Pilgrim's Pride Q4 Earnings Lag Estimates, Sales Up 3.3% Y/Y

Core Insights - Pilgrim's Pride Corporation (PPC) reported fourth-quarter 2025 results that fell short of the Zacks Consensus Estimate for both revenue and earnings, despite a year-over-year increase in net sales [1][8] Financial Performance - Adjusted earnings were 64 cents per share, missing the Zacks Consensus Estimate of 78 cents, and decreased from $1.35 per share in the same quarter last year [2] - On a GAAP basis, earnings were 37 cents per share, down from 99 cents in the prior-year period [2] - Net sales reached $4,517.8 million, a 3.3% increase from the previous year, but missed the consensus mark of $4,600 million [3] - Cost of sales increased to $4,089.2 million from $3,818.8 million year-over-year, leading to a gross profit decline to $428.6 million from $553.3 million [3] - Adjusted EBITDA was $415.1 million, down from $525.7 million in the prior year, with an adjusted EBITDA margin of 9.2%, down from 12% [4] Segment Analysis - U.S. operations generated net sales of $2,598.5 million, slightly down from $2,613.2 million year-over-year, with strong demand in the Fresh portfolio and an 18% increase in U.S. Prepared Foods sales [5] - European operations saw net sales increase to $1,383.6 million from $1,259.2 million, supported by an improved product mix and branded diversification [6] - Mexico operations reported net sales of $535.7 million, up from $499.6 million, although profitability faced pressure from increased imports and weaker commodity fundamentals [7] Financial Health - The company ended the quarter with cash and cash equivalents of $640.2 million, long-term debt of $3,093.1 million, and total shareholders' equity of $3,693.7 million [8]