Smithfield Foods (SFD) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter results with net sales of $3.8 billion, up 0.8% year-over-year, and adjusted operating profit of $339 million, up 4% year-over-year, led by Packaged Meats segment strength and disciplined execution.

• Adjusted net income rose 10.5% to $251 million, with adjusted diluted EPS up 10.3% to $0.64.

• Maintained strong liquidity of $3.7 billion, including $1.39 billion in cash and $2.3 billion in available credit, and leverage at 0.4x.

• Announced acquisition of Nathan's Famous, expected to close in H2 2026, subject to regulatory approval.

• Ongoing investment in automation, network optimization, and new Sioux Falls processing plant.

Financial highlights

• Packaged Meats sales grew 6.2% to $2.15 billion, with volume up 3.5% and average sales price up 2.6%; operating profit up 3.6% to $275 million, margin at 12.8%.

• Fresh Pork sales declined 1.1% to $2.02 billion, with operating profit down 4.3% to $78 million, margin at 3.9%.

• Hog Production sales fell 17.5% due to prior-year one-time sales, but operating profit rose to $4 million, margin at 0.5%.

• Adjusted EBITDA for Q1 2026 was $417 million, margin at 11.0%.

• Operating cash flow was a net outflow of $65 million, improved from $166 million outflow last year; capital expenditures were $88 million.

Outlook and guidance

• FY 2026 guidance projects low single-digit sales growth over FY 2025, with adjusted operating profit expected between $1,325–$1,475 million.

• Capital expenditures planned at $350–$450 million; effective tax rate forecasted at 22.5%–24.5%.

• Guidance excludes impact of Nathan's Famous acquisition and Sioux Falls plant investment.

• Annual dividend rate for 2026 anticipated at $1.25 per share.

• Multiple levers in place to manage inflation and volatility, including pricing, mix, productivity, and hedging.