Pilgrim's Pride (PPC) investor relations material

Executive summary

• Q2 2026 net sales were $4.63 billion, with adjusted EBITDA of $360 million (7.8% margin), both down sharply year-over-year; GAAP net income was $13.2 million (EPS $0.06), and adjusted net income was $153.9 million (adjusted EPS $0.64).

• Net income dropped from $356 million in Q2 2025, with significant margin compression across all regions.

• U.S. Prepared Foods and branded products, especially Just BareⓇ, saw strong volume and sales growth, outpacing category averages.

• Higher SG&A expenses were driven by legal settlements and defense costs, impacting profitability.

• Sequential margin improvement was noted in the U.S. due to operational gains and plant upgrades.

Financial highlights

• Q2 2026 net sales: $4.63 billion, down 2.8% year-over-year; six-month net sales: $9.16 billion, down 0.7%.

• Q2 GAAP net income: $13.2 million, down 96% year-over-year; adjusted net income: $153.9 million.

• Q2 adjusted EBITDA: $360.0 million (7.8% margin), down from $686.9 million (14.4% margin) in Q2 2025.

• Gross profit for Q2 2026 was $339.8 million (7.3% margin), down 52.5% year-over-year.

• Net interest expense increased due to losses on early extinguishment of debt.

Outlook and guidance

• Management expects ongoing investments in plant upgrades and operational improvements to support margin recovery and customer growth.

• USDA projects U.S. chicken production growth to slow to 2.5% in the second half, closing the year at 3.3%.

• Full-year CapEx guidance maintained at approximately $900 million, with spending weighted toward the first half.

• Management anticipates sufficient liquidity for at least the next twelve months.

• Full-year effective tax rate anticipated at 25%.