Tyson Foods (TSN) investor relations material

Executive summary

• Delivered 12th consecutive quarter of meeting commitments, with Q3 sales of $13.9 billion, driven by a diversified, protein-centric portfolio and strong Chicken and Prepared Foods performance, offsetting Beef segment declines.

• Adjusted operating income for Q3 was $547 million, up 8% year-over-year, with GAAP operating income at $362 million, up 39%.

• Net income attributable to shareholders was $182 million for the quarter and $527 million for nine months.

• Leadership transition underway, with Donnie King stepping down and Jeff Schomburger taking over as CEO, emphasizing continuity and acceleration of current strategy.

• Results impacted by legal contingency accruals, restructuring, and executive transition charges.

Financial highlights

• Q3 sales were $13.9 billion, flat year-over-year; nine-month sales rose 3.1% to $41.8 billion.

• Adjusted operating income was $547 million (3.9% margin); adjusted EPS was $0.99, up 9% year-over-year.

• Free cash flow for the first nine months was $913 million; liquidity at quarter-end was $4 billion with net leverage of 2.1x.

• Returned $652 million to shareholders year-to-date, including dividends and share repurchases.

• Total debt reduced by $824 million over the period.

Outlook and guidance

• Fiscal 2026 sales growth expected at 2.5%–3.5% over 2025.

• Adjusted operating income forecasted at $2.1–$2.3 billion; segment guidance: Beef loss ($500–$650 million), Pork income $250–$300 million, Chicken income $1.9–$2.05 billion, Prepared Foods income $1.3–$1.35 billion, International income $150–$200 million.

• Free cash flow guidance narrowed to $1.3–$1.7 billion; capital expenditures expected at $700–$900 million.

• Adjusted effective tax rate anticipated at 25%.

• Fiscal 2027 expected to resemble 2026, with continued growth in Chicken and Prepared Foods and operational discipline in Beef.