Smithfield Foods (SFD) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with net sales of $3.8 billion, up 0.8% year-over-year, and adjusted operating profit of $339 million, up 4%, with an 8.9% margin.

• Adjusted net income rose 10.5% to $251 million, and adjusted EPS increased to $0.64 from $0.58 year-over-year.

• Packaged Meats led growth with $2.15 billion in sales and $275 million in operating profit, margin at 12.8%.

• Maintained a strong balance sheet and liquidity, supporting investments and a $1.25/share annual dividend.

• Announced acquisition of Nathan's Famous for $102/share, expected to close in H2 2026, subject to approvals.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $417 million, with a margin of 11.0%.

• Net income attributable to shareholders was $246 million, up from $224 million year-over-year.

• Adjusted operating profit margin improved to 8.9%.

• Net debt to adjusted EBITDA ratio improved to 0.4x at quarter-end.

• Cash and cash equivalents at quarter-end were $1,386 million, with $3.68 billion in available liquidity.

Outlook and guidance

• FY 2026 guidance projects low single-digit sales growth over FY 2025.

• Adjusted operating profit expected between $1,325–$1,475 million; capex $350–$450 million.

• Effective tax rate forecasted at 22.5%–24.5%.

• Guidance excludes impact of Nathan's Famous acquisition and Sioux Falls plant investment.

• New Sioux Falls facility investment of up to $1.3 billion under consideration, pending board approval.