Third Quarter Fiscal 2025 Financial Highlights
Net sales of $3.7 billion, up 12.4% from the third quarter of 2024
Operating profit and adjusted operating profit of $310 million
Operating margin and adjusted operating margin of 8.3%
Packaged Meats operating profit and adjusted operating profit of $226 million; operating profit margin and adjusted operating profit margin of 10.8%
Diluted earnings per share from continuing operations attributable to Smithfield of $0.63 per share
Adjusted diluted earnings per share from continuing operations attributable to Smithfield of $0.58 per share
First Nine Months Fiscal 2025 Financial Highlights
Net sales of $11.3 billion, up 10.9% from the first nine months of 2024
Operating profit of $892 million; Adjusted operating profit of $934 million
Operating margin of 7.9%; Adjusted operating margin of 8.3%
Packaged Meats operating profit of $792 million; Operating profit margin of 12.8%
Packaged Meats adjusted operating profit of $787 million; Adjusted operating profit margin of 12.7%
Diluted earnings per share from continuing operations attributable to Smithfield of $1.68 per share
Adjusted diluted earnings per share from continuing operations attributable to Smithfield of $1.72 per share
CEO Perspective
"I am pleased to report that our team delivered consistent, disciplined execution on our strategies, which drove sales growth and record third quarter operating profit in a challenging environment," said Smithfield President and CEO Shane Smith.
"Despite persistent higher raw material costs and cautious consumer spending, our Packaged Meats segment posted the second best third quarter profit on record. We also benefitted from vertical integration as higher Hog Production segment profits more than offset raw material cost headwinds in Fresh Pork and Packaged Meats."
Smith added, "By staying true to our strategies and delivering on our commitments, we are able to increase the mid-point and tighten the range of our full year adjusted operating profit outlook. With a strong balance sheet and financial position, we remain focused on driving growth and increasing shareholder value over the long term."
Review of Financial Results
Results of Operations
Sales
Three Months Ended
September 28, 2025
September 29, 2024
$ Change
% Change
(in millions)
Sales by segment:
Packaged Meats
$
2,090
$
1,917
$
174
9.1
%
Fresh Pork
2,185
1,951
234
12.0
%
Hog Production
813
738
75
10.1
%
Other
131
117
14
12.1
%
Total segment sales
5,220
4,723
496
10.5
%
Inter-segment sales eliminations:
Fresh Pork
(910
)
(756
)
(154
)
20.4
%
Hog Production
(562
)
(632
)
70
(11.1
)%
Total inter-segment sales eliminations
(1,473
)
(1,389
)
(84
)
6.0
%
Consolidated sales
$
3,747
$
3,334
$
412
12.4
%
Nine Months Ended
September 28, 2025
September 29, 2024
$ Change
% Change
(in millions)
Sales by segment:
Packaged Meats
$
6,193
$
5,861
$
332
5.7
%
Fresh Pork
6,299
5,871
428
7.3
%
Hog Production
2,585
2,220
365
16.5
%
Other
355
350
6
1.7
%
Total segment sales
15,433
14,301
1,132
7.9
%
Inter-segment sales eliminations:
Fresh Pork
(2,507
)
(2,236
)
(272
)
12.1
%
Hog Production
(1,621
)
(1,874
)
254
(13.5
)%
Other
(1
)
—
—
26.9
%
Total inter-segment sales eliminations
(4,129
)
(4,111
)
(18
)
0.4
%
Consolidated sales
$
11,304
$
10,190
$
1,114
10.9
%
Operating Profit
Three Months Ended
September 28, 2025
September 29, 2024
$ Change
% Change
(in millions)
Packaged Meats
$
226
$
239
$
(14
)
(5.7
)%
Fresh Pork
10
28
(18
)
(63.8
)%
Hog Production
89
40
48
119.8
%
Other
10
20
(10
)
(49.6
)%
Corporate expenses
(24
)
(28
)
4
15.2
%
Unallocated
(1
)
(15
)
14
95.0
%
Operating profit
$
310
$
285
$
25
8.9
%
Nine Months Ended
September 28, 2025
September 29, 2024
$ Change
% Change
(in millions)
Packaged Meats
$
792
$
855
$
(62
)
(7.3
)%
Fresh Pork
127
196
(69
)
(35.1
)%
Hog Production
112
(136
)
248
NM
Other
32
18
13
72.2
%
Corporate expenses
(79
)
(92
)
13
14.1
%
Unallocated
(92
)
(59
)
(33
)
(56.6
)%
Operating profit
$
892
$
783
$
109
13.9
%
Financial Position
As of September 28, 2025, we had $3,069 million of available liquidity consisting of $773 million in cash and cash equivalents and $2,297 million of availability under our committed credit facilities. We ended the second quarter with a ratio of net debt to adjusted EBITDA from continuing operations (1) on a trailing twelve months basis of 0.8x.
________________
(1)
A non-GAAP measure. Please see the table in the Non-GAAP Financial Measures section for a reconciliation of the ratio of net debt to adjusted EBITDA from continuing operations to the most comparable GAAP measure.
Dividend Update
On April 22, 2025, May 29, 2025 and August 28, 2025, we paid dividends of $0.25 per share to shareholders. We anticipate remaining quarterly dividends for fiscal year 2025 will be $0.25 per share, resulting in an annual dividend rate for fiscal year 2025 of $1.00 per share. The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.
FY 2025 Outlook
For Fiscal Year 2025, the Company is again increasing its outlook originally provided on March 25, 2025 as follows:
Reaffirming total Company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024. For comparability purposes, this outlook range excludes the impact from Hog Production segment sales to recently formed Murphy Family Farms and VisionAg.
Updating Packaged Meats segment adjusted operating profit to between $1,060 million to $1,110 million.
Updating Fresh Pork segment adjusted operating profit to between $150 million to $200 million.
Increasing Hog Production segment adjusted operating profit to between $125 million to $150 million.
Increasing total Company adjusted operating profit to between $1,225 million to $1,325 million.
Updating capital expenditures to between $350 million to $400 million. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair.
Reaffirming an effective tax rate of between 23.0% and 25.0%.
Conference Call Information
A conference call to discuss the third quarter 2025 financial results is scheduled for today, October 28, 2025, at 9:00 a.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at investors.smithfieldfoods.com or by dialing 844-539-3338 (international callers please dial 412-652-1269).
A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at investors.smithfieldfoods.com and by dialing 877-344-7529 (international callers please dial 412-317-0088). The pin number to access the telephone replay is 2239006. The replay will be available until November 4, 2025.
About Smithfield Foods
Smithfield Foods, Inc. (NASDAQ:SFD) is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with U.S. farmers and customers, we responsibly meet demand for quality protein around the world.
Non-GAAP Financial Measures
This press release includes certain financial information that is not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including (1) adjusted net income from continuing operations attributable to Smithfield, (2) adjusted net income from continuing operations per common share attributable to Smithfield, (3) EBITDA from continuing operations, (4) adjusted EBITDA from continuing operations, (5) adjusted EBITDA margin from continuing operations, (6) adjusted operating profit, (7) adjusted operating profit margin, (8) net debt and (9) ratio of net debt to adjusted EBITDA from continuing operations. We refer to these measures as "non-GAAP" financial measures.
(1) Adjusted net income from continuing operations attributable to Smithfield is defined as net income (loss), excluding the effects of loss contingencies and transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses) and the tax effects of the foregoing items. We believe that adjusted net income from continuing operations attributable to Smithfield is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (2) Adjusted net income from continuing operations per common share attributable to Smithfield is defined as adjusted net income from continuing operations attributable to Smithfield divided by total outstanding common shares. (3) EBITDA from continuing operations is defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA is a useful measure because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis. (4) Adjusted EBITDA from continuing operations is defined as EBITDA further adjusted for non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. We believe that adjusted EBITDA from continuing operations is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (5) Adjusted EBITDA margin from continuing operations is defined as adjusted EBITDA from continuing operations divided by total sales. We believe that adjusted EBITDA margin from continuing operations is a useful measure because it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities. (6) Adjusted operating profit is defined as operating profit, excluding items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (7) Adjusted operating profit margin is adjusted operating profit expressed as a percentage of revenues. We believe that adjusted net income from continuing operations per common share attributable to Smithfield, adjusted operating profit and adjusted operating profit margin provide a better understanding of underlying operating results and trends of established, ongoing operations of our business. (8) Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents. We believe that net debt is a useful measure because it helps to give investors a clear understanding of our financial position and is also used to calculate certain leverage ratios. (9) Ratio of net debt to adjusted EBITDA from continuing operations is defined as net debt divided by adjusted EBITDA from continuing operations. We believe that ratio of net debt to adjusted EBITDA from continuing operations is a useful measure because it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA from continuing operations, which is used as an operating performance measure.
Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies in industries similar to ours, these non-GAAP measures have limitations as analytical tools, are not measurements of our performance under GAAP and should not be considered as alternatives to operating profit, net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions, as such non-GAAP measures exclude a number of important cash and non-cash charges.
You should be aware that our presentation of these and other non-GAAP financial measures in this press release may not be comparable to similarly titled measures used by other companies. A reconciliation of each of these non-GAAP measures to its most directly comparable financial measure calculated in accordance with GAAP is provided in this release.
The Company's outlook for fiscal year 2025 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2025 projected adjusted results to its fiscal year 2025 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward- looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "intends," "projects," "contemplates," "believes," or "estimates" or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Specific forward-looking statements in this press release include our ability to invest in growth and increase value for our shareholders; our financial outlook for 2025; and the anticipated payment of annual dividends of $1.00 per share in 2025.
We have based the forward-looking statements contained in this press release primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this press release in light of new information or future events.
The forward-looking statements contained in this press release are subject to substantial risks and uncertainties that could affect our current expectations and our actual results, including, among others: (i) the cyclical nature of our operations and fluctuations in commodity prices; (ii) our dependence on third- party suppliers; (iii) our ability to execute on our strategy to optimize the size of our hog production operations; (iv) our ability to navigate geopolitical risks including increased tariffs on our exports, (v) our ability to mitigate higher input costs through productivity improvements in our operations, procurement strategies and the use of derivative instruments; (vi) our ability to compete successfully in the food industry; (vii) our ability to anticipate and meet consumer trends and interests through product innovation; (viii) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in the United States and Mexico; (ix) our ability to defend litigation brought against us and the sufficiency of our accruals for related contingent losses; (x) our ability to prevent cyberattacks, security breaches or other disruptions of our information technology systems; (xi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (xii) our dividend policy and our ability to pay dividends; and (xiii) our status as a "controlled company" and any resulting potential conflicts of interest. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Smithfield's Investor Relations Department at or by clicking on SEC Filings on the Smithfield Investor Relations website at investors.smithfieldfoods.com.
Investor Contact: Julie MacMedan Email:
Media Contact: Ray Atkinson Email: Cell: 757.576.1383
(Financial Tables Follow)
SMITHFIELD FOODS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in millions, except for share and per share data, and unaudited)
Three Months Ended
Nine Months Ended
September 28,2025
September 29,2024
September 28,2025
September 29,2024
Sales
$
3,747
$
3,334
$
11,304
$
10,190
Cost of sales
3,268
2,859
9,817
8,826
Gross profit
479
476
1,487
1,364
Selling, general and administrative expenses
178
200
643
594
Operating gains
(9
)
(10
)
(48
)
(12
)
Operating profit
310
285
892
783
Interest expense, net
11
17
33
52
Non-operating gains
(19
)
(7
)
(17
)
(13
)
Income from continuing operations before income taxes
318
276
876
745
Income tax expense
71
69
205
165
Loss (income) from equity method investments
(4
)
(3
)
4
(1
)
Net income from continuing operations
252
209
667
581
Net income from continuing operations attributable to noncontrolling interests
4
7
7
9
Net income from continuing operations attributable to Smithfield
248
202
660
572
Income from discontinued operations before income taxes
—
49
—
187
Income tax expense (benefit) from discontinued operations
—
(41
)
—
8
Net income from discontinued operations
—
90
—
179
Net income from discontinued operations attributable to noncontrolling interests
—
1
—
2
Net income from discontinued operations attributable to Smithfield
—
89
—
176
Net income
252
300
667
760
Net income attributable to noncontrolling interests
4
8
