Smithfield Foods (SFD) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted operating profit of $1.3 billion for FY25, up 30.5% year-over-year, with an 8.6% margin, and net sales of $15.5 billion, a 9.8% increase from fiscal 2024.

• Transformation efforts included streamlining the portfolio, exiting non-core operations, accelerating automation, and reducing internal hog production.

• Returned $1.00 per share in annual dividends for 2025 and announced a dividend increase to $1.25 per share for 2026.

• Announced acquisition of Nathan's Famous, expected to close in H1 2026 and be immediately accretive.

• Initiated approval to invest up to $1.3 billion in a new Sioux Falls facility, with groundbreaking in 2027 and operations by end of 2028.

Financial highlights

• Adjusted operating profit rose 30.5% to $1.3 billion in 2025; margin expanded to 8.6% from 7.2% in 2024.

• Adjusted net income reached $1 billion; adjusted diluted EPS for 2025 was $2.55, up 36% year-over-year.

• Total company sales increased 9.8% to $15.5 billion, with growth across all segments.

• Adjusted EBITDA for the year was $1.68 billion, with an adjusted EBITDA margin of 10.8%.

• Net debt at year-end was $464 million, with a net debt to adjusted EBITDA ratio of 0.3x.

Outlook and guidance

• 2026 outlook calls for continued margin expansion and low single-digit sales growth.

• Anticipates total company adjusted operating profit of $1.325–$1.475 billion in 2026.

• Packaged meats profit expected at $1.1–$1.2 billion; fresh pork at $200–$260 million; hog production at $150–$200 million.

• Capital spend for 2026 targeted at $350–$450 million, excluding Sioux Falls project; effective tax rate expected at 22.5–24.5%.

• Outlook excludes impact of Nathan’s Famous acquisition and new Sioux Falls facility.