, USFD consistently provides a wide array of food products, kitchen necessities, and associated services to a diverse customer base, including restaurants, healthcare facilities, hospitality venues, and government entities nationwide. The company’s continued success and strategic partnerships are indicative of its pivotal role in the American food supply chain, contributing to stability and progress within the industry.

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