Smithfield Foods (SFD) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted operating profit of $1.34 billion for FY25, up 30.5% year-over-year, with an 8.6% margin and net sales of $15.5 billion, a 9.8% increase from fiscal 2024.

• Transformation efforts included streamlining the portfolio, exiting non-core operations, and accelerating automation, supporting broad-based performance.

• Returned $1.00 per share in annual dividends for 2025 and announced a dividend increase to $1.25 per share for 2026.

• Announced acquisition of Nathan's Famous, expected to close in H1 2026 and be immediately accretive.

• Generated over $1 billion in cash flows from operating activities and maintained a strong balance sheet.

Financial highlights

• Adjusted operating profit rose 30.5% to $1.3 billion in 2025; margin expanded to 8.6% from 7.2% in 2024.

• Adjusted net income for FY25 was $1.0 billion; adjusted diluted EPS was $2.55, up 36% year-over-year.

• Fourth quarter adjusted operating profit reached $402 million; Q4 adjusted EPS up 59.6% to $0.83.

• Total company sales increased 9.8% to $15.5 billion for the year, with growth across all segments.

• Adjusted EBITDA for the year was $1.68 billion, with an adjusted EBITDA margin of 10.8%.

Outlook and guidance

• 2026 outlook calls for low single-digit sales growth and continued margin expansion, with adjusted operating profit guidance of $1.325–$1.475 billion.

• Segment profit guidance: Packaged Meats $1.1–$1.2 billion, Fresh Pork $200–$260 million, Hog Production $150–$200 million.

• Capital expenditures projected at $350–$450 million, excluding Sioux Falls project; effective tax rate expected at 22.5–24.5%.

• Outlook excludes impact of Nathan’s Famous acquisition and new Sioux Falls facility.