Pilgrim's Pride (PPC) Q4 2025 earnings summary

Executive summary

• Net revenues for fiscal 2025 reached $18.5 billion, with adjusted EBITDA of $2.3 billion (12.3% margin) and GAAP net income of $1.1 billion.

• U.S. operations drove growth through strong demand, brand expansion, and operational efficiencies, with Just Bare® sales surpassing $1 billion.

• Europe improved margins and adjusted EBITDA through efficiency projects, innovation, and branded portfolio growth.

• Mexico grew sales volumes and branded sales, but margins declined due to increased imports and commodity volatility.

• Adjusted EPS for 2025 was $5.17, with $2 billion returned to shareholders via special dividends.

Financial highlights

• Q4 2025 net revenues were $4.52 billion, up 3.3% year-over-year, but net income dropped to $88 million from $235.8 million.

• Q4 adjusted EBITDA was $415.1 million (9.2% margin), down from $525.7 million (12% margin) in Q4 2024.

• Fiscal 2025 adjusted EBITDA increased 2.5% to $2.3 billion; adjusted EPS was $5.17.

• U.S. adjusted EBITDA margin for the year was 14.8%; Europe improved adjusted EBITDA by 11.4% year-over-year.

• Mexico's full-year adjusted EBITDA margin declined to 8.8% from 11.8% last year.

Outlook and guidance

• USDA projects 1% chicken supply growth in 2026, with strong demand expected due to protein affordability.

• CapEx for 2026 forecasted at $900–$950 million, up from $711 million in 2025, supporting growth in Mexico, U.S. prepared foods, and plant conversions.

• Effective tax rate expected to decrease to 25% in 2026 from 27.9% in 2025.

• Management expects continued growth in U.S. Prepared Foods, further diversification in Mexico, and innovation in Europe.

• Net interest expense for 2026 projected at $115–$125 million.