HF Foods Group Inc. has achieved remarkable success in the second quarter of 2026, recording its highest-ever quarterly revenue. This financial milestone is further enhanced by the company's bold step into international markets through the acquisition of Sea Ray Foods. This strategic move aligns with HF Foods' ongoing business transformation and dedication to operational excellence, positioning the company for sustained growth despite prevalent industry challenges.
Detailed Report: HF Foods' Stellar Q2 2026 Performance and Global Expansion
On Monday, August 10, 2026, HF Foods Group Inc. convened its Second Quarter 2026 Earnings Call, where President and Chief Executive Officer Xi Lin, alongside Chief Financial Officer Paul E. McGarry, unveiled impressive financial results and strategic initiatives. The company reported a net revenue of $323.8 million, a 2.8% increase from the previous year, driven by robust organic volume growth and strategic pricing adjustments in its seafood and commodity divisions.
A pivotal announcement during the call was the acquisition of Sea Ray Foods, a prominent Canadian importer and distributor of ethnic and specialty frozen seafood based in Richmond, British Columbia. This marks HF Foods' inaugural international acquisition, valued at approximately CAD 47.9 million (or $35 million USD), representing about five times Sea Ray's 2025 adjusted EBITDA. Sea Ray Foods, which has consistently grown its revenue by 15% annually since 2019, is anticipated to significantly enhance HF Foods' consolidated margins and earnings per share. The transaction is expected to finalize by August 31, 2026, following customary closing conditions and regulatory approvals.
Despite a slight decrease in adjusted EBITDA to $13.6 million (a 2% year-over-year reduction), the company's financial health was bolstered by $1.8 million in employee retention credits and a $1.1 million refund from IEEPA tariffs. These offsets were crucial in mitigating the impact of rising fuel costs and increased tariffs on gross profit margins, which stood at 17% compared to 17.5% in the prior year. Additionally, HF Foods refinanced and expanded its asset-based revolving credit facility from $125 million to $140 million and extended its term loans to 2036, significantly enhancing its liquidity for future growth initiatives.
Capital expenditures for the first half of 2026 totaled $20.3 million, including the acquisition of a Chicago distribution center for $12.4 million and a $2.8 million investment in solar energy, expected to yield a 40% investment tax credit refund. The company's seafood revenue mix now constitutes 36% of its total net revenue, with strategic growth in the Southeast market and plans for an operational Charlotte distribution center to improve efficiency for its Great Wall Virginia business.
CEO Xi Lin highlighted Sea Ray's established presence in Canadian retail and wholesale channels as a new avenue for growth beyond HF Foods' traditional focus on independent restaurants, emphasizing its potential to open new market segments. CFO Paul E. McGarry reiterated the successful completion of the company's transformation program, shifting focus to operational optimization and tighter cost controls amidst elevated input costs.
The call concluded with management expressing confidence in HF Foods' leading position in the Asian specialty food service sector, poised to capitalize on a vast addressable market that now includes Canada.
From an observer's perspective, HF Foods Group Inc.'s latest earnings call paints a compelling picture of a company strategically navigating a complex economic landscape while aggressively pursuing growth. The acquisition of Sea Ray Foods is not merely an expansion but a visionary move that diversifies market access and fortifies its competitive stance. The careful balance between managing operational costs, leveraging financial incentives like tariff refunds, and investing in sustainable practices such as solar energy demonstrates a prudent and forward-thinking leadership. The emphasis on operational optimization post-transformation indicates a mature approach to business development, promising efficiency and profitability. This narrative suggests that HF Foods is not just growing; it's evolving, strategically positioning itself to dominate a broader market segment and deliver enhanced value to its stakeholders.
