Continued Solid Consolidated Performance

Universal Corporation (NYSE:UVV) ("Universal" or the "Company"), a global business-to-business agriproducts company, today announced financial results for the nine months and quarter ended December 31, 2025.

Preston D. 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."

"In our Universal Ingredients business, we maintained revenue growth for the year to date period in the face of challenging market conditions with softer customer demand and tariff impacts," said Mr. Wigner. "Results for the quarter reflected market headwinds and higher fixed costs from the significant investments we have made. We remain focused on converting customer interest into sales and advancing the growth of our solutions-based portfolio."

Mr. Wigner continued, "We enhanced our liquidity and financial flexibility with the refinancing and upsizing of our credit facility in December 2025. This successful transaction, with strong support from our bank group, positions us well to advance our strategic priorities. We also recently published our Fiscal Year 2025 Sustainability Report, which highlights continued progress in areas that support the long-term resilience of our business. The significant increase in renewable electricity use we reported reflects the practical steps we are taking across our operations as we work toward our net-zero goal, while continuing to support farmers and strengthen our global supply chain."

FINANCIAL HIGHLIGHTS
	Three Months Ended December 31,						Change		Nine Months Ended December 31,						Change
(in millions of dollars, except per share data)		2025			2024		%			2025			2024		%

Consolidated Results
Sales and other operating revenue	$	861.3		$	937.2		(8	)%	$	2,209.2		$	2,245.0		(2	)%
Cost of goods sold	$	701.7		$	743.6		(6	)%	$	1,795.7		$	1,812.4		(1	)%
Gross profit margin percentage		18.5	%		20.7	%	-220 bps			18.7	%		19.3	%	-60 bps
Selling, general and administrative expenses	$	76.9		$	89.5		(14	)%	$	228.3		$	232.0		(2	)%
Restructuring and impairment costs	$	0.7		$	—		100	%	$	1.8		$	10.6		(83	)%
Operating income	$	82.0		$	104.1		(21	)%	$	183.4		$	190.0		(3	)%
Adjusted operating income (non-GAAP)*	$	82.7		$	104.1		(21	)%	$	185.2		$	200.6		(8	)%
Net income attributable to Universal Corporation	$	33.2		$	59.6		(44	)%	$	75.9		$	85.7		(11	)%
Adjusted net income attributable to Universal Corporation (non-GAAP)*	$	34.0		$	59.6		(43	)%	$	77.7		$	96.2		(19	)%
Diluted earnings (loss) per share	$	1.32		$	2.37		(44	)%	$	3.02		$	3.41		(11	)%
Adjusted diluted earnings (loss) per share (non-GAAP)*	$	1.35		$	2.37		(43	)%	$	3.09		$	3.83		(19	)%
Segment Results
Tobacco operations sales and other operating revenues	$	779.9		$	853.9		(9	)%	$	1,944.1		$	1,996.1		(3	)%
Tobacco operations operating income	$	84.0		$	102.6		(18	)%	$	185.0		$	194.4		(5	)%
Ingredients operations sales and other operating revenues	$	81.3		$	83.3		(2	)%	$	265.2		$	249.0		7	%
Ingredients operations operating income (loss)	$	(0.1	)	$	3.7		(103	)%	$	1.4		$	7.9		(82	)%
*See Reconciliation of Certain Non-GAAP Financial Measures in Other Items below

Nine Months 2026 Highlights

Consolidated Results

Continued strong tobacco results against comparisons to an extraordinary prior fiscal year.
Revenue of $2.2 billion, down $36 million or 2%, on lower tobacco sales volumes partially offset by higher third-party tobacco processing volumes and a favorable ingredients product mix.
Operating income of $183 million, down $7 million or 3%, on lower sales volumes in our Tobacco Operations segment and higher fixed costs and market headwinds, including broader softness in the consumer-packaged-goods sector, in our Ingredients Operations segment, partially offset by favorable foreign currency comparisons.

Tobacco Operations Segment

Revenue down $52 million on lower sales of dark air-cured tobacco, partially offset by higher third-party tobacco processing volumes.
Segment operating income down $9 million largely on a 4% drop in tobacco sales volumes due to lower sales of certain types of tobacco.
Tobacco Operations segment results reflected:
- Continued firm customer demand for most tobacco styles;
- Larger current crops, particularly in Brazil and African origins;
- Increased third-party tobacco processing revenue;
- Favorable foreign currency comparisons;
- Higher dark air-cured inventory write-downs;
- Lower sales of dark air-cured tobacco; and
- Lower sales of carryover crop tobacco.
Uncommitted tobacco inventory levels have remained in our target range at approximately 17% at December 31, 2025.
Some dark air-cured tobacco styles in oversupply position. Flue-cured, burley, and oriental tobacco continued to move into oversupply positions.

Ingredients Operations Segment

Revenue up 7% on increased sales driven by organic growth.
Sales of certain products were negatively impacted by market headwinds, including weakness in the consumer-packaged-goods industry and tariff impacts.
Lower operating income reflected product mix, higher fixed costs, including additional depreciation from our expanded production facility, as well as inventory write-downs.
Continued steady interest in our enhanced product capabilities.
Ongoing focus on building scale through our pipeline of solution-based products and on long-term sustainable growth.

Select Balance Sheet Items, Liquidity, and Debt

Increased working capital usage on larger tobacco crops and timing of tobacco crop purchases.
Total debt down $77 million at December 31, 2025, compared to December 31, 2024.
Net debt (non-GAAP) up $51 million at December 31, 2025, compared to December 31, 2024.
Refinanced and upsized revolving credit facility by $250 million in December 2025; extended maturity to December 2030.
Approximately $595 million available under revolving credit facility as of December 31, 2025.

Additional Items

Restructuring and impairment costs of $2 million in the nine months ended December 31, 2025, compared to $11 million in the nine months ended December 31, 2024.
Interest expense down $6 million, compared to the same period in the prior fiscal year.
Higher consolidated effective tax rate of 32% due to the impact of certain withholdings on dividends from foreign subsidiaries and the mix of domestic and foreign earnings.

Third Quarter 2026 Highlights

Consolidated Results

Continued strong tobacco results against comparisons to a robust third quarter in the extraordinary prior fiscal year.
Revenue down $76 million, or 8%, to $861 million, on lower tobacco sales volumes and prices as well as ingredients product mix.
Operating income down $22 million, or 21%, to $82 million on lower tobacco sales volumes and higher dark air-cured tobacco inventory write-downs, partially offset by favorable foreign currency comparisons.

Tobacco Operations Segment

Revenue down $74 million, on lower tobacco sales volumes.
Tobacco sales volumes down, about 8%, on lower sales of certain types of tobacco as well as timing of tobacco shipments.
Segment operating income down $19 million on lower tobacco sales volumes and higher dark air-cured tobacco inventory write-downs, partially offset by favorable foreign currency comparisons.

Ingredients Operations Segment

Segment negatively impacted by higher fixed costs and market headwinds, including weakness in the consumer-package-goods sector and tariff impacts.
Revenue down $2 million on product mix and market headwinds.
Lower operating income reflected higher fixed costs, including additional depreciation from our expanded production facility, product mix, and inventory write-downs.

Additional Items

Restructuring and impairment costs of $0.7 million in the quarter ended December 31, 2025.
Interest expense down $2 million, compared to the same period in the prior fiscal year.
Higher consolidated effective tax rate of 38% due to the impact of certain withholdings on dividends from foreign subsidiaries and the mix of domestic and foreign earnings.

Sustainability Update

Universal recently published its Fiscal Year 2025 Sustainability Report, highlighting progress across key environmental and supply chain priorities. In fiscal year 2025, the Company increased renewable electricity consumption nearly sixfold year over year, with 17.7% of global electricity sourced from renewable energy, supporting its science-based emissions targets and commitment to achieve net-zero greenhouse gas emissions across the value chain by 2050. The Company also continued to enhance supply chain transparency and farmer engagement through MobiLeaf^TM, its digital farm data platform, and maintained direct relationships with more than 200,000 contracted farmers worldwide.

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:

Adjusted Operating Income Reconciliation
	Three Months Ended December 31,				Nine Months Ended December 31,
(in thousands)		2025		2024		2025			2024
As Reported: Consolidated operating income	$	81,950	$	104,076	$	183,412		$	190,037
Restructuring and impairment costs⁽¹⁾		711		—		1,833			10,573
As Adjusted operating income (non-GAAP)	$	82,661	$	104,076	$	185,245		$	200,610

Adjusted Net Income Attributable to Universal Corporation and Adjusted Diluted Earnings Per Share Reconciliation

(in thousands except for per share amounts)	Three Months Ended December 31,				Nine Months Ended December 31,
		2025		2024		2025			2024
As Reported: Net income attributable to Universal Corporation	$	33,249	$	59,639	$	75,915		$	85,709
Restructuring and impairment costs⁽¹⁾		711		—		1,833			10,573
Total of non-GAAP adjustments to income before income taxes		711		—		1,833			10,573
Non-GAAP adjustments to income taxes
Income tax benefit from restructuring and impairment costs⁽¹⁾⁽²⁾		—		—		(35	)		(132	)
Total of income tax impacts for non-GAAP adjustments to income before income taxes		—		—		(35	)		(132	)
As adjusted: Net income attributable to Universal Corporation (non-GAAP)	$	33,960	$	59,639	$	77,713		$	96,150
As reported: Diluted earnings per share	$	1.32	$	2.37	$	3.02		$	3.41
As adjusted: Diluted earnings per share (non-GAAP)	$	1.35	$	2.37	$	3.09		$	3.83

(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
	December 31,			December 31,			March 31,
(in thousands)		2025			2024			2025
Add: Notes payable and overdrafts	$	462,248		$	538,526		$	455,039
Add: Long-term obligations		616,585			617,780			617,918
Add: Current portion of long-term obligations		—			—			—
Total Debt		1,078,833			1,156,306			1,072,957
Add: Customer advances and deposits		1,667			3,362			3,763
Less: Cash and cash equivalents		85,227			215,108			260,115
Net Debt (non-GAAP)	$	995,273		$	944,560		$	816,605
Add: Total Universal Corporation shareholders' equity		1,482,808			1,450,610			1,458,556
Net Capitalization (non-GAAP)	$	2,478,081		$	2,395,170		$	2,275,161

Net Debt/Net Capitalization (non-GAAP)		40	%		39	%		36	%

Investor Conference Call

At 5:00 p.m. (Eastern Time) on February 9, 2026, 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 May 9, 2026. A taped replay of the call will also be available through February 23, 2026, 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 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.

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

	Three Months Ended December 31,						Nine Months Ended December 31,
		2025			2024			2025			2024
	(Unaudited)						(Unaudited)
Sales and other operating revenues	$	861,288		$	937,193		$	2,209,227		$	2,245,005
Costs and expenses
Cost of goods sold		701,700			743,605			1,795,682			1,812,351
Selling, general and administrative expenses		76,927			89,512			228,300			232,044
Restructuring and impairment costs		711			—			1,833			10,573
Operating income		81,950			104,076			183,412			190,037
Equity in pretax earnings (loss) of unconsolidated affiliates		1,257			2,149			1,131			1,647
Other non-operating income (expense)		584			468			1,752			1,393
Interest income		360			623			1,785			1,726
Interest expense		17,260			19,303			55,475			61,310
Income (loss) before income taxes and other items		66,891			88,013			132,605			133,493
Income taxes		25,303			20,217			41,847			34,552
Net income (loss)		41,588			67,796			90,758			98,941
Less: net loss (income) attributable to noncontrolling interests in subsidiaries		(8,339	)		(8,157	)		(14,843	)		(13,232	)
Net income (loss) attributable to Universal Corporation	$	33,249		$	59,639		$	75,915		$	85,709

Earnings per share:
Basic	$	1.33		$	2.39		$	3.03		$	3.44
Diluted	$	1.32		$	2.37		$	3.02		$	3.41

See accompanying notes.

UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars)

	December 31,			December 31,			March 31,
		2025			2024			2025
	(Unaudited)			(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	85,227		$	215,108		$	260,115
Accounts receivable, net		571,511			650,021			625,876
Advances to suppliers, net		168,348			156,108			169,385
Accounts receivable—unconsolidated affiliates		62,390			578			7,143
Inventories—at lower of cost or net realizable value:
Tobacco		990,638			924,684			806,332
Other		212,321			189,663			189,610
Prepaid income taxes		16,020			10,930			19,595
Other current assets		76,970			68,553			78,041
Total current assets		2,183,425			2,215,645			2,156,097

Property, plant and equipment
Land		26,286			26,081			26,113
Buildings		332,864			327,376			333,398
Machinery and equipment		756,467			709,840			723,935
		1,115,617			1,063,297			1,083,446
Less accumulated depreciation		(740,949	)		(689,445	)		(710,472	)
		374,668			373,852			372,974
Other assets
Operating lease right-of-use assets		36,906			33,982			34,260
Goodwill, net		213,798			213,819			213,840
Other intangibles, net		50,635			60,444			57,836
Investments in unconsolidated affiliates		85,137			70,351			79,317
Deferred income taxes		15,395			17,517			16,539
Pension asset		13,580			12,511			12,819
Other noncurrent assets		43,970			42,298			45,870
		459,421			450,922			460,481

Total assets	$	3,017,514		$	3,040,419		$	2,989,552

See accompanying notes.

UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars)

	December 31,			December 31,			March 31,
		2025			2024			2025
	(Unaudited)			(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable and overdrafts	$	462,248		$	538,526		$	455,039
Accounts payable		82,580			78,327			98,036
Accounts payable—unconsolidated affiliates		2,708			5,985			1,999
Customer advances and deposits		1,667			3,362			3,763
Accrued compensation		27,381			32,232			44,646
Income taxes payable		19,949			15,341			12,586
Current portion of operating lease liabilities		11,277			9,835			10,742
Accrued expenses and other current liabilities		143,637			135,707			123,350
Current portion of long-term debt		—			—			—
Total current liabilities		751,447			819,315			750,161

Long-term debt		616,585			617,780			617,918
Pensions and other postretirement benefits		36,665			36,485			35,336
Long-term operating lease liabilities		23,570			20,408			20,608
Other long-term liabilities		26,222			18,688			22,901
Deferred income taxes		37,851			35,831			42,090
Total liabilities		1,492,340			1,548,507			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 24,921,155 shares issued and outstanding at December 31, 2025 (24,715,625 at December 31, 2024 and 24,715,625 at March 31, 2025)		354,126			350,243			351,626
Retained earnings		1,200,890			1,197,972			1,186,981
Accumulated other comprehensive loss		(72,208	)		(97,605	)		(80,051	)
Total Universal Corporation shareholders' equity		1,482,808			1,450,610			1,458,556
Noncontrolling interests in subsidiaries		42,366			41,302			41,982
Total shareholders' equity		1,525,174			1,491,912			1,500,538

Total liabilities and shareholders' equity	$	3,017,514		$	3,040,419		$	2,989,552

See accompanying notes.

UNIVERSAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of dollars)

	Nine Months Ended December 31,
		2025			2024
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	90,758		$	98,941
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization		40,206			44,554
Net provision for losses (recoveries) on advances to suppliers		1,721			(445	)
Inventory writedowns		17,326			6,624
Stock-based compensation expense		9,839			7,458
Foreign currency remeasurement (gain) loss, net		4,578			12,183
Foreign currency exchange contracts		(2,734	)		3,206
Deferred income taxes		(1,546	)		(3,616	)
Equity in net loss (income) of unconsolidated affiliates, net of dividends		215			2,767
Restructuring and impairment costs		1,833			10,573
Restructuring payments		(2,957	)		(892	)
Other, net		(1,374	)		3,087
Changes in operating assets and liabilities, net:		(215,904	)		(16,212	)
Net cash provided (used) by operating activities		(58,039	)		168,228

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(40,303	)		(54,885	)
Proceeds from sale of property, plant and equipment		6,601			2,035
Net cash used by investing activities		(33,702	)		(52,850	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of short-term debt, net		5,049			121,094
Issuance of long-term debt		89,130			—
Repayment of long-term debt		(89,130	)		—
Dividends paid to noncontrolling interests		(14,063	)		(12,880	)
Dividends paid on common stock		(60,862	)		(59,666	)
Settlement costs from termination of interest rate swap agreements		(988	)		—
Other		(12,873	)		(3,716	)
Net cash provided (used) by financing activities		(83,737	)		44,832

Effect of exchange rate changes on cash, restricted cash and cash equivalents		590			(695	)
Net increase (decrease) in cash, restricted cash and cash equivalents		(174,888	)		159,515
Cash, restricted cash and cash equivalents at beginning of year		260,115			55,593

Cash, restricted cash and cash equivalents at end of period	$	85,227		$	215,108

See accompanying notes.

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 December 31,				Nine Months Ended December 31,
(in thousands, except share and per share data)		2025		2024		2025		2024

Basic Earnings (Loss) Per Share
Numerator for basic earnings (loss) per share
Net income (loss) attributable to Universal Corporation	$	33,249	$	59,639	$	75,915	$	85,709

Denominator for basic earnings (loss) per share
Weighted average shares outstanding		25,056,517		24,980,792		25,030,798		24,934,786

Basic earnings (loss) per share	$	1.33	$	2.39	$	3.03	$	3.44

Diluted Earnings (Loss) Per Share
Numerator for diluted earnings (loss) per share
Net income (loss) attributable to Universal Corporation	$	33,249	$	59,639	$	75,915	$	85,709

Denominator for diluted earnings (loss) per share:
Weighted average shares outstanding		25,056,517		24,980,792		25,030,798		24,934,786
Effect of dilutive securities
Employee and outside director share-based awards		132,359		161,875		136,027		180,367
Denominator for diluted earnings (loss) per share		25,188,876		25,142,667		25,166,825		25,115,153

Diluted earnings (loss) per share	$	1.32	$	2.37	$	3.02	$	3.41

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 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 December 31, 2025									Three Months Ended December 31, 2024
	Tobacco Operations			Ingredients Operations			Consolidated			Tobacco Operations			Ingredients Operations			Consolidated
Sales and other operating revenues	$	779,946		$	81,342		$	861,288		$	853,884		$	83,309		$	937,193
Cost of goods sold		(634,173	)		(67,527	)		(701,700	)		(678,885	)		(64,720	)		(743,605	)
Selling, general and administrative expenses		(48,583	)		(11,218	)		(59,801	)		(58,178	)		(11,875	)		(70,053	)
Corporate overhead allocated to the segments		(14,403	)		(2,723	)		(17,126	)		(16,404	)		(3,055	)		(19,459	)
Equity in pretax earnings (loss) of unconsolidated affiliates ⁽¹⁾		1,257			—			1,257			2,149			—			2,149
Segment operating income		84,044			(126	)		83,918			102,566			3,659			106,225
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates ⁽¹⁾								(1,257	)								(2,149	)
Restructuring and impairment costs ⁽²⁾								(711	)								—
Consolidated total							$	81,950								$	104,076

	Nine Months Ended December 31, 2025									Nine Months Ended December 31, 2024
	Tobacco Operations			Ingredients Operations			Consolidated			Tobacco Operations			Ingredients Operations			Consolidated
Sales and other operating revenues	$	1,944,065		$	265,162		$	2,209,227		$	1,996,051		$	248,954		$	2,245,005
Cost of goods sold		(1,576,708	)		(218,974	)		(1,795,682	)		(1,616,797	)		(195,554	)		(1,812,351	)
Selling, general and administrative expenses		(133,394	)		(35,296	)		(168,690	)		(138,383	)		(36,527	)		(174,910	)
Corporate overhead allocated to the segments		(50,132	)		(9,478	)		(59,610	)		(48,164	)		(8,970	)		(57,134	)
Equity in pretax earnings (loss) of unconsolidated affiliates⁽¹⁾		1,131			—			1,131			1,647			—			1,647
Segment operating income		184,962			1,414			186,376			194,354			7,903			202,257
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates⁽¹⁾								(1,131	)								(1,647	)
Restructuring and impairment costs ⁽²⁾								(1,833	)								(10,573	)
Consolidated operating income							$	183,412								$	190,037

(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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Universal Corporation Reports Nine Month and Third Quarter 2026 Results