SFD · SMITHFIELD FOODS INC

Smithfield Foods delivered record first-quarter fiscal 2026 results, with consolidated operating profit rising 3.4% year-over-year to $333 million and adjusted operating profit reaching $339 million — both first-quarter highs — supported by disciplined execution in Packaged Meats and structural improvements across the vertically integrated model. Packaged Meats drove the majority of profitability, contributing $275 million in operating profit (up 3.6%) on $2.149 billion in sales (up 6.2%), though its margin declined 32 basis points to 12.8% due to pricing and mix dynamics. Fresh Pork saw modest pressure, with operating profit down 4.3% to $78 million and margin slipping 13 bps to 3.9%, while Hog Production posted a dramatic turnaround — operating profit jumped to $4 million from $1 million (282.6% growth), despite a 17.5% sales decline, signaling operational stabilization in that volatile segment. Management attributed the results to effective inflation management, productivity gains, and strategic focus, reinforcing confidence in the full-year outlook. The company reaffirmed its FY2026 guidance, including $1.325–$1.475 billion in total adjusted operating profit and $350–$450 million in capital expenditures, noting the outlook excludes the pending Nathan’s Famous acquisition and Sioux Falls facility investment. With $3.683 billion in available liquidity and a conservative 0.4x net debt-to-adjusted EBITDA ratio, Smithfield maintains significant financial flexibility to fund growth initiatives and sustain its $1.25 annual dividend commitment.