Pilgrim's Pride (PPC) investor relations material

Executive summary

• Q3 2025 net sales reached $4.8 billion, up 3.8% year-over-year, with adjusted EBITDA of $633.1 million (13.3% margin) and GAAP net income of $343.1 million, reflecting strong demand and operational efficiency despite commodity volatility.

• Profitability declined year-over-year due to lower pricing in the U.S. and Mexico, partially offset by operational improvements and cost controls.

• U.S. Fresh and Prepared Foods segments delivered strong growth, with Prepared Foods net sales up over 25% year-over-year.

• Strategic investments in the U.S., Mexico, and Europe are on track, supporting operational improvements, brand expansion, and risk mitigation.

• SG&A expenses rose, primarily from increased legal settlements and defense costs.

Financial highlights

• Q3 2025 net sales were $4.8 billion (+3.8% YoY); adjusted EBITDA was $633.1 million (13.3% margin), down from $660.4 million (14.4%) last year.

• U.S. sales grew 2.3% YoY, Mexico revenues rose over 5%, and Europe saw a 6% increase.

• Q3 GAAP EPS was $1.44; adjusted EPS was $1.52.

• Net debt at quarter-end was under $2.5 billion, with a leverage ratio slightly above 1x LTM adjusted EBITDA.

• Net income for Q3 was $343.1 million, slightly down from $350.0 million year-over-year.

Outlook and guidance

• Ongoing investments of $500 million in the U.S. and continued expansion in Mexico and Europe are expected to support growth and portfolio diversification.

• USDA forecasts 2–3% chicken production growth for Q4 2025 and 2026, with chicken as the only protein expected to increase in availability.

• Input costs for corn and soy are expected to remain stable due to ample supply, reducing risk of margin compression.

• Management remains focused on operational improvements and cost controls amid challenging market conditions.

• Full-year CapEx is projected at $700 million, with continued focus on high-return projects and portfolio upgrades.