Smithfield Foods’ Strategy Execution and Agile Business Model Drive Strong Second Quarter Results
Smithfield Foods (Nasdaq: SFD) reported strong Q2 2025 financial results, with net sales reaching $3.8 billion, up 11.0% year-over-year. The company achieved an operating profit of $260 million and adjusted operating profit of $298 million, with operating margins of 6.9% and 7.9% respectively.
The Packaged Meats segment demonstrated robust performance with operating profit of $301 million and a 14.5% margin. The company's solid financial position includes $3.2 billion in available liquidity and a net debt to adjusted EBITDA ratio of 0.7x. Smithfield increased its FY2025 outlook, particularly for the Hog Production segment, and maintained its quarterly dividend of $0.25 per share.
[ "Net sales increased 11.0% to $3.8 billion in Q2 2025", "Adjusted diluted EPS grew to $0.55 from $0.51 year-over-year", "Strong liquidity position of $3.2 billion with low leverage ratio of 0.7x", "Increased full-year adjusted operating profit guidance to $1,150-1,350 million", "Packaged Meats segment achieved 14.5% operating margin", "Hog Production segment turned profitable with $22 million operating profit vs. $2 million loss prior year" ]Smithfield Foods (Nasdaq: SFD) ha registrato solide performance nel secondo trimestre 2025, con net sales pari a $3.8 billion, in aumento dell'11,0% su base annua. L'azienda ha conseguito un utile operativo di $260 million e un utile operativo rettificato di $298 million, con margini operativi del 6,9% e 7,9% rispettivamente.
Il segmento Packaged Meats ha mostrato un'ottima redditività con un utile operativo di $301 million e un margine del 14,5%. La posizione finanziaria è solida, con $3.2 billion di liquidità disponibile e un rapporto debito netto/EBITDA rettificato di 0,7x. Smithfield ha rivisto al rialzo le previsioni per il FY2025, in particolare per la divisione Hog Production, e ha mantenuto il dividendo trimestrale di $0.25 per azione.
- I ricavi netti sono saliti dell'11,0% a $3.8 billion nel 2T 2025
- L'utile diluito rettificato per azione è salito a $0.55 da $0.51 su base annua
- Solida posizione di liquidità di $3.2 billion con basso livello di indebitamento (0.7x)
- La guidance per l'utile operativo rettificato FY è stata aumentata a $1,150-1,350 million
- Il segmento Packaged Meats ha raggiunto un margine operativo del 14,5%
- Il segmento Hog Production è tornato in utile con $22 million di utile operativo rispetto a una perdita di $2 million l'anno precedente
Smithfield Foods (Nasdaq: SFD) informó sólidos resultados en el 2T 2025, con ventas netas de $3.8 billion, un incremento del 11.0% interanual. La compañía consiguió un beneficio operativo de $260 million y un beneficio operativo ajustado de $298 million, con márgenes operativos de 6.9% y 7.9% respectivamente.
El segmento Packaged Meats tuvo un desempeño robusto con un beneficio operativo de $301 million y un margen del 14.5%. La posición financiera es sólida, con $3.2 billion de liquidez disponible y una ratio deuda neta/EBITDA ajustado de 0.7x. Smithfield elevó su perspectiva para 2025, especialmente en Hog Production, y mantuvo el dividendo trimestral de $0.25 por acción.
- Las ventas netas aumentaron 11.0% hasta $3.8 billion en el 2T 2025
- El BPA diluido ajustado creció a $0.55 desde $0.51 interanual
- Sólida liquidez de $3.2 billion con baja palanca (0.7x)
- Se aumentó la guía anual de beneficio operativo ajustado a $1,150-1,350 million
- El segmento Packaged Meats alcanzó un margen operativo del 14.5%
- El segmento Hog Production volvió a ser rentable con $22 million de beneficio operativo frente a una pérdida de $2 million el año anterior
Smithfield Foods (Nasdaq: SFD)는 2025년 2분기에 견조한 실적을 발표했습니다. 순매출은 $3.8 billion으로 전년 동기 대비 11.0% 증가했습니다. 회사는 영업이익 $260 million과 조정 영업이익 $298 million을 기록했으며, 영업이익률은 각각 6.9%와 7.9%였습니다.
Packaged Meats 부문은 영업이익 $301 million과 14.5%의 마진으로 강한 실적을 보였습니다. 재무 상태도 탄탄하여 $3.2 billion의 가용 유동성과 순부채/조정 EBITDA 비율 0.7x를 유지하고 있습니다. Smithfield는 특히 Hog Production 부문의 FY2025 전망을 상향 조정했으며, 분기 배당금 $0.25 주당는 유지했습니다.
- 순매출은 2025년 2분기에 전년 대비 11.0% 증가한 $3.8 billion
- 조정 희석 주당순이익은 전년 $0.51에서 $0.55로 상승
- 낮은 레버리지(0.7x)로 $3.2 billion의 강한 유동성 보유
- 연간 조정 영업이익 가이던스를 $1,150–1,350 million으로 상향
- Packaged Meats 부문은 14.5%의 영업마진 달성
- Hog Production 부문은 전년 $2 million 손실에서 $22 million 영업이익으로 흑자 전환
Smithfield Foods (Nasdaq: SFD) a publié de solides résultats au 2T 2025, avec des ventes nettes de $3.8 billion, en hausse de 11,0% en glissement annuel. La société a réalisé un résultat opérationnel de $260 million et un résultat opérationnel ajusté de $298 million, avec des marges opérationnelles de 6,9% et 7,9% respectivement.
Le segment Packaged Meats a affiché de bonnes performances avec un résultat opérationnel de $301 million et une marge de 14,5%. La situation financière est solide, avec $3.2 billion de liquidités disponibles et un ratio dette nette/EBITDA ajusté de 0,7x. Smithfield a relevé ses perspectives pour FY2025, notamment pour Hog Production, et a maintenu son dividende trimestriel de $0.25 par action.
- Les ventes nettes ont augmenté de 11,0% à $3.8 billion au 2T 2025
- Le BPA dilué ajusté est passé à $0.55 contre $0.51 en glissement annuel
- Position de liquidité robuste de $3.2 billion et faible levier (0,7x)
- Relèvement de la prévision annuelle d'EBIT opérationnel ajusté à $1,150–1,350 million
- Le segment Packaged Meats a atteint une marge opérationnelle de 14,5%
- Le segment Hog Production est redevenu rentable avec $22 million de résultat opérationnel contre une perte de $2 million l'année précédente
Smithfield Foods (Nasdaq: SFD) meldete starke Finanzergebnisse für das 2. Quartal 2025, mit Nettoerlösen von $3.8 billion, ein Anstieg von 11,0% gegenüber dem Vorjahr. Das Unternehmen erzielte einen operativen Gewinn von $260 million und einen bereinigten operativen Gewinn von $298 million, mit operativen Margen von 6,9% bzw. 7,9%.
Der Bereich Packaged Meats zeigte eine robuste Entwicklung mit einem operativen Gewinn von $301 million und einer Marge von 14,5%. Die finanzielle Lage ist solide: $3.2 billion verfügbare Liquidität und ein Verhältnis Nettoverschuldung/bereinigtes EBITDA von 0,7x. Smithfield hat seine FY2025-Prognose, insbesondere für das Segment Hog Production, nach oben angepasst und die Quartalsdividende von $0.25 je Aktie beibehalten.
- Nettoerlöse stiegen im 2Q 2025 um 11,0% auf $3.8 billion
- Bereinigtes verwässertes EPS stieg auf $0.55 von $0.51 im Jahresvergleich
- Starke Liquidität von $3.2 billion bei geringer Verschuldung (0,7x)
- Erhöhte Jahresprognose für das bereinigte operative Ergebnis auf $1,150–1,350 million
- Packaged Meats erreichte eine operative Marge von 14,5%
- Hog Production wurde mit $22 million operativem Gewinn gegenüber einem Verlust von $2 million im Vorjahr profitabel
- None.
- Packaged Meats operating profit declined 8.7% to $301 million
- Fresh Pork segment operating profit dropped 39.3% to $35 million
- Overall operating profit decreased 22.2% to $260 million in Q2
- Corporate unallocated expenses increased by $53 million (200.1%)
Insights
Smithfield Foods delivered strong Q2 results with 11% revenue growth and improved earnings despite headwinds in some segments.
Smithfield Foods has reported impressive Q2 2025 results, with
The Packaged Meats segment continues to be the profit powerhouse, generating
Fresh Pork segment faced challenges with operating profit dropping
The most dramatic improvement came from Hog Production, which swung from a
Financial health remains strong with
Based on these results, Smithfield has increased its full-year adjusted operating profit guidance to
SMITHFIELD, Va., Aug. 12, 2025 (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 2025 second quarter ended June 29, 2025.
Second Quarter Fiscal 2025 Financial Highlights
- Net sales of
$3.8 billion , up11.0% from the second quarter of 2024 - Operating profit of
$260 million ; Adjusted operating profit of$298 million - Operating margin of
6.9% ; Adjusted operating margin of7.9% - Packaged Meats operating profit of
$301 million ; operating profit margin of14.5% - Packaged Meats adjusted operating profit of
$296 million ; adjusted operating profit margin of14.2% - Diluted earnings per share from continuing operations attributable to Smithfield of
$0.48 per share - Adjusted diluted earnings per share from continuing operations attributable to Smithfield of
$0.55 per share, up from$0.51 per share in the second quarter of 2024
First Six Months Fiscal 2025 Financial Highlights
- Net sales of
$7.6 billion , up10.2% from the first half of 2024 - Operating profit of
$582 million ; Adjusted operating profit of$624 million - Operating margin of
7.7% ; Adjusted operating margin of8.3% - Packaged Meats operating profit of
$567 million ; operating profit margin of13.8% - Packaged Meats adjusted operating profit of
$562 million ; adjusted operating profit margin of13.7% - Diluted earnings per share from continuing operations attributable to Smithfield of
$1.05 per share - Adjusted diluted earnings per share from continuing operations attributable to Smithfield of
$1.13 per share, up from$0.83 per share in the first half of 2024
CEO Perspective
“Our strong second quarter results demonstrate the agility and resilience of our business as we navigate a dynamic macroeconomic environment. Through our iconic and diversified brand portfolio, our Packaged Meats segment is delivering on consumers’ needs for quality protein at a great value. Our Fresh Pork segment is adeptly navigating a dynamic tariff environment, and our Hog Production segment continues to grow profitability,” said Smithfield President and CEO Shane Smith.
“With a solid first half company performance and improved outlook for the Hog Production segment, we have raised our full-year adjusted operating profit outlook,” added Smith. “Our strong financial position continues to enable us to invest in our growth strategies and generate value for shareholders over the long term.”
Review of Financial Results
Results of Operations
Sales
| Three Months Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | $ Change | % Change | |||||||||||
| (in millions) | ||||||||||||||
| Sales by segment: | ||||||||||||||
| Packaged Meats | $ | 2,079 | $ | 1,945 | $ | 134 | 6.9 | % | ||||||
| Fresh Pork | 2,080 | 1,981 | 99 | 5.0 | % | |||||||||
| Hog Production | 840 | 776 | 65 | 8.4 | % | |||||||||
| Other | 120 | 119 | 1 | 1.2 | % | |||||||||
| Total segment sales | 5,120 | 4,820 | 300 | 6.2 | % | |||||||||
| Inter-segment sales eliminations: | ||||||||||||||
| Fresh Pork | (810 | ) | (744 | ) | (66 | ) | 8.8 | % | ||||||
| Hog Production | (524 | ) | (664 | ) | 140 | (21.1 | )% | |||||||
| Total inter-segment sales eliminations | (1,334 | ) | (1,408 | ) | 75 | (5.3 | )% | |||||||
| Consolidated sales | $ | 3,786 | $ | 3,412 | $ | 374 | 11.0 | % | ||||||
| Six Months Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | $ Change | % Change | |||||||||||
| (in millions) | ||||||||||||||
| Sales by segment: | ||||||||||||||
| Packaged Meats | $ | 4,103 | $ | 3,944 | $ | 159 | 4.0 | % | ||||||
| Fresh Pork | 4,114 | 3,920 | 194 | 5.0 | % | |||||||||
| Hog Production | 1,772 | 1,482 | 291 | 19.6 | % | |||||||||
| Other | 224 | 233 | (8 | ) | (3.6 | )% | ||||||||
| Total segment sales | 10,213 | 9,578 | 635 | 6.6 | % | |||||||||
| Inter-segment sales eliminations: | ||||||||||||||
| Fresh Pork | (1,597 | ) | (1,479 | ) | (118 | ) | 7.9 | % | ||||||
| Hog Production | (1,059 | ) | (1,242 | ) | 184 | (14.8 | )% | |||||||
| Total inter-segment sales eliminations | (2,656 | ) | (2,722 | ) | 66 | (2.4 | )% | |||||||
| Consolidated sales | $ | 7,558 | $ | 6,856 | $ | 701 | 10.2 | % | ||||||
Operating Profit
| Three Months Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | $ Change | % Change | |||||||||||
| (in millions) | ||||||||||||||
| Packaged Meats | $ | 301 | $ | 330 | $ | (29 | ) | (8.7 | )% | |||||
| Fresh Pork | 35 | 58 | (23 | ) | (39.3 | )% | ||||||||
| Hog Production | 22 | (2 | ) | 24 | NM | |||||||||
| Other | 7 | 7 | 1 | 8.5 | % | |||||||||
| Corporate expenses | (26 | ) | (32 | ) | 6 | 17.9 | % | |||||||
| Unallocated | (80 | ) | (27 | ) | (53 | ) | (200.1 | )% | ||||||
| Operating profit | $ | 260 | $ | 334 | $ | (74 | ) | (22.2 | )% | |||||
| Six Months Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | $ Change | % Change | |||||||||||
| (in millions) | ||||||||||||||
| Packaged Meats | $ | 567 | $ | 616 | $ | (49 | ) | (7.9 | )% | |||||
| Fresh Pork | 117 | 168 | (51 | ) | (30.4 | )% | ||||||||
| Hog Production | 23 | (176 | ) | 199 | NM | |||||||||
| Other | 22 | (2 | ) | 23 | NM | |||||||||
| Corporate expenses | (55 | ) | (64 | ) | 9 | 13.6 | % | |||||||
| Unallocated | (92 | ) | (44 | ) | (47 | ) | (106.4 | )% | ||||||
| Operating profit | $ | 582 | $ | 498 | $ | 84 | 16.8 | % | ||||||
Financial Position
As of June 29, 2025, 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 from continuing operations to the most comparable GAAP measure.
Dividend Update
On April 22, 2025 and May 29, 2025, we paid dividends of
FY 2025 Outlook
For Fiscal Year 2025, the Company is increasing its outlook originally provided on March 25, 2025 as follows:
- Reaffirming total Company sales to increase in the low-to-mid-single-digit percent range compared to fiscal year 2024. For comparability purposes, this outlook range excludes the impact from Hog Production segment sales to recently formed Murphy Family Farms and VisionAg.
- Reaffirming Packaged Meats segment adjusted operating profit of between
$1,050 million to$1,150 million . - Reaffirming Fresh Pork segment adjusted operating profit of between
$150 million to$250 million . - Increasing Hog Production segment adjusted operating profit to between
$0 million to$100 million . - Increasing total Company adjusted operating profit to between
$1,150 million to$1,350 million . - Reaffirming capital expenditures of between
$400 million to$500 million . Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. - Reaffirming an effective tax rate of between
23.0% and25.0% .
Conference Call Information
A conference call to discuss the second quarter 2025 financial results is scheduled for today, August 12, 2025, at 9:00 a.m. Eastern Time. A live audio webcast of the conference call, together with related materials, will be available online at investors.smithfieldfoods.com or by dialing 844-539-3338 (international callers please dial 412-652-1269).
A recorded replay of the conference call is expected to be available approximately three hours after the conclusion of the call and can be accessed both online at investors.smithfieldfoods.com and by dialing 877-344-7529 (international callers please dial 412-317-0088). The pin number to access the telephone replay is 9318100. The replay will be available until August 19, 2025.
About Smithfield Foods
Smithfield Foods, Inc. (Nasdaq: SFD) is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with U.S. farmers and customers, we responsibly meet demand for quality protein around the world.
Non-GAAP Financial Measures
This press release includes certain financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including (1) adjusted net income from continuing operations attributable to Smithfield, (2) adjusted net income from continuing operations per common share attributable to Smithfield, (3) EBITDA from continuing operations, (4) adjusted EBITDA from continuing operations, (5) adjusted EBITDA margin from continuing operations, (6) adjusted operating profit, (7) adjusted operating profit margin, (8) net debt and (9) ratio of net debt to adjusted EBITDA from continuing operations. We refer to these measures as “non-GAAP” financial measures.
(1) Adjusted net income from continuing operations attributable to Smithfield is defined as net income (loss), excluding the effects of legal settlements (both gain and loss) and loss contingencies, transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses) and the tax effects of the foregoing items. We believe that adjusted net income from continuing operations attributable to Smithfield is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (2) Adjusted net income from continuing operations per common share attributable to Smithfield is defined as adjusted net income from continuing operations attributable to Smithfield divided by total outstanding common shares. (3) EBITDA from continuing operations is defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA is a useful measure because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis. (4) Adjusted EBITDA from continuing operations is defined as EBITDA further adjusted for legal settlements (both gain and loss) and loss contingencies and transactions or events that are not part of our core business activities or are unusual in nature (whether gains or losses). We believe that adjusted EBITDA from continuing operations is a useful measure because it excludes the effects of discontinued operations, non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (5) Adjusted EBITDA margin from continuing operations is defined as adjusted EBITDA from continuing operations divided by total sales. We believe that adjusted EBITDA margin from continuing operations is a useful measure because it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities. (6) Adjusted operating profit is defined as operating profit, excluding items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. (7) Adjusted operating profit margin is adjusted operating profit expressed as a percentage of revenues. We believe that adjusted net income from continuing operations attributable to Smithfield, adjusted net income from continuing operations per common share attributable to Smithfield, adjusted operating profit and adjusted operating profit margin provide a better understanding of underlying operating results and trends of established, ongoing operations of our business. (8) Net debt is defined as long-term debt and finance lease obligations, including the current portion, minus cash and cash equivalents. We believe that net debt is a useful measure because it helps to give investors a clear understanding of our financial position and is also used to calculate certain leverage ratios. (9) Ratio of net debt to adjusted EBITDA from continuing operations is defined as net debt divided by adjusted EBITDA from continuing operations. We believe that ratio of net debt to adjusted EBITDA from continuing operations is a useful measure because it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA from continuing operations, which is used as an operating performance measure.
Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies in industries similar to ours, these non-GAAP measures have limitations as analytical tools, are not measurements of our performance under GAAP and should not be considered as alternatives to operating profit, net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions, as such non-GAAP measures exclude a number of important cash and non-cash charges.
You should be aware that our presentation of these and other non-GAAP financial measures in this press release may not be comparable to similarly titled measures used by other companies. A reconciliation of each of these non-GAAP measures to its most directly comparable financial measure calculated in accordance with GAAP is provided in this release.
The Company’s outlook for fiscal year 2025 includes adjusted operating profit and adjusted segment operating profit. The Company is not able to reconcile its fiscal year 2025 projected adjusted results to its fiscal year 2025 projected GAAP results because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, the Company is unable to provide a reconciliation for these forward-looking non-GAAP measures without unreasonable effort.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward- looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “contemplates,” “believes,” or “estimates” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Specific forward-looking statements in this press release include our ability to invest in growth and increase value for our shareholders; our financial outlook for 2025; and the anticipated payment of annual dividends of
We have based the forward-looking statements contained in this press release primarily on our current expectations, estimates, forecasts and projections about future events and trends that we believe may affect our business, results of operations, financial condition and prospects. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this press release in light of new information or future events.
The forward-looking statements contained in this press release are subject to substantial risks and uncertainties that could affect our current expectations and our actual results, including, among others: (i) the cyclical nature of our operations and fluctuations in commodity prices; (ii) our dependence on third- party suppliers; (iii) our ability to execute on our strategy to optimize the size of our hog production operations; (iv) our ability to navigate geopolitical risks including increased tariffs on our exports, (v) our ability to mitigate higher input costs through productivity improvements in our operations, procurement strategies and the use of derivative instruments; (vi) our ability to compete successfully in the food industry; (vii) our ability to anticipate and meet consumer trends and interests through product innovation; (viii) compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations in the United States and Mexico; (ix) our ability to defend litigation brought against us and the sufficiency of our accruals for related contingent losses; (x) our ability to prevent cyberattacks, security breaches or other disruptions of our information technology systems; (xi) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (xii) our dividend policy and our ability to pay dividends; and (xiii) our status as a “controlled company” and any resulting potential conflicts of interest. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Smithfield’s Investor Relations Department at 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 for share and per share data, and unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | |||||||||||
| Sales | $ | 3,786 | $ | 3,412 | $ | 7,558 | $ | 6,856 | ||||||
| Cost of sales | 3,288 | 2,885 | 6,549 | 5,967 | ||||||||||
| Gross profit | 499 | 527 | 1,008 | 889 | ||||||||||
| Selling, general and administrative expenses | 268 | 194 | 465 | 393 | ||||||||||
| Operating gains | (30 | ) | (2 | ) | (39 | ) | (3 | ) | ||||||
| Operating profit | 260 | 334 | 582 | 498 | ||||||||||
| Interest expense, net | 11 | 19 | 22 | 35 | ||||||||||
| Non-operating (gains) losses | (4 | ) | (2 | ) | 2 | (6 | ) | |||||||
| Income from continuing operations before income taxes | 254 | 317 | 558 | 469 | ||||||||||
| Income tax expense | 62 | 58 | 134 | 96 | ||||||||||
| Loss from equity method investments | 3 | — | 8 | 1 | ||||||||||
| Net income from continuing operations | 188 | 259 | 415 | 372 | ||||||||||
| Net income from continuing operations attributable to noncontrolling interests | — | 3 | 4 | 2 | ||||||||||
| Net income from continuing operations attributable to Smithfield | 188 | 256 | 412 | 370 | ||||||||||
| Income from discontinued operations before income taxes | — | 84 | — | 138 | ||||||||||
| Income tax expense from discontinued operations | — | 37 | — | 49 | ||||||||||
| Net income from discontinued operations | — | 47 | — | 89 | ||||||||||
| Net income from discontinued operations attributable to noncontrolling interests | — | 1 | — | 1 | ||||||||||
| Net income from discontinued operations attributable to Smithfield | — | 45 | — | 87 | ||||||||||
| Net income | 188 | 306 | 415 | 460 | ||||||||||
| Net income attributable to noncontrolling interests | — | 4 | 4 | 3 | ||||||||||
| Net income attributable to Smithfield | $ | 188 | $ | 301 | $ | 412 | $ | 457 | ||||||
| Net income per common share attributable to Smithfield: | ||||||||||||||
| Basic and diluted: | ||||||||||||||
| Continuing operations | $ | 0.48 | $ | 0.67 | $ | 1.05 | $ | 0.97 | ||||||
| Discontinued operations | — | 0.12 | — | 0.23 | ||||||||||
| Total | $ | 0.48 | $ | 0.79 | $ | 1.05 | $ | 1.20 | ||||||
| Weighted-average shares outstanding: | ||||||||||||||
| Basic | 393,112,711 | 380,069,232 | 390,962,687 | 380,069,232 | ||||||||||
| Diluted | 393,751,294 | 380,069,232 | 391,410,859 | 380,069,232 | ||||||||||
| SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions, except share data, and unaudited) | |||||||
| June 29, 2025 | December 29, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 928 | $ | 943 | |||
| Accounts receivable, net | 773 | 558 | |||||
| Inventories, net | 2,288 | 2,412 | |||||
| Prepaid expenses and other current assets | 302 | 290 | |||||
| Total current assets | 4,292 | 4,202 | |||||
| Property, plant and equipment, net | 3,175 | 3,176 | |||||
| Goodwill | 1,619 | 1,613 | |||||
| Intangible assets, net | 1,262 | 1,266 | |||||
| Operating lease assets | 380 | 335 | |||||
| Equity method investments | 203 | 202 | |||||
| Other assets | 254 | 260 | |||||
| Total assets | $ | 11,186 | $ | 11,054 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 444 | 777 | |||||
| Current portion of long-term debt and finance lease obligations | 3 | 3 | |||||
| Current portion of operating lease obligations | 68 | 56 | |||||
| Accrued expenses and other current liabilities | 824 | 871 | |||||
| Total current liabilities | 1,339 | 1,706 | |||||
| Long-term debt and finance lease obligations | 2,001 | 1,999 | |||||
| Long-term operating lease obligations | 318 | 286 | |||||
| Deferred income taxes, net | 503 | 518 | |||||
| Net long-term pension obligation | 271 | 279 | |||||
| Other liabilities | 209 | 208 | |||||
| Redeemable noncontrolling interests | 245 | 225 | |||||
| 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; 393,112,711 shares issued and outstanding as of June 29, 2025 and 380,069,232 shares issued and outstanding as of December 29, 2024 | — | — | |||||
| Additional paid-in capital | 3,335 | 3,102 | |||||
| Retained earnings | 3,398 | 3,184 | |||||
| Accumulated other comprehensive loss | (432 | ) | (452 | ) | |||
| Total shareholders’ equity | 6,301 | 5,834 | |||||
| Total liabilities and equity | $ | 11,186 | $ | 11,054 | |||
| SMITHFIELD FOODS, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in millions and unaudited) | |||||||
| Six Months Ended | |||||||
| June 29, 2025 | June 30, 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 415 | $ | 460 | |||
| Less: Net income from discontinued operations | — | (89 | ) | ||||
| Net income from continuing operations | $ | 415 | $ | 372 | |||
| Adjustments to reconcile net income from continuing operations to net cash flows from operating activities of continuing operations: | |||||||
| Depreciation and amortization | 165 | 165 | |||||
| Changes in operating and other assets and liabilities, net | (446 | ) | (591 | ) | |||
| Other | (27 | ) | 46 | ||||
| Net cash flows from (used in) operating activities of continuing operations | 108 | (9 | ) | ||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (158 | ) | (173 | ) | |||
| Net expenditures from breeding stock transactions | (13 | ) | (42 | ) | |||
| Other | (1 | ) | — | ||||
| Net cash flows used in investing activities of continuing operations | (171 | ) | (215 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds from issuance of common stock | 236 | — | |||||
| Repayments to Securitization Facility | — | (14 | ) | ||||
| Proceeds from Securitization Facility | — | 14 | |||||
| Principal payments on long-term debt and finance lease obligations | (1 | ) | (19 | ) | |||
| Payment of dividends | (197 | ) | (182 | ) | |||
| Other | — | (1 | ) | ||||
| Net cash flows from (used in) financing activities of continuing operations | 38 | (202 | ) | ||||
| Effect of foreign exchange rate changes on cash from continuing operations | 10 | (6 | ) | ||||
| Cash flows from discontinued operations: | |||||||
| Net cash flows from operating activities of discontinued operations | — | 171 | |||||
| Net cash flows used in investing activities of discontinued operations | — | (143 | ) | ||||
| Net cash flows used in financing activities of discontinued operations | — | (61 | ) | ||||
| Effect of foreign exchange rate changes on cash from discontinued operations | — | (1 | ) | ||||
| Net change in cash and cash equivalents of discontinued operations | — | (35 | ) | ||||
| Net change in cash, cash equivalents and restricted cash | (15 | ) | (467 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period (including discontinued operations) | 943 | 751 | |||||
| Cash, cash equivalents and restricted cash at end of period (including discontinued operations) | 928 | 284 | |||||
| Less: Cash, cash equivalents and restricted cash attributable to discontinued operations at end of period | — | (69 | ) | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 928 | $ | 215 | |||
Non-GAAP Financial Measures
Adjusted Net Income from Continuing Operations Attributable to Smithfield and Adjusted Net Income from Continuing Operations per Common Share Attributable to Smithfield
The following table provides a reconciliation of net income from continuing operations attributable to Smithfield to adjusted net income from continuing operations attributable to Smithfield.
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | Affected income statement account | |||||||||||||
| (in millions, except per share data) | |||||||||||||||||
| Net income from continuing operations attributable to Smithfield | $ | 188 | $ | 256 | $ | 412 | $ | 370 | |||||||||
| Litigation charges | 73 | — | 73 | — | SG&A | ||||||||||||
| Reduction in workforce (1) | — | — | 6 | — | SG&A | ||||||||||||
| Reduction in workforce (1) | — | — | 2 | — | Cost of sales | ||||||||||||
| Office closures (2) | 4 | — | 4 | — | SG&A | ||||||||||||
| Hog Production Reform (3) | — | — | 2 | 10 | Cost of sales | ||||||||||||
| Hog Production Reform | — | — | (1 | ) | — | Operating gains | |||||||||||
| Plant closure | — | — | 2 | — | Cost of sales | ||||||||||||
| Incremental costs from destruction of property | — | 2 | — | 4 | Cost of sales | ||||||||||||
| Employee retention tax credits (4) | (10 | ) | (86 | ) | (10 | ) | (86 | ) | Cost of sales | ||||||||
| Employee retention tax credits (4) | — | (1 | ) | — | (1 | ) | SG&A | ||||||||||
| Insurance recoveries (5) | (29 | ) | (1 | ) | (35 | ) | (1 | ) | Operating gains | ||||||||
| Income tax effect of non-GAAP adjustments (6) | (10 | ) | 22 | (11 | ) | 19 | Income tax expense | ||||||||||
| Adjusted net income from continuing operations attributable to Smithfield | $ | 217 | $ | 192 | 443 | 315 | |||||||||||
| Net income from continuing operations attributable to Smithfield per diluted common share | $ | 0.48 | $ | 0.67 | $ | 1.05 | $ | 0.97 | |||||||||
| Adjusted net income from continuing operations attributable to Smithfield per diluted common share | $ | 0.55 | $ | 0.51 | $ | 1.13 | $ | 0.83 | |||||||||
________________
(1) Consists of severance costs associated with a workforce reduction initiative. 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 contract termination costs, employee termination benefits and accelerated depreciation charges associated with our Hog Production Reform initiative.
(4) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
(5) Consists of gains recognized in connection with settlements of insurance claims, including: (1) a gain recognized in the second quarter of 2025 related to a claim against an insurance carrier for losses incurred in connection with past litigation and (2) a gain recognized in the first quarter of 2025 in connection with a 2021 fire at our Tar Heel, North Carolina rendering facility.
(6) Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of
EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations and
Adjusted EBITDA Margin from Continuing Operations
The following table provides a reconciliation of net income from continuing operations to EBITDA from continuing operations and adjusted EBITDA from continuing operations.
| Three Months Ended | Six Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | June 29, 2025 | December 29, 2024 | Affected income statement account | |||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||
| Net income from continuing operations | $ | 188 | $ | 259 | $ | 415 | $ | 372 | $ | 841 | $ | 798 | |||||||||||||
| Interest expense, net | 11 | 19 | 22 | 35 | 53 | 66 | |||||||||||||||||||
| Income tax expense | 62 | 58 | 134 | 96 | 308 | 271 | |||||||||||||||||||
| Depreciation and amortization | 82 | 83 | 165 | 165 | 340 | 339 | |||||||||||||||||||
| EBITDA from continuing operations | $ | 344 | $ | 419 | $ | 736 | $ | 668 | $ | 1,542 | $ | 1,474 | |||||||||||||
| Litigation charges | 73 | — | 73 | — | 73 | — | SG&A | ||||||||||||||||||
| Reduction in workforce (1) | — | — | 6 | — | 6 | — | SG&A | ||||||||||||||||||
| Reduction in workforce (1) | — | — | 2 | — | 2 | — | Cost of sales | ||||||||||||||||||
| Office closures (2) | 4 | — | 4 | — | 4 | — | SG&A | ||||||||||||||||||
| Plant closure (3) | — | — | 1 | — | 1 | — | Cost of sales | ||||||||||||||||||
| Hog Production Reform (4) | — | — | 1 | 10 | 20 | 29 | Cost of sales | ||||||||||||||||||
| Hog Production Reform (5) | — | — | (1 | ) | — | (39 | ) | (38 | ) | Operating gains | |||||||||||||||
| Incremental costs from destruction of property | — | 2 | — | 4 | — | 4 | Cost of sales | ||||||||||||||||||
| Employee retention tax credits (6) | (10 | ) | (86 | ) | (10 | ) | (86 | ) | (10 | ) | (86 | ) | Cost of sales | ||||||||||||
| Employee retention tax credits (6) | — | (1 | ) | — | (1 | ) | — | (1 | ) | SG&A | |||||||||||||||
| Insurance recoveries (7) | (29 | ) | (1 | ) | (35 | ) | (1 | ) | (37 | ) | (4 | ) | Operating gains | ||||||||||||
| Adjusted EBITDA from continuing operations | $ | 381 | $ | 333 | $ | 777 | $ | 594 | $ | 1,562 | $ | 1,379 | |||||||||||||
| Net income margin from continuing operations | 5.0 | % | 7.6 | % | 5.5 | % | 5.4 | % | 5.7 | % | 5.6 | % | |||||||||||||
| Adjusted EBITDA margin from continuing operations | 10.1 | % | 9.7 | % | 10.3 | % | 8.7 | % | 10.5 | % | 9.7 | % | |||||||||||||
________________
(1) Consists of severance costs associated with a workforce reduction initiative. 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) Excludes accelerated depreciation charges in the amount of
(4) Consists of contract termination costs and employee termination benefits charges associated with our Hog Production Reform initiative. Excludes accelerated depreciation charges of
(5) Includes a
(6) Represents the recognition of employee retention tax credits received under the CARES Act.
(7) Consists of gains recognized in connection with settlements of insurance claims, including: (1) a gain recognized in the second quarter of 2025 related to a claim against an insurance carrier for losses incurred in connection with past litigation and (2) a gain recognized in the first quarter of 2025 in connection with a 2021 fire at our Tar Heel, North Carolina rendering facility.
Net Debt and Ratio of Net Debt to Adjusted EBITDA from Continuing Operations
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 from continuing operations, and the ratio of net debt to adjusted EBITDA.
| Twelve Months Ended | |||||||
| June 29, 2025 | December 29, 2024 | ||||||
| (in millions, except ratios) | |||||||
| Current portion of long-term debt and capital lease | $ | 3 | $ | 3 | |||
| Long-term debt and finance lease obligations | 2,001 | 1,999 | |||||
| Total debt and finance lease obligations | 2,003 | 2,002 | |||||
| Cash and cash equivalents | (928 | ) | (943 | ) | |||
| Net debt | $ | 1,075 | $ | 1,059 | |||
| Net income from continuing operations | $ | 841 | $ | 798 | |||
| Adjusted EBITDA from continuing operations | $ | 1,562 | $ | 1,379 | |||
| Ratio of total debt and finance lease obligations to net income from continuing operations | 2.4x | 2.5x | |||||
| Ratio of net debt to adjusted EBITDA from continuing operations | 0.7x | 0.8x | |||||
Adjusted Operating Profit and Adjusted Operating Profit Margin
The following table provides a reconciliation of operating profit to adjusted operating profit. Adjusted operating profit and adjusted operating profit margin are non-GAAP measures.
| Three Months Ended June 29, 2025 | Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||
| Operating profit (loss) | $ | 301 | $ | 35 | $ | 22 | $ | 7 | $ | (26 | ) | $ | (80 | ) | $ | 260 | |||||||||||
| Litigation charges | — | — | — | — | — | 73 | 73 | ||||||||||||||||||||
| Office closures (4) | — | — | — | — | — | 4 | 4 | ||||||||||||||||||||
| Employee retention tax credits (5) | (5 | ) | (5 | ) | — | — | — | — | (10 | ) | |||||||||||||||||
| Insurance recoveries (6) | — | — | — | — | — | (29 | ) | (29 | ) | ||||||||||||||||||
| Adjusted operating profit (loss) | 296 | 30 | 22 | 7 | (26 | ) | (31 | ) | 298 | ||||||||||||||||||
| Operating profit (loss) margin | 14.5 | % | 1.7 | % | 2.6 | % | 6.1 | % | NM | NM | 6.9 | % | |||||||||||||||
| Adjusted operating profit (loss) margin | 14.2 | % | 1.4 | % | 2.6 | % | 6.1 | % | NM | NM | 7.9 | % | |||||||||||||||
| Three Months Ended June 30, 2024 | Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated(3) | Consolidated | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||
| Operating profit (loss) | $ | 330 | $ | 58 | $ | (2 | ) | $ | 7 | $ | (32 | ) | $ | (27 | ) | $ | 334 | ||||||||||
| Incremental costs from destruction of property | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||
| Insurance recoveries | — | — | — | — | — | (1 | ) | $ | (1 | ) | |||||||||||||||||
| Employee retention tax credits (5) | (38 | ) | (41 | ) | (8 | ) | — | — | — | $ | (87 | ) | |||||||||||||||
| Adjusted operating profit (loss) | $ | 292 | $ | 17 | $ | (10 | ) | $ | 7 | $ | (32 | ) | $ | (25 | ) | $ | 248 | ||||||||||
| Operating profit (loss) margin | 17.0 | % | 2.9 | % | (0.3 | )% | 5.7 | % | NM | NM | 9.8 | % | |||||||||||||||
| Adjusted operating profit (loss) margin | 15.0 | % | 0.9 | % | (1.3 | )% | 5.7 | % | NM | NM | 7.3 | % | |||||||||||||||
_______________
(1) Includes our Mexico and Bioscience operations.
(2) Represents general corporate expenses for management and administration of the business.
(3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.
(4) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(5) Represents the recognition of employee retention tax credits received under the CARES Act.
(6) Consists of a gain recognized in the second quarter of 2025 for the settlement of a claim with an insurance carrier to recover losses incurred in connection with past litigation.
| Six Months Ended June 29, 2025 | Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated (3) | Consolidated | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||
| Operating profit (loss) | $ | 567 | $ | 117 | $ | 23 | $ | 22 | $ | (55 | ) | $ | (92 | ) | $ | 582 | |||||||||||
| Litigation charges | — | — | — | — | — | 73 | 73 | ||||||||||||||||||||
| Reduction in workforce (4) | — | — | — | — | — | 9 | 9 | ||||||||||||||||||||
| Office closures (5) | — | — | — | — | — | 4 | 4 | ||||||||||||||||||||
| Plant closure | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||
| Hog Production Reform | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
| Employee retention tax credits (6) | (5 | ) | (5 | ) | — | — | — | — | (10 | ) | |||||||||||||||||
| Insurance recoveries (7) | — | — | — | — | — | (35 | ) | (35 | ) | ||||||||||||||||||
| Adjusted operating profit (loss) | $ | 562 | $ | 112 | $ | 23 | $ | 22 | $ | (55 | ) | $ | (39 | ) | $ | 624 | |||||||||||
| Operating profit (loss) margin | 13.8 | % | 2.8 | % | 1.3 | % | 9.6 | % | NM | NM | 7.7 | % | |||||||||||||||
| Adjusted operating profit (loss) margin | 13.7 | % | 2.7 | % | 1.3 | % | 9.6 | % | NM | NM | 8.3 | % | |||||||||||||||
| Six Months Ended June 30, 2024 | Packaged Meats | Fresh Pork | Hog Production | Other (1) | Corporate (2) | Unallocated(3) | Consolidated | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||
| Operating profit (loss) | $ | 616 | $ | 168 | $ | (176 | ) | $ | (2 | ) | $ | (64 | ) | $ | (44 | ) | $ | 498 | |||||||||
| Hog Production Reform (8) | — | — | — | — | — | 10 | 10 | ||||||||||||||||||||
| Incremental costs from destruction of property | — | — | — | — | — | 4 | 4 | ||||||||||||||||||||
| Insurance recoveries | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
| Employee retention tax credits (6) | (38 | ) | (41 | ) | (8 | ) | — | — | — | (87 | ) | ||||||||||||||||
| Adjusted operating profit (loss) | $ | 577 | $ | 127 | $ | (184 | ) | $ | (2 | ) | $ | (64 | ) | $ | (31 | ) | $ | 424 | |||||||||
| Operating profit (loss) margin | 15.6 | % | 4.3 | % | (11.9 | )% | (0.7 | )% | NM | NM | 7.3 | % | |||||||||||||||
| Adjusted operating profit (loss) margin | 14.6 | % | 3.2 | % | (12.4 | )% | (0.7 | )% | NM | NM | 6.2 | % | |||||||||||||||
_______________
(1) Includes our Mexico and Bioscience operations.
(2) Represents general corporate expenses for management and administration of the business.
(3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.
(4) Consists of severance costs associated with a workforce reduction initiative.
(5) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(6) Represents the recognition of employee retention tax credits received under the CARES Act.
(7) Consists of gains recognized in connection with settlements of insurance claims, including: (1) a gain recognized in the second quarter of 2025 related to a claim against an insurance carrier for losses incurred in connection with past litigation and (2) a gain recognized in the first quarter of 2025 in connection with a 2021 fire at our Tar Heel, North Carolina rendering facility.
(8) Consists of contract termination costs, employee termination benefits and accelerated depreciation charges associated with our Hog Production Reform initiative.
FAQ
What were Smithfield Foods (SFD) key financial results for Q2 2025?
How did Smithfield's Packaged Meats segment perform in Q2 2025?
What is Smithfield's dividend payment schedule for 2025?
What is Smithfield's updated guidance for fiscal year 2025?
What is Smithfield's current financial position and liquidity?
