Jun. 17 at 10:22 PM
Moody’s affirmed all ratings for Hershey and revised its outlook to stable from negative, citing expectations that stronger margins and earnings growth will reduce leverage below 2.0x over the next 12–18 months.
The agency forecasts adjusted EBITDA growth of 30%–35% in 2026, driven mainly by pricing actions taken in 2025, while cocoa costs remain elevated due to hedging contracts. Although cocoa prices have fallen sharply from 2024 highs, Hershey is not expected to fully benefit from lower market prices until 2027, when EBITDA is projected to grow another 10%–15%.
Revenue growth in 2026 is expected to come primarily from pricing, while confectionery volumes remain pressured by consumer spending constraints. Salty snack brands such as Dot’s and SkinnyPop are expected to deliver mid-single-digit sales growth. Hershey also maintains strong liquidity, with
$877 million in cash and an undrawn
$1.875 billion revolving credit facility.
$HSY