Pilgrim’s Pride Reports Third Quarter 2026 Results
Prepared-foods growth and improving Mexico profitability accompanied lower consolidated sales, earnings and margins.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Pilgrim’s Pride (NASDAQ: PPC) reported third-quarter 2026 net sales of $4.7 billion as earnings declined from the prior year. Sales fell 2.2%, while GAAP diluted earnings per share dropped to $0.49 from $1.44. Net income was $116.3 million versus $343.1 million. Operating income fell 61.1% to $191.5 million. Adjusted EBITDA fell 50.0% to $316.3 million, with its margin narrowing to 6.8% from 13.3%.
U.S. Prepared Foods volumes rose over 15% year over year, while lower commodity chicken values pressured U.S. Fresh and input costs squeezed European margins. Mexico’s profitability improved sequentially. Pilgrim’s expects its Walker County prepared-foods facility to begin commissioning in the second half of 2027 and the pending Walkers Deli & Sausage acquisition to close in early 2027. Net leverage stood at 1.76 times adjusted EBITDA, below the company’s target range of 2 to 3 times.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointU.S. Prepared Foods volumes rose over 15% year over year; sales and margins also increased.
- Moderate pointMexico profitability improved sequentially as live commodity market fundamentals improved.
- Moderate pointNet leverage of 1.76 times adjusted EBITDA remained below the target range of 2 to 3 times.
- Moderate pointCash and equivalents rose to $935.771 million from $640.235 million at December 28, 2025.
- Minor pointJust Bare retail sales grew over 25% versus the prior year.
10 minor points
- Minor pointJust Bare volume market share increased over 300 basis points year over year in frozen fully cooked chicken.
- Minor point. Forward-looking: it has not happened yet and may not happen.Walker County prepared-foods facility remains on track, with commissioning expected in the second half of 2027.
- Minor pointMexico fresh branded retail offerings grew over 40% compared with last year.
- Minor pointMexico retail Key Customer volumes increased more than 8% year over year.
- Minor pointMexico Just Bare retail fresh volumes more than doubled compared with last year.
- Minor pointMexico Pilgrims and Alamesa branded Prepared Foods each posted double-digit growth.
- Minor point. Forward-looking: it has not happened yet and may not happen.Merida and Southern Peninsula operational expansion remains on schedule.
- Minor pointThird-quarter selling, general and administrative expense fell to $142.169 million from $164.997 million a year earlier.
- Minor pointThird-quarter interest expense fell to $31.782 million from $38.157 million a year earlier.
- Minor pointNine-month restructuring expense fell to $11.464 million from $21.890 million a year earlier.
Negative
- Major pointThird-quarter net income fell to $116.3 million from $343.1 million a year earlier.
- Moderate pointThird-quarter sales fell 2.2% year over year to $4,653.2 million.
- Moderate pointThird-quarter operating income fell 61.1% year over year to $191.5 million.
- Moderate pointThird-quarter adjusted EBITDA fell 50.0% to $316.3 million; margin narrowed to 6.8% from 13.3% year over year.
- Moderate pointU.S. Fresh faced lower commodity cutout values, partially offset by product mix and operational efficiencies.
- Moderate pointEurope margins compressed amid challenging pork fundamentals and rising input costs.
- Moderate pointWalkers Deli & Sausage acquisition remains pending approval, with closing anticipated in early 2027.
- Moderate pointNine-month operating cash flow fell to $684.187 million from $1,080.440 million a year earlier.
- Moderate pointNine-month property, plant and equipment spending increased to $682.072 million from $441.146 million a year earlier.
9 minor points
- Minor pointThird-quarter GAAP diluted EPS declined 66.0% year over year to $0.49 from $1.44.
- Minor pointEllijay plant investment involved planned downtime; promotional support and distribution gains kept U.S. Fresh volumes steady sequentially.
- Minor pointNine-month sales declined 1.2% year over year to $13,812.1 million.
- Minor pointNine-month GAAP diluted EPS fell 76.7% year over year to $0.97.
- Minor pointNine-month operating income declined 70.2% year over year to $420.0 million.
- Minor pointNine-month adjusted EBITDA fell 46.9% to $984.4 million; margin narrowed to 7.1% from 13.3% year over year.
- Minor pointLong-term debt excluding current maturities rose to $3,404.706 million from $3,093.113 million at December 28, 2025.
- Minor pointNine-month asset impairment increased to $22.263 million from $0.844 million a year earlier.
- Minor pointNine-month debt-extinguishment losses increased to $16.327 million from $0.573 million a year earlier.
Key Figures
- Net sales
- $4,653.2 million; down 2.2% YoY
- Third quarter 2026
- U.S. GAAP EPS
- $0.49; down 66.0% YoY
- Third quarter 2026
- Operating income
- $191.5 million; down 61.1% YoY
- Third quarter 2026
- Adjusted EBITDA
- $316.3 million; down 50.0% YoY
- Third quarter 2026
- Adjusted EBITDA margin
- 6.8%; down 6.5 percentage points YoY
- Third quarter 2026
- Net leverage ratio
- 1.76x
- Below the stated target range of 2x to 3x Adjusted EBITDA
Previous Earnings Reports
-
Adjusted EBITDA was $360.0 million at a 7.8% margin amid lower commodity cutout pricing.
-
Q3 2025 reported $633.1 million Adjusted EBITDA at a 13.3% margin.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
scope 1 & 2 emissions intensity technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
GREELEY, Colo., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's leading food companies, reports its third quarter 2026 financial results.
Third Quarter Highlights
- Net Sales of
$4.7 billion . - Consolidated GAAP Operating Income margin of
4.1% . - GAAP Net Income of
$116.3 million and GAAP EPS of$0.49 . Adjusted Net Income of$117.7 million , and Adjusted EPS of$0.49 . - Adjusted EBITDA of
$316.3 million , or a6.8% margin, with Adjusted EBITDA margins of6.9% in the U.S.,7.4% in Europe, and4.9% in Mexico. - U.S. Fresh benefited from its differentiated product mix and improvements in live operations and yield efficiencies throughout the quarter to partially compensate for declines in commodity cutout values. Volumes remained steady compared to previous quarter given promotional support and increased distribution, offsetting the impact of planned downtime from the investment in Pilgrim’s Ellijay, Ga., plant to grow in the small bird debone segment.
- U.S. Prepared Foods accelerated its marketplace momentum as volumes rose over
15% compared to last year. Just Bare® continues to lead growth in the fully cooked chicken category as retail sales grew by over25% versus prior year. Construction of the new prepared foods facility in Walker County, Ga., remains on track with commission expected in the second half of 2027. - Europe sales and volumes remained stable as affordability of poultry and meal offerings continued to resonate in the marketplace, while inflationary pressures and impacts of excess pork imports from European countries continue to be a challenge. The approval process for the acquisition of Walkers Deli & Sausage continues to progress with an anticipated close in early 2027.
- Mexico’s fundamentals in the live commodity market improved from previous quarters despite extensive availability of protein in the country. Sales grew as fresh branded offerings in retail increased by over
40% compared to last year. Growth and geographical diversification with ramp-up of operations in the Merida region and the Southern Peninsula remains on schedule. - Pilgrim’s published an update of its sustainability efforts through 2025 that detailed progress on its environmental, social, and governance ambitions. Since 2019, Pilgrim’s has reduced its global Scope 1 & 2 emissions intensity by over
20% . During the past year, the company continued to cultivate an environment for team member safety and well-being as the Global Safety Index has improved over60% compared to last year, and more than 6 million training hours were provided during 2025. - Maintained strong liquidity position to support future growth opportunities as the company’s net leverage ratio is currently 1.76x Adjusted EBITDA, below the target of 2x to 3x.
| (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 27, 2026 | September 28, 2025 | Y/Y Change | September 27, 2026 | September 28, 2025 | Y/Y Change | |||||||||||||||
| (In millions, except per share and percentages) | ||||||||||||||||||||
| Net sales | $ | 4,653.2 | $ | 4,759.3 | (2.2)% | $ | 13,812.1 | $ | 13,979.7 | (1.2)% | ||||||||||
| U.S. GAAP EPS | $ | 0.49 | $ | 1.44 | (66.0)% | $ | 0.97 | $ | 4.17 | (76.7)% | ||||||||||
| Operating income | $ | 191.5 | $ | 492.6 | (61.1)% | $ | 420.0 | $ | 1,409.4 | (70.2)% | ||||||||||
| Adjusted EBITDA(1) | $ | 316.3 | $ | 633.1 | (50.0)% | $ | 984.4 | $ | 1,853.2 | (46.9)% | ||||||||||
| Adjusted EBITDA margin(1) | 6.8 | % | 13.3 | % | (6.5)pts | 7.1 | % | 13.3 | % | (6.2)pts | ||||||||||
| (1) | Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release. |
“During the quarter, our differentiated portfolio of chicken products continued to experience strong demand as affordability and convenience continues to be priority among consumers across all regions,” said Fabio Sandri, Pilgrim’s President and CEO. “We remain focused on our investments and strategies to drive profitable growth and adapt our portfolio to changing conditions.”
In the third quarter, U.S. demand for fresh chicken experienced moderate volume growth compared to near record levels from last year. USDA reports reflect a
Case Ready maintained its presence throughout retail given additional distribution and investments in promotional activity with Key Customers. Small Bird demand remained firm due to continued consumer interest in boneless offerings from leading QSRs.
“While consumers maintained their interest in chicken across retail and foodservice, the market experienced a significant increase in supply,” said Sandri. “We continue to improve the efficiency of our operations and given
recent investments, we’ve created a more balanced portfolio better equipped to mitigate impacts of volatile commodity values.”
U.S. Prepared Foods continues to drive profitable growth as both sales and margins increased versus last year. Just Bare® remains the fastest growing brand in the frozen fully cooked category as market share in volume rose over 300 basis points year over year. Pilgrim’s® continues to bring excitement across retail and foodservice through its introduction of Flamin’ Hot® offerings.
"Innovation remains a key pillar of growth within Prepared Foods, and the recent Pilgrim’s® launch of Flamin’ Hot® demonstrates our ability to generate meaningful consumer excitement with industry leading partners," Sandri said. "When combined with the momentum of Just Bare®, these efforts will further strengthen our portfolio and drive sustainable growth."
In Europe, value conscious shoppers throughout retail sought the company’s poultry and meals offerings as volume and sales both rose compared to last year. In the branded portfolio, Fridge Raiders® and Rollover® continued to grow with additional opportunities for the remainder of the year from increased promotional activity and distribution. Margins compressed given challenging pork fundamentals and sustained escalation of input costs.
“Our diversified portfolio continues to draw consumers seeking value,” remarked Sandri. “To that end, we’ll continue investing in our poultry supply chain to expand our presence. Additional opportunities exist to drive sales growth and enhance margins in our pork business through the pending Walkers acquisition.”
Mexico’s profitability rose compared to the previous quarter as market fundamentals in the live commodity market improved. Key Customer partnerships in retail strengthened as volumes increased by more than
“While conditions in Mexico have been challenging throughout the year, we continue to improve our operational excellence, diversify our portfolio through branded offerings, and strengthen Key Customer partnerships,” said Sandri. “Our ongoing investments will further reinforce our ability to reduce volatility and drive sales growth.”
Pilgrim’s recently provided an update on its sustainability efforts through 2025, which includes an overview of progress against environmental, social, and governance matters. The company continues to make continuous progress in Scope 1 & 2 emissions reduction, safety performance, product integrity and team member development.
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, October 29, 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/10212694/10518f0489e
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 63,000 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 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 | |
| IRPPC@pilgrims.com | |
| www.pilgrims.com | |
| PILGRIM’S PRIDE CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| September 27, 2026 | December 28, 2025 | |||||||
| (In thousands) | ||||||||
| Cash and cash equivalents | $ | 935,771 | $ | 640,235 | ||||
| Restricted cash and cash equivalents | 1,186 | — | ||||||
| Trade accounts and other receivables, less allowance for credit losses | 991,854 | 1,164,903 | ||||||
| Accounts receivable from related parties | 19,748 | 13,398 | ||||||
| Inventories | 2,074,806 | 2,031,259 | ||||||
| Income taxes receivable | 115,739 | 103,702 | ||||||
| Prepaid expenses and other current assets | 327,235 | 272,809 | ||||||
| Assets held for sale | — | 11,057 | ||||||
| Total current assets | 4,466,339 | 4,237,363 | ||||||
| Deferred tax assets | 28,028 | 31,211 | ||||||
| Other long-lived assets | 161,747 | 113,195 | ||||||
| Operating lease assets, net | 318,363 | 257,784 | ||||||
| Intangible assets, net | 793,192 | 832,066 | ||||||
| Goodwill | 1,316,811 | 1,338,884 | ||||||
| Property, plant and equipment, net | 3,851,943 | 3,533,027 | ||||||
| Total assets | $ | 10,936,423 | $ | 10,343,530 | ||||
| Accounts payable | $ | 1,652,888 | $ | 1,588,569 | ||||
| Accounts payable to related parties | 49,211 | 43,516 | ||||||
| Revenue contract liabilities | 28,609 | 37,622 | ||||||
| Accrued expenses and other current liabilities | 1,047,645 | 1,095,858 | ||||||
| Income taxes payable | 109,945 | 123,769 | ||||||
| Current maturities of long-term debt | 911 | 924 | ||||||
| Total current liabilities | 2,889,209 | 2,890,258 | ||||||
| Noncurrent operating lease liabilities, less current maturities | 256,276 | 199,315 | ||||||
| Long-term debt, less current maturities | 3,404,706 | 3,093,113 | ||||||
| Deferred tax liabilities | 465,577 | 452,326 | ||||||
| Other long-term liabilities | 32,775 | 14,787 | ||||||
| Total liabilities | 7,048,543 | 6,649,799 | ||||||
| Common stock | 2,633 | 2,627 | ||||||
| Treasury stock | (544,687 | ) | (544,687 | ) | ||||
| Additional paid-in capital | 2,040,586 | 2,023,609 | ||||||
| Retained earnings | 2,477,929 | 2,245,523 | ||||||
| Accumulated other comprehensive loss | (100,843 | ) | (47,022 | ) | ||||
| Total Pilgrim’s Pride Corporation stockholders’ equity | 3,875,618 | 3,680,050 | ||||||
| Noncontrolling interest | 12,262 | 13,681 | ||||||
| Total stockholders’ equity | 3,887,880 | 3,693,731 | ||||||
| Total liabilities and stockholders’ equity | $ | 10,936,423 | $ | 10,343,530 | ||||
| PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
| CONSOLIDATED AND COMBINED STATEMENTS OF INCOME | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Net sales | $ | 4,653,206 | $ | 4,759,342 | $ | 13,812,069 | $ | 13,979,716 | ||||||||
| Cost of sales | 4,319,534 | 4,099,958 | 12,793,155 | 12,050,164 | ||||||||||||
| Gross profit | 333,672 | 659,384 | 1,018,914 | 1,929,552 | ||||||||||||
| Selling, general and administrative expense | 142,169 | 164,997 | 587,441 | 498,233 | ||||||||||||
| Restructuring activities | — | 1,779 | 11,464 | 21,890 | ||||||||||||
| Operating income | 191,503 | 492,608 | 420,009 | 1,409,429 | ||||||||||||
| Interest expense, net of capitalized interest | 31,782 | 38,157 | 119,489 | 122,370 | ||||||||||||
| Interest income | (1,579 | ) | (9,167 | ) | (12,199 | ) | (45,144 | ) | ||||||||
| Foreign currency transaction losses | 1,304 | 5,169 | 888 | 8,008 | ||||||||||||
| Miscellaneous, net | (298 | ) | (2,931 | ) | (2,075 | ) | (3,209 | ) | ||||||||
| Income before income taxes | 160,294 | 461,380 | 313,906 | 1,327,404 | ||||||||||||
| Income tax expense | 43,977 | 118,319 | 82,919 | 331,991 | ||||||||||||
| Net income | 116,317 | 343,061 | 230,987 | 995,413 | ||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (1,289 | ) | 248 | (1,419 | ) | 1,047 | ||||||||||
| Net income attributable to Pilgrim’s Pride Corporation | $ | 117,606 | $ | 342,813 | $ | 232,406 | $ | 994,366 | ||||||||
| Weighted average shares of Pilgrim's Pride Corporation common stock outstanding: | ||||||||||||||||
| Basic | 238,105 | 237,546 | 237,915 | 237,387 | ||||||||||||
| Effect of dilutive common stock equivalents | 928 | 980 | 897 | 1,024 | ||||||||||||
| Diluted | 239,033 | 238,526 | 238,812 | 238,411 | ||||||||||||
| Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | ||||||||||||||||
| Basic | $ | 0.49 | $ | 1.44 | $ | 0.98 | $ | 4.19 | ||||||||
| Diluted | $ | 0.49 | $ | 1.44 | $ | 0.97 | $ | 4.17 | ||||||||
| PILGRIM’S PRIDE CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| September 27, 2026 | September 28, 2025 | |||||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 230,987 | $ | 995,413 | ||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Depreciation and amortization | 365,010 | 334,448 | ||||||
| Asset impairment | 22,263 | 844 | ||||||
| Deferred income tax (benefit) | 21,654 | (34,042 | ) | |||||
| Stock-based compensation | 16,983 | 19,575 | ||||||
| Loss on early extinguishment of debt recognized as a component of interest expense | 16,327 | 573 | ||||||
| Loss on property disposals | 5,209 | 2,855 | ||||||
| Loan cost amortization | 3,817 | 3,718 | ||||||
| Accretion of discount related to Senior Notes | 1,669 | 1,796 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts and other receivables | 154,564 | (84,675 | ) | |||||
| Inventories | (64,632 | ) | (138,932 | ) | ||||
| Prepaid expenses and other current assets | (54,864 | ) | (34,558 | ) | ||||
| Accounts payable, accrued expenses and other current liabilities | 16,435 | (42,442 | ) | |||||
| Income taxes | (27,163 | ) | 95,827 | |||||
| Long-term pension and other postretirement obligations | 2,618 | (245 | ) | |||||
| Other operating assets and liabilities | (26,690 | ) | (39,715 | ) | ||||
| Cash provided by operating activities | 684,187 | 1,080,440 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions of property, plant and equipment | (682,072 | ) | (441,146 | ) | ||||
| Proceeds from property disposals | 11,718 | 4,143 | ||||||
| Business acquisitions | (3,073 | ) | — | |||||
| Cash used in investing activities | (673,427 | ) | (437,003 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving line of credit and long-term borrowings | 709,308 | — | ||||||
| Payments on revolving line of credit, long-term borrowings and finance lease obligations | (399,770 | ) | (114,772 | ) | ||||
| Payments on early extinguishment of debt | (14,548 | ) | (2,120 | ) | ||||
| Payments of capitalized loan costs | (6,464 | ) | — | |||||
| Payments for dividend | — | (1,994,347 | ) | |||||
| Purchase of noncontrolling interest | — | (1,294 | ) | |||||
| Cash provided by (used in) financing activities | 288,526 | (2,112,533 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (2,564 | ) | 41,281 | |||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 296,722 | (1,427,815 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 640,235 | 2,043,158 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 936,957 | $ | 615,343 | ||||
PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, (4) asset impairment, and (5) net income (loss) attributable to noncontrolling interest. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.
| PILGRIM'S PRIDE CORPORATION | ||||||||||||||
| Reconciliation of Adjusted EBITDA | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||
| (In thousands) | ||||||||||||||
| Net income | $ | 116,317 | $ | 343,061 | $ | 230,987 | $ | 995,413 | ||||||
| Add: | ||||||||||||||
| Interest expense, net(a) | 30,203 | 28,990 | 107,290 | 77,226 | ||||||||||
| Income tax expense | 43,977 | 118,319 | 82,919 | 331,991 | ||||||||||
| Depreciation and amortization | 123,223 | 116,426 | 365,010 | 334,448 | ||||||||||
| EBITDA | 313,720 | 606,796 | 786,206 | 1,739,078 | ||||||||||
| Add: | ||||||||||||||
| Foreign currency transaction losses(b) | 1,304 | 5,169 | 888 | 8,008 | ||||||||||
| Litigation settlements(c) | — | 19,582 | 158,905 | 85,296 | ||||||||||
| Restructuring activities losses(d) | — | 1,779 | 11,464 | 21,890 | ||||||||||
| Asset impairment(e) | — | — | 25,558 | — | ||||||||||
| Minus: | ||||||||||||||
| Net income (loss) attributable to noncontrolling interest | (1,289 | ) | 248 | (1,419 | ) | 1,047 | ||||||||
| Adjusted EBITDA | $ | 316,313 | $ | 633,078 | $ | 984,440 | $ | 1,853,225 | ||||||
| (a) | Interest expense, net, consists of interest expense less interest income. |
| (b) | Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income. |
| (c) | This represents expenses recognized in anticipation of probable settlements in ongoing litigation. |
| (d) | Restructuring activities losses are related to costs incurred, such as severance for back-office consolidation. |
| (e) | Primarily due to the closure announcement of the Chattanooga, TN harvest plant. |
The summary unaudited consolidated income statement data for the 12 months ended September 27, 2026 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September 27, 2026 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 28, 2025 and (2) the applicable unaudited consolidated income statement data for the nine months ended September 27, 2026.
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||||||
| Reconciliation of LTM Adjusted EBITDA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | LTM Ended September 27, 2026 | ||||||||||||||||||
| December 28, 2025 | March 29, 2026 | June 28, 2026 | September 27, 2026 | ||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Net income | $ | 87,931 | $ | 101,450 | $ | 13,220 | $ | 116,317 | $ | 318,918 | |||||||||
| Add: | |||||||||||||||||||
| Interest expense, net | 33,044 | 30,977 | 46,110 | 30,203 | 140,334 | ||||||||||||||
| Income tax expense | 86,803 | 30,370 | 8,572 | 43,977 | 169,722 | ||||||||||||||
| Depreciation and amortization | 121,709 | 118,481 | 123,306 | 123,223 | 486,719 | ||||||||||||||
| EBITDA | 329,487 | 281,278 | 191,208 | 313,720 | 1,115,693 | ||||||||||||||
| Add: | |||||||||||||||||||
| Foreign currency transaction losses (gains) | (1,231 | ) | 922 | (1,338 | ) | 1,304 | (343 | ) | |||||||||||
| Litigation settlements | 77,363 | 23,194 | 135,711 | — | 236,268 | ||||||||||||||
| Restructuring activities losses | 9,464 | 2,765 | 8,699 | — | 20,928 | ||||||||||||||
| Asset impairment | — | — | 25,558 | — | 25,558 | ||||||||||||||
| Minus: | |||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | (62 | ) | 27 | (157 | ) | (1,289 | ) | (1,481 | ) | ||||||||||
| Adjusted EBITDA | $ | 415,145 | $ | 308,132 | $ | 359,995 | $ | 316,313 | $ | 1,399,585 | |||||||||
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
| PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||||||||
| Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||
| (In thousands, except percent of net sales) | ||||||||||||||||||||||||||
| Net income | $ | 116,317 | $ | 343,061 | $ | 230,987 | $ | 995,413 | 2.49 | % | 7.21 | % | 1.67 | % | 7.12 | % | ||||||||||
| Add: | ||||||||||||||||||||||||||
| Interest expense, net | 30,203 | 28,990 | 107,290 | 77,226 | 0.65 | % | 0.61 | % | 0.78 | % | 0.55 | % | ||||||||||||||
| Income tax expense | 43,977 | 118,319 | 82,919 | 331,991 | 0.95 | % | 2.49 | % | 0.60 | % | 2.37 | % | ||||||||||||||
| Depreciation and amortization | 123,223 | 116,426 | 365,010 | 334,448 | 2.65 | % | 2.44 | % | 2.64 | % | 2.39 | % | ||||||||||||||
| EBITDA | 313,720 | 606,796 | 786,206 | 1,739,078 | 6.74 | % | 12.75 | % | 5.69 | % | 12.43 | % | ||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Foreign currency transaction losses | 1,304 | 5,169 | 888 | 8,008 | 0.03 | % | 0.10 | % | 0.01 | % | 0.05 | % | ||||||||||||||
| Litigation settlements | — | 19,582 | 158,905 | 85,296 | — | % | 0.41 | % | 1.15 | % | 0.61 | % | ||||||||||||||
| Restructuring activities losses | — | 1,779 | 11,464 | 21,890 | — | % | 0.04 | % | 0.08 | % | 0.16 | % | ||||||||||||||
| Asset impairment | — | — | 25,558 | — | — | % | — | % | 0.19 | % | — | % | ||||||||||||||
| Minus: | ||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | (1,289 | ) | 248 | (1,419 | ) | 1,047 | (0.03)% | 0.01 | % | (0.01)% | 0.01 | % | ||||||||||||||
| Adjusted EBITDA | $ | 316,313 | $ | 633,078 | $ | 984,440 | $ | 1,853,225 | 6.80 | % | 13.29 | % | 7.13 | % | 13.24 | % | ||||||||||
| Net sales | $ | 4,653,206 | $ | 4,759,342 | $ | 13,812,069 | $ | 13,979,716 | ||||||||||||||||||
Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||
| U.S. | Europe | Mexico | Total | U.S. | Europe | Mexico | Total | ||||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||||||||
| Net income | $ | 54,803 | $ | 48,940 | $ | 12,574 | $ | 116,317 | $ | 259,778 | $ | 52,792 | $ | 30,491 | $ | 343,061 | |||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Interest expense, net(a) | 30,386 | (124 | ) | (59 | ) | 30,203 | 32,853 | (4 | ) | (3,859 | ) | 28,990 | |||||||||||||||||
| Income tax expense | 21,484 | 15,313 | 7,180 | 43,977 | 94,424 | 14,135 | 9,760 | 118,319 | |||||||||||||||||||||
| Depreciation and amortization | 78,532 | 37,618 | 7,073 | 123,223 | 72,452 | 38,170 | 5,804 | 116,426 | |||||||||||||||||||||
| EBITDA | 185,205 | 101,747 | 26,768 | 313,720 | 459,507 | 105,093 | 42,196 | 606,796 | |||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Foreign currency transaction losses (gains)(b) | — | 254 | 1,050 | 1,304 | (1 | ) | 3,457 | 1,713 | 5,169 | ||||||||||||||||||||
| Litigation settlements(c) | — | — | — | — | 19,582 | — | — | 19,582 | |||||||||||||||||||||
| Restructuring activities losses(d) | — | — | — | — | — | 1,779 | — | 1,779 | |||||||||||||||||||||
| Minus: | |||||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | — | — | (1,289 | ) | (1,289 | ) | — | — | 248 | 248 | |||||||||||||||||||
| Adjusted EBITDA | $ | 185,205 | $ | 102,001 | $ | 29,107 | $ | 316,313 | $ | 479,088 | $ | 110,329 | $ | 43,661 | $ | 633,078 | |||||||||||||
| (a) | Interest expense, net, consists of interest expense less interest income. |
| (b) | Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income. |
| (c) | This represents expenses recognized in anticipation of probable settlements in ongoing litigation. |
| (d) | Restructuring activities losses are related to costs incurred, such as severance for back-office consolidation. |
Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | ||||||||||||||||||||||||||||
| U.S. | Europe | Mexico | Total | U.S. | Europe | Mexico | Total | ||||||||||||||||||||||
| (In thousands) | (In thousands) | ||||||||||||||||||||||||||||
| Net income | $ | 52,592 | $ | 149,194 | $ | 29,201 | $ | 230,987 | $ | 721,336 | $ | 149,822 | $ | 124,255 | $ | 995,413 | |||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Interest expense, net(a) | 112,212 | (3,743 | ) | (1,179 | ) | 107,290 | 94,071 | (2,082 | ) | (14,763 | ) | 77,226 | |||||||||||||||||
| Income tax expense | 19,988 | 45,886 | 17,045 | 82,919 | 243,640 | 40,058 | 48,293 | 331,991 | |||||||||||||||||||||
| Depreciation and amortization | 233,009 | 111,738 | 20,263 | 365,010 | 209,987 | 108,236 | 16,225 | 334,448 | |||||||||||||||||||||
| EBITDA | 417,801 | 303,075 | 65,330 | 786,206 | 1,269,034 | 296,034 | 174,010 | 1,739,078 | |||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Foreign currency transaction losses (gains)(b) | (1 | ) | (885 | ) | 1,774 | 888 | 2 | 3,770 | 4,236 | 8,008 | |||||||||||||||||||
| Litigation settlements(c) | 158,905 | — | — | 158,905 | 85,296 | — | — | 85,296 | |||||||||||||||||||||
| Restructuring activities losses(d) | — | 11,464 | — | 11,464 | — | 21,890 | — | 21,890 | |||||||||||||||||||||
| Asset impairment(e) | 25,558 | — | — | 25,558 | — | — | — | — | |||||||||||||||||||||
| Minus: | |||||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | — | — | (1,419 | ) | (1,419 | ) | — | — | 1,047 | 1,047 | |||||||||||||||||||
| Adjusted EBITDA | $ | 602,263 | $ | 313,654 | $ | 68,523 | $ | 984,440 | $ | 1,354,332 | $ | 321,694 | $ | 177,199 | $ | 1,853,225 | |||||||||||||
| (a) | Interest expense, net, consists of interest expense less interest income. |
| (b) | Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income. |
| (c) | This represents expenses recognized in anticipation of probable settlements in ongoing litigation. |
| (d) | Restructuring activities losses are related to costs incurred, such as severance for back-office consolidation. |
| (e) | Primarily due to the closure announcement of the Chattanooga, TN harvest plant. |
Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||
| Reconciliation of Adjusted Operating Income | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP operating income, U.S. operations | $ | 105,789 | $ | 384,123 | $ | 181,586 | $ | 1,057,916 | |||||||
| Litigation settlements | — | 19,582 | 158,905 | 85,296 | |||||||||||
| Asset impairment | — | — | 25,558 | — | |||||||||||
| Adjusted operating income, U.S. operations | $ | 105,789 | $ | 403,705 | $ | 366,049 | $ | 1,143,212 | |||||||
| Adjusted operating income margin, U.S. operations | 3.9 | % | 14.2 | % | 4.6 | % | 13.6 | % | |||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP operating income, Europe operations | $ | 63,415 | $ | 69,484 | $ | 188,721 | $ | 188,974 | |||||||
| Restructuring activities losses | — | 1,779 | 11,464 | 21,890 | |||||||||||
| Adjusted operating income, Europe operations | $ | 63,415 | $ | 71,263 | $ | 200,185 | $ | 210,864 | |||||||
| Adjusted operating income margin, Europe operations | 4.6 | % | 5.1 | % | 4.9 | % | 5.3 | % | |||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP operating income, Mexico operations | $ | 22,299 | $ | 39,001 | $ | 49,702 | $ | 162,539 | |||||||
| No adjustments | — | — | — | — | |||||||||||
| Adjusted operating income, Mexico operations | $ | 22,299 | $ | 39,001 | $ | 49,702 | $ | 162,539 | |||||||
| Adjusted operating income margin, Mexico operations | 3.7 | % | 7.4 | % | 2.9 | % | 10.3 | % | |||||||
Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:
| PILGRIM'S PRIDE CORPORATION | |||||||||||
| Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||
| (In percent) | |||||||||||
| GAAP operating income margin, U.S. operations | 3.9 | % | 13.5 | % | 2.3 | % | 12.6 | % | |||
| Litigation settlements | — | % | 0.7 | % | 2.0 | % | 1.0 | % | |||
| Asset impairment | — | % | — | % | 0.3 | % | — | % | |||
| Adjusted operating income margin, U.S. operations | 3.9 | % | 14.2 | % | 4.6 | % | 13.6 | % | |||
| Three Months Ended | Nine Months Ended | ||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||
| (In percent) | |||||||||||
| GAAP operating income margin, Europe operations | 4.6 | % | 5.0 | % | 4.6 | % | 4.7 | % | |||
| Restructuring activities losses | — | % | 0.1 | % | 0.3 | % | 0.6 | % | |||
| Adjusted operating income margin, Europe operations | 4.6 | % | 5.1 | % | 4.9 | % | 5.3 | % | |||
| Three Months Ended | Nine Months Ended | ||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||
| (In percent) | |||||||||||
| GAAP operating income margin, Mexico operations | 3.7 | % | 7.4 | % | 2.9 | % | 10.3 | % | |||
| No adjustments | — | % | — | % | — | % | — | % | |||
| Adjusted operating income margin, Mexico operations | 3.7 | % | 7.4 | % | 2.9 | % | 10.3 | % | |||
Adjusted net income attributable to Pilgrim's Pride Corporation ("Pilgrim's") is calculated by adding to net income attributable to Pilgrim's certain items of expense and deducting from net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||
| Reconciliation of Adjusted Net Income | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Net income attributable to Pilgrim's | $ | 117,606 | $ | 342,813 | $ | 232,406 | $ | 994,366 | |||||||
| Add: | |||||||||||||||
| Foreign currency transaction losses | 1,304 | 5,169 | 888 | 8,008 | |||||||||||
| Litigation settlements | — | 19,582 | 158,905 | 85,296 | |||||||||||
| Restructuring activities losses | — | 1,779 | 11,464 | 21,890 | |||||||||||
| Asset impairment | — | — | 25,558 | — | |||||||||||
| Loss (gain) on early extinguishment of debt recognized as a component of interest expense(a) | (1,242 | ) | — | 16,327 | — | ||||||||||
| Adjusted net income attributable to Pilgrim's before tax impact | 117,668 | 369,343 | 445,548 | 1,109,560 | |||||||||||
| Net tax impact of adjustments(b) | (15 | ) | (6,420 | ) | (52,320 | ) | (27,876 | ) | |||||||
| Adjusted net income attributable to Pilgrim's | $ | 117,653 | $ | 362,923 | $ | 393,228 | $ | 1,081,684 | |||||||
| Weighted average diluted shares of common stock outstanding | 239,033 | 238,526 | 238,812 | 238,411 | |||||||||||
| Adjusted net income attributable to Pilgrim's per common diluted share | $ | 0.49 | $ | 1.52 | $ | 1.65 | $ | 4.54 | |||||||
| (a) | The loss (gain) on early extinguishment of debt recognized as a component of interest expense was primarily due to the repurchase of the Senior Notes due 2033 in the second quarter of 2026. |
| (b) | Net tax impact of adjustments represents the tax impact of all adjustments shown above. |
Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
| PILGRIM'S PRIDE CORPORATION | |||||||||||||||
| Reconciliation of GAAP EPS to Adjusted EPS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | ||||||||||||
| U.S. GAAP EPS | $ | 0.49 | $ | 1.44 | $ | 0.97 | $ | 4.17 | |||||||
| Add: | |||||||||||||||
| Foreign currency transaction losses | 0.01 | 0.02 | 0.02 | 0.03 | |||||||||||
| Litigation settlements | — | 0.08 | 0.66 | 0.36 | |||||||||||
| Restructuring activities losses | — | 0.01 | 0.05 | 0.09 | |||||||||||
| Asset impairment | — | — | 0.11 | — | |||||||||||
| Loss (gain) on early extinguishment of debt recognized as a component of interest expense(a) | (0.01 | ) | — | 0.06 | — | ||||||||||
| Adjusted EPS attributable to Pilgrim's before tax impact | 0.49 | 1.55 | 1.87 | 4.65 | |||||||||||
| Net tax impact of adjustments(b) | — | (0.03 | ) | (0.22 | ) | (0.11 | ) | ||||||||
| Adjusted EPS | $ | 0.49 | $ | 1.52 | $ | 1.65 | $ | 4.54 | |||||||
| Weighted average diluted shares of common stock outstanding | 239,033 | 238,526 | 238,812 | 238,411 | |||||||||||
| (a) | The loss (gain) on early extinguishment of debt recognized as a component of interest expense was primarily due to the repurchase of the Senior Notes due 2033 in the second quarter of 2026. |
| (b) | Net tax impact of adjustments represents the tax impact of all adjustments shown above. |
| PILGRIM'S PRIDE CORPORATION | ||||||||||||
| Supplementary Geographic Data | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||
| (In thousands) | ||||||||||||
| Sources of net sales by country of origin: | ||||||||||||
| U.S. | $ | 2,680,134 | $ | 2,836,613 | $ | 7,964,774 | $ | 8,400,187 | ||||
| Europe | 1,374,013 | 1,392,495 | 4,115,404 | 3,995,294 | ||||||||
| Mexico | 599,059 | 530,234 | 1,731,891 | 1,584,235 | ||||||||
| Total net sales | $ | 4,653,206 | $ | 4,759,342 | $ | 13,812,069 | $ | 13,979,716 | ||||
| Sources of cost of sales by country of origin: | ||||||||||||
| U.S. | $ | 2,496,949 | $ | 2,353,296 | $ | 7,388,075 | $ | 7,040,006 | ||||
| Europe | 1,261,691 | 1,271,148 | 3,771,806 | 3,633,510 | ||||||||
| Mexico | 560,894 | 475,514 | 1,633,274 | 1,376,648 | ||||||||
| Total cost of sales | $ | 4,319,534 | $ | 4,099,958 | $ | 12,793,155 | $ | 12,050,164 | ||||
| Sources of gross profit by country of origin: | ||||||||||||
| U.S. | $ | 183,185 | $ | 483,317 | $ | 576,699 | $ | 1,360,181 | ||||
| Europe | 112,322 | 121,347 | 343,598 | 361,784 | ||||||||
| Mexico | 38,165 | 54,720 | 98,617 | 207,587 | ||||||||
| Total gross profit | $ | 333,672 | $ | 659,384 | $ | 1,018,914 | $ | 1,929,552 | ||||
| Sources of operating income by country of origin: | ||||||||||||
| U.S. | $ | 105,789 | $ | 384,123 | $ | 181,586 | $ | 1,057,916 | ||||
| Europe | 63,415 | 69,484 | 188,721 | 188,974 | ||||||||
| Mexico | 22,299 | 39,001 | 49,702 | 162,539 | ||||||||
| Total operating income | $ | 191,503 | $ | 492,608 | $ | 420,009 | $ | 1,409,429 | ||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Pilgrim’s Pride’s third-quarter 2026 earnings and sales?
Pilgrim’s Pride reported $0.49 in GAAP diluted earnings per share and $4,653.2 million in sales for the quarter ended September 27, 2026. EPS declined 66.0% and sales declined 2.2% from the year-earlier quarter.
When does Pilgrim’s Pride expect the Walkers Deli & Sausage acquisition to close?
Pilgrim’s Pride anticipates closing the Walkers Deli & Sausage acquisition in early 2027. The approval process remains underway.
What were Pilgrim’s Pride’s regional adjusted EBITDA margins in the third quarter of 2026?
Third-quarter adjusted EBITDA margins were 6.9% in the U.S., 7.4% in Europe and 4.9% in Mexico. The consolidated adjusted EBITDA margin was 6.8%.