Core Insights - Tyson Foods is forecasting a 2-4% increase in net sales for the new financial year starting September 28, following a 2.1% growth in sales to $54.44 billion in the previous year [1][3] Financial Performance - The company reported a 22% decline in operating income to just under $1.1 billion, attributed to larger operating losses in the beef and pork divisions, legal contingency accruals, and an impairment in the beef business [2] - Adjusted operating income was reported at $2.29 billion, reflecting a 26% increase from the previous year [2] - Annual net income attributable to the business decreased to $474 million from $800 million the prior year [3] Division Performance - The beef division is expected to incur an adjusted operating loss of $400-600 million in the new financial year [3] - Forecasted adjusted operating income for the pork division is between $150-250 million, for chicken is $1.25-1.5 billion, and for prepared foods is $950 million to $1.06 billion [4]

Core Viewpoint - Tyson Foods anticipates increased sales for the current fiscal year, driven by higher domestic production of pork and chicken, which is expected to compensate for a decrease in beef production [1] Group 1: Sales Expectations - The company expects higher sales due to increased domestic production of pork and chicken [1] - The anticipated rise in sales is positioned to offset a decline in beef production [1]

Financial Performance - Sales increased by 2.1%, or $1.1 billion, to $54.4 billion in fiscal 2025, driven by higher average sales prices in the Beef, Pork, and Prepared Foods segments[158]. - Operating income for fiscal 2025 was $1,098 million, down from $1,409 million in fiscal 2024, impacted by $738 million in legal contingency accruals and $343 million in goodwill impairments[158][159]. - Net income attributable to Tyson was $474 million in fiscal 2025, down from $800 million in fiscal 2024, with diluted earnings per share decreasing from $2.25 to $1.33[181]. - Total sales for fiscal 2025 reached $54,441 million, a 2.1% increase from $53,309 million in 2024[184]. - Net income for fiscal 2025 is reported at $507 million, a decrease from $822 million in fiscal 2024[231]. - EBITDA for fiscal 2025 is $2,495 million, down from $2,872 million in fiscal 2024[231]. Segment Performance - Beef segment sales increased to $21,623 million in 2025, up 5.6% from $20,479 million in 2024, despite a sales volume decrease of 1.9%[190]. - Pork segment sales decreased to $5,781 million in 2025, down 2.1% from $5,903 million in 2024, with an operating loss of $199 million[191]. - Chicken segment sales rose to $16,837 million in 2025, a 2.5% increase from $16,425 million in 2024, with operating income of $1,427 million[196]. - Prepared Foods segment sales increased to $9,930 million in 2025, up 0.8% from $9,851 million in 2024, with operating income of $898 million[199]. - The Beef segment reported an operating loss of $1,135 million in 2025, compared to a loss of $381 million in 2024[190]. - The Chicken segment's operating income improved significantly from a loss of $770 million in 2023 to a profit of $1,427 million in 2025[196]. Expenses and Costs - Selling, general and administrative expenses decreased by $97 million to $2,121 million, primarily due to lower costs in the Chicken segment and reduced legal contingency accruals[172][173]. - Cost of sales increased by $1,197 million, with higher input costs per pound impacting the Beef segment by approximately $1,840 million[168][170]. - The Prepared Foods segment faced $41 million in charges related to a product recall in 2025[187]. - The company experienced a $340 million decrease in feed ingredient costs, positively impacting operating income in the Prepared Foods segment[201]. Legal and Contingency Accruals - The company recognized $698 million in legal accruals related to various litigations in fiscal 2025[240]. - Legal contingency accruals impacted the Beef and Pork segments, with $318 million and $380 million recognized in 2025, respectively[190][185]. Tax and Goodwill - The effective tax rate increased to 34.1% in fiscal 2025, primarily due to a non-deductible goodwill impairment[179][180]. - The company recognized $343 million in goodwill impairment in the Beef segment during fiscal 2025[175][176]. - During fiscal 2023, the company recognized $781 million of goodwill impairment charges, including $333 million for the Beef reporting unit[258]. - In the third quarter of fiscal 2025, the company recognized a $343 million impairment to fully impair the remaining goodwill of the Beef reporting unit[260]. Liquidity and Debt - The company had total liquidity of $3,729 million as of September 27, 2025, including $1,229 million in cash and cash equivalents[211]. - The ratio of net debt to EBITDA increased to 3.0x at September 27, 2025, compared to 2.8x at September 28, 2024, due to a decrease in EBITDA[215]. - The company fully repaid a $750 million term loan due May 2026 and $310 million of a term loan due May 2028 using cash on hand in fiscal 2025[210]. - The company expects net interest expense to approximate $395 million for the 53 weeks of fiscal 2026[216]. - The revolving credit facility has a committed capacity of $2.5 billion, with no borrowings under the facility during fiscal 2025[212]. - The company was in compliance with all debt covenants at September 27, 2025, and expects to maintain compliance[221]. Pension and Benefits - The funded status of the defined benefit pension plans is underfunded by $146 million at the end of fiscal 2025, an improvement from $158 million at the end of fiscal 2024[222]. - The company contributed $14 million to pension plans in fiscal 2025 and expects to contribute approximately $15 million in fiscal 2026[222]. - The net periodic benefit cost for defined benefit pension plans was $7 million in fiscal 2025, with a projected benefit obligation of $176 million[250]. Market Risks and Sensitivities - The company continuously evaluates macro-economic conditions, including inflationary pressures and rising interest rates, which could impact the fair value of reporting units and indefinite life intangible assets[267]. - The company has variable rate debt of $484 million with a weighted average interest rate of 5.9%, and a hypothetical 10% increase in interest rates would raise annualized interest expense by approximately $3 million[283]. - The company holds fixed-rate debt of $8,346 million with a weighted average interest rate of 4.8%, and a hypothetical 10% decrease in interest rates would increase the fair value of this debt by approximately $231 million[284]. - At September 27, 2025, a hypothetical 10% change in foreign exchange rates would have impacted pretax income by $21 million[286]. Future Outlook and Strategy - The company aims to grow its branded portfolio and expand in international markets by delivering profitable value-added food offerings in high-growth categories[164]. - Capital expenditures for fiscal 2026 are expected to be between $700 million and $1,000 million, focusing on profit improvement and maintenance projects[209].

Core Viewpoint - Tyson Foods has forecasted annual revenue significantly above analysts' estimates, driven by anticipated demand for chicken products to compensate for weaknesses in its beef business [1] Group 1 - The company is betting on strong demand for chicken products to offset challenges faced in the beef sector [1]

Financial Performance - Sales for fiscal 2025 reached $54,441 million, a 2.1% increase from the prior year[5] - Adjusted operating income for fiscal 2025 was $2,287 million, up 26% from the previous year[5] - Adjusted EPS for fiscal 2025 increased by 33% to $4.12 compared to $3.10 in fiscal 2024[5] - The company reported a GAAP operating income of $1,098 million for fiscal 2025, down 22% from the prior year[5] - Net income attributable to Tyson for the twelve months ended September 27, 2025, was $474 million, down from $800 million in the previous year, resulting in a decrease in net income margin from 1.5% to 0.9%[23] - For the fourth quarter ended September 27, 2025, Tyson Foods reported GAAP net income attributable to Tyson of $0.13 per share, compared to $1.00 per share in the same quarter of the previous year[34] - Net income for the twelve months ended September 27, 2025, was $507 million, a decrease from $822 million for the same period in 2024, representing a decline of approximately 38.3%[38] Sales and Revenue - Sales for the three months ended September 27, 2025, were $13,860 million, representing a 2.2% increase compared to $13,565 million for the same period in 2024[23] - The company expects sales to increase by 2% to 4% in fiscal 2026 compared to fiscal 2025[15] - The twelve months ended September 27, 2025, saw adjusted non-GAAP results with total sales of $2,287 million and net income attributable to Tyson of $4.12 per share, compared to $1,820 million in sales and $3.10 per share in the previous year[34] Operating Income and Margins - Operating income for the three months ended September 27, 2025, decreased to $158 million from $525 million in the same period last year, reflecting a significant drop in operating margin from 3.9% to 1.1%[23] - The adjusted operating income for the fourth quarter ended September 27, 2025, was $608 million, with contributions from the chicken segment at $457 million and pork at $31 million[36] - For the twelve months ended September 27, 2025, Tyson Foods reported an adjusted operating income of $2,287 million, with significant contributions from the chicken segment[36] Expenses and Impairments - The effective tax rate for the twelve months ended September 27, 2025, was 34.1%, influenced by a $343 million goodwill impairment charge[23] - The company reported a goodwill impairment of $343 million, which is non-deductible for income tax purposes, impacting the overall financial performance[23] - Tyson Foods experienced a reported operating loss in the beef segment of $1,135 million for the twelve months ended September 27, 2025, while the chicken segment reported an operating income of $1,427 million[36] Cash Flow and Liquidity - Cash provided by operating activities for the twelve months ended September 27, 2025, was $2,155 million, a decrease from $2,590 million in the previous year[27] - Free cash flow for the twelve months ended September 27, 2025, was $1,177 million, down from $1,458 million in 2024, indicating a decrease of approximately 19.3%[40] - Total liquidity as of September 27, 2025, was $3.7 billion, expected to remain above $1.0 billion[18] Debt and Financial Ratios - Total gross debt decreased to $8,830 million as of September 27, 2025, from $9,787 million in 2024, a reduction of about 9.8%[38] - Total net debt also decreased to $7,601 million in 2025, down from $8,060 million in 2024, representing a decline of approximately 5.7%[38] - The gross debt to Adjusted EBITDA ratio improved to 2.4x in 2025 from 3.1x in 2024, indicating better leverage management[38] - The net debt to Adjusted EBITDA ratio improved to 2.1x in 2025 compared to 2.6x in 2024, reflecting enhanced financial stability[38] Capital Expenditures and Future Plans - The company plans capital expenditures of $700 million to $1.0 billion for fiscal 2026[16] - Projected adjusted operating income for fiscal 2026 is between $2.1 billion and $2.3 billion[14] - Anticipated adjusted operating income for the Chicken segment in fiscal 2026 is between $1,250 million and $1,500 million[11] Dividends - The quarterly dividend was increased to $0.51 per share for Class A common stock, reflecting a 2% increase from fiscal 2025[21] - Dividends declared per share for Class A increased to $2.010 from $1.970, while Class B dividends rose to $1.809 from $1.773[23] Workforce and Transparency - The company had approximately 133,000 team members as of September 27, 2025, maintaining a stable workforce[41] - The company plans to discuss its financial results in a conference call scheduled for November 10, 2025, indicating ongoing transparency with investors[42]

Core Insights - Tyson Foods reported a year-over-year growth in sales, adjusted operating income, and adjusted earnings per share, indicating the strength of its multi-protein, multi-channel portfolio [4][6][10] Financial Performance - Sales for the fourth quarter of 2025 reached $13,860 million, a 2.2% increase from the previous year, while total sales for the fiscal year were $54,441 million, up 2.1% [6][26] - GAAP operating income for the fourth quarter was $158 million, down 70% from the prior year, and for the fiscal year, it was $1,098 million, down 22% [6][8] - Adjusted operating income for the fourth quarter was $608 million, up 19% year-over-year, and for the fiscal year, it was $2,287 million, a 26% increase [6][9] - Net income per share attributable to Tyson for the fourth quarter was $0.13, down 87% from the previous year, while for the fiscal year, it was $1.33, down 41% [6][26] - Adjusted net income per share for the fourth quarter was $1.15, up 25% year-over-year, and for the fiscal year, it was $4.12, a 33% increase [6][9] Segment Results - Beef segment sales for the fourth quarter were $5,489 million, a decrease of 8.4% year-over-year, while for the fiscal year, sales were $21,623 million, down 1.9% [7] - Pork segment sales for the fourth quarter were $1,414 million, down 4.2%, and for the fiscal year, sales were $5,781 million, down 1.7% [7] - Chicken segment sales for the fourth quarter were $4,411 million, up 3.7%, and for the fiscal year, sales were $16,837 million, up 2.6% [7] - Prepared Foods segment sales for the fourth quarter were $2,546 million, down 1.7%, and for the fiscal year, sales were $9,930 million, down 2.5% [7] Outlook - The USDA projects a 1% increase in domestic protein production for fiscal 2026 compared to fiscal 2025 [10] - Tyson anticipates total company adjusted operating income for fiscal 2026 to be between $2.1 billion and $2.3 billion [17] - Sales are expected to increase by 2% to 4% in fiscal 2026 compared to fiscal 2025 [18] - Capital expenditures are projected to be between $700 million and $1.0 billion for fiscal 2026 [19] - Free cash flow is expected to range from $0.8 billion to $1.3 billion for fiscal 2026 [22] - The Board of Directors increased the quarterly dividend to $0.51 per share for Class A and $0.459 for Class B, resulting in an annual dividend rate increase of 2% compared to fiscal 2025 [24]

Core Insights - U.S. stock futures are trading higher, indicating a positive market sentiment for the day [1] Company Earnings Expectations - Tyson Foods Inc. (NYSE:TSN) is expected to report quarterly earnings of 83 cents per share on revenue of $13.97 billion, with shares rising 0.3% to $52.86 in after-hours trading [2] - Interpublic Group of Companies Inc. (NYSE:IPG) is projected to post quarterly earnings of 73 cents per share on revenue of $2.19 billion, with shares increasing 1.7% to close at $25.46 [2] - Viasat Inc. (NASDAQ:VSAT) reported adjusted earnings of 9 cents per share on sales of $1.141 billion for the second quarter, with shares rising 0.9% to close at $35.81 [2] - Dole PLC (NYSE:DOLE) is anticipated to report quarterly earnings of 17 cents per share on revenue of $2.15 billion, with shares gaining 0.7% to close at $13.14 [2] - Occidental Petroleum Corp. (NYSE:OXY) is expected to report quarterly earnings of 52 cents per share on revenue of $6.68 billion, with shares increasing 2.5% to close at $41.31 [2]

Core Viewpoint - Tyson Foods is expected to report earnings results with a projected revenue growth of 3.3% year on year, reaching $14.01 billion, and adjusted earnings of $0.83 per share [2] Group 1: Earnings Expectations - Last quarter, Tyson Foods reported revenues of $13.88 billion, exceeding analysts' expectations by 2.9% and showing a year-on-year increase of 3.6% [1] - Analysts anticipate a revenue growth of 3.3% year on year for the upcoming quarter, improving from a 1.6% increase recorded in the same quarter last year [2] - Adjusted earnings for the upcoming quarter are expected to be $0.83 per share [2] Group 2: Analyst Sentiment - Analysts have generally reconfirmed their estimates for Tyson Foods over the last 30 days, indicating confidence in the company's performance heading into earnings [3] - Tyson Foods has missed Wall Street's revenue estimates four times in the past two years, highlighting a history of volatility in meeting expectations [3] Group 3: Industry Context - In the perishable food segment, peers like Vital Farms and Pilgrim's Pride have reported strong results, with Vital Farms achieving a year-on-year revenue growth of 37.2% and Pilgrim's Pride reporting a 3.8% increase [4] - The perishable food sector has generally underperformed, with average share prices down 4.7% over the last month, while Tyson Foods has seen a slight increase of 1.5% during the same period [5] - Tyson Foods is entering earnings with an average analyst price target of $61.75, compared to its current share price of $52.86 [5]

Core Viewpoint - The Trump administration has initiated an investigation into major meat processors in the U.S. for allegedly colluding to manipulate prices, impacting ranchers and consumers amid rising political pressure and concerns over living costs [1][3][4]. Group 1: Investigation Details - The investigation targets four major companies: JBS, Cargill, Tyson Foods, and National Beef, which collectively control 85% of the U.S. beef processing market [4]. - The White House aims to eliminate any illegal collusion, restore fair competition, and protect food safety through this investigation [4]. - Trump emphasized the need for immediate action to protect consumers and combat illegal monopolies that harm American interests [4]. Group 2: Market Reaction - Following the announcement, stock prices for Tyson Foods and JBS experienced significant volatility, with Tyson's stock eventually rising by 1.9% while JBS closed down by 3.6% [1][6]. - The market's reaction reflects investor concerns over potential fines, lawsuits, and adjustments to business models due to the antitrust investigation [6]. Group 3: Political Context - The investigation is part of the Trump administration's broader strategy to address inflation and living costs, which have become critical political issues [3][5]. - Recent elections highlighted voters' concerns about affordability, prompting the administration to take proactive measures to demonstrate its commitment to addressing these issues [5][6]. - The administration has also considered increasing beef imports from Argentina and has pressured the Federal Reserve to lower interest rates to alleviate mortgage burdens [6].

Group 1 - President Trump has requested the Department of Justice to investigate the U.S. meat processing industry for alleged illegal collusion and price manipulation that has driven up beef prices, claiming these companies are profiting unfairly from American consumers [1] - Following Trump's statements, shares of major meat processing companies experienced volatility, with JBS N.V. dropping by 6.2% at one point before closing down 3.64%, while Tyson Foods initially fell by 2% but later turned positive. Beyond Meat saw a significant increase of 16.81% [1] - The recent surge in U.S. retail beef prices is attributed to high interest rates, rising feed costs, and a significant reduction in cattle numbers, with replenishing herds expected to take several years [1] Group 2 - Trump highlighted the discrepancy between falling live cattle prices and rising boxed beef prices, indicating potential issues within the industry [2] - Some agricultural allies criticized Trump's approach to tackling food inflation, particularly his proposal to increase tariff-free imports of Argentine beef, which raised concerns among U.S. ranchers about market competition and income decline [2] - Trump's decision to impose a 50% tariff on Brazilian products has also impacted Brazilian beef exports, affecting companies like JBS N.V. and Minerva SA, which are headquartered in Brazil [2]