Smithfield Foods' Strategy Execution and Agile Business Model Drive Strong Second Quarter Results
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, up 11.0% 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 of 7.9%
Packaged Meats operating profit of $301 million; operating profit margin of 14.5%
Packaged Meats adjusted operating profit of $296 million; adjusted operating profit margin of 14.2%
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, up 10.2% 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 of 8.3%
Packaged Meats operating profit of $567 million; operating profit margin of 13.8%
Packaged Meats adjusted operating profit of $562 million; adjusted operating profit margin of 13.7%
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 $3,225 million of available liquidity consisting of $928 million in cash and cash equivalents and $2,297 million of availability under our committed credit facilities. We ended the second quarter with a ratio of net debt to adjusted EBITDA from continuing operations (1) on a trailing twelve months basis of 0.7x.
________________(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 $0.25 per share to shareholders. On July 31, 2025, we announced a dividend of $0.25 per share to be paid to shareholders on August 28, 2025. We anticipate the remaining quarterly dividend for fiscal 2025 will be $0.25 per share, resulting in an annual dividend rate in fiscal 2025 of $1.00 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 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% and 25.0%.
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 $1.00 per share in 2025.
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 or by clicking on SEC Filings on the Smithfield Investor Relations website at investors.smithfieldfoods.com.
Investor Contact: Julie MacMedan
Media Contact: Ray Atkinson 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
—
