Tyson Foods (TSN) Q4 2024 earnings summary

Executive summary

• Q4 and FY 2024 delivered strong results, with adjusted operating income (AOI) and adjusted EPS more than doubling year-over-year in Q4, marking the best performance in eight quarters.

• FY 2024 AOI exceeded $1.8 billion, nearly doubling from 2023, and adjusted EPS rose over 130% to $3.10.

• Free cash flow increased by over $1.6 billion, more than twice the annual dividend, and net leverage ratio was reduced to 2.6x.

• Strategic focus on operational excellence, brand strength, digitalization, and disciplined capital allocation underpinned results and outlook.

• FY 2025 guidance anticipates continued AOI growth, led by Prepared Foods and Chicken segments.

Financial highlights

• Q4 FY24 sales were $13.6 billion, up 1.6% year-over-year; FY 2024 sales up 0.8% to $53.3 billion.

• Q4 AOI reached $512 million (3.8% margin), and adjusted EPS was $0.92, both more than doubling from Q4 2023.

• FY 2024 AOI over $1.8 billion, adjusted EPS $3.10, both nearly doubled year-over-year.

• Free cash flow for FY 2024 was $1.46 billion, up $1.65 billion year-over-year.

• Net leverage reduced to 2.6x, down from 4.1x a year ago.

Outlook and guidance

• FY 2025 sales expected to be flat to down 1%, with volume growth in chicken and prepared foods offset by lower beef and pork.

• AOI guidance for FY 2025 is $1.8–$2.2 billion, with growth driven by prepared foods and chicken.

• Prepared foods AOI expected at $900 million–$1.1 billion; chicken AOI at $1–$1.2 billion; beef AOI expected loss of $400–$200 million; pork AOI $100–$200 million.

• CapEx planned at $1–$1.2 billion; free cash flow expected to exceed $700 million and cover the annual dividend.

• Adjusted tax rate projected at 24–25%; annual dividend rate raised 2% to $2.00 (Class A) and $1.80 (Class B).