Smithfield Foods Reports Record First Quarter Fiscal 2026 Results
Rhea-AI Summary
Smithfield Foods (Nasdaq: SFD) reported record first-quarter fiscal 2026 results for the period ended March 29, 2026. Consolidated net sales were $3.8 billion (up 0.8% year-over-year) and operating profit was $333 million (up 3.4%). Adjusted operating profit reached a first-quarter record of $339 million.
The company ended the quarter with $3,683 million of available liquidity and a net debt-to-adjusted-EBITDA ratio of 0.4x. The board declared a quarterly dividend of $0.3125 per share and reaffirmed full-year 2026 guidance.
Positive
- Consolidated sales of $3.8B (+0.8% YoY)
- Operating profit of $333M (+3.4% YoY)
- Adjusted operating profit record of $339M
- Available liquidity of $3,683M and net debt/adjusted EBITDA of 0.4x
- Board declared quarterly dividend of $0.3125 per share (annualized $1.25)
Negative
- Hog Production sales declined 17.5% YoY to $769M
- Packaged Meats margin narrowed by 32 bps to 12.8%
- Fresh Pork sales down 1.1% YoY to $2,012M
News Market Reaction – SFD
In the Apr 28 session, SFD declined 6.44%, reflecting a notable negative market reaction. Argus tracked a trough of -5.8% from its starting point during tracking. Our momentum scanner triggered 58 alerts that day, indicating high trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 21 | Marketing campaign launch | Positive | +1.5% | Eckrich refreshed national campaign and introduced new Andouille sausage product. |
| Apr 17 | Brand strategy update | Positive | +1.3% | Announcement of integrated agency team to accelerate portfolio brand growth. |
| Apr 14 | Product launch | Positive | +0.2% | Launch of Smithfield Meal Ready Cuts ready-to-cook, high-protein pork line. |
| Apr 07 | Earnings date notice | Neutral | +2.8% | Scheduling and access details for upcoming fiscal 2026 Q1 results call. |
| Apr 07 | Co-branded product launch | Positive | -1.5% | New Smithfield and Pabst Blue Ribbon beer brat and bratwurst lineup. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent brand and product news has generally coincided with modestly positive price reactions, with only one noted divergence on a promotional launch.
This announcement follows a series of brand- and marketing-driven updates for Smithfield Foods in April 2026, including new grilling campaigns, Meal Ready Cuts product launches, and a refreshed agency strategy across key brands. Those prior releases mostly saw small positive price moves. Today’s record fiscal Q1 2026 earnings and reaffirmed outlook extend that trajectory from promotional and branding news into concrete financial performance, highlighting continued momentum in Packaged Meats and disciplined execution across segments.
Key Terms
ebitda financial
adjusted ebitda financial
non-gaap financial
basis points financial
net debt financial
restricted stock units financial
operating profit margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Disciplined Execution on Clear Strategic Priorities Drives Profitable Growth in a Dynamic Operating Environment
- Strong Balance Sheet and Cash Flows Support Investments in Long-Term Growth and Shareholder Value Creation
SMITHFIELD, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (Nasdaq: SFD), an American food company and an industry leader in value-added packaged meats and fresh pork, today reported results for its fiscal 2026 first quarter ended March 29, 2026.
First Quarter Fiscal 2026 Financial Highlights
- Net sales of
$3.8 billion , up0.8% from the first quarter of 2025 - Operating profit of
$333 million , up3.4% from the first quarter of 2025; Adjusted operating profit of$339 million , up4.0% from the first quarter of 2025 - Operating margin of
8.7% , up from8.5% in the first quarter of 2025; Adjusted operating margin of8.9% , up from8.6% in the first quarter of 2025 - Packaged Meats operating profit of
$275 million , up3.6% from the first quarter of 2025; Packaged Meats operating profit margin of12.8% , compared to13.1% in the first quarter of 2025 - Diluted and adjusted diluted earnings of
$0.62 and$0.64 per share, respectively; compared to$0.57 and$0.58 per share, respectively, in the first quarter of 2025
CEO Perspective
“We delivered record first‑quarter results through disciplined execution across the business, led by strong performance in Packaged Meats,” said Smithfield President and CEO Shane Smith. “Adjusted operating profit reached a first‑quarter record, underscoring the strength of our vertically integrated model. This performance reflects the actions our team is taking to drive profitable growth while navigating a dynamic operating environment.”
Smith added, “We are actively managing inflationary input costs and consumer spending trends, and our record first‑quarter results support our confidence in our outlook for 2026. Our strong balance sheet and cash flow generation give us the flexibility to invest behind our strategic priorities and continue driving profitable growth and long‑term shareholder value.”
Review of Financial Results
Results of Operations
Sales
| Three Months Ended | ||||||||||||||
| March 29, 2026 | March 30, 2025 | $ Change | % Change | |||||||||||
| (in millions) | ||||||||||||||
| Sales by segment: | ||||||||||||||
| Packaged Meats | $ | 2,149 | $ | 2,024 | $ | 125 | 6.2 | % | ||||||
| Fresh Pork | 2,012 | 2,033 | (21 | ) | (1.1 | )% | ||||||||
| Hog Production | 769 | 932 | (163 | ) | (17.5 | )% | ||||||||
| Other | 174 | 104 | 70 | 66.9 | % | |||||||||
| Total segment sales | 5,103 | 5,093 | 10 | 0.2 | % | |||||||||
| Inter-segment sales eliminations: | ||||||||||||||
| Fresh Pork | (784 | ) | (787 | ) | 3 | (0.4 | )% | |||||||
| Hog Production | (519 | ) | (535 | ) | 16 | (3.1 | )% | |||||||
| Total inter-segment sales eliminations | (1,303 | ) | (1,322 | ) | 19 | (1.5 | )% | |||||||
| Consolidated sales | $ | 3,800 | $ | 3,771 | $ | 29 | 0.8 | % | ||||||
Operating Profit (Loss) and Operating Profit Margin by Segment
| Three Months Ended | |||||||||||||||
| March 29, 2026 | March 30, 2025 | Change | % Change | ||||||||||||
| (in millions, except percentages and basis points) | |||||||||||||||
| Operating profit: | |||||||||||||||
| Packaged Meats | $ | 275 | $ | 266 | $ | 9 | 3.6 | % | |||||||
| Fresh Pork | 78 | 82 | (4 | ) | (4.3 | )% | |||||||||
| Hog Production | 4 | 1 | 3 | 282.6 | % | ||||||||||
| Other | 12 | 14 | (3 | ) | (18.4 | )% | |||||||||
| Corporate expenses | (26 | ) | (29 | ) | 3 | 11.0 | % | ||||||||
| Unallocated (1) | (10 | ) | (12 | ) | 2 | 13.2 | % | ||||||||
| Operating profit | $ | 333 | $ | 321 | $ | 11 | 3.4 | % | |||||||
| Operating profit margin: | |||||||||||||||
| Packaged Meats | 12.8 | % | 13.1 | % | (32 | ) | bps | ||||||||
| Fresh Pork | 3.9 | % | 4.0 | % | (13 | ) | bps | ||||||||
| Hog Production | 0.5 | % | 0.1 | % | 41 | bps | |||||||||
| Other | 6.7 | % | 13.7 | % | (700 | ) | bps | ||||||||
| Consolidated | 8.7 | % | 8.5 | % | 22 | bps | |||||||||
________________
(1) We do not allocate certain items to our operating segments such as litigation charges, exit and disposal costs, insurance recoveries, gains and losses on the sale of property, plant and equipment and other assets, accelerated depreciation, and employee termination benefits, among others.
Financial Position
As of March 29, 2026, we had
________________
(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 to the most comparable GAAP measure.
Dividend Update
On March 23, 2026, our Board declared a quarterly cash dividend of
FY 2026 Outlook
The Company is reaffirming its financial outlook provided on March 24, 2026 as follows:
- Total Company sales to be up low-single-digits compared to fiscal year 2025.
- Packaged Meats segment adjusted operating profit of between
$1,100 million to$1,200 million . - Fresh Pork segment adjusted operating profit of between
$200 million to$260 million . - Hog Production segment adjusted operating profit of between
$150 million to$200 million . - Total Company adjusted operating profit of between
$1,325 million to$1,475 million . - Capital expenditures of between
$350 million to$450 million . Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. - An effective tax rate of between
22.5% and24.5% .
The Company’s outlook for 2026 includes 53 weeks of results. The outlook excludes the impact of the proposed Nathan’s Famous acquisition and investment in the new processing facility in Sioux Falls, South Dakota.
Conference Call Information
A conference call to discuss the fiscal first quarter financial results is scheduled for today, April 28, 2026, 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 855-669-9658 (international callers please dial 412-317-0088). The pin number to access the telephone replay is 9363914. The replay will be available until May 5, 2026. For more information, please visit investors.smithfieldfoods.com.
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. For more information, please visit investors.smithfieldfoods.com
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 attributable to Smithfield, (2) adjusted net income per diluted common share attributable to Smithfield, (3) EBITDA, (4) adjusted EBITDA, (5) adjusted EBITDA margin, (6) adjusted operating profit, (7) adjusted operating profit margin, (8) net debt and (9) ratio of net debt to adjusted EBITDA. We refer to these measures as “non-GAAP” financial measures.
(1) Adjusted net income attributable to Smithfield is defined as net income, excluding the effects of 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 attributable to Smithfield is a useful measure because it excludes the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (2) Adjusted net income per diluted common share attributable to Smithfield is defined as adjusted net income attributable to Smithfield divided by diluted weighted average shares outstanding. (3) EBITDA 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 is defined as EBITDA further adjusted for the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. We believe that adjusted EBITDA is a useful measure because it excludes the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (5) Adjusted EBITDA margin is defined as adjusted EBITDA divided by total sales. We believe that adjusted EBITDA margin 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 the effects of 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 sales. We believe that adjusted net income per diluted 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 is defined as net debt divided by adjusted EBITDA. We believe that ratio of net debt to adjusted EBITDA is a useful measure because it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA, 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 2026 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2026 projected adjusted results to its fiscal year 2026 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 financial outlook for 2026, our ability to drive multi-year growth, our ability to complete the acquisition of Nathan’s Famous and, upon completion, deliver earnings growth for shareholders, and the anticipated dividend payments of
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: (1) the cyclical nature of our operations and fluctuations in commodity prices; (2) our dependence on third- party suppliers; (3) our ability to execute on our strategy to optimize the size of our hog production operations; (4) our ability to navigate geopolitical risks including increased tariffs on our exports, (5) our ability to mitigate higher input costs through productivity improvements in our operations, procurement strategies and the use of derivative instruments; (6) our ability to compete successfully in the food industry; (7) our ability to anticipate and meet consumer trends and interests through product innovation; (8) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in the United States and Mexico; (9) our ability to defend litigation brought against us and the sufficiency of our accruals for related contingent losses; (10) our ability to prevent cyberattacks, security breaches or other disruptions of our information technology systems; (11) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (12) our dividend policy and our ability to pay dividends; and (13) 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 ir@smithfield.com or by clicking on SEC Filings on the Smithfield Investor Relations website at investors.smithfieldfoods.com.
Investor Contact:
Julie MacMedan
Email: ir@smithfield.com
Media Contact:
Ray Atkinson
Email: ratkinson@smithfield.com
Cell: 757.576.1383
(Financial Tables Follow)
| SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share data and per share data, and unaudited) | |||||||
| Three Months Ended | |||||||
| March 29, 2026 | March 30, 2025 | ||||||
| Sales | $ | 3,800 | $ | 3,771 | |||
| Cost of sales | 3,289 | 3,262 | |||||
| Gross profit | 511 | 510 | |||||
| Selling, general and administrative expenses | 180 | 197 | |||||
| Operating gains | (1 | ) | (9 | ) | |||
| Operating profit | 333 | 321 | |||||
| Interest expense, net | 8 | 11 | |||||
| Non-operating losses | 1 | 6 | |||||
| Income before income taxes | 323 | 304 | |||||
| Income tax expense | 72 | 72 | |||||
| Loss from equity method investments | 2 | 5 | |||||
| Net Income | 249 | 227 | |||||
| Net income attributable to noncontrolling interests | 4 | 4 | |||||
| Net income attributable to Smithfield | $ | 246 | $ | 224 | |||
| Net income per common share attributable to Smithfield: | |||||||
| Basic | $ | 0.63 | $ | 0.57 | |||
| Diluted | 0.62 | 0.57 | |||||
| Weighted-average shares outstanding: | |||||||
| Basic | 393,285,796 | 388,812,663 | |||||
| Diluted | 394,670,922 | 389,064,212 | |||||
| SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data, and unaudited) | |||||||
| March 29, 2026 | December 28, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,386 | $ | 1,539 | |||
| Accounts receivable, net | 1,066 | 1,023 | |||||
| Inventories, net | 2,348 | 2,328 | |||||
| Prepaid expenses and other current assets | 232 | 276 | |||||
| Total current assets | 5,031 | 5,166 | |||||
| Property, plant and equipment, net | 3,205 | 3,226 | |||||
| Goodwill | 1,622 | 1,623 | |||||
| Intangible assets, net | 1,258 | 1,260 | |||||
| Operating lease assets | 380 | 387 | |||||
| Equity method investments | 209 | 209 | |||||
| Other assets | 297 | 306 | |||||
| Total assets | $ | 12,002 | $ | 12,177 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 489 | $ | 856 | |||
| Current portion of long-term debt and finance lease obligations | 602 | 3 | |||||
| Current portion of operating lease obligations | 73 | 71 | |||||
| Accrued expenses and other current liabilities | 922 | 811 | |||||
| Total current liabilities | 2,086 | 1,741 | |||||
| Long-term debt and finance lease obligations | 1,401 | 2,000 | |||||
| Long-term operating lease obligations | 313 | 322 | |||||
| Deferred income taxes, net | 638 | 658 | |||||
| Net long-term pension obligation | 209 | 207 | |||||
| Other liabilities | 180 | 185 | |||||
| Redeemable noncontrolling interests | 311 | 264 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Shareholders’ equity: | |||||||
| Preferred stock, no par value; 100,000,000 shares authorized; no shares issued and outstanding | — | — | |||||
| Common stock, no par value; 5,000,000,000 shares authorized; 393,477,263 shares issued and outstanding as of March 29, 2026 and 393,112,711 shares issued and outstanding as of December 28, 2025 | — | — | |||||
| Additional paid-in capital | 3,292 | 3,338 | |||||
| Retained earnings | 3,897 | 3,776 | |||||
| Accumulated other comprehensive loss | (325 | ) | (314 | ) | |||
| Total shareholders’ equity | 6,864 | 6,801 | |||||
| Total liabilities and equity | $ | 12,002 | $ | 12,177 | |||
| SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions and unaudited) | |||||||
| Three Months Ended | |||||||
| March 29, 2026 | March 30, 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 249 | $ | 227 | |||
| Adjustments to reconcile net income to net cash flows used in operating activities: | |||||||
| Depreciation and amortization | 83 | 83 | |||||
| Changes in operating and other assets and liabilities, net | (390 | ) | (541 | ) | |||
| Other | (8 | ) | 64 | ||||
| Net cash flows used in operating activities | (65 | ) | (166 | ) | |||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (88 | ) | (79 | ) | |||
| Net expenditures from breeding stock transactions | (6 | ) | (7 | ) | |||
| Cash receipts on notes receivable | 14 | 1 | |||||
| Net cash flows used in investing activities | (80 | ) | (85 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds from issuance of common stock | — | 236 | |||||
| Other | (5 | ) | — | ||||
| Net cash flows from (used in) financing activities | (5 | ) | 236 | ||||
| Effect of foreign exchange rate changes on cash | (4 | ) | — | ||||
| Net change in cash, cash equivalents and restricted cash | (154 | ) | (15 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 1,539 | 943 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,386 | $ | 928 | |||
Non-GAAP Financial Measures
Adjusted Net Income Attributable to Smithfield and Adjusted Net Income per Diluted Common Share Attributable to Smithfield
The following table provides a reconciliation of net income attributable to Smithfield to adjusted net income attributable to Smithfield.
| Three Months Ended | Affected income statement account | ||||||||
| March 29, 2026 | March 30, 2025 | ||||||||
| (in millions, except per share data) | |||||||||
| Net income attributable to Smithfield | $ | 246 | $ | 224 | |||||
| Incremental costs from destruction of property (1) | 3 | — | Cost of sales | ||||||
| Plant closures | 2 | 1 | Cost of sales | ||||||
| Reduction in workforce and optimization (2) | 1 | 6 | SG&A | ||||||
| Reduction in workforce and optimization (2) | — | 2 | Cost of sales | ||||||
| Hog Production Reform | — | 2 | Cost of sales | ||||||
| Hog Production Reform | — | (1 | ) | Operating gains | |||||
| Insurance recoveries (3) | — | (6 | ) | Operating gains | |||||
| Income tax effect of non-GAAP adjustments (4) | (2 | ) | (1 | ) | Income tax expense | ||||
| Adjusted net income attributable to Smithfield | $ | 251 | $ | 227 | |||||
| Net income attributable to Smithfield per diluted common share | $ | 0.62 | $ | 0.57 | |||||
| Adjusted net income attributable to Smithfield per diluted common share | $ | 0.64 | $ | 0.58 | |||||
________________
(1) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(2) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to
(3) Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.
(4) Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA.
| Three Months Ended | Twelve Months Ended | Affected Income Statement Account | |||||||||||||||
| March 29, 2026 | March 30, 2025 | March 29, 2026 | December 28, 2025 | ||||||||||||||
| (in millions, except percentages) | |||||||||||||||||
| Net income | $ | 249 | $ | 227 | $ | 1,021 | $ | 998 | |||||||||
| Interest expense, net | 8 | 11 | 37 | 41 | |||||||||||||
| Income tax expense | 72 | 72 | 283 | 283 | |||||||||||||
| Depreciation and amortization | 83 | 83 | 332 | 332 | |||||||||||||
| EBITDA | $ | 413 | $ | 393 | $ | 1,674 | $ | 1,654 | |||||||||
| Litigation charges | — | — | 73 | 73 | SG&A | ||||||||||||
| Reduction in workforce and optimization (1) | 1 | 6 | 4 | 9 | SG&A | ||||||||||||
| Reduction in workforce and optimization (1) | — | 2 | — | 2 | Cost of sales | ||||||||||||
| Office closures (2) | — | — | 4 | 4 | SG&A | ||||||||||||
| Incremental costs from destruction of property (3) | 3 | — | 3 | — | Cost of sales | ||||||||||||
| Plant closures (4) | 1 | 1 | 1 | 1 | Cost of sales | ||||||||||||
| Hog Production Reform (5) | — | 1 | 2 | 3 | Cost of sales | ||||||||||||
| Hog Production Reform (6) | — | (1 | ) | (3 | ) | (4 | ) | Operating gains | |||||||||
| Employee retention tax credits (7) | — | — | (10 | ) | (10 | ) | Cost of sales | ||||||||||
| Insurance recoveries (8) | — | (6 | ) | (30 | ) | (36 | ) | Operating gains | |||||||||
| Company-owned life insurance gain (9) | — | — | (17 | ) | (17 | ) | Non-operating gains | ||||||||||
| Adjusted EBITDA | $ | 417 | $ | 396 | $ | 1,699 | $ | 1,677 | |||||||||
| Net income margin | 6.6 | % | 6.0 | % | 6.6 | % | 6.4 | % | |||||||||
| Adjusted EBITDA margin | 11.0 | % | 10.5 | % | 10.9 | % | 10.8 | % | |||||||||
________________
(1) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to
(2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(3) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(4) Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.
(5) Consists of contract termination costs, loss on asset disposals, employee termination benefits and other exit costs associated with our Hog Production Reform initiative. Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.
(6) Fiscal year 2025 and twelve months ended March 29, 2025 includes a
(7) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act.
(8) Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.
(9) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.
Net Debt and Ratio of Net Debt to Adjusted EBITDA
The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income, and the ratio of net debt to adjusted EBITDA.
| Twelve Months Ended | |||||||
| March 29, 2026 | December 28, 2025 | ||||||
| (in millions, except ratios) | |||||||
| Current portion of long-term debt and finance lease obligations | $ | 602 | $ | 3 | |||
| Long-term debt and finance lease obligations | 1,401 | 2,000 | |||||
| Total debt and finance lease obligations | $ | 2,003 | $ | 2,003 | |||
| Cash and cash equivalents | (1,386 | ) | (1,539 | ) | |||
| Net debt | $ | 618 | $ | 464 | |||
| Net income | $ | 1,021 | $ | 998 | |||
| Adjusted EBITDA | $ | 1,699 | $ | 1,677 | |||
| Ratio of total debt and finance lease obligations to net income | 2.0x | 2.0x | |||||
| Ratio of net debt to adjusted EBITDA | 0.4x | 0.3x | |||||
Adjusted Operating Profit and Adjusted Operating Profit Margin
The following table provides a reconciliation of operating profit to adjusted operating profit.
| Three Months Ended | |||||||
| March 29, 2026 | March 30, 2025 | ||||||
| (in millions, except percentages) | |||||||
| Operating profit | $ | 333 | $ | 321 | |||
| Incremental costs from destruction of property (1) | 3 | — | |||||
| Plant closures | 2 | 1 | |||||
| Reduction in workforce and optimization (2) | 1 | 9 | |||||
| Hog Production Reform | — | 1 | |||||
| Insurance recoveries (3) | — | (6 | ) | ||||
| Adjusted operating profit | 339 | 326 | |||||
| Operating profit margin | 8.7 | % | 8.5 | % | |||
| Adjusted operating profit margin | 8.9 | % | 8.6 | % | |||
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(1) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(2) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
(3) Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.
