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Smithfield Foods (SFD) boosts earnings but trims 2026 profit guidance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Smithfield Foods, Inc. reported fiscal 2026 second-quarter and first-half results showing lower sales but significantly higher profitability and cash generation. Q2 net sales were $3.7 billion, down 2.3% year over year, mainly due to non-recurring hog production joint-venture sales in 2025 and calendar timing, while Q2 operating profit rose 11.6% to $290 million and adjusted operating profit reached a record second quarter level of $300 million. Q2 net income attributable to Smithfield increased 26.6% to $238 million, with diluted EPS of $0.60.

For the first six months of 2026, net sales were $7.5 billion, down 0.8% from 2025, but operating profit rose 7.1% to $623 million and record first-half adjusted operating profit was $638 million, up 2.3%. First-half net income attributable to Smithfield grew 17.6% to $484 million, with diluted EPS of $1.23. Segment results were mixed: Packaged Meats profits and margins declined versus 2025, while Hog Production profits improved sharply.

Liquidity remained strong, with $3,648 million of available liquidity, including $1,350 million in cash and a net debt to adjusted EBITDA ratio of 0.4x. The board declared a quarterly dividend of $0.3125 per share and anticipates an annual dividend of $1.25 per share in 2026, subject to board discretion. Reflecting macroeconomic headwinds, the company reduced its 2026 outlook, now expecting total sales to be roughly flat with 2025 and total company adjusted operating profit of $1,225–$1,375 million, lower than the prior $1,325–$1,475 million range, with notable reductions in the Hog Production segment guidance.

Positive

  • Record first-half adjusted operating profit of $638 million, up 2.3% from the first half of 2025, indicates stronger underlying profitability despite slightly lower sales.
  • First-half net income attributable to Smithfield rose 17.6% to $484 million, while Q2 net income grew 26.6% to $238 million, driving higher diluted EPS.
  • Operating cash flow for the first half of 2026 was $204 million, an increase of $96 million versus the first half of 2025, enhancing internal funding capacity.
  • Very low leverage, with net debt of $654 million and a net debt to adjusted EBITDA ratio of 0.4x, alongside available liquidity of $3,648 million, supports financial flexibility.
  • Stable dividend profile, with a declared quarterly dividend of $0.3125 per share and an anticipated annual rate of $1.25 per share for 2026, signals continued capital return.

Negative

  • Consolidated net sales declined 2.3% in Q2 2026 to $3.7 billion and 0.8% in the first half to $7.5 billion, reflecting softer top-line momentum.
  • Packaged Meats segment profitability weakened, with Q2 operating profit falling from $301 million to $265 million and margins compressing from 14.5% to 13.1%.
  • Fresh Pork segment performance softened, as Q2 operating profit declined from $35 million to $14 million and margin dropped from 1.7% to 0.7%.
  • Full-year guidance was reduced: total company adjusted operating profit outlook lowered to $1,225–$1,375 million from $1,325–$1,475 million, acknowledging macroeconomic pressures.
  • Hog Production guidance cut significantly, with fiscal 2026 adjusted operating profit now projected at $75–$125 million versus a prior range of $150–$200 million.

Filing Explained

At June 28, cash was $1.35 billion and $2.298 billion of committed credit capacity remained available.

The completed Form 8-K furnishes the company’s results for the quarter ended June 28, 2026 and an updated financial-position snapshot.

The $2.298 billion under committed credit facilities is borrowing availability—not cash already held—and brings reported available liquidity to $3.648 billion when combined with cash.

The FY 2026 outlook excludes the proposed Nathan’s Famous acquisition and the Sioux Falls processing-facility investment, so the stated ranges do not include their impact.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $3.7 billion Consolidated sales for the three months ended June 28, 2026; down 2.3% vs Q2 2025
Q2 2026 Operating Profit $290 million Operating profit for the three months ended June 28, 2026; up 11.6% vs Q2 2025
First-Half 2026 Adjusted Operating Profit $638 million Record first half adjusted operating profit; up 2.3% vs first half 2025
First-Half 2026 Net Income Attributable to Smithfield $484 million Net income attributable to Smithfield for six months ended June 28, 2026; up 17.6% year over year
Available Liquidity $3,648 million Cash and cash equivalents plus availability under committed credit facilities as of June 28, 2026
Net Debt to Adjusted EBITDA 0.4x Ratio on a trailing twelve months basis as of June 28, 2026
2026 Adjusted Operating Profit Outlook $1,225–$1,375 million Updated total company adjusted operating profit guidance for fiscal 2026; reduced from $1,325–$1,475 million
Quarterly Dividend $0.3125 per share Cash dividend declared July 30, 2026, payable August 27, 2026
adjusted operating profit financial
"record second quarter adjusted operating profit(1) of $300 million, up slightly"
Adjusted operating profit is a measure of a company’s routine profit from its core business activities after removing one‑time events, unusual costs or non‑cash items so the result reflects ongoing operations. Think of it like judging a car’s normal fuel efficiency after ignoring a single visit to the body shop; investors use it to compare underlying profitability across periods or peers and to judge whether the business is sustainably earning money, but the specific exclusions can be subjective.
adjusted EBITDA financial
"Adjusted EBITDA is defined as EBITDA further adjusted for the effects of items"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
net debt financial
"Net debt is defined as long-term debt and finance lease obligations, including"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
non-GAAP financial measures financial
"This press release includes certain financial information that is not presented in accordance"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Hog Production Reform financial
"Costs associated with our Hog Production Reform initiative. Excludes accelerated depreciation"
controlled company regulatory
"our status as a “controlled company” and any resulting potential conflicts of interest"
A controlled company is a publicly traded firm where one shareholder or a small group holds enough voting power to determine board members and major strategic choices. For investors this matters because control can speed decision-making and protect long-term plans, but it also raises the risk that majority owners will favor their own interests over minority shareholders, reducing outside oversight—like a family-owned restaurant that sold shares but the family still calls the shots.
Q2 2026 Net Sales $3.7 billion down 2.3% from the second quarter of 2025
Q2 2026 Operating Profit $290 million up 11.6% from the second quarter of 2025
Q2 2026 Net Income Attributable to Smithfield $238 million up 26.6% from the second quarter of 2025
First-Half 2026 Net Sales $7.5 billion down 0.8% from the first half of 2025
First-Half 2026 Operating Profit $623 million up 7.1% from the first half of 2025
First-Half 2026 Adjusted Operating Profit $638 million up 2.3% from the first half of 2025
Guidance

For fiscal 2026, the company expects total sales to be roughly flat versus 2025, Packaged Meats adjusted operating profit of $1,075–$1,150 million, Fresh Pork $180–$240 million, Hog Production $75–$125 million, and total company adjusted operating profit of $1,225–$1,375 million, with capital expenditures of $350–$450 million and an effective tax rate of 22.5%–24.5%.

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FAQ

How did Smithfield Foods (SFD) perform in Q2 2026 compared to Q2 2025?
Smithfield Foods reported Q2 2026 net sales of $3.7 billion, down 2.3%, but operating profit rose to $290 million, up 11.6%. Net income attributable to Smithfield increased 26.6% to $238 million, with diluted EPS of $0.60 versus $0.48 a year earlier.

What were Smithfield Foods (SFD) first-half 2026 results?
For the first six months of 2026, Smithfield generated net sales of $7.5 billion, down 0.8% year over year, and operating profit of $623 million, up 7.1%. Net income attributable to Smithfield was $484 million, up 17.6%, with diluted EPS of $1.23 versus $1.05 in 2025.

What is Smithfield Foods (SFD) guidance for fiscal 2026 adjusted operating profit?
Smithfield now expects total company adjusted operating profit of $1,225–$1,375 million for fiscal 2026, reduced from the prior $1,325–$1,475 million range. The outlook reflects macroeconomic headwinds such as cautious consumer spending and higher input costs.

How strong is Smithfield Foods (SFD) balance sheet and liquidity?
As of June 28, 2026, Smithfield had $3,648 million of available liquidity, including $1,350 million in cash and cash equivalents, and net debt of $654 million. The net debt to adjusted EBITDA ratio was a low 0.4x on a trailing twelve-month basis.

What dividends will Smithfield Foods (SFD) pay in 2026?
On July 30, 2026, the board declared a quarterly dividend of $0.3125 per share, payable August 27, 2026 to shareholders of record August 13, 2026. The company anticipates annual 2026 dividends of $1.25 per share, subject to board discretion and financial conditions.

How did Smithfield Foods (SFD) segment results trend in Q2 2026?
In Q2 2026, Packaged Meats operating profit was $265 million versus $301 million, with margin down to 13.1%. Hog Production operating profit improved to $64 million from $22 million, while Fresh Pork operating profit fell to $14 million from $35 million.

What is Smithfield Foods (SFD) outlook for 2026 sales and capital expenditures?
Smithfield expects total company sales to be roughly flat with fiscal 2025, versus a prior outlook for low-single-digit growth. It continues to plan capital expenditures of $350–$450 million in 2026 for profit improvement, maintenance, and repair projects.
0000091388FALSE00000913882026-08-112026-08-11

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 11, 2026    
SMITHFIELD FOODS, INC.
(Exact name of registrant as specified in its charter)
Virginia001-1532152-0845861
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
200 Commerce Street
Smithfield, VA 23430
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (757) 365-3000
N/A
(Former name, or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, no par valueSFDThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On August 11, 2026, Smithfield Foods, Inc. issued a press release announcing results of operations for its second quarter ended June 28, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in the preceding paragraph, as well as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference into another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references this Current Report on Form 8-K.


Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit Index
Exhibit NumberExhibit Description
99.1
Press release, dated August 11, 2026, announcing the results of operations of Smithfield Foods, Inc. for its second quarter ended June 28, 2026.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SMITHFIELD FOODS, INC.
Date: August 11, 2026By:/s/ Mark L. Hall
Mark L. Hall
Chief Financial Officer


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Smithfield Foods Reports Record First Half Fiscal 2026 Operating Profit, Demonstrating Strength of Vertically Integrated Model
•Record First Half Operating Profit Reflects Resilient Business Model; Disciplined Execution
•Strong Balance Sheet and Cash Flows Provide Financial Flexibility
•Updated FY 2026 Outlook to Reflect External Macro Environment
SMITHFIELD, Va., August 11, 2026 -- 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 second quarter ended June 28, 2026.
Second Quarter Fiscal 2026 Financial Highlights
•Net sales of $3.7 billion, down 2.3% from the second quarter of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the second quarter of 2025 as well as the earlier Easter holiday this year
•Operating profit of $290 million, up 11.6% from the second quarter of 2025; record second quarter adjusted operating profit(1) of $300 million, up slightly from the second quarter of 2025
•Operating profit margin of 7.8%, compared to 6.9% in the second quarter of 2025; Adjusted operating profit margin(1) of 8.1%, compared to 7.9% in the second quarter of 2025
•Packaged Meats operating profit of $265 million, compared to operating profit of $301 million and adjusted operating profit(1) of $296 million in the second quarter of 2025
•Packaged Meats operating profit margin of 13.1%, compared to operating profit margin of 14.5% and adjusted operating profit margin(1) of 14.2% in the second quarter of 2025
•Net income(2) of $238 million, up 26.6% from the second quarter of 2025; Adjusted net income(1)(2) of $245 million, up 13.2% from the second quarter of 2025
•Diluted and adjusted diluted earnings(1)(2) of $0.60 and $0.62 per share, respectively; compared to $0.48 and $0.55 per share, respectively, in the second quarter of 2025
First Six Months Fiscal 2026 Financial Highlights
•Net sales of $7.5 billion, down 0.8% from the first half of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the first half of 2025
•Operating profit of $623 million, up 7.1% from the first half of 2025; Record first half adjusted operating profit(1) of $638 million, up 2.3% from the first half of 2025
•Operating profit margin of 8.3%, compared to 7.7% in the first half of 2025; Adjusted operating profit margin(1) of 8.5%, compared to 8.3% in the first half of 2025
•Packaged Meats operating profit of $540 million, compared to operating profit of $567 million and adjusted operating profit(1) of $562 million the first half of 2025
•Packaged Meats operating profit margin of 12.9%, compared to operating profit margin of 13.8% and adjusted operating profit margin(1) of 13.7% in the first half of 2025
•Net income(2) of $484 million, up 17.6% from the first half of 2025; Adjusted net income(1)(2) of $496 million, up 11.8% from the first half of 2025
•Diluted and adjusted diluted earnings(1)(2) of $1.23 and $1.25 per share, respectively; compared to $1.05 and $1.13 per share, respectively, in the first half of 2025
•Net cash flows from operating activities of $204 million for the first half of 2026 increased $96 million from the first half of 2025
________________________
(1)    A non-GAAP measure. Please see the table in the Non-GAAP Financial Measures section for a reconciliation to the most comparable GAAP measure.
(2)    Refers to net income attributable to Smithfield, adjusted net income attributable to Smithfield and adjusted net income attributable to Smithfield per diluted common share.
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CEO Perspective

“We delivered record first half operating and adjusted operating profit despite a challenging external environment, demonstrating the strength of our vertically integrated business model, the power of our brands and our team’s disciplined execution,” said Smithfield President and CEO Shane Smith. “Our results reflect solid performance across the business, continued market share gains in key branded categories and strong operating cash flow generation.”
Smith added, “While our updated outlook reflects ongoing macroeconomic pressures, these external factors do not change our strategic priorities or our confidence in the business. Supported by a strong balance sheet, substantial liquidity and a clear action plan, we remain focused on driving operational efficiencies, investing in our brands and creating long-term shareholder value.”

Review of Financial Results

Results of Operations
Sales
Three Months Ended
June 28, 2026June 29, 2025$ Change% Change
(in millions)
Sales by segment:
Packaged Meats$2,023 $2,079 $(56)(2.7)%
Fresh Pork2,008 2,080 (72)(3.5)%
Hog Production772 840 (69)(8.2)%
Other 154 120 33 27.6 %
Total segment sales4,956 5,120 (164)(3.2)%
Inter-segment sales eliminations:
Fresh Pork
(745)(810)65 (8.1)%
Hog Production
(512)(524)12 (2.3)%
Total inter-segment sales eliminations(1,257)(1,334)77 (5.8)%
Consolidated sales$3,700 $3,786 $(87)(2.3)%
Six Months Ended
June 28, 2026June 29, 2025$ Change% Change
(in millions)
Sales by segment:
Packaged Meats$4,172 $4,103 $69 1.7 %
Fresh Pork4,020 4,114 (94)(2.3)%
Hog Production1,541 1,772 (232)(13.1)%
Other 327 224 103 45.8 %
Total segment sales10,059 10,213 (154)(1.5)%
Inter-segment sales eliminations:
Fresh Pork
(1,529)(1,597)68 (4.3)%
Hog Production
(1,030)(1,059)28 (2.7)%
Total inter-segment sales eliminations(2,559)(2,656)96 (3.6)%
Consolidated sales$7,500 $7,558 $(57)(0.8)%
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Operating Profit (Loss) and Operating Profit (Loss) Margin by Segment

Three Months Ended
June 28, 2026June 29, 2025Change% Change
(in millions, except percentages and basis points)
Operating profit (loss):
Packaged Meats$265 $301 $(36)(12.0)%
Fresh Pork14 35 (21)(59.4)%
Hog Production64 22 42192.2 %
Other (2)7 (9)NM
Corporate expenses(27)(26)(1)(3.9)%
Unallocated (1)
(24)(80)5569.5 %
Operating profit$290 $260 $3011.6 %
Operating profit (loss) margin:
Packaged Meats13.1 %14.5 %(139) bps
Fresh Pork0.7 %1.7 %(98)bps
Hog Production8.3 %2.6 %572 bps
Other(1.4)%6.1 %(747)bps
Consolidated7.8 %6.9 %98 bps

Six Months Ended
June 28, 2026June 29, 2025Change% Change
(in millions, except percentages and basis points)
Operating profit (loss):
Packaged Meats$540 $567 $(27)(4.7)%
Fresh Pork92 117 (25)(21.0)%
Hog Production68 23 45196.3 %
Other 10 22 (12)(55.9)%
Corporate expenses(53)(55)24.0 %
Unallocated (1)
(35)(92)5762.2 %
Operating profit$623 $582 $417.1 %
Operating profit margin:
Packaged Meats12.9 %13.8 %(87) bps
Fresh Pork2.3 %2.8 %(54)bps
Hog Production4.4 %1.3 %314 bps
Other2.9 %9.6 %(671)bps
Consolidated8.3 %7.7 %61 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.


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Financial Position

As of June 28, 2026, we had $3,648 million of available liquidity consisting of $1,350 million in cash and cash equivalents and $2,298 million of availability under our committed credit facilities. We ended the quarter with a ratio of net debt to adjusted EBITDA(1) on a trailing twelve months basis of 0.4x.
_____________________
(1)A non-GAAP measure. Please see the table in the Non-GAAP Financial Measures section for a reconciliation to the most comparable GAAP measure.

Dividend Update

On July 30, 2026, our Board declared a quarterly cash dividend of $0.3125 per share of common stock, which will be paid on August 27, 2026, to shareholders of record as of August 13, 2026. We anticipate the remaining quarterly dividends in fiscal year 2026 will be unchanged, resulting in an annual dividend rate of $1.25 per share. The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.

FY 2026 Outlook

As we look to the remainder of 2026, our revised outlook takes into account current macroeconomic challenges including cautious consumer spending and higher input costs.

While our team delivered record first half results and has a clear action plan to manage through this environment, we believe it is prudent to update our fiscal 2026 adjusted operating profit outlook to reflect these macroeconomic headwinds.

The Company is updating its financial outlook as follows:

•Total Company sales to be roughly flat compared to fiscal year 2025 (previously up low-single-digits).

•Packaged Meats segment adjusted operating profit of between $1,075 million to $1,150 million (previously $1,100 million to $1,200 million).

•Fresh Pork segment adjusted operating profit of between $180 million to $240 million (previously $200 million to $260 million).

•Hog Production segment adjusted operating profit of between $75 million to $125 million (previously $150 million to $200 million).

•Total Company adjusted operating profit of between $1,225 million to $1,375 million (previously $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 (unchanged).

•An effective tax rate of between 22.5% and 24.5% (unchanged).

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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 second quarter financial results is scheduled for today, August 11, 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 4970032. The replay will be available until August 18, 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
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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 growth over the long term, our ability to complete the acquisition of Nathan’s Famous, and the anticipated dividend payments of $1.25 per share in 2026.

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,
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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)


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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except share data and per share data, and unaudited)

Three Months Ended Six Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Sales$3,700 $3,786 $7,500 $7,558 
Cost of sales3,221 3,288 6,510 6,549 
Gross profit478 499 990 1,008 
Selling, general and administrative expenses191 268 371 465 
Operating gains(3)(30)(4)(39)
Operating profit290 260 623 582 
Interest expense, net8 11 16 22 
Non-operating (gains) losses(17)(4)(16)2 
Income before income taxes299 254 623 558 
Income tax expense64 62 135 134 
(Income) loss from equity method investments(4)3 (2)8 
Net Income239 188 489 415 
Net income attributable to noncontrolling interests1 — 5 4 
Net income attributable to Smithfield$238 $188 $484 $412 
Net income per common share attributable to Smithfield:
Basic$0.61 $0.48 $1.23 $1.05 
Diluted0.60 0.48 1.23 1.05 
Weighted-average shares outstanding:
Basic393,549,023 393,112,711 393,417,410 390,962,687 
Diluted395,772,571 393,751,294 395,284,096 391,410,859 

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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data, and unaudited)
June 28,
2026		December 28,
2025
ASSETS
Current assets:
Cash and cash equivalents$1,350 $1,539 
Accounts receivable, net1,010 1,023 
Inventories, net2,380 2,328 
Prepaid expenses and other current assets267 276 
Total current assets5,006 5,166 
Property, plant and equipment, net3,211 3,226 
Goodwill1,625 1,623 
Intangible assets, net1,258 1,260 
Operating lease assets385 387 
Equity method investments213 209 
Other assets315 306 
Total assets$12,014 $12,177 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$461 $856 
Current portion of long-term debt and finance lease obligations602 3 
Current portion of operating lease obligations73 71 
Accrued expenses and other current liabilities818 811 
Total current liabilities1,954 1,741 
Long-term debt and finance lease obligations1,402 2,000 
Long-term operating lease obligations319 322 
Deferred income taxes, net631 658 
Net long-term pension obligation206 207 
Other liabilities187 185 
Redeemable noncontrolling interests311 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; 393,760,231 shares issued and outstanding as of June 28, 2026 and 393,112,711 shares issued and outstanding as of December 28, 2025 
— — 
Additional paid-in capital3,296 3,338 
Retained earnings4,012 3,776 
Accumulated other comprehensive loss(304)(314)
Total shareholders’ equity7,004 6,801 
Total liabilities and equity$12,014 $12,177 
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SMITHFIELD FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions and unaudited)
Six Months Ended
June 28,
2026		June 29,
2025
Cash flows from operating activities:
Net income$489 $415 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization169 165 
Changes in operating and other assets and liabilities, net(436)(446)
Other(18)(27)
Net cash flows from operating activities204 108 
Cash flows from investing activities:
Capital expenditures(165)(158)
Net expenditures from breeding stock transactions(15)(13)
Cash receipts on notes receivable29 2 
Other— (3)
Net cash flows used in investing activities(150)(171)
Cash flows from financing activities:
Payment of dividends(246)(197)
Net proceeds from issuance of common stock— 236 
Other— (1)
Net cash flows from (used in) financing activities(246)38 
Effect of foreign exchange rate changes on cash3 10 
Net change in cash, cash equivalents and restricted cash(189)(15)
Cash, cash equivalents and restricted cash at beginning of period1,539 943 
Cash, cash equivalents and restricted cash at end of period$1,350 $928 




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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 EndedSix Months EndedAffected Income Statement
Account
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(in millions, except per share data)
Net income attributable to Smithfield$238 $188 $484 $412 
Plant closures (1)
3 — 6 2 Cost of sales
Reduction in workforce and optimization (2)
4 — 5 6 SG&A
Reduction in workforce and optimization (2)
— — — 2 Cost of sales
Incremental costs from destruction of property (3)
— — 3 — Cost of sales
Litigation charges— 73 — 73 SG&A
Office closures (4)
1 4 1 4 SG&A
Hog Production Reform— — — 2 Cost of sales
Hog Production Reform(1)— (1)(1)Operating gains
Employee retention tax credits (5)
— (10)— (10)Cost of sales
Insurance recoveries (6)
— (29)— (35)Operating gains
Other1 — 1 — SG&A
Income tax effect of non-GAAP adjustments (7)
(2)(10)(4)(11)Income tax expense
Adjusted net income attributable to Smithfield$245 $217 $496 $443 
Net income attributable to Smithfield per diluted common share$0.60$0.48$1.23$1.05
Adjusted net income attributable to Smithfield per diluted common share$0.62$0.55$1.25$1.13
_______________
(1)Consists primarily of accelerated depreciation charges, retention and severance costs and other incremental costs associated with our decision to exit our leased Springfield, Massachusetts dry sausage production facility.
(2)Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to $9 million for the first half of 2025.
(3)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(4)Consists of employee termination benefit costs and other closure 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 Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
(6)Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.
(7)Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.


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EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA.

Three Months EndedSix Months EndedTwelve Months EndedAffected Income Statement Account
June 28, 2026June 29, 2025June 28, 2026June 29, 2025June 28, 2026December 28, 2025
(in millions, except percentages)
Net income$239 $188 $489 $415 $1,072 $998 
Interest expense, net8 11 16 22 35 41 
Income tax expense64 62 135 134 284 283 
Depreciation and amortization
85 82 169 165 335 332 
EBITDA$396 $344 $809 $736 $1,726 $1,654 
Reduction in workforce and optimization (1)
4 — 5 6 8 9 SG&A
Reduction in workforce and optimization (1)
— — — 2 — 2 Cost of sales
Incremental costs from destruction of property (2)
— — 3 — 3 — Cost of sales
Plant closures (3)
1 — 1 1 1 1 Cost of sales
Office closures (4)
1 4 1 4 1 4 SG&A
Litigation charges— 73 — 73 — 73 SG&A
Hog Production Reform (5)
— — — 1 2 3 Cost of sales
Hog Production Reform (6)
(1)— (1)(1)(3)(4)Operating gains
Employee retention tax credits (7)
— (10)— (10)— (10)Cost of sales
Insurance recoveries (8)
— (29)— (35)(2)(36)Operating gains
Company-owned life insurance gain (9)
— — — — (17)(17)Non-operating gains
Other1 — 1 — 1 — SG&A
Adjusted EBITDA$403 $381 $820 $777 $1,720 $1,677 
Net income margin6.5 %5.0 %6.5 %5.5 %6.9 %6.4 %
Adjusted EBITDA margin10.9 %10.1 %10.9 %10.3 %11.1 %10.8 %
_______________
(1)Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives. Total severance costs round up to $9 million and $12 million for the first half of 2025 and fiscal year 2025, respectively.
(2)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(3)Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.
(4)Consists of employee termination benefit costs and other closure costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(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 June 28, 2026 include a $3 million gain on the sale of certain of our hog farms in Missouri.
(7)Represents the recognition of employee retention tax credits received under the CARES 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.
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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
June 28,
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 obligations1,402 2,000 
Total debt and finance lease obligations$2,004 $2,003 
Cash and cash equivalents(1,350)(1,539)
Net debt$654 $464 
Net income$1,072 $998 
Adjusted EBITDA$1,720 $1,677 
Ratio of total debt and finance lease obligations to net income1.9x2.0x
Ratio of net debt to adjusted EBITDA0.4x0.3x



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Adjusted Operating Profit and Adjusted Operating Profit Margin

The following tables provide a reconciliation of operating profit to adjusted operating profit.

Three Months Ended
June 28, 2026		Packaged
Meats		Fresh PorkHog
Production
Other (1)
Corporate (2)
Unallocated (3)
Consolidated
(in millions, except percentages)
Operating profit (loss)$265 $14 $64 $(2)$(27)$(24)$290 
Reduction in workforce and optimization (4)
— — — — — 4 4 
Plant closures (5)
— — — — — 3 3 
Office closures (6)
— — — — — 1 1 
Hog Production Reform— — — — — (1)(1)
Other— — — — — 1 1 
Adjusted operating profit (loss)$265 $14 $64 $(2)$(27)$(15)$300 
Operating profit (loss) margin13.1 %0.7 %8.3 %(1.4)%NMNM7.8 %
Adjusted operating profit (loss) margin13.1 %0.7 %8.3 %(1.4)%NMNM8.1 %
Three Months Ended
June 29, 2025		Packaged
Meats		Fresh PorkHog
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 (6)
— — — — — 4 4 
Employee retention tax credits (7)
(5)(5)— — — — (10)
Insurance recoveries (8)
— — — — — (29)(29)
Adjusted operating profit (loss)$296 $30 $22 $7 $(26)$(31)$298 
Operating profit margin14.5 %1.7 %2.6 %6.1 %NMNM6.9 %
Adjusted operating profit margin14.2 %1.4 %2.6 %6.1 %NMNM7.9 %
____________
(1)Consists of our Mexico and Bioscience operations.
(2)Represents general corporate expenses for management and administration of the business.
(3)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.
(4)     Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
(5)    Consists primarily of accelerated depreciation charges, retention and severance costs and other incremental costs associated with our decision to exit our leased Springfield, Massachusetts dry sausage production facility.
(6)    Consists of employee termination benefit costs and other closure costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(7)    Represents the recognition of employee retention tax credits received under the CARES Act.
(8)    Consists of a gain recognized for the settlement of an insurance claim associated with past litigation.
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Six Months Ended
June 28, 2026		Packaged
Meats		Fresh PorkHog
Production
Other (1)
Corporate (2)
Unallocated (3)
Consolidated
(in millions, except percentages)
Operating profit (loss)$540 $92 $68 $10 $(53)$(35)$623 
Plant closures (4)
— — — — — 6 6 
Reduction in workforce and optimization (5)
— — — — — 5 5 
Incremental costs from destruction of property (6)
— — — — — 3 3 
Office closures (7)
— — — — — 1 1 
Hog Production Reform— — — — — (1)(1)
Other— — — — — 1 1 
Adjusted operating profit (loss)$540 $92 $68 $10 $(53)$(19)$638 
Operating profit margin12.9 %2.3 %4.4 %2.9 %NMNM8.3 %
Adjusted operating profit margin12.9 %2.3 %4.4 %2.9 %NMNM8.5 %
Six Months Ended
June 29, 2025		Packaged MeatsFresh PorkHog
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 and optimization (5)
— — — — — 9 9 
Office closures (7)
— — — — — 4 4 
Plant closures— — — — — 2 2 
Hog Production Reform— — — — — 1 1 
Employee retention tax credits (8)
(5)(5)— — — — (10)
Insurance recoveries (9)
— — — — — (35)(35)
Adjusted operating profit (loss)$562 $112 $23 $22 $(55)$(39)$624 
Operating profit margin13.8 %2.8 %1.3 %9.6 %NMNM7.7 %
Adjusted operating profit margin13.7 %2.7 %1.3 %9.6 %NMNM8.3 %
________________________
(1)Consists of our Mexico and Bioscience operations.
(2)Represents general corporate expenses for management and administration of the business.
(3)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.
(4)Consists primarily of accelerated depreciation charges, retention and severance costs and other incremental costs associated with our decision to exit our leased Springfield, Massachusetts dry sausage production facility.
(5)Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
(6)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
(7)Consists of employee termination benefit costs and other closure costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
(8)Represents the recognition of employee retention tax credits received under the CARES Act.
(9)Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.
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