Tyson Foods(US:TSN) ZACKS·2025-11-10 18:35Core Insights - Tyson Foods, Inc. reported solid fourth-quarter fiscal 2025 results, with earnings and sales increasing year over year, and earnings exceeding the Zacks Consensus Estimate, highlighting the company's resilient multi-protein, multi-channel portfolio and operational excellence [1] Quarterly Performance - Adjusted earnings were $1.15 per share, surpassing the Zacks Consensus Estimate of 85 cents, marking a 25% increase from the previous year's figure of 87 cents [2] - Total sales reached $13,860 million, a 2.2% year-over-year increase, although it fell short of the Zacks Consensus Estimate of $13,908 million; average price changes positively impacted the top line by 6.4%, while total volumes decreased by 1.6% [2] Financial Metrics - Gross profit for the quarter was $726 million, down from $1,060 million in the year-ago period; adjusted operating income surged 19% to $608 million, with an adjusted operating margin expanding by 50 basis points year over year to 4.3% [3] Segment Performance - Beef: Sales increased to $5,489 million from $5,261 million, with volumes down 8.4% and average prices up 17% [4] - Pork: Sales declined to $1,414 million from $1,438 million, with volumes dipping 4.2% and average prices increasing by 11.6% [4] - Chicken: Sales improved to $4,411 million from $4,251 million, with volumes growing 3.7% and average prices up 0.1% [5] - Prepared Foods: Sales rose to $2,546 million from $2,472 million, with volumes down 1.7% and average prices up 4.7% [5] - International/Other: Sales were $584 million compared to $609 million, with volumes falling 2.2% and average sales prices declining by 1.9% [6] Financial Position - The company ended the quarter with cash and cash equivalents of $1,229 million, long-term debt of $7,921 million, and total shareholders' equity of $18,227 million; cash provided by operating activities for the 12 months ended September 27, 2025, was $2,155 million [7] - Liquidity stood at $3.7 billion as of September 27, 2025, with expectations to remain above the minimum target of $1 billion in fiscal 2026 [7] Future Projections - Capital expenditures are projected between $700 million and $1 billion for fiscal 2026, focusing on profit-improvement and maintenance projects; adjusted free cash flow for fiscal 2025 was $1,177 million, with expectations for fiscal 2026 in the range of $0.8-$1.3 billion [8] - For fiscal 2026, total revenue growth is anticipated to be between 2-4% compared to fiscal 2025, with adjusted operating income projected in the range of $2.1-$2.3 billion [12]