PPC · Pilgrim's Pride Corporation

Pilgrim's Pride Corporation reported financial results for the first quarter of fiscal 2026, ended March 29, 2026. Net revenue increased slightly to $4,532.6 million from $4,463.0 million in the same quarter last year, a 1.6% rise. However, profitability declined sharply: gross profit fell 37.7% to $345.5 million, and operating income dropped 59.8% to $162.6 million. The decline was driven by lower commodity market pricing in the U.S., which negatively impacted the Big Bird business, and operational disruptions from winter storms and downtime associated with large CapEx projects. The U.S. segment reported adjusted operating income of $110.1 million (4.2% margin), down from prior year. Europe delivered steady profits of $67.5 million (5.0% margin) due to cost reduction and operational efficiency initiatives. Mexico's profitability declined to $10.9 million (2.0% margin), primarily due to improved growing conditions affecting the live bird market. Selling, general and administrative expenses increased 34.7% to $180.2 million, mainly due to higher legal settlements and defense costs. Net interest expense rose 84.5% to $31.0 million, reflecting lower cash balances after dividends paid in 2025. Net income was $101.5 million ($0.43 per diluted share) compared to $296.3 million ($1.24 per share) in the prior year. Adjusted EBITDA decreased 42.2% to $308.1 million, with margin contracting to 6.8% from 12.0%. The company also provided industry data showing U.S. broiler placements up 2.1% year-over-year and cold storage inventories down 3.4% from the five-year average. Capital spending for Q1 2026 was $235 million, continuing investment in strategic projects to support key customer growth and portfolio diversification. No forward guidance was provided in the filing.