Third Quarter Highlights:
Net Sales of $4.8 billion.
Consolidated GAAP operating income margin of 10.4%.
GAAP Net Income of $343.1 million and GAAP EPS of $1.44. Adjusted Net Income of $362.9 million and Adjusted EPS of $1.52.
Adjusted EBITDA of $633.1 million, or a 13.3% margin.
U.S. Fresh maintained a strong performance as a result of our diversified portfolio, focus on quality and service, and continued progress in operational excellence. Case Ready and Small Bird benefited from extensive Key Customer demand from retail and QSR, whereas investments in Big Bird unlocked additional efficiencies in production and live operations.
U.S. Prepared Foods continues to expand across retail and foodservice as net sales have increased over 25% compared to the prior year. Just Bare® continues to lead growth in the retail frozen fully cooked category as market share has grown by nearly 300 basis points compared to last year and sales velocity remains much higher than category averages.
Pilgrim's continues its growth journey, as recently announced new investments over the next two years totaling over $500 million in the U.S. remain on track to support growth with Key Customers in Fresh and diversify the portfolio through branded offerings in Prepared Foods.
In Europe, the company continues to drive innovation and differentiation in the marketplace with a recent 10-year supply agreement of a new product offering to support the growth of a Key Customer. Momentum for Fridge Raiders® and Rollover® also continues to accelerate as each grew faster than category averages.
In Mexico, Key Customer demand in fresh continued to grow ahead of the market. Diversification through value added continued as Prepared Foods sales increased by 9% versus last year. Expansion projects to diversify geographical presence and grow prepared foods continue to progress on schedule.
Pilgrim's published its 2024 Sustainability Report that detailed its progress against environmental, social, and governance ambitions. Since 2019, Pilgrim's has reduced its global Scope 1 & 2 emissions intensity by 23% and improved its Global Safety Index by 77%. Over the past year, Pilgrim's has also provided 5.7 million training hours to improve team members' professional skills and career opportunities.
Continued strong liquidity position and balance sheet flexibility after investments in growth projects and payments of special dividends totaling $2 billion during the year. Net leverage is approximately 1.0 times of Adjusted EBITDA.
(Unaudited)
Three Months Ended
Nine Months Ended
September 28,2025
September 29,2024
Y/Y Change
September 28,2025
September 29,2024
Y/Y Change
(In millions, except per share and percentages)
Net sales
$
4,759.3
$
4,585.0
+3.8
%
$
13,979.7
$
13,506.2
+3.5
%
U.S. GAAP EPS
$
1.44
$
1.47
(2.0
)%
$
4.17
$
3.58
+16.5
%
Operating income
$
492.6
$
508.4
(3.1
)%
$
1,409.4
$
1,199.4
+17.5
%
Adjusted EBITDA(1)
$
633.1
$
660.4
(4.1
)%
$
1,853.2
$
1,688.2
+9.8
%
Adjusted EBITDA margin(1)
13.3
%
14.4
%
-1.1
pts
13.3
%
12.5
%
+0.8
pts
(1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
"Throughout the quarter, chicken demand remained robust across retail and foodservice given its strong value proposition compared to other proteins," said Fabio Sandri, Pilgrim's President and CEO. "We continue to strengthen our relationships with Key Customers across all regions and invest accordingly to drive sales growth, enhance margins, and reduce volatility."
Despite volatility in commodity market fundamentals in September, the U.S. business maintained strong results, comparable to last year. Case Ready sales to Key Customers continued to grow faster than category averages, whereas Small Bird benefited from extensive demand among QSRs. Big Bird improved production efficiencies and live operations to mitigate impacts of volatile markets. Diversification efforts through Prepared Foods continue to accelerate given incremental distribution across both retail and foodservice.
"Our diversified portfolio across bird sizes, differentiation through higher attribute offerings, and growth in value-added products all moderated the impact of volatile commodity market fundamentals," remarked Sandri. "Equally important, we strengthened our partnerships with Key Customers through innovation, quality, and service."
Investments in the U.S. to strengthen partnerships with Key Customers and to diversify our portfolio through branded growth in Prepared Foods continue as planned.
"Our investments will not only strengthen our competitive advantage, but also further enable our ability to meet demand for higher attribute offerings in Fresh and support the growth of Just Bare® in Prepared Foods," said Sandri.
Europe reinforced Key Customer relationships through new business opportunities. Diversification through brands continues to evolve as Fridge Raiders® achieved new records for household penetration. Rollover® continues to thrive throughout the marketplace from increased distribution with new accounts. Foodservice has grown given incremental distribution from leading QSRs.
"Our profitability journey in Europe has entered a new phase," said Sandri. "As such, we are investing in Key Customer partnerships across our multi-protein platform, driving promotional activity, and developing new offerings to create additional consumer demand. When combined, these efforts can accelerate our efforts to scale our profitable growth."
In Mexico, branded offerings across both Fresh and Prepared Foods continue to grow, and Key Customer partnerships expanded throughout retail. Expansion efforts to build capacity remain on schedule.
"Our expansion efforts in Mexico continue to proceed as planned, which will ultimately strengthen our partnerships with Key Customers and further diversify our portfolio through Prepared Foods," said Sandri.
Pilgrim's recently published its 2024 Sustainability Report, which provided an update on progress against environmental, social, and governance matters. Pilgrim's continues to make extensive progress in Scope 1 & 2 emissions reduction, safety performance, product integrity and team member development.
"Sustainability is a critical component of our overall strategy and business approach," Sandri concluded. "Through these continued efforts, we remain focused on becoming the most trusted and respected company in our industry while creating a better future for our team members."
Conference Call Information
A conference call to discuss Pilgrim's quarterly results will be held tomorrow, October 30, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://dpregister.com/sreg/10203750/100237e3924.
You may also reach the pre-registration link by logging in through the investor section of our website at https://ir.pilgrims.com in the "Events & Presentations" section.
For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the "Pilgrim's Pride Conference."
Replays of the conference call will be available on Pilgrim's website approximately two hours after the call concludes and can be accessed through the "Investor" section of www.pilgrims.com.
About Pilgrim's Pride
Pilgrim's employs approximately 62,900 people and operates protein processing plants and prepared foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "should," "targets," "will" and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company's business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company's products; outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim's Pride's leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Contact:
Andrew Rojeski
Head of Strategy, Investor Relations, & Sustainability
www.pilgrims.com
PILGRIM'S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 28, 2025
December 29, 2024
(In thousands)
Cash and cash equivalents
$
612,582
$
2,040,834
Restricted cash and restricted cash equivalents
2,761
2,324
Investment in available-for-sale securities
—
10,220
Trade accounts and other receivables, less allowance for credit losses
1,131,047
1,004,334
Accounts receivable from related parties
11,170
2,608
Inventories
1,968,863
1,783,488
Income taxes receivable
65,979
72,414
Assets held for sale
13,540
3,062
Prepaid expenses and other current assets
260,968
200,879
Total current assets
4,066,910
5,120,163
Deferred tax assets
29,507
29,483
Other long-lived assets
93,443
62,019
Operating lease assets, net
242,646
255,713
Intangible assets, net
834,864
806,234
Goodwill
1,327,744
1,239,073
Property, plant and equipment, net
3,357,287
3,137,891
Total assets
$
9,952,401
$
10,650,576
Accounts payable
$
1,470,607
$
1,411,519
Accounts payable to related parties
36,640
15,257
Revenue contract liabilities
55,977
48,898
Accrued expenses and other current liabilities
977,258
1,015,504
Income taxes payable
147,672
60,097
Current maturities of long-term debt
912
858
Total current liabilities
2,689,066
2,552,133
Noncurrent operating lease liabilities, less current maturities
193,435
195,944
Long-term debt, less current maturities
3,091,663
3,206,113
Deferred tax liabilities
407,773
422,952
Other long-term liabilities
14,787
20,038
Total liabilities
6,396,724
6,397,180
Common stock
2,627
2,623
Treasury stock
(544,687
)
(544,687
)
Additional paid-in capital
2,013,830
1,994,259
Retained earnings
2,157,530
3,157,511
Accumulated other comprehensive loss
(87,366
)
(370,300
)
Total Pilgrim's Pride Corporation stockholders' equity
3,541,934
4,239,406
Noncontrolling interest
13,743
13,990
Total stockholders' equity
3,555,677
4,253,396
Total liabilities and stockholders' equity
$
9,952,401
$
10,650,576
PILGRIM'S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
Nine Months Ended
September 28, 2025
September 29, 2024
September 28, 2025
September 29, 2024
(In thousands, except per share data)
Net sales
$
4,759,342
$
4,584,979
$
13,979,716
$
13,506,227
Cost of sales
4,099,958
3,901,009
12,050,164
11,746,722
Gross profit
659,384
683,970
1,929,552
1,759,505
Selling, general and administrative expense
164,997
144,780
498,233
478,017
Restructuring activities
1,779
30,836
21,890
82,070
Operating income
492,608
508,354
1,409,429
1,199,418
Interest expense, net of capitalized interest
38,157
41,597
122,370
114,041
Interest income
(9,167
)
(22,099
)
(45,144
)
(48,308
)
Foreign currency transaction losses (gains)
5,169
(678
)
8,008
(7,240
)
Miscellaneous, net
(2,931
)
7,935
(3,209
)
5,153
Income before income taxes
461,380
481,599
1,327,404
1,135,772
Income tax expense
118,319
131,609
331,991
284,321
Net income
343,061
349,990
995,413
851,451
Less: Net income attributable to noncontrolling interests
248
130
1,047
867
Net income attributable to Pilgrim's Pride Corporation
$
342,813
$
349,860
$
994,366
$
850,584
Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:
Basic
237,546
237,123
237,387
236,953
Effect of dilutive common stock equivalents
980
768
1,024
733
Diluted
238,526
237,891
238,411
237,686
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:
Basic
$
1.44
$
1.48
$
4.19
$
3.59
Diluted
$
1.44
$
1.47
$
4.17
$
3.58
PILGRIM'S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 28, 2025
September 29, 2024
(In thousands)
Cash flows from operating activities:
Net income
$
995,413
$
851,451
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
334,448
321,768
Deferred income tax expense (benefit)
(34,042
)
45,220
Stock-based compensation
19,575
9,205
Loan cost amortization
3,718
3,798
Loss on property disposals
2,855
1,104
Accretion of discount related to Senior Notes
1,796
1,898
Asset impairment
844
26,633
Loss (gain) on early extinguishment of debt recognized as a component of interest expense
573
(11,211
)
Gain on equity-method investments
—
(6
)
Changes in operating assets and liabilities:
Trade accounts and other receivables
(84,675
)
62,646
Inventories
(138,932
)
172,990
Prepaid expenses and other current assets
(34,558
)
(65,555
)
Accounts payable, accrued expenses and other current liabilities
(42,442
)
79,672
Income taxes
95,827
151,902
Long-term pension and other postretirement obligations
(245
)
13,135
Other operating assets and liabilities
(39,715
)
(23,858
)
Cash provided by operating activities
1,080,440
1,640,792
Cash flows from investing activities:
Acquisitions of property, plant and equipment
(441,146
)
(316,949
)
Proceeds from property disposals
4,143
9,724
Cash used in investing activities
(437,003
)
(307,225
)
Cash flows from financing activities:
Payments for dividend
(1,994,347
)
—
Payments on revolving line of credit, long-term borrowings and finance lease obligations
