Tyson Foods(TSN) - 2025 Q4 - Annual Results

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]