Pilgrim's Pride (PPC) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 reached $4.8 billion, up 4.3% year-over-year, with operating income of $512.3 million and net income of $356.0 million, reflecting strong U.S. and European performance but weaker results in Mexico due to currency impacts.

• Adjusted EBITDA was $686.9 million (14.4% margin), driven by higher U.S. sales, operational efficiencies, and portfolio diversification.

• SG&A expenses declined year-over-year, mainly from reduced legal settlements and defense costs.

• Announced a special dividend of $500 million ($2.10 per share) and major investments, including a new prepared foods plant in Georgia.

• Maintained strong liquidity and a net leverage ratio below 1.0x adjusted EBITDA.

Financial highlights

• Q2 2025 net sales were $4.76 billion, up 4.3% year-over-year; net income was $356 million ($1.49 per diluted share), and adjusted EBITDA margin held steady at 14.4%.

• Operating income for Q2 2025 was $512.3 million (10.8% of net sales), up 16.2% year-over-year.

• Gross profit for Q2 was $715.3 million (15.0% of net sales), up 3.4% year-over-year.

• Earnings per share increased to $1.49 from $1.37 year-over-year; adjusted EPS was $1.70.

• Cash and cash equivalents at quarter-end were $849 million, with total assets of $10.1 billion.

Outlook and guidance

• Continued investment in capacity expansion, especially in Mexico and U.S. prepared foods, to support growth strategies.

• New Georgia plant expected to increase U.S. prepared foods sales by over 40% at full capacity by 2027.

• Management expects cash flows and available credit to be sufficient for obligations and capital spending for at least the next twelve months.

• Full-year effective tax rate expected to be about 25%; net interest expense forecasted at $115–$125 million.

• Global market prices for the remainder of 2025 will depend on demand, feed input costs, disease risks, and trade policy shifts.