Pilgrim's Pride (PPC) Q3 2026 earnings summary

Executive summary

• Q3 adjusted EBITDA fell to $316.3M from $633.1M, with margin declining to 6.8% from 13.3% as lower commodity pricing and higher grain costs pressured results.

• Resilient chicken demand, Prepared Foods growth and improved fresh production partly offset pricing and cost pressure; regional performance varied.

Financial highlights

• Q3 net sales were $4,653.2M versus $4,759.3M; gross profit was $333.7M versus $659.4M, and operating income was $191.5M versus $492.6M.

• Q3 net income was $116.3M versus $343.1M; diluted EPS was $0.49 versus $1.44.

• Adjusted EBITDA was $316.3M versus $633.1M; adjusted EBITDA margin was 6.8% versus 13.3%.

• SG&A fell to $142.2M from $165.0M, primarily due to lower legal settlement expense and incentive compensation costs.

• 9M net sales were $13,812.1M versus $13,979.7M; adjusted EBITDA was $984.4M versus $1,853.2M.

Outlook and guidance

• FY 2026 CapEx was estimated at $875M; Walker County facility commissioning is expected in H2 2027.

• Walkers Deli & Sausage acquisition closing is expected in early 2027, subject to conditions.

• Full-year tax rate is expected to be ~26%; net interest expense is expected to be $130M, excluding the YTD $16.3M debt-extinguishment loss.

• Chicken demand is expected to remain favorable, with supply-demand rebalancing a key market driver through year-end and into 2027.