[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents Pilgrim's Pride Corporation's unaudited condensed consolidated financial statements and management's discussion [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Pilgrim's Pride Corporation's unaudited condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (In thousands) | Metric | June 29, 2025 | December 29, 2024 | | :-------------------------------- | :------------ | :------------------ | | Total current assets | $4,257,211 | $5,120,163 | | Total assets | $10,118,666 | $10,650,576 | | Total current liabilities | $2,619,379 | $2,552,133 | | Total liabilities | $6,366,130 | $6,397,180 | | Total stockholders' equity | $3,752,536 | $4,253,396 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's financial performance, including net sales, gross profit, operating income, and net income Condensed Consolidated Statements of Income Highlights (In thousands, except per share data) | Metric | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $4,757,365 | $4,559,314 | $9,220,374 | $8,921,248 | | Gross profit | $715,295 | $691,626 | $1,270,168 | $1,075,535 | | Operating income | $512,339 | $440,790 | $916,821 | $691,064 | | Net income attributable to Pilgrim's Pride Corporation | $355,520 | $326,303 | $651,553 | $500,724 | | Diluted EPS | $1.49 | $1.37 | $2.73 | $2.11 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the company's comprehensive income, including net income and other comprehensive income components Condensed Consolidated Statements of Comprehensive Income Highlights (In thousands) | Metric | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $356,009 | $326,523 | $652,352 | $501,461 | | Total other comprehensive income (loss), net of tax | $242,033 | $(78,026) | $328,100 | $(107,907) | | Comprehensive income attributable to Pilgrim's Pride Corporation | $597,553 | $248,277 | $979,653 | $392,817 | - The company reported a significant foreign currency translation adjustment gain of **$240.9 million** for the three months ended June 29, 2025, compared to a loss of **$81.6 million** in the prior year period, contributing to the increase in total other comprehensive income[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's equity, including retained earnings and accumulated other comprehensive loss Changes in Stockholders' Equity (In thousands) | Metric | Balance at Dec 29, 2024 | Net Income (6M 2025) | Other Comprehensive Income (6M 2025) | Special Cash Dividend (6M 2025) | Balance at June 29, 2025 | | :-------------------------------- | :---------------------- | :------------------- | :----------------------------------- | :------------------------------ | :----------------------- | | Retained Earnings | $3,157,511 | $651,553 | — | $(1,495,497) | $2,313,567 | | Accumulated Other Comprehensive Loss | $(370,300) | — | $328,100 | — | $(42,200) | | Total Stockholders' Equity | $4,253,396 | $652,352 | $328,100 | $(1,495,497) | $3,752,536 | - A special cash dividend of approximately **$1.5 billion** was paid from retained earnings on April 17, 2025[19](index=19&type=chunk)[95](index=95&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended, In thousands) | Metric | June 29, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Cash provided by operating activities | $622,103 | $989,656 | | Cash used in investing activities | $(256,371) | $(208,696) | | Cash used in financing activities | $(1,588,271) | $(149,686) | | Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | $(1,184,839) | $602,903 | | Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $858,319 | $1,334,126 | - Cash used in financing activities significantly increased in the six months ended June 29, 2025, primarily due to a **$1.5 billion** special cash dividend payment[24](index=24&type=chunk)[214](index=214&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Business and Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes the company's global operations, key business activities, and significant accounting policies - Pilgrim's Pride Corporation is a global food company primarily producing chicken, with pork and lamb operations in the U.K., serving foodservice, retail, and frozen entrée customers across the U.S., U.K., Mexico, France, Puerto Rico, the Netherlands, and the Republic of Ireland[27](index=27&type=chunk) - As of June 29, 2025, the company had approximately **62,200 employees** and processed about **41.3 million birds** and **42,750 pigs** per 5-day work week[27](index=27&type=chunk) - On April 1, 2024, the functional currency of Mexico operations changed from U.S. dollar to Mexican peso due to sustained strengthening of the peso and a shift in proportional spend denominated in peso, with no material impact on consolidated financial statements[33](index=33&type=chunk) - The company is assessing the impact of new FASB ASUs 2023-09 (Income Tax Disclosures, effective after Dec 15, 2024) and 2024-03 (Expense Disaggregation Disclosures, effective after Dec 15, 2026) on its financial statements[36](index=36&type=chunk)[37](index=37&type=chunk) [Note 2. Revenue Recognition](index=10&type=section&id=Note%202.%20Revenue%20Recognition) This note details the company's policies for recognizing revenue from customer contracts, including product transfer and contract liabilities - Revenue is primarily derived from customer orders, recognized when control of products transfers to the customer, typically upon destination or customer pick-up[38](index=38&type=chunk)[39](index=39&type=chunk) Net Sales by Product Type and Region (Three Months Ended, In thousands) | Region | Fresh | Prepared | Export | Other | Total Net Sales | | :------- | :-------- | :--------- | :------- | :------ | :-------------- | | U.S. | $2,328,944 | $308,479 | $99,638 | $83,324 | $2,820,385 | | Europe | $415,124 | $794,844 | $146,287 | $15,015 | $1,371,270 | | Mexico | $481,575 | $55,914 | — | $28,221 | $565,710 | | **Total (June 29, 2025)** | **$3,225,643** | **$1,159,237** | **$245,925** | **$126,560** | **$4,757,365** | | **Total (June 30, 2024)** | **$2,997,295** | **$1,187,712** | **$229,268** | **$145,039** | **$4,559,314** | Net Sales by Sales Channel and Region (Three Months Ended, In thousands) | Region | Retail | Foodservice | Export | Other | Total Net Sales | | :------- | :--------- | :---------- | :------- | :------ | :-------------- | | U.S. | $1,529,945 | $1,094,791 | $99,638 | $96,011 | $2,820,385 | | Europe | $850,374 | $230,723 | $146,287 | $143,886 | $1,371,270 | | Mexico | $141,941 | $257,543 | — | $166,226 | $565,710 | | **Total (June 29, 2025)** | **$2,522,260** | **$1,583,057** | **$245,925** | **$406,123** | **$4,757,365** | | **Total (June 30, 2024)** | **$2,354,248** | **$1,546,082** | **$229,268** | **$429,716** | **$4,559,314** | Revenue Contract Liabilities (In thousands) | Metric | Amount | | :-------------------------------------------------- | :------- | | Balance as of December 29, 2024 | $48,898 | | Revenue recognized | $(47,706) | | Cash received, excluding amounts recognized as revenue during the period | $47,745 | | Effect of exchange rates | $227 | | Balance as of June 29, 2025 | $49,164 | [Note 3. Derivative Financial Instruments](index=13&type=section&id=Note%203.%20Derivative%20Financial%20Instruments) This note describes the company's use of derivative instruments to manage commodity price and foreign currency risks - The company uses exchange-traded futures and options to mitigate price risk for commodity inputs (corn, soybean meal, wheat, etc.) and foreign currency derivatives for translational foreign exchange risk, primarily in Europe[48](index=48&type=chunk)[49](index=49&type=chunk)[53](index=53&type=chunk) Fair Values of Derivative Instruments (In thousands) | Instrument Type | June 29, 2025 | December 29, 2024 | | :-------------------------- | :------------ | :------------------ | | Commodity derivative assets | $6,543 | $6,598 | | Commodity derivative liabilities | $(18,664) | $(2,494) | | Foreign currency derivative assets | $3,108 | $755 | | Foreign currency derivative liabilities | $(389) | $(1,397) | | Sales contract derivative assets | $2,449 | — | | Sales contract derivative liabilities | — | $(778) | | Cash collateral posted with brokers | $9,283 | $2,324 | Gains and Losses from Undesignated Derivative Instruments (In thousands) | Contract Type | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Commodity derivatives | $(14,819) | $(6,146) | $(22,004) | $(16,194) | | Sales contract derivatives | $798 | $1,438 | $3,228 | $3,533 | | **Total** | **$(14,021)** | **$(4,708)** | **$(18,776)** | **$(12,661)** | - A **$1.0 million** pre-tax deferred net gain on foreign currency derivatives recorded in AOCI is expected to be reclassified to the Condensed Consolidated Statements of Income within the next twelve months[63](index=63&type=chunk) [Note 4. Trade Accounts and Other Receivables](index=15&type=section&id=Note%204.%20Trade%20Accounts%20and%20Other%20Receivables) This note provides details on the company's trade accounts and other receivables, including the allowance for credit losses Trade Accounts and Other Receivables (In thousands) | Metric | June 29, 2025 | December 29, 2024 | | :--------------------------------------- | :------------ | :------------------ | | Trade accounts receivable | $1,104,162 | $973,820 | | Receivables, gross | $1,139,643 | $1,012,808 | | Allowance for credit losses | $(8,309) | $(8,474) | | Receivables, net | $1,131,334 | $1,004,334 | | Accounts receivable from related parties | $9,761 | $2,608 | Activity in Allowance for Credit Losses (Six Months Ended, In thousands) | Metric | June 29, 2025 | | :-------------------------- | :------------ | | Balance, beginning of period | $(8,474) | | Provision charged to operating results | $(103) | | Account write-offs and recoveries | $832 | | Effect of exchange rate | $(564) | | Balance, end of period | $(8,309) | - The company has an uncommitted receivables purchase agreement with a bank, allowing it to sell eligible trade receivables for cash, with transfers recorded as sales under ASC 860[65](index=65&type=chunk) [Note 5. Inventories](index=16&type=section&id=Note%205.%20Inventories) This note presents a breakdown of the company's inventory categories, including raw materials, finished products, and operating supplies Inventories Breakdown (In thousands) | Category | June 29, 2025 | December 29, 2024 | | :-------------------------- | :------------ | :------------------ | | Raw materials and work-in-process | $1,146,087 | $1,069,170 | | Finished products | $601,694 | $527,364 | | Operating supplies | $79,257 | $77,146 | | Maintenance materials and parts | $113,565 | $109,808 | | **Total inventories** | **$1,940,603** | **$1,783,488** | [Note 6. Investments in Securities](index=16&type=section&id=Note%206.%20Investments%20in%20Securities) This note details the company's available-for-sale securities and related interest income and realized gains Available-for-Sale Securities (In thousands) | Category | Amortized Cost (June 29, 2025) | Fair Value (June 29, 2025) | Amortized Cost (Dec 29, 2024) | Fair Value (Dec 29, 2024) | | :-------------------- | :----------------------------- | :------------------------- | :---------------------------- | :------------------------ | | Fixed income securities (Cash equivalents) | $559,676 | $559,636 | $1,702,493 | $1,702,697 | | Fixed income securities (Short-term investments) | — | — | $10,000 | $10,220 | - Interest income and gross realized gains from available-for-sale securities totaled **$33.3 million** for the six months ended June 29, 2025, up from **$21.1 million** in the prior year period[67](index=67&type=chunk) [Note 7. Goodwill and Intangible Assets](index=17&type=section&id=Note%207.%20Goodwill%20and%20Intangible%20Assets) This note provides a breakdown of goodwill by segment and details intangible assets, including trade names and customer relationships Goodwill by Segment (Six Months Ended June 29, 2025, In thousands) | Segment | December 29, 2024 | Currency Translation | June 29, 2025 | | :-------- | :------------------ | :------------------- | :------------ | | U.S. | $41,936 | — | $41,936 | | Europe | $1,097,643 | $103,664 | $1,201,307 | | Mexico | $99,494 | $7,755 | $107,249 | | **Total** | **$1,239,073** | **$111,419** | **$1,350,492** | Intangible Assets, Net (In thousands) | Category | December 29, 2024 | Amortization | Currency Translation | June 29, 2025 | | :-------------------------- | :------------------ | :------------- | :------------------- | :------------ | | Trade names not subject to amortization | $569,357 | — | $53,077 | $622,434 | | Trade names subject to amortization | $112,016 | — | $3,232 | $115,248 | | Customer relationships | $431,861 | — | $27,668 | $459,529 | | Accumulated amortization (Trade names) | $(61,527) | $(1,959) | $(658) | $(64,144) | | Accumulated amortization (Customer relationships) | $(245,473) | $(14,402) | $(13,320) | $(273,195) | | **Intangible assets, net** | **$806,234** | **$(16,361)** | **$69,999** | **$859,872** | - The company will perform its annual recoverability tests for goodwill and non-amortized trade names in Q4 2025, with potential material impairment[68](index=68&type=chunk) [Note 8. Property, Plant and Equipment](index=17&type=section&id=Note%208.%20Property,%20Plant%20and%20Equipment) This note presents the company's property, plant, and equipment, including depreciation expense and capital project expenditures Property, Plant and Equipment, Net (In thousands) | Category | June 29, 2025 | December 29, 2024 | | :-------------------------- | :------------ | :------------------ | | PP&E, gross | $7,510,540 | $7,094,938 | | Accumulated depreciation | $(4,212,747) | $(3,957,047) | | **PP&E, net** | **$3,297,793** | **$3,137,891** | - Depreciation expense was **$201.6 million** for the six months ended June 29, 2025, compared to **$195.2 million** in the prior year period[69](index=69&type=chunk) - Capital projects incurred **$254.9 million** during the six months ended June 29, 2025, with **$126.1 million** transferred from construction-in-progress to depreciable assets[70](index=70&type=chunk) - The carrying amount of idled assets totaled **$39.8 million** as of June 29, 2025, and an additional impairment loss of **$0.8 million** on PP&E was recognized due to restructuring activities[73](index=73&type=chunk) [Note 9. Current Liabilities](index=18&type=section&id=Note%209.%20Current%20Liabilities) This note provides a detailed breakdown of the company's current liabilities, including accounts payable and accrued expenses Current Liabilities Breakdown (In thousands) | Category | June 29, 2025 | December 29, 2024 | | :--------------------------------------- | :------------ | :------------------ | | Total accounts payable | $1,486,008 | $1,411,519 | | Accounts payable to related parties | $53,967 | $15,257 | | Revenue contract liabilities | $49,164 | $48,898 | | Total accrued expenses and other current liabilities | $969,874 | $1,015,504 | | **Total** | **$2,559,013** | **$2,491,178** | - Accrued expenses and other current liabilities include compensation and benefits (**$275.7 million**), accrued sales rebates (**$122.8 million**), insurance and self-insured claims (**$120.0 million**), and litigation settlements (**$97.5 million**) as of June 29, 2025[74](index=74&type=chunk) [Note 10. Supplier Finance Programs](index=19&type=section&id=Note%2010.%20Supplier%20Finance%20Programs) This note discloses the outstanding balance of confirmed invoices under the company's supplier finance programs - The outstanding balance of confirmed invoices under supplier finance programs was **$214.7 million** as of June 29, 2025, up from **$152.8 million** at December 29, 2024[75](index=75&type=chunk) [Note 11. Income Taxes](index=19&type=section&id=Note%2011.%20Income%20Taxes) This note presents the company's income tax expense and effective tax rate, along with the impact of new tax rules Income Tax Expense and Effective Tax Rate (Six Months Ended) | Metric | June 29, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Income tax expense | $213.7 million | $152.7 million | | Effective tax rate | 24.7% | 23.3% | - The increased income tax expense in 2025 is primarily due to an increase in profit before income taxes[76](index=76&type=chunk) - The company has not identified any material tax exposure from the application of Pillar II rules, which became effective in various countries starting January 1, 2024[81](index=81&type=chunk) [Note 12. Debt](index=19&type=section&id=Note%2012.%20Debt) This note details the company's long-term debt components, including senior notes and credit facilities Long-Term Debt Components (In thousands) | Debt Type | Maturity | June 29, 2025 | December 29, 2024 | | :------------------------------------------------- | :------- | :------------ | :------------------ | | Senior notes payable, net of discount, at 6.875% | 2034 | $491,790 | $491,329 | | Senior notes payable, net of discount, at 6.25% | 2033 | $917,542 | $974,381 | | Senior notes payable at 3.50% | 2032 | $899,600 | $900,000 | | Senior notes payable, net of discount, at 4.25% | 2031 | $816,557 | $850,342 | | Live Oak CHP Project PACE Loan 5.15% | 2053 | $18,914 | $20,599 | | Finance lease obligations | Various | $1,533 | $1,792 | | **Long-term debt, less current maturities, net of capitalized financing costs** | | **$3,114,302** | **$3,206,113** | - The Board approved an increase of **$500.0 million** to the bond repurchase program on May 1, 2025. To date, the company has repurchased **$178.7 million** of 2031 Senior Notes, **$0.4 million** of 2032 Senior Notes, and **$77.5 million** of 2033 Senior Notes[84](index=84&type=chunk) - The company has an **$850.0 million** U.S. Credit Facility (matures Oct 2028), a **£150.0 million** Europe Credit Facility (matures June 2027), and a **Mex$1.1 billion** Mexico Credit Facility (matures Aug 2026), with no outstanding borrowings under any of these facilities as of June 29, 2025[85](index=85&type=chunk)[87](index=87&type=chunk)[90](index=90&type=chunk) [Note 13. Stockholders' Equity](index=21&type=section&id=Note%2013.%20Stockholders'%20Equity) This note provides a detailed analysis of changes in accumulated other comprehensive loss and special dividend declarations Changes in Accumulated Other Comprehensive Loss (Six Months Ended June 29, 2025, In thousands) | Component | Balance, beginning of period | Other comprehensive income (loss) before reclassifications | Amounts reclassified to net income | Currency translation | Balance, end of period | | :--------------------------------------- | :--------------------------- | :------------------------------------------------------- | :--------------------------------- | :------------------- | :--------------------- | | Losses Related to Foreign Currency Translation | $(337,243) | $325,927 | — | — | $(11,316) | | Losses (Gains) on Derivative Financial Instruments Classified as Cash Flow Hedges | $(2,007) | $1,658 | $1,282 | $86 | $1,019 | | Losses Related to Pension and Other Postretirement Benefits | $(31,028) | $141 | $(1,152) | $145 | $(31,894) | | Losses on Available-for-Sale Securities | $(22) | $(64) | $77 | — | $(9) | | **Total** | **$(370,300)** | **$327,662** | **$207** | **$231** | **$(42,200)** | - The company declared a special dividend of **$6.30 per share** on March 13, 2025, paid on April 17, 2025, totaling approximately **$1.5 billion**. Another special dividend of **$2.10 per share** was declared on July 30, 2025, payable on September 3, 2025, for approximately **$500.0 million**[95](index=95&type=chunk)[96](index=96&type=chunk) [Note 14. Pension and Other Postretirement Benefits](index=23&type=section&id=Note%2014.%20Pension%20and%20Other%20Postretirement%20Benefits) This note outlines the company's net periodic benefit costs for pension and other postretirement plans Net Periodic Benefit Costs (Six Months Ended, In thousands) | Metric | Pension Benefits (June 29, 2025) | Other Benefits (June 29, 2025) | Pension Benefits (June 30, 2024) | Other Benefits (June 30, 2024) | | :-------------------------- | :------------------------------- | :----------------------------- | :------------------------------- | :----------------------------- | | Interest cost | $3,068 | $22 | $4,949 | $22 | | Estimated return on plan assets | $(3,905) | — | $(5,203) | — | | Settlement gain | $(1,611) | — | — | — | | Expenses paid from assets | $230 | — | $192 | — | | Amortization of net loss | $75 | $(1) | $335 | — | | Amortization of past service cost | $9 | — | $9 | — | | **Net costs** | **$(2,134)** | **$21** | **$(282)** | **$22** | - The company completed the termination of its two U.S. pension plans in Q4 2024, settling obligations of **$99.6 million**[98](index=98&type=chunk) - Defined contribution plan expenses totaled **$17.1 million** for the six months ended June 29, 2025, compared to **$17.5 million** in the prior year period[104](index=104&type=chunk) [Note 15. Fair Value Measurement](index=23&type=section&id=Note%2015.%20Fair%20Value%20Measurement) This note explains the company's fair value measurement hierarchy and presents fair values for assets, liabilities, and debt - The company categorizes fair value measurements into Level 1 (unadjusted quoted prices in active markets), Level 2 (quoted prices for similar assets/liabilities or observable inputs), and Level 3 (unobservable inputs)[106](index=106&type=chunk)[111](index=111&type=chunk) Assets and Liabilities Measured at Fair Value on a Recurring Basis (In thousands) | Category | Level 1 (June 29, 2025) | Level 2 (June 29, 2025) | Total (June 29, 2025) | Level 1 (Dec 29, 2024) | Level 2 (Dec 29, 2024) | Total (Dec 29, 2024) | | :-------------------------- | :---------------------- | :---------------------- | :-------------------- | :--------------------- | :--------------------- | :------------------- | | Fixed income securities | $559,636 | — | $559,636 | $1,712,917 | — | $1,712,917 | | Commodity derivative assets | $6,543 | — | $6,543 | $6,598 | — | $6,598 | | Foreign currency derivative assets | $3,108 | — | $3,108 | $755 | — | $755 | | Sales contract derivative assets | $2,449 | — | $2,449 | — | — | — | | Commodity derivative liabilities | $(18,664) | — | $(18,664) | $(2,494) | — | $(2,494) | | Foreign currency derivative liabilities | $(389) | — | $(389) | $(1,397) | — | $(1,397) | | Sales contract derivative liabilities | — | — | — | — | $(778) | $(778) | Fair Value of Debt Obligations (In thousands) | Debt Type | Carrying Amount (June 29, 2025) | Fair Value (June 29, 2025) | Carrying Amount (Dec 29, 2024) | Fair Value (Dec 29, 2024) | | :--------------------------------------- | :------------------------------ | :------------------------- | :----------------------------- | :------------------------ | | Fixed-rate senior notes payable at 3.50% (Level 2) | $(899,600) | $(808,803) | $(900,000) | $(777,033) | | Fixed-rate senior notes payable at 4.25% (Level 2) | $(816,557) | $(792,197) | $(850,342) | $(789,304) | | Fixed-rate senior notes payable at 6.25% (Level 2) | $(917,542) | $(971,977) | $(974,381) | $(1,001,178) | | Fixed-rate senior notes payable at 6.875% (Level 2) | $(491,790) | $(545,985) | $(491,329) | $(533,650) | | Live Oak CHP Project PACE Loan at 5.15% (Level 3) | $(18,914) | $(18,527) | $(20,599) | $(18,569) | [Note 16. Restructuring-Related Activities](index=26&type=section&id=Note%2016.%20Restructuring-Related%20Activities) This note details the company's restructuring initiatives in its Europe segment, including facility closures and associated costs - The company is undertaking restructuring initiatives in its Europe segment, involving central operations integration and reallocation of processing capacities, leading to facility closures[116](index=116&type=chunk) Restructuring Costs Incurred and Expected (In thousands) | Cost Type | Pilgrim's Food Masters 2024 | Pilgrim's Europe Central | Total | | :-------------------------- | :-------------------------- | :----------------------- | :------ | | Employee-related costs | $19,848 | $52,191 | $72,039 | | Asset impairment costs | $10,887 | $1,852 | $12,739 | | Contract termination costs | $855 | $1,747 | $2,602 | | Other exit and disposal costs | $9,869 | $4,221 | $14,090 | | **Total exit and disposal costs** | **$41,459** | **$60,011** | **$101,470** | - Total restructuring expenses recognized for the six months ended June 29, 2025, were **$20.1 million**, with cash outlays of **$22.7 million**[118](index=118&type=chunk) [Note 17. Related Party Transactions](index=28&type=section&id=Note%2017.%20Related%20Party%20Transactions) This note discloses transactions with related parties, including sales, purchases, and cost allocation agreements Related Party Transactions (Six Months Ended, In thousands) | Transaction Type | June 29, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Sales to related parties | $32,166 | $16,662 | | Cost of goods purchased from related parties | $135,893 | $102,277 | | Expenditures paid by related parties | $185,381 | $42,687 | | Expenditures paid on behalf of related parties | $6,817 | $7,252 | | Accounts receivable from related parties (June 29, 2025) | $9,761 | $2,608 | | Accounts payable to related parties (June 29, 2025) | $53,967 | $15,257 | - The company has agreements with JBS USA Food Company for allocating costs related to SAP licenses and maintenance services, and for supporting business operations by a consolidated corporate team[127](index=127&type=chunk) [Note 18. Reportable Segments](index=29&type=section&id=Note%2018.%20Reportable%20Segments) This note provides financial information by reportable segment, including net sales, operating income, and capital expenditures - Pilgrim's operates in three reportable segments: U.S. (including Puerto Rico), Europe (U.K., France, Netherlands, Republic of Ireland), and Mexico, with segment profit measured by operating income[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) Net Sales by Reportable Segment (Six Months Ended, In thousands) | Segment | June 29, 2025 | June 30, 2024 | | :-------- | :------------ | :------------ | | U.S. | $5,563,574 | $5,243,297 | | Europe | $2,602,799 | $2,569,444 | | Mexico | $1,054,001 | $1,108,507 | | **Total net sales** | **$9,220,374** | **$8,921,248** | Operating Income by Reportable Segment (Six Months Ended, In thousands) | Segment | June 29, 2025 | June 30, 2024 | | :-------- | :------------ | :------------ | | U.S. | $673,793 | $487,405 | | Europe | $119,490 | $55,109 | | Mexico | $123,538 | $148,550 | | **Total operating income** | **$916,821** | **$691,064** | Capital Expenditures by Reportable Segment (Six Months Ended, In thousands) | Segment | June 29, 2025 | June 30, 2024 | | :-------- | :------------ | :------------ | | U.S. | $182,130 | $156,514 | | Europe | $53,751 | $35,751 | | Mexico | $23,089 | $7,741 | | **Total capital expenditures** | **$258,970** | **$200,006** | [Note 19. Commitments and Contingencies](index=33&type=section&id=Note%2019.%20Commitments%20and%20Contingencies) This note details the company's exposure to various legal proceedings, tax assessments, and other contingent liabilities - The company is subject to various legal proceedings, including the Broiler Antitrust Litigation, Hogan v. Pilgrim's Pride Corporation, City of Miami Beach Fire and Police Pension Fund, Mexican Tax Administration Service assessments, and U.K. tax review[144](index=144&type=chunk)[145](index=145&type=chunk) - In the Broiler Antitrust Litigation, motions to dismiss Phase 2 were denied, and PPC has incurred **$635.0 million** in expenses, including **$52.5 million** in the six months ended June 29, 2025, for settlements[146](index=146&type=chunk) - The Hogan v. Pilgrim's Pride Corporation settlement agreement received final court approval on June 27, 2025, with PPC paying **$41.5 million** in May 2025[147](index=147&type=chunk) - A stockholder derivative action, City of Miami Beach Fire and Police Pension Fund et al. v. JBS Wisconsin Properties, LLC et al., was filed on July 17, 2025, alleging breaches of fiduciary duties, with no amounts accrued for potential losses at this early stage[148](index=148&type=chunk)[149](index=149&type=chunk) - The Mexican Tax Administration Service's assessment of approximately **$269.5 million** (including penalties and interest) related to the 2015 acquisition of Tyson de México is under appeal, with no expense recorded[150](index=150&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operating results [Executive Summary](index=35&type=section&id=Executive%20Summary) This section provides an overview of key financial highlights and global economic conditions impacting the company's performance Key Financial Highlights (Six Months Ended June 29, 2025, In millions, except per share data) | Metric | Amount | | :--------------------------------------- | :------- | | Net income attributable to Pilgrim's | $651.6 | | Diluted common share | $2.73 | | Income before tax | $866.0 | | Net sales | $9.2 billion | | Gross profit | $1.3 billion | | Cash provided by operating activities | $622.1 | | Consolidated operating margin | 9.9% | | EBITDA | $1.1 billion | | Adjusted EBITDA | $1.2 billion | - Global economic conditions show rising inflation in the U.S. and U.K. in Q2 2025, while the E.U. saw a decrease. Mexico experienced increased inflation, and the peso strengthened against the U.S. dollar[155](index=155&type=chunk) - U.S. chicken market prices trended above historical and prior-year averages in Q2 2025, driven by elevated boneless breast pricing and firm volume demand in retail and foodservice, despite a decline in June[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - The U.K. chicken market grew **2.1%** year-over-year in Q2 2025, with chicken prices rising due to production capacity constraints and mandated stocking density reductions, while pork prices also grew due to market pressure[162](index=162&type=chunk)[164](index=164&type=chunk) - Mexico chicken commodity prices decreased in Q2 2025 but remained above prior-year averages, with corn prices higher and soybean meal prices lower compared to the prior year[163](index=163&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's operating results, including net sales, gross profit, and operating income by segment Net Sales Growth by Segment (YoY % Change) | Segment | Three Months Ended June 29, 2025 | Six Months Ended June 29, 2025 | | :-------- | :------------------------------- | :----------------------------- | | U.S. | +5.9% | +6.1% | | Europe | +5.4% | +1.3% | | Mexico | -4.7% | -4.9% | | **Total Net Sales** | **+4.3%** | **+3.4%** | - U.S. net sales increased due to favorable market pricing and product mix shifts. Europe net sales increased due to favorable foreign currency translation and higher net sales per pound, partially offset by decreased volume. Mexico net sales decreased primarily due to unfavorable foreign currency translation (**12.3%** in Q2, **15.8%** in H1), despite increases in net sales per pound and sales volume[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) Gross Profit Growth by Segment (YoY % Change) | Segment | Three Months Ended June 29, 2025 | Six Months Ended June 29, 2025 | | :-------- | :------------------------------- | :----------------------------- | | U.S. | +8.2% | +27.1% | | Europe | +9.0% | +16.7% | | Mexico | -18.7% | -15.0% | | **Total Gross Profit** | **+3.4%** | **+18.1%** | - U.S. cost of sales increased due to higher operating costs (fleet, grower pay, labor, packaging, utilities) but was partially offset by declining soybean meal costs. Europe cost of sales increased due to foreign currency translation and higher cost per pound (labor, repairs, utilities). Mexico cost of sales decreased due to favorable foreign currency translation but was offset by increased commodity ingredient costs and broiler health challenges[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) Operating Income Growth by Segment (YoY % Change) | Segment | Three Months Ended June 29, 2025 | Six Months Ended June 29, 2025 | | :-------- | :------------------------------- | :----------------------------- | | U.S. | +15.3% | +38.2% | | Europe | +193.5% | +116.8% | | Mexico | -20.1% | -16.8% | | **Total Operating Income** | **+16.2%** | **+32.7%** | - U.S. SG&A decreased due to lower legal settlement expense. Europe SG&A decreased due to lower payroll costs. Mexico SG&A decreased due to favorable foreign currency translation, partially offset by increased payroll and incentive compensation[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - Net interest expense increased to **$31.5 million** (Q2 2025) and **$48.2 million** (H1 2025) primarily due to a prior year gain on early extinguishment of debt and lower interest income from reduced cash balances, partially offset by decreased interest expense from debt repurchases[181](index=181&type=chunk)[195](index=195&type=chunk) - Income tax expense increased to **$119.6 million** (Q2 2025) and **$213.7 million** (H1 2025) due to higher profit before income taxes[182](index=182&type=chunk)[196](index=196&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's available liquidity sources, cash flow activities, and capital expenditure plans Available Sources of Liquidity (As of June 29, 2025, In millions) | Source | Facility Amount | Amount Outstanding | Amount Available | | :---------------------- | :-------------- | :----------------- | :--------------- | | Cash and cash equivalents | — | — | $849.0 | | U.S. Credit Facility | $850.0 | — | $825.8 | | Mexico Credit Facility | $58.9 | — | $58.9 | | Europe Credit Facility | $205.9 | — | $205.9 | - The company expects cash flows from operations and credit facilities to provide sufficient liquidity for current obligations, working capital, debt maturities, and capital spending for at least the next twelve months, including a new prepared foods facility in Georgia[201](index=201&type=chunk) Cash Flows from Operating Activities (Six Months Ended, In millions) | Metric | June 29, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Net income | $652.4 | $501.5 | | Net noncash expenses | $220.7 | $235.9 | | Changes in operating assets and liabilities | $(245.5) | $262.3 | | **Cash provided by operating activities** | **$622.1** | **$989.7** | - Changes in operating assets and liabilities for H1 2025 included a **$75.0 million** use of cash from trade accounts and other receivables, a **$105.7 million** use from inventories, and a **$34.6 million** use from accounts payable and accrued expenses[206](index=206&type=chunk)[207](index=207&type=chunk)[209](index=209&type=chunk) Cash Flows from Investing Activities (Six Months Ended, In millions) | Metric | June 29, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Acquisitions of property, plant and equipment | $(259.3) | $(213.2) | | Proceeds from property disposals | $2.9 | $4.5 | | **Cash used in investing activities** | **$(256.4)** | **$(208.7)** | Cash Flows from Financing Activities (Six Months Ended, In millions) | Metric | June 29, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Payments for dividend | $(1,495.5) | — | | Payments on revolving line of credit, long-term borrowings and finance lease obligations | $(90.7) | $(150.9) | | Payments on early extinguishment of debt | $(2.1) | $(0.2) | | Proceeds from contribution of capital under Tax Sharing Agreement with JBS USA Holdings | — | $1.4 | | **Cash provided by (used in) financing activities** | **$(1,588.3)** | **$(149.7)** | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=45&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This section reconciles net income to non-GAAP measures, EBITDA and Adjusted EBITDA, and discusses their analytical limitations Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Six Months Ended June 29, 2025, In thousands) | Metric | Amount | | :--------------------------------------- | :------- | | Net income | $652,352 | | Add: Interest expense, net | $48,236 | | Add: Income tax expense | $213,672 | | Add: Depreciation and amortization | $218,022 | | **EBITDA** | **$1,132,282** | | Add: Foreign currency transaction losses | $2,839 | | Add: Litigation settlements | $65,714 | | Add: Restructuring activities losses | $20,111 | | Minus: Net income attributable to noncontrolling interest | $799 | | **Adjusted EBITDA** | **$1,220,147** | - EBITDA and Adjusted EBITDA are non-GAAP measures used by management and investors to compare performance, but they have limitations as analytical tools and should not replace U.S. GAAP results[216](index=216&type=chunk)[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines Pilgrim's Pride Corporation's exposure to market risks, including commodity prices, interest rates, and foreign currency - The company is exposed to commodity price risk for feed ingredients (corn, soybean meal, wheat) and mitigates this through purchase agreements and derivative financial instruments[220](index=220&type=chunk) Sensitivity to 10% Increase in Feed Ingredient Prices (Three Months Ended June 29, 2025, In thousands) | Metric | Amount | Impact of 10% Increase | | :-------------------------- | :------- | :--------------------- | | Feed ingredient purchases | $819,287 | $81,929 | | Feed ingredient inventory | $162,967 | $16,297 | - A hypothetical **10%** increase in interest rates would decrease the fair value of fixed-rate debt by **$92.2 million** as of June 29, 2025[225](index=225&type=chunk) - A **10%** weakening of the Mexican peso against the U.S. dollar would decrease the net assets of Mexican subsidiaries by **$73.7 million**, while a **10%** strengthening would increase them by **$90.1 million**[227](index=227&type=chunk)[228](index=228&type=chunk) - A **10%** weakening of the British pound against the U.S. dollar would decrease the net assets of Europe subsidiaries by **$85.8 million**, while a **10%** strengthening would increase them by **$104.9 million**[230](index=230&type=chunk) - The U.S., Mexico, and most of Europe continue to experience above-historical inflation, to which the company responds by negotiating with customers and focusing on operational efficiencies[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and reports no material changes in internal control over financial reporting - The company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of June 29, 2025[239](index=239&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 29, 2025, despite the completion of the second phase of ERP system implementation on April 21, 2025[240](index=240&type=chunk)[241](index=241&type=chunk) [PART II. OTHER INFORMATION](index=51&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed information on legal proceedings and claims from Note 19 - Information regarding legal proceedings is incorporated by reference from Note 19, 'Commitments and Contingencies,' in Part I, Item 1[243](index=243&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) This section refers to potential risks and uncertainties discussed in the 2024 Annual Report, confirming no material changes - For a discussion of potential risks and uncertainties, refer to 'Part I—Item 1A—Risk Factors' in the 2024 Annual Report and 'Part I—Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations' in this report[244](index=244&type=chunk) - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report[244](index=244&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) This section states that no directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements - None of the company's directors or executive officers adopted or terminated a 'Rule 10b5-1 trading arrangement' or a 'non-Rule 10b5-1 trading arrangement' during the fiscal quarter ended June 29, 2025[245](index=245&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents and certifications - The exhibits include the Amended and Restated Certificate of Incorporation, Corporate Bylaws, 2019 Long-Term Incentive Plan, Section 302 and 906 certifications, and Inline XBRL documents[246](index=246&type=chunk)

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) Pilgrim's Pride achieved $4.8 billion in net sales and $512.3 million in operating income in Q2 2025, declaring a special dividend of approximately $500 million [Overall Performance](index=1&type=section&id=Overall%20Performance) The company demonstrated strong financial performance with year-over-year growth in net sales and operating income, maintaining an adjusted EBITDA margin of 14.4% Q2 2025 Financial Performance | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | 4,757.4 | 4,559.3 | +4.3% | | GAAP Operating Income | 512.3 | 440.8 | +16.2% | | GAAP Net Income | 356.0 | - | - | | GAAP EPS | 1.49 | 1.37 | +8.8% | | Adjusted Net Income | 406.2 | - | - | | Adjusted EPS | 1.70 | - | - | | Adjusted EBITDA | 686.9 | 655.9 | +4.7% | | Adjusted EBITDA Margin | 14.4% | 14.4% | 0.0 pts | - The company's Board of Directors approved a special dividend payment of approximately **$500 million** (**$2.10 per share**)[2](index=2&type=chunk) - The company maintains a strong liquidity position and balance sheet flexibility, with net leverage below **1.0x Adjusted EBITDA**[2](index=2&type=chunk) [Operational Highlights by Segment](index=1&type=section&id=Operational%20Highlights%20by%20Segment) All regional businesses performed well, with US fresh benefiting from strong demand and efficiency, and prepared foods sales growing over 20% year-over-year - US Fresh Business: Sales growth and margin expansion were driven by strong demand, focus on quality and service, and improved operational efficiency. Case Ready sales to key customers grew faster than the category average, Small Bird benefited from continued QSRs growth, and Big Bird improved margins through attractive cut values and enhanced operations[2](index=2&type=chunk)[4](index=4&type=chunk) - US Prepared Foods: Sales increased by over **20% year-over-year**, with operations driving record production to support growing retail and foodservice demand. The Just Bare brand ranked first among Circana product leaders, holding over **10% market share** in the fully cooked chicken market[2](index=2&type=chunk)[4](index=4&type=chunk) - European Operations: Margin growth was achieved through sales growth with key customers, key brand expansion, product portfolio optimization, and cost efficiencies. Fridge Raiders® and Rollover® brands saw volume growth faster than the category average[2](index=2&type=chunk)[5](index=5&type=chunk) - Mexican Operations: Achieved its second-highest Adjusted EBITDA ever, benefiting from favorable demand and strong volumes. Brand diversification in fresh and prepared foods categories continued, with volume growth exceeding **5% year-over-year**[2](index=2&type=chunk)[5](index=5&type=chunk) [Strategic Initiatives & Capital Allocation](index=2&type=section&id=Strategic%20Initiatives%20%26%20Capital%20Allocation) The company continues to invest in growth projects, including a new state-of-the-art prepared foods facility in Georgia, projected to increase US prepared foods sales by over 40% - Pilgrim's will invest in a new state-of-the-art prepared foods facility in Walker County, Georgia, to meet significant demand for value-added products in retail and foodservice, diversify its product portfolio towards higher-margin branded products, and expand supply chain capabilities[2](index=2&type=chunk)[6](index=6&type=chunk) - The new facility is expected to create over **630 jobs** and increase US prepared foods sales by over **40%** from current levels once fully operational[2](index=2&type=chunk) - The company continues to invest in growth projects and maintains a strong liquidity position and balance sheet flexibility[2](index=2&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of income, and statements of cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets were $10.119 billion, down from $10.651 billion on December 29, 2024, primarily due to reduced cash and cash equivalents Condensed Consolidated Balance Sheets (Thousand USD) | Metric | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash & Cash Equivalents | 849,036 | 2,040,834 | | Inventory | 1,940,603 | 1,783,488 | | Total Current Assets | 4,257,211 | 5,120,163 | | Net Property, Plant & Equipment | 3,297,793 | 3,137,891 | | Goodwill | 1,350,492 | 1,239,073 | | Total Assets | 10,118,666 | 10,650,576 | | Total Current Liabilities | 2,619,379 | 2,552,133 | | Net Long-Term Debt | 3,114,302 | 3,206,113 | | Total Liabilities | 6,366,130 | 6,397,180 | | Equity Attributable to Pilgrim's Pride Corporation Stockholders | 3,737,747 | 4,239,406 | | Total Stockholders' Equity | 3,752,536 | 4,253,396 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) In Q2 2025, net sales grew 4.3% year-over-year to $4.757 billion, with increases in gross profit and operating income Condensed Consolidated Statements of Income (Thousand USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 4,757,365 | 4,559,314 | 9,220,374 | 8,921,248 | | Cost of Sales | 4,042,070 | 3,867,688 | 7,950,206 | 7,845,713 | | Gross Profit | 715,295 | 691,626 | 1,270,168 | 1,075,535 | | Selling, General & Administrative Expenses | 199,457 | 214,161 | 333,236 | 333,237 | | Operating Income | 512,339 | 440,790 | 916,821 | 691,064 | | Net Income | 356,009 | 326,523 | 652,352 | 501,461 | | Net Income Attributable to Pilgrim's Pride Corporation | 355,520 | 326,303 | 651,553 | 500,724 | | Diluted Earnings Per Share | 1.49 | 1.37 | 2.73 | 2.11 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating cash flow was $622 million, investing cash outflow was $256 million, and financing cash outflow was $1.588 billion, primarily due to $1.495 billion in dividend payments Condensed Consolidated Statements of Cash Flows (Thousand USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 622,103 | 989,656 | | Net Cash Used in Investing Activities | (256,371) | (208,696) | | Net Cash Used in Financing Activities | (1,588,271) | (149,686) | | Cash & Cash Equivalents at End of Period | 858,319 | 1,334,126 | - Cash used in financing activities significantly increased, primarily due to **$1,495,497 thousand** in dividends paid in H1 2025, compared to no dividends paid in the prior year period[19](index=19&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Adjusted Operating Income, and Adjusted Net Income/EPS [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) The company provides a reconciliation of Adjusted EBITDA, which excludes non-recurring items like interest, taxes, D&A, FX gains/losses, litigation, and restructuring, to better reflect ongoing operational performance - Adjusted EBITDA is calculated by adding back interest, taxes, depreciation and amortization, foreign currency transaction gains and losses, litigation and restructuring activity losses, and subtracting net income attributable to non-controlling interests, to provide a more comparable measure of operating performance[21](index=21&type=chunk)[23](index=23&type=chunk) Consolidated Adjusted EBITDA (Thousand USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | 356,009 | 326,523 | 652,352 | 501,461 | | EBITDA | 620,537 | 550,459 | 1,132,282 | 911,706 | | Adjusted EBITDA | 686,903 | 655,939 | 1,220,147 | 1,027,831 | Last Twelve Months (LTM) Adjusted EBITDA (Thousand USD) | Metric | LTM June 29, 2025 | | :--- | :--- | | Net Income | 1,238,114 | | EBITDA | 2,154,976 | | Adjusted EBITDA | 2,406,246 | EBITDA Margin Reconciliation (%) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Margin | 7.48% | 7.16% | 7.08% | 5.62% | | EBITDA Margin | 13.03% | 12.07% | 12.28% | 10.21% | | Adjusted EBITDA Margin | 14.42% | 14.39% | 13.23% | 11.51% | Adjusted EBITDA by Segment (Three Months Ended, Thousand USD) | Segment | Q2 2025 Adjusted EBITDA | Q2 2024 Adjusted EBITDA | | :--- | :--- | :--- | | US | 482,734 | 444,588 | | Europe | 111,820 | 96,244 | | Mexico | 92,349 | 115,107 | | Total | 686,903 | 655,939 | Adjusted EBITDA by Segment (Six Months Ended, Thousand USD) | Segment | H1 2025 Adjusted EBITDA | H1 2024 Adjusted EBITDA | | :--- | :--- | :--- | | US | 875,244 | 687,492 | | Europe | 211,365 | 177,701 | | Mexico | 133,538 | 162,638 | | Total | 1,220,147 | 1,027,831 | [Adjusted Operating Income Reconciliation](index=14&type=section&id=Adjusted%20Operating%20Income%20Reconciliation) The company provides a reconciliation of Adjusted Operating Income and its margin, excluding non-recurring items like litigation and restructuring, to offer a clearer view of operational performance - Adjusted Operating Income is calculated by adding back litigation and restructuring activity losses to better reflect ongoing operating performance[41](index=41&type=chunk) Adjusted Operating Income by Segment (Thousand USD) | Segment | Q2 2025 Adjusted Operating Income | Q2 2024 Adjusted Operating Income | | :--- | :--- | :--- | | US | 413,451 | 379,238 | | Europe | 73,918 | 60,668 | | Mexico | 86,933 | 108,809 | Adjusted Operating Income Margin by Segment (%) | Segment | Q2 2025 Adjusted Operating Income Margin | Q2 2024 Adjusted Operating Income Margin | | :--- | :--- | :--- | | US | 14.7% | 14.2% | | Europe | 5.4% | 4.7% | | Mexico | 15.4% | 18.3% | [Adjusted Net Income and EPS Reconciliation](index=16&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) The company provides a reconciliation of Adjusted Net Income and Adjusted EPS, excluding non-recurring items like FX gains/losses, litigation, and restructuring, to offer a more comparable performance measure - Adjusted Net Income and EPS are calculated by excluding the after-tax impact of foreign currency transaction gains and losses, litigation and restructuring activity losses, and early debt extinguishment gains, to provide a more accurate measure of ongoing operating performance[48](index=48&type=chunk)[52](index=52&type=chunk) Adjusted Net Income (Thousand USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Pilgrim's | 355,520 | 326,303 | 651,553 | 500,724 | | Adjusted Net Income Attributable to Pilgrim's | 406,197 | 397,965 | 718,761 | 580,847 | Adjusted EPS (USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP EPS | 1.49 | 1.37 | 2.73 | 2.11 | | Adjusted EPS | 1.70 | 1.67 | 3.02 | 2.44 | [Supplementary Segment and Geographic Data](index=18&type=section&id=Supplementary%20Segment%20and%20Geographic%20Data) This section provides detailed financial data broken down by business segment and geographic region [Net Sales, Cost of Sales, Gross Profit, and Operating Income by Region](index=18&type=section&id=Net%20Sales%2C%20Cost%20of%20Sales%2C%20Gross%20Profit%2C%20and%20Operating%20Income%20by%20Region) US operations showed year-over-year growth in net sales, gross profit, and operating income, with Europe also demonstrating growth, while Mexico's performance declined Net Sales, Cost of Sales, Gross Profit, and Operating Income by Region (Thousand USD) | Metric | Region | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | US | 2,820,385 | 2,663,965 | 5,563,574 | 5,243,297 | | | Europe | 1,371,270 | 1,301,541 | 2,602,799 | 2,569,444 | | | Mexico | 565,710 | 593,808 | 1,054,001 | 1,108,507 | | Gross Profit | US | 489,242 | 452,339 | 876,864 | 689,631 | | | Europe | 124,133 | 113,870 | 240,437 | 206,035 | | | Mexico | 101,920 | 125,417 | 152,867 | 179,869 | | Operating Income | US | 354,987 | 307,988 | 673,793 | 487,405 | | | Europe | 70,419 | 23,993 | 119,490 | 55,109 | | | Mexico | 86,933 | 108,809 | 123,538 | 148,550 | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides details on the company's conference call, an overview of Pilgrim's Pride, forward-looking statements, and contact information [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company will host a conference call on July 31, 2025, to discuss quarterly results, with pre-registration and dial-in information provided - The conference call will be held on **July 31, 2025**, at **7 AM US Mountain Time** (**9 AM US Eastern Time**)[8](index=8&type=chunk) - Participants can join the conference call via a pre-registration link or by dialing specified phone numbers[8](index=8&type=chunk)[9](index=9&type=chunk) [About Pilgrim's Pride](index=3&type=section&id=About%20Pilgrim's%20Pride) Pilgrim's Pride is a leading global food company with approximately 62,200 employees, operating protein processing and prepared foods facilities across multiple countries and regions - Pilgrim's Pride has approximately **62,200 employees** and operates protein processing and prepared foods facilities in **14 states**, Puerto Rico, Mexico, the United Kingdom, the Republic of Ireland, and Continental Europe[10](index=10&type=chunk) - The company primarily distributes its products through retailers and foodservice distributors[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding the company's future intentions, plans, and expectations, where actual results may differ materially due to various risk factors - Forward-looking statements involve the company's future intentions, plans, hopes, beliefs, expectations, or predictions, and actual results may differ materially due to various factors[11](index=11&type=chunk) - Risk factors include, but are not limited to, general poultry industry issues, the ability to execute business plans, feed ingredient and product pricing, avian influenza or other disease outbreaks, product contamination, changes in laws and regulations, competitive factors, currency fluctuations, international market disruptions, and cyberattacks[11](index=11&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact information for Andrew Rojeski, Head of Investor Relations and Sustainability, is provided - Contact Person: **Andrew Rojeski**, Head of Strategy, Investor Relations & Sustainability[13](index=13&type=chunk) - Email: IRPPC@pilgrims.com, Website: www.pilgrims.com[13](index=13&type=chunk)

Core Insights - Pilgrim's Pride Corporation reported strong financial results for the second quarter of 2025, with net sales reaching $4.76 billion, a 4.3% increase year-over-year [3][5] - The company achieved a GAAP EPS of $1.49, reflecting an 8.8% increase compared to the previous year, and an adjusted EPS of $1.70 [5][19] - Operating income rose by 16.2% to $512.3 million, while adjusted EBITDA increased by 4.7% to $686.9 million, maintaining a margin of 14.4% [3][5] Financial Performance - Net sales for the first half of 2025 totaled $9.22 billion, up 3.4% from $8.92 billion in the same period last year [3] - The U.S. Fresh portfolio saw significant growth, benefiting from high commodity values and operational improvements [5][4] - Adjusted EBITDA for the first half of 2025 was $1.22 billion, a year-over-year increase of 18.7% [3][5] Market Dynamics - Demand from key customers outpaced category growth, with prepared offerings expanding significantly [4][5] - The U.S. Prepared Foods segment reported over 20% growth in net sales compared to the previous year, driven by record production levels [5][6] - Pilgrim's Europe experienced margin expansion through sales growth and cost efficiencies, with sales to key customers increasing over 5% year-over-year [6][7] Strategic Initiatives - The company announced plans to build a new prepared foods plant in Georgia, expected to increase U.S. Prepared Foods sales by over 40% and create over 630 jobs [5][8] - Pilgrim's continues to diversify its product offerings, with Just Bare chicken brand achieving over 10% market share in the fully cooked chicken category [5][6] - The company maintains a strong liquidity position with a net leverage ratio of less than 1.0 times adjusted EBITDA [5][6] Shareholder Returns - The Board of Directors approved a special dividend of approximately $500 million, equating to $2.10 per share [5][6] - The company emphasizes its commitment to delivering value to shareholders through growth and innovation in its product lines [6][9]

Company Performance - Pilgrim's Pride (PPC) stock increased by 1.09% to $47.81, outperforming the S&P 500's daily gain of 0.4% [1] - Prior to the latest trading session, PPC shares had gained 6.15%, while the Consumer Staples sector experienced a loss of 0.48% and the S&P 500 gained 4.61% [1] Upcoming Earnings - The earnings report for Pilgrim's Pride is scheduled for July 30, 2025, with an expected EPS of $1.54, reflecting a decrease of 7.78% from the previous year [2] - Full-year Zacks Consensus Estimates predict earnings of $5.27 per share and revenue of $0 million, indicating year-over-year changes of -2.77% and 0%, respectively [2] Analyst Estimates - Recent changes to analyst estimates for Pilgrim's Pride suggest shifting short-term business dynamics, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [4] Zacks Rank and Valuation - Pilgrim's Pride currently holds a Zacks Rank of 4 (Sell), with a 2.14% decline in the Zacks Consensus EPS estimate over the past month [5] - The company has a Forward P/E ratio of 8.97, which is lower than the industry average of 12.24, indicating a valuation discount [6] Industry Context - The Food - Meat Products industry, part of the Consumer Staples sector, ranks in the bottom 21% of all industries, with a current Zacks Industry Rank of 197 [6] - The Zacks Industry Rank evaluates the performance of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Pilgrim's announced a $400 million investment to expand its operations in Georgia, specifically by building a new prepared foods facility in LaFayette, Walker County, which will create over 630 jobs at full capacity [1][3]. Company Expansion - The new facility will focus on producing fully cooked chicken products, supporting the growth of Pilgrim's prepared foods business, including brands like Just Bare, Pilgrim's, and Gold Kist [3]. - Construction is expected to begin in fall 2025, with hiring anticipated to start in 2027, coinciding with the completion of the first phase of the facility [3]. Economic Impact - The investment reflects Pilgrim's commitment to the region and aligns with the company's long-term growth strategy [3]. - Currently, Pilgrim's supports approximately 7,500 jobs across Georgia and operates seven food production facilities, contributing significantly to the local economy [2][6]. - Local officials, including the Mayor of LaFayette and the Chairwoman of Walker County Government, expressed that the new jobs will provide stable employment and long-term security for residents [4][5]. Industry Context - Agriculture remains Georgia's leading industry, with companies like Pilgrim's driving growth and creating quality jobs in local communities [2][5]. - The expansion of Pilgrim's operations is seen as a natural progression that will enhance the local economy and support partnerships with local poultry growers [4].

Company Performance - Pilgrim's Pride (PPC) closed at $44.01, reflecting a -2.33% change from the previous day, underperforming the S&P 500 which had a daily loss of 0.4% [1] - Prior to the latest trading session, shares of Pilgrim's Pride had decreased by 1.96%, lagging behind the Consumer Staples sector's loss of 1.24% and the S&P 500's gain of 4.97% [1] Upcoming Earnings - The earnings report for Pilgrim's Pride is scheduled for July 30, 2025, with projected earnings per share (EPS) of $1.63, indicating a 2.4% decrease from the same quarter last year [2] - For the full year, Zacks Consensus Estimates project earnings of $5.39 per share and revenue of $0 million, showing changes of -0.55% and 0% respectively from the previous year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Pilgrim's Pride should be monitored, as these adjustments reflect the changing dynamics of short-term business patterns [3] - Positive changes in estimates are indicative of analyst optimism regarding the company's business and profitability [3] Valuation Metrics - Pilgrim's Pride has a Forward P/E ratio of 8.37, which is a discount compared to its industry's Forward P/E of 12.24 [5] - The company currently holds a Zacks Rank of 4 (Sell), with the consensus EPS projection remaining stagnant over the past 30 days [5] Industry Context - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 196, placing it in the bottom 21% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Group 1 - Pilgrim's Pride Corporation will release its second quarter 2025 financial results after the U.S. market closes on July 30, 2025 [1] - A conference call and webcast to review the results will take place on July 31, 2025, at 7:00 a.m. MT (9:00 a.m. ET) [1] - The call will include prepared remarks followed by a question and answer session with the executive management team [1] Group 2 - Investors and analysts can pre-register for the webcast to receive a unique PIN for immediate access [2] - Pre-registration can be completed at any time, including during the call [2] - Participants can also register on the day of the event by dialing specific numbers for U.S. and international access [3] Group 3 - The webcast will be available for replay on the company's website two hours after the call and will remain accessible until October 31, 2025 [4] - A telephone replay will also be available until August 31, 2025, using a specific conference number [4] Group 4 - Pilgrim's Pride Corporation employs approximately 62,600 people and operates protein processing plants and prepared foods facilities in 14 states, Puerto Rico, Mexico, the U.K., the Republic of Ireland, and continental Europe [5] - The company's primary distribution channels are through retailers and foodservice distributors [5]

Core Insights - Pilgrim's Pride Corporation (PPC) reported a strong first-quarter 2025 performance with an adjusted EBITDA margin of 12%, an increase of 350 basis points from the previous year, primarily driven by the U.S. business where the margin rose to 14.3% from 9.4% [1][8] - The margin improvement was supported by strong performance in Prepared Foods and Case Ready segments, as well as favorable market pricing for Big Bird [1][8] Financial Performance - The adjusted EBITDA margin of 12% reflects significant operational execution aligned with favorable market conditions [4] - The U.S. business's adjusted EBITDA margin increased to 14.3%, indicating robust performance in key product areas [1][8] - Mexico's operations faced $8.5 million in foreign exchange headwinds, contributing to quarterly volatility [3][8] Market Conditions - The sustainability of the margin increase is questioned due to potential challenges such as live production volatility, hatchability concerns, and overall foodservice softness [2][4] - Quick service restaurant volumes remain strong, but foodservice traffic is under pressure across the industry [2] Regional Performance - Europe achieved an 8.1% margin, indicating progress from ongoing structural reorganization efforts, including support function integration and manufacturing optimization [3][8] - Key initiatives in Europe have enhanced performance, supported by continued product innovation [3] Valuation Metrics - Pilgrim's Pride currently trades at a forward 12-month P/E ratio of 8.78, which is below the industry average of 12.11 and the sector average of 17.31, positioning the stock at a modest discount [9]

Company Performance - Pilgrim's Pride (PPC) closed at $45.75, reflecting a +1.42% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.38% [1] - Over the past month, shares of Pilgrim's Pride have decreased by 1.27%, underperforming the Consumer Staples sector's gain of 2.14% and the S&P 500's gain of 6.6% [1] Earnings Projections - The upcoming earnings per share (EPS) for Pilgrim's Pride is projected at $1.63, indicating a 2.40% decline compared to the same quarter last year [2] - For the entire fiscal year, the Zacks Consensus Estimates forecast earnings of $5.39 per share and revenue of $0 million, representing changes of -0.55% and 0% from the prior year, respectively [2] Analyst Estimates - Recent changes to analyst estimates for Pilgrim's Pride indicate a dynamic nature of near-term business trends, with positive revisions reflecting analyst optimism regarding the company's profitability [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Pilgrim's Pride at 3 (Hold), with a recent downward shift of 0.37% in the consensus EPS estimate [5] - Pilgrim's Pride is trading at a Forward P/E ratio of 8.38, which is a discount compared to the industry average Forward P/E of 12.24 [6] Industry Context - The Food - Meat Products industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 164, placing it in the bottom 34% of over 250 industries [6][7] - The Zacks Industry Rank measures the strength of industry groups by averaging the Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Summary by Sections - No relevant company or industry information is presented in the content [1][2]