Tyson Foods Reports Second Quarter 2025 Results

Core Insights - Tyson Foods, Inc. reported a slight increase in sales for the second quarter of 2025, reaching $13,074 million, compared to $13,072 million in the same period of 2024, marking a growth of 0.01% [4] - The company experienced a significant decline in GAAP operating income, which fell to $100 million, down 68% from $312 million in the previous year, while adjusted operating income rose to $515 million, up 27% from $406 million [4][6] - Net income attributable to Tyson decreased to $7 million, a drop of 95% from $145 million in the prior year, with adjusted net income per share increasing to $0.92, up 48% from $0.62 [4][6] Financial Performance - Total sales for the first six months of 2025 were $26,697 million, up 1.2% from $26,391 million in 2024 [4] - The company reported a GAAP operating margin of 0.8% for the second quarter, down from 2.4% in the previous year, while the adjusted operating margin improved to 3.8% from 3.1% [4][6] - Cash provided by operating activities was $846 million, a decrease of $331 million from the prior year, and free cash flow was $382 million, down $174 million [4][6] Segment Performance - Beef segment sales were $5,196 million, a decrease of 1.4% year-over-year, while pork sales fell by 3.8% to $1,244 million [5] - Chicken sales increased by 3.0% to $4,141 million, and prepared foods sales were $2,396 million, down 2.6% [5] - Adjusted operating income for the chicken segment was $312 million, up 7.5% from the previous year, while the pork segment reported an adjusted operating income of $55 million, up 3.7% [7] Outlook - For fiscal 2025, the USDA projects a 1% increase in domestic protein production compared to fiscal 2024 [8] - Tyson anticipates total company adjusted operating income between $1.9 billion and $2.3 billion for fiscal 2025 [15] - The company expects sales to remain flat to up 1% in fiscal 2025, factoring in a $343 million reduction due to legal contingency accruals [16]