From The Motley Fool · Motley Fool Transcribing · · 1m 50s
Smithfield Q3 Earnings Drop
Smithfield Foods reports 8.3% sales decline as pork value chain weakens.
In brief
Smithfield Foods reports 8.3% sales decline as pork value chain weakens. Smithfield Foods reported $3.4 billion in Q3 sales down 8.3% year-over-year with $145 million adjusted operating profit, citing softer pork demand and global oversupply. Originally reported by The Motley Fool.
Q3 Sales Decline
Consolidated sales dropped 8.3% to $3.4 billion year-over-year.
Operating Profit Down
Adjusted operating profit fell to $145 million from $310 million in Q3 2025.
Packaged Meats Performance
Packaged meats sales grew volume share despite 5.2% price decline.
Fresh Pork Loss
Fresh pork sales dropped 17% with $89 million operating loss.
Hog Production Decline
Hog production sales fell 15% to $691 million with $34 million profit.
Q3 Profit Outlook
Packaged meats profit outlook: $1.09 billion to $1.14 billion for full year.
Fresh Pork Outlook
Fresh pork profit outlook: $50 million loss to breakeven for fiscal 2026.
Hog Production Outlook
Hog production profit outlook: $25 million loss to $25 million profit for full year.
Dividend Announcement
Annual dividend of $1.25 per share with three quarterly payments.
Nathan's Famous Acquisition
Completed acquisition of Nathan's Famous with immediate EPS accretion.
Sioux Falls Plant Delay
Sioux Falls processing plant project delayed due to court decision.
Pork Value Chain Weakness
U.S. consumers pressured by inflation, high gas prices, and reduced SNAP benefits.
Export Challenges
Export opportunities eroded due to increased pork supply in Mexico and China.
Input Cost Pressures
Diesel and resin costs elevated since Iran conflict began, accelerating in Q3.
Packaged Meats Growth
Prime Fresh volume grew 17.9% with 7% increase in first-time buyers.
Q4 Outlook
Full-year sales guidance down low-single digits with $900 million to $1 billion profit.
The takeaway
Smithfield Foods reported $3.4 billion in Q3 sales down 8.3% year-over-year with $145 million adjusted operating profit, citing softer pork demand and global oversupply.
