Financial Data and Key Metrics Changes - The company reported a record third-quarter adjusted operating profit of $310 million, an 8.5% increase year over year, with an adjusted operating profit margin of 8.3% [10][23] - Consolidated sales for the third quarter were $3.7 billion, representing a 12.4% increase compared to the prior year [22] - Adjusted net income from continuing operations was a record $230 million, up from $203 million in the third quarter of 2024, with adjusted EPS increasing to $0.58 per share, a 9.4% rise from $0.53 [23][29] Business Line Data and Key Metrics Changes - The packaged meats segment achieved an adjusted operating profit of $226 million, the second-highest third-quarter profit on record, with a margin of 10.8% [23][24] - Fresh pork segment adjusted operating profit was $10 million, down from the previous year, but mitigated the impact of a compressed industry market spread [25] - Hog production segment adjusted operating profit increased to $89 million from $40 million year over year, driven by improved commodity markets [26] Market Data and Key Metrics Changes - Packaged meats sales increased by 9.1% to $2.1 billion, driven by a 9.2% increase in average selling price, while volume remained flat [24] - Fresh pork segment sales rose 12% year over year to $2.2 billion, primarily due to a 12% increase in average selling price [26] - Hog production segment sales increased by 10.1% to $813 million, despite a reduction in the number of hogs produced [26] Company Strategy and Development Direction - The company focuses on five strategic growth priorities, including enhancing product mix and volume growth in packaged meats, maximizing net realizable value in fresh pork, and optimizing operations in hog production [7][16] - The packaged meats segment is positioned to capitalize on consumer demand for quality protein, with a strategy to improve product mix and drive innovation [8][10] - The company is evaluating synergistic M&A opportunities across North America to support growth strategies [20] Management's Comments on Operating Environment and Future Outlook - Management raised the midpoint of the fiscal 2025 adjusted operating profit outlook by $25 million, reflecting strong year-to-date performance [29][31] - The company anticipates total sales to increase in the low to mid-single-digit percentage range compared to fiscal 2024, despite challenges from higher raw material costs [30] - Management expressed confidence in navigating a dynamic macro environment and maintaining profitability through disciplined execution of strategies [20][31] Other Important Information - The company ended the third quarter with a net debt to adjusted EBITDA ratio of 0.8 times, indicating a strong balance sheet [28] - Capital expenditures for the year are expected to be between $350 million to $400 million, primarily for projects that drive growth [28][29] - The company plans to pay $1 per share in annual dividends, reinforcing its commitment to return value to shareholders [29] Q&A Session Summary Question: Insights on packaged meats volume and pricing - Management noted that despite a cautious consumer environment, retail sales were up 6%, with unit share growth, indicating effective execution of their strategy [34][35] Question: Profitability outlook amid input cost pressures - Management expressed confidence in maintaining margins through pricing strategies and operational efficiencies, despite rising raw material costs [36][38] Question: Impact of hog production strategy on competitiveness - Management clarified that the reduction in hog production is aimed at removing high-cost farms, ensuring adequate supply for fresh pork and packaged meats [40][42] Question: Expectations for beef trim markets - Management indicated that a material recovery in beef is not expected until late 2027, positioning pork favorably in comparison to other proteins [58][60] Question: Clarification on capital expenditure guidance - Management explained that the lower CapEx guidance is primarily due to the timing of projects shifting into early 2026, rather than a reduction in investment opportunities [69]

Financial Performance - Smithfield achieved a record third quarter adjusted operating profit of $310 million, an increase of 8.5% year-over-year, with an 8.3% adjusted operating profit margin[22] - The company's sales increased by 12.4% to $3,747 million in the third quarter of 2025, compared to $3,334 million in the same period of 2024[101] - Adjusted net income increased by 13.7% to $230 million, compared to $203 million in the prior year[101] - Adjusted EPS increased by 9.4% to $0.58, compared to $0.53 in the prior year[101] Segment Performance - Packaged Meats segment delivered its second-highest third-quarter adjusted operating profit despite a challenging market[22] - Packaged Meats sales increased by 9.1%, driven by a 9.2% increase in price, with volume remaining relatively flat[109] - Fresh Pork sales increased by 12.0% due to a 12.0% increase in price, while volume remained relatively flat[117] - Hog Production saw a 119.8% increase in adjusted operating profit[124] Strategic Initiatives - The company is focused on increasing profits in the Packaged Meats segment through enhanced product mix and volume growth[27] - Smithfield aims to achieve a best-in-class cost structure in its Hog Production segment through genetic transformation, herd health improvements, and procurement and nutrition savings[27] - The company is optimizing operations by delivering efficiencies across manufacturing, supply chain, distribution, procurement, and SG&A[27] - Smithfield anticipates paying annual dividends of $1.00 per share[5, 23]

Financial Performance - Sales for the three months ended September 28, 2025, were $3,747 million, a 12.4% increase from $3,334 million for the same period in 2024[7] - Gross profit for the nine months ended September 28, 2025, was $1,487 million, compared to $1,364 million for the same period in 2024, reflecting a 9.0% increase[7] - Net income from continuing operations for the three months ended September 28, 2025, was $252 million, up 20.6% from $209 million in the same period of 2024[7] - The company reported comprehensive income of $275 million for the three months ended September 28, 2025, compared to $325 million for the same period in 2024[8] - The company reported a net income of $667 million for the nine months ended September 28, 2025, down 12.2% from $760 million in the same period last year[8] - Comprehensive income attributable to Smithfield for the three months ended September 28, 2025, was $266 million, down from $331 million in the same period last year, a decrease of 19.6%[8] - For the nine months ended September 28, 2025, net income attributable to Smithfield was $660 million, compared to $749 million for the same period in 2024, a decrease of 11.9%[14] Assets and Liabilities - Total assets increased to $11,523 million as of September 28, 2025, from $11,054 million as of December 29, 2024, representing a growth of 4.2%[10] - Total current assets increased to $4,594 million as of September 28, 2025, from $4,202 million at the end of December 2024, reflecting a 9.3% growth[10] - Cash and cash equivalents decreased to $773 million as of September 28, 2025, down from $943 million at the end of December 2024, a decline of 17.9%[10] - The total shareholders' equity increased to $6,466 million as of September 28, 2025, up from $5,601 million as of September 29, 2024, representing an increase of 15.4%[13] - The balance of additional paid-in capital decreased from $4,117 million as of June 30, 2024, to $3,333 million as of September 28, 2025, a reduction of 19.1%[13] - As of September 28, 2025, total debt fair value is $1,898 million, with a carrying value of $1,985 million, compared to a fair value of $1,821 million and carrying value of $1,983 million as of December 29, 2024[128] Cash Flow and Dividends - The company’s net cash flows from operating activities of continuing operations for the nine months ended September 28, 2025, were $121 million, compared to $233 million for the same period in 2024[12] - The company paid dividends totaling $297 million during the nine months ended September 28, 2025, compared to $270 million in the same period of 2024[12] - The company declared a dividend of $99 million for the three months ended September 28, 2025, compared to $88 million for the same period in 2024, indicating an increase of 12.5%[13] Segment Performance - The Packaged Meats segment sources approximately 80% of its raw materials from the Fresh Pork segment, highlighting the interdependence of the company's operations[31] - Operating profit for the Packaged Meats segment was $226 million for the three months ended September 28, 2025, compared to $239 million in the same period of 2024, reflecting a decrease of 5.4%[35] - The Fresh Pork segment reported sales of $2,185 million for the three months ended September 28, 2025, compared to $1,951 million in the same period of 2024, marking an increase of 12%[35] - The Hog Production segment generated sales of $813 million for the three months ended September 28, 2025, up from $738 million in the same period of 2024, reflecting an increase of 10.2%[35] Operational Changes - The company completed the acquisition of a dry sausage production facility in Nashville, Tennessee, for $38 million on July 30, 2024, to enhance its value-added packaged meats business[48] - The company closed its leased Elizabeth, New Jersey dry sausage production facility on June 30, 2025, consolidating production across its network[49] - The carve-out and distribution of European operations to WH Group was completed on August 26, 2024, representing a strategic shift in the company's geographical footprint[42] - The company undertook Hog Production Reform, which included ceasing certain farm operations and reducing the size of its hog production business[54] - The company sold approximately 150,000 sows to Murphy Family Farms, which now supplies approximately 3.2 million hogs annually[55] Tax and Legal Matters - The effective tax rate for continuing operations decreased to 22.2% in Q3 2025 from 25.0% in Q3 2024, primarily due to a non-taxable gain[96] - The company is involved in ongoing antitrust litigation, with payments totaling $194 million made to settle class claims related to price-fixing allegations in the pork industry[137] Derivative Instruments and Risk Management - As of September 28, 2025, the net liability position of open derivative instruments subject to credit risk-related contingent features was $30 million[71] - The fair value of derivative instruments as of September 28, 2025, included assets of $11 million and liabilities of $76 million[73] - The company recognized pre-tax losses of $71 million on commodity contracts for the nine months ended September 28, 2025[78] Translation Gains and Other Comprehensive Income - For the three months ended September 28, 2025, the company reported translation gains of $15 million compared to translation losses of $67 million for the same period in 2024[111] - The total other comprehensive income from continuing operations for the three months ended September 28, 2025, was $23 million, compared to a loss of $93 million in the same period of 2024[111]

Financial Performance - Net sales for Q3 2025 reached $3.7 billion, a 12.4% increase from Q3 2024[5] - Operating profit for Q3 2025 was $310 million, with an operating margin of 8.3%[5] - Year-to-date net sales for the first nine months of fiscal 2025 totaled $11.3 billion, up 10.9% from the same period in 2024[5] - For the three months ended September 28, 2025, sales increased to $3,747 million, up from $3,334 million for the same period in 2024, representing a growth of 12.4%[26] - Gross profit for the nine months ended September 28, 2025, was $1,487 million, compared to $1,364 million for the same period in 2024, reflecting an increase of 9.0%[26] - Net income from continuing operations attributable to Smithfield for the nine months ended September 28, 2025, was $660 million, up from $572 million in the same period of 2024, marking a growth of 15.4%[26] - Net income from continuing operations attributable to Smithfield for the three months ended September 28, 2025, was $248 million, compared to $202 million for the same period in 2024, representing a 22.8% increase[32] - Adjusted net income from continuing operations attributable to Smithfield for the nine months ended September 28, 2025, was $674 million, up from $518 million in the same period of 2024, reflecting a 30.2% growth[32] - Adjusted EBITDA from continuing operations for the twelve months ended September 28, 2025, was $1,577 million, compared to $1,379 million for the same period in 2024, indicating a 14.4% increase[35] Segment Performance - Packaged Meats segment generated an operating profit of $226 million, representing a margin of 10.8%[5] - Fresh Pork segment showed an operating profit of $10 million, with a margin of 0.5%[41] - Hog Production segment generated an operating profit of $89 million, with a margin of 10.9%[41] - For the nine months ended September 28, 2025, the consolidated operating profit was $892 million, with an operating profit margin of 7.9%[43] - Packaged Meats segment for the nine months reported an operating profit of $792 million, with a margin of 12.8%[43] - Fresh Pork segment for the nine months had an operating profit of $127 million, with a margin of 2.0%[43] - Hog Production segment reported an operating loss of $112 million for the nine months[43] - Adjusted operating profit for the nine months was $934 million, with an adjusted operating profit margin of 8.3%[43] Liquidity and Capital Structure - As of September 28, 2025, the company had $3,069 million in available liquidity, including $773 million in cash[8] - The ratio of net debt to adjusted EBITDA from continuing operations was 0.8x as of September 28, 2025[8] - Net debt as of September 28, 2025, was $1,231 million, an increase from $1,059 million as of December 29, 2024[39] - The ratio of total debt and finance lease obligations to net income from continuing operations improved to 2.3x for the twelve months ended September 28, 2025, down from 2.5x in the previous year[39] Dividends and Shareholder Equity - The company plans to maintain quarterly dividends of $0.25 per share, resulting in an annual dividend rate of $1.00 per share[9] - The company anticipates an annual dividend payment of $1.00 per share in 2025[21] - The company’s total shareholders' equity increased to $6,466 million as of September 28, 2025, compared to $5,834 million as of December 29, 2024[28] Expenses and Charges - The company recognized $73 million in litigation charges for the nine months ended September 28, 2025, impacting SG&A expenses[32] - Employee retention tax credits recognized under the CARES Act amounted to $10 million for the nine months ended September 28, 2025, affecting cost of sales[35] Capital Expenditures and Cash Flow - Capital expenditures for the nine months ended September 28, 2025, were $246 million, slightly down from $268 million in the same period of 2024[30] - The company reported a net cash flow from operating activities of continuing operations of $121 million for the nine months ended September 28, 2025, compared to $233 million for the same period in 2024[30] Tax and Regulatory Matters - The company reaffirmed an effective tax rate of between 23.0% and 25.0% for fiscal 2025[15] - The company is focused on optimizing the size of its hog production operations and navigating geopolitical risks, including increased tariffs on exports[23]

Core Insights - Smithfield Foods, Inc. reported strong financial results for the third quarter of fiscal 2025, achieving record operating profit despite challenging market conditions [4][5][7]. Financial Highlights - For the third quarter, net sales reached $3.7 billion, reflecting a 12.4% increase compared to the same period in 2024 [7]. - Operating profit was $310 million, with an operating margin of 8.3% [7]. - Packaged Meats segment generated an operating profit of $226 million, with an operating profit margin of 10.8% [7]. - For the first nine months of fiscal 2025, net sales totaled $11.3 billion, up 10.9% from the previous year [7]. Segment Performance - Packaged Meats sales increased by 9.1% to $2.09 billion in the third quarter [6]. - Fresh Pork sales rose by 12.0% to $2.185 billion [6]. - Hog Production segment sales grew by 10.1% to $813 million [6]. - Total segment sales for the third quarter amounted to $5.22 billion, a 10.5% increase year-over-year [6]. CEO Commentary - The CEO emphasized the company's disciplined execution of strategies, which led to sales growth and record operating profit [4]. - The company benefited from vertical integration, with higher profits in the Hog Production segment offsetting raw material cost challenges [5]. Financial Position - As of September 28, 2025, the company had $3.069 billion in available liquidity, including $773 million in cash [10]. - The net debt to adjusted EBITDA ratio was reported at 0.8x [10]. Dividend Information - The company paid dividends of $0.25 per share in April, May, and August 2025, with an anticipated annual dividend rate of $1.00 per share for fiscal year 2025 [12]. Fiscal Year 2025 Outlook - The company raised its full-year adjusted operating profit outlook to between $1.225 billion and $1.325 billion [16]. - Adjusted operating profit for the Packaged Meats segment is now projected to be between $1.060 billion and $1.110 billion [16].

Core Insights - Smithfield Foods Hunger Relief Day at the N.C. State Fair has successfully raised enough food to provide 150,000 meals for those facing hunger in North Carolina for the fifth consecutive year [1][3]. Group 1: Event Impact - The event collected six cans of food from fairgoers in exchange for free admission, resulting in 16 truckloads of food being donated [3]. - Since its inception in 1993, the N.C. State Fair's Hunger Relief Day has raised over 6.7 million pounds of food [6]. Group 2: Hunger Crisis Context - North Carolina is experiencing a severe hunger crisis, with over 1.6 million residents, or 1 in 7 people, uncertain about their next meal [3]. - The Food Bank of Central & Eastern North Carolina serves as a central hub for over 700 partner programs across a 34-county region, addressing food insecurity [8]. Group 3: Company Commitment - Smithfield Foods has a long-standing partnership with the N.C. State Fair and the Food Bank, emphasizing their commitment to providing access to nutritious food for families in need [5]. - Smithfield's hunger relief program, Helping Hungry Homes, has delivered hundreds of millions of servings of protein across all 50 U.S. states since 2008, including over 25 million servings valued at nearly $28 million in 2024 [6].

Financial Results Announcement - Smithfield Foods, Inc. will release its financial results for the third quarter of fiscal 2025 before market open on October 28, 2025 [1] - A conference call to discuss the financial results will be held at 9:00 a.m. Eastern Time on the same day [1] Conference Call Details - A recorded replay of the conference call will be available approximately three hours after its conclusion [2] - The replay can be accessed online and via telephone, with specific dial-in numbers provided [2] Company Overview - Smithfield Foods, Inc. is a leading American food company specializing in packaged meats and fresh pork products [3] - The company has a diverse brand portfolio and maintains strong relationships with U.S. farmers and customers [3]

Core Insights - Smithfield has launched a new product, Smithfield Mike's Hot Honey Bacon, combining hickory smoked bacon with Mike's Hot Honey, creating a unique flavor experience [1][9] - This product is part of Smithfield's We Speak Pork campaign, aimed at connecting with consumers and driving growth in the bacon category [3][4] Product Details - Smithfield Mike's Hot Honey Bacon features a blend of smoky and sweet flavors with a spicy kick, designed to enhance everyday meals [1][9] - The product will be available nationwide in October 2025 at major retailers including Kroger, Publix, Meijer, and Shop Rite [9] Marketing Strategy - Smithfield is implementing a comprehensive 360-degree marketing campaign that includes media, influencer engagement, and a Times Square event [4][6] - The campaign will feature creative advertisements voiced by comedian Ben Schwartz, targeting various platforms such as streaming, digital, and social media [4][6] Consumer Engagement - The Times Square event will offer immersive experiences, including visual displays, food samples, and merchandise, aimed at engaging consumers directly [6][7] - The marketing approach emphasizes the brand's commitment to innovation and quality, resonating with modern consumer preferences [9]

Group 1: Smithfield Foods, Inc. - Smithfield Foods, Inc. is a pork producer and food-processing company with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.97, compared to the industry average of 10.80, and possesses a Value Score of A [1] Group 2: VEON - VEON is engaged in telecommunication and digital services and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its next year earnings has increased by 15.2% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 5.21, significantly lower than the industry average of 17.60, and possesses a Value Score of A [2] Group 3: 1st Source - 1st Source is a bank holding company offering a broad range of commercial banking, personal banking, and trust services, with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 4.2% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 10.07, compared to the industry average of 11, and possesses a Value Score of B [3]

Group 1 - Smithfield Foods Inc. is conducting a secondary public offering of 19.53 million shares priced at $23.35 each [1][2] - The selling shareholder has granted underwriters a 30-day option to purchase an additional 2.93 million shares at the public offering price [2] - Smithfield Foods is a market leader in the food industry, processing and selling a variety of value-added packaged meats and fresh pork products [3] Group 2 - The company has a diverse portfolio of brands, including Smithfield, Eckrich, and Nathan's Famous [3]