Tyson Foods (TSN) Q4 2024 earnings summary

Executive summary

• Q4 and FY 2024 delivered the strongest adjusted operating income (AOI) and adjusted EPS in eight quarters, both more than doubling year-over-year, driving a significant turnaround for the full year.

• FY 2024 AOI exceeded $1.8 billion, nearly doubling from 2023, with adjusted EPS up 131% to $3.10.

• Free cash flow for FY 2024 was $1.46 billion, more than twice the annual dividend, and net leverage reduced to 2.6x.

• FY 2025 guidance anticipates continued AOI growth, led by Prepared Foods and Chicken segments.

• Focused on operational excellence, brand strength, digital transformation, and disciplined capital allocation.

Financial highlights

• Q4 FY24 sales were $13.6 billion, up 1.6% year-over-year; full-year sales up 0.8% to $53.3 billion.

• Q4 AOI reached $512 million (3.8% margin), and adjusted EPS was $0.92, both more than doubling year-over-year.

• FY 2024 free cash flow improved by $1.65 billion to $1.46 billion, more than twice the annual dividend.

• Net leverage reduced to 2.6x, down from 4.1x in FY 2023.

• Adjusted EBITDA for FY24 was $3.12 billion, up from $2.15 billion in FY23.

Outlook and guidance

• FY 2025 AOI expected between $1.8–$2.2 billion, with ~10% growth at midpoint, driven by prepared foods and chicken.

• Sales projected flat to down 1% as chicken and prepared foods volume growth offsets lower beef and pork.

• CapEx planned at $1–$1.2 billion; free cash flow expected to exceed $700 million and cover the new annual dividend.

• Prepared foods AOI guidance: $900 million–$1.1 billion; chicken: $1 billion–$1.2 billion; beef: loss of $400–$200 million; pork: $100–$200 million.

• Dividend raised for 13th consecutive year, with a 2% increase for FY 2025.