Core Insights - The company reported adjusted EBITDA of BRL 450 million with a margin of 9.2% for Q4, indicating strong operational strategies amidst changing market conditions [1] - For fiscal year 2025, net revenues reached $18.5 billion, with adjusted EBITDA rising to $2.3 billion and a margin of 12.3%, driven by strong demand in the U.S. and operational efficiencies [3] - The company continues to diversify its portfolio, with significant growth in fresh and prepared foods, and is making strategic investments to enhance operational efficiency and capacity [2][20] Financial Performance - Q4 adjusted EBITDA was BRL 450 million, with a margin of 9.2%, while for the full year, adjusted EBITDA was $2.27 billion, reflecting a 2.5% increase from the previous year [26][27] - The U.S. business achieved net revenues of $11 billion in fiscal 2025, up from $10.6 billion in 2024, with an adjusted EBITDA margin of 14.8% [27] - Europe’s adjusted EBITDA improved by 11.4% to $453.1 million in 2025, driven by poultry sales growth and operational efficiencies [28] Market Dynamics - The U.S. fresh operations saw increased market share through a focus on quality and innovation, while prepared foods continued to drive growth across retail and foodservice [1][3] - Consumer demand for chicken remains strong due to its affordability compared to other proteins, with chicken experiencing volume growth across all cuts [6][8] - In Mexico, sales grew despite challenges from increased imports of animal-based proteins, with the company initiating investments to drive profitable growth [2][20] Operational Strategies - The company is enhancing its manufacturing efficiency and optimizing its product mix in Europe, leading to improved margins and adjusted EBITDA [2] - Investments in fresh and prepared foods are aimed at driving growth while reducing business volatility, with a focus on key customer partnerships [2][20] - The company is converting a Big Bird plant to a case-ready facility to support key customer growth and is expanding its prepared foods capacity in Georgia [22][39] Consumer Trends - Consumer sentiment remains low due to economic uncertainty, but chicken's affordability is driving demand, particularly in retail [6][8] - The company is seeing increased promotional activity in foodservice to attract consumers, especially in QSRs, despite overall traffic challenges [8][66] - The Just BARE brand has shown significant growth, with sales more than doubling compared to last year, indicating strong consumer acceptance [20][67] Supply Chain and Production - The USDA projects a 1.9% year-over-year decline in the layer flock, which may impact supply growth in 2026 [5] - Corn prices increased slightly in Q4 but moderated in January, with expectations of higher ending stocks for corn and soybeans [10][30] - The company is managing production and operational efficiencies to mitigate commodity pricing volatility and enhance margins [13][23]

Financial Data and Key Metrics Changes - For fiscal year 2025, net revenues reached $18.5 billion, a 3.5% increase from $17.9 billion in fiscal 2024, while Adjusted EBITDA rose to $2.27 billion, up 2.5% from $2.211 billion in the previous year [24][26]. - In Q4 2025, net revenues were $4.52 billion compared to $4.37 billion a year ago, with Adjusted EBITDA of $415.1 million and a margin of 9.2%, down from $525.7 million and a 12% margin in Q4 2024 [24][25]. Business Line Data and Key Metrics Changes - The U.S. business reported net revenues of $11 billion for the fiscal year, up from $10.6 billion in fiscal 2024, with Adjusted EBITDA of $1.63 billion and a margin of 14.8% [26]. - In Europe, Q4 Adjusted EBITDA was $131.4 million, an increase from $117.1 million in 2024, while full-year Adjusted EBITDA improved 11.4% to $453.1 million [27]. - Mexico's Q4 Adjusted EBITDA was $9.5 million, down from $36.9 million last year, with a full-year margin of 8.8%, down from 11.8% [28]. Market Data and Key Metrics Changes - The USDA indicated that ready-to-cook production for the U.S. rose 2.1% year-over-year in 2025, driven by increased headcount and improved live performance [8]. - Consumer sentiment remains low due to economic uncertainty, but chicken's affordability is appealing across channels [9][10]. Company Strategy and Development Direction - The company is focusing on diversifying its portfolio, with significant growth in branded offerings, particularly the Just BARE brand, which exceeded $1 billion in retail sales [4][6]. - Investments are being made in both fresh and prepared foods to drive profitable growth and reduce volatility [6][20]. - The company plans to convert a Big Bird plant to a case-ready plant and expand its prepared foods facility in Georgia to support growth [22][31]. Management's Comments on Operating Environment and Future Outlook - Management noted that while there are challenges in the market, particularly in Mexico due to increased imports, the long-term growth potential remains strong [20][21]. - The company anticipates moderate production growth of 1% in 2026, with overall protein availability projected to grow by 1.5% [9]. - Management expressed confidence in the demand for chicken, driven by affordability and consumer preferences [49][66]. Other Important Information - The company reported a strong balance sheet with net debt of approximately $2.45 billion and over $1.8 billion in total cash and available credit [30]. - Capital expenditures for 2026 are forecasted to be between $900 million and $950 million, reflecting ongoing growth projects [31]. Q&A Session Summary Question: Current growing conditions and market dynamics - Management indicated that the breeding flock is down 1.9% year-over-year, impacting supply growth, which is projected at only 1% for the year [36]. Question: Capital allocation and future projects - The company is investing in new facilities and expanding its presence in Mexico, with some projects expected to carry into 2027 [42]. Question: Commodity prices and sustainability - Management noted that chicken demand is supported by macroeconomic trends, with consumers shifting to retail due to inflation concerns [48]. Question: Mexico's supply-demand situation - The company is evolving its portfolio to mitigate volatility and is seeing a more stable supply-demand balance in Mexico [58]. Question: European market performance - Management acknowledged seasonality in the U.K. but emphasized the long-term growth of chicken, driven by affordability and consumer preferences [60]. Question: Disease pressure in Europe - The ASF situation in Spain has impacted the pork market, but management expects the Richmond brand to recover from recent challenges [68].

Financial Data and Key Metrics Changes - For fiscal year 2025, net revenues reached $18.5 billion, a 3.5% increase from $17.9 billion in fiscal 2024, while Adjusted EBITDA rose to $2.27 billion from $2.211 billion, marking a 2.5% increase [24][25] - In Q4 2025, net revenues were $4.52 billion compared to $4.37 billion in Q4 2024, with Adjusted EBITDA of $415.1 million and a margin of 9.2%, down from $525.7 million and a 12% margin in the same quarter last year [24][25] Business Line Data and Key Metrics Changes - The U.S. business reported Adjusted EBITDA of $274.2 million in Q4 with a margin of 10.6%, while full-year net revenues were $11 billion, up from $10.6 billion in fiscal 2024 [25] - Europe’s Adjusted EBITDA in Q4 was $131.4 million, an increase from $117.1 million in 2024, with full-year EBITDA improving to $453.1 million from $406.9 million [26] - Mexico's Adjusted EBITDA fell to $9.5 million in Q4 from $36.9 million last year, with a full-year margin of 8.8%, down from 11.8% [27] Market Data and Key Metrics Changes - The USDA indicated a 2.1% year-over-year increase in ready-to-cook chicken production for 2025, with a projected 1% growth in overall chicken supply for 2026 [9][48] - Consumer sentiment remains low due to economic uncertainty, but chicken's affordability continues to drive demand across retail and food service channels [9][10] Company Strategy and Development Direction - The company is focusing on diversifying its portfolio and enhancing operational efficiencies, with significant investments in fresh and prepared foods to drive profitable growth [5][21] - Plans include converting a Big Bird plant to a case-ready facility and expanding prepared foods capacity in Georgia, with expectations for increased production in 2026 [22][31] Management's Comments on Operating Environment and Future Outlook - Management noted that while commodity pricing headwinds impacted profitability, the U.S. business maintained its margin profile through increased sales volumes and operational efficiency [25] - The company anticipates continued strong demand for chicken driven by affordability and consumer preferences, despite challenges in the beef market [48][66] Other Important Information - The company reported a strong balance sheet with net debt of approximately $2.45 billion and over $1.8 billion in total cash and available credit [30] - Sustainability efforts have led to significant reductions in carbon emissions, with recognition from external agencies for progress in environmental and social matters [22][23] Q&A Session Summary Question: Current growing conditions and market dynamics - Management indicated a 1.9% year-over-year decline in the breeding flock, with hatchability issues affecting supply growth projections for Q1 2026 [34][35] Question: Capital allocation and future CapEx - The company plans to increase CapEx to $900 million-$950 million in 2026, focusing on growth projects in Mexico and prepared foods [39][41] Question: Mexico's supply-demand situation - Management explained that increased imports and favorable growing conditions led to a weaker Q4 in Mexico, but they expect stabilization moving forward [54][56] Question: Trends in the EU and UK business - The company noted strong performance in the EU driven by chicken demand, with expectations for continued growth despite seasonal effects [81][82] Question: Impact of disease pressure in Spain - Management acknowledged challenges from ASF in Spain affecting pork supply, but they expect resilience in their branded business [68][69]

Core Insights - Pilgrim's Pride Corporation (PPC) is focusing on brand and portfolio diversification to manage volatility in commodity-driven poultry markets, as highlighted in their third-quarter 2025 results [1] U.S. Business Performance - Diversification across bird sizes, including Case Ready, Small Bird, and Big Bird, helped maintain margins in the U.S. business despite volatile chicken prices in September 2025 [2] - The Prepared Foods segment saw net sales increase by over 25%, with the Just BARE brand gaining nearly 300 basis points of market share, reducing reliance on commodity pricing [2] International Market Strategy - In Mexico, PPC is reducing exposure to live market volatility by expanding value-added Prepared Foods, which experienced a 9% sales increase in the quarter [3] - The strategy of growing prepared and branded offerings is aimed at balancing fluctuations in fresh-market pricing and strengthening customer relationships [3] European Market Adaptation - In Europe, brand differentiation is being utilized to navigate broader protein market pressures, with brands like Fridge Raiders and Rollover growing faster than their respective categories [4] Investment Plans - PPC has outlined over $500 million in planned U.S. investments over the next two years to expand Prepared Foods capacity and convert select facilities to Case Ready production [5] - These investments are intended to enhance operational flexibility and support growth in branded and value-added products, moderating the impact of market volatility over time [5] Stock Performance - PPC shares have gained 5.3% over the past month, outperforming the industry's decline of 1.8% and the S&P 500 index's growth of 2.7% [6] Valuation Metrics - Pilgrim's Pride currently trades at a forward 12-month P/E ratio of 9.69, which is below the industry average of 12.8 and the sector average of 16.64, positioning the stock at a modest discount relative to peers and the broader consumer staples sector [10]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net revenues of $4.8 billion, a 4.3% increase compared to the same quarter last year [5] - Adjusted EBITDA was $687 million, up 4.7% versus 2024, with an adjusted EBITDA margin of 14.4%, consistent with the previous year [5][31] - U.S. net revenues increased nearly 6% to $2.82 billion, with adjusted EBITDA of $482.7 million, reflecting strong profitability improvements [32][33] Business Line Data and Key Metrics Changes - The U.S. diversified fresh portfolio benefited from favorable commodity values and strong customer demand, leading to growth in branded offerings [6] - Prepared foods saw a significant growth of 20% in net sales compared to last year, driven by increased distribution and consumer interest [17][18] - The Big Bird segment maintained favorable cutout values despite volatility, with profitability significantly improved year over year [16] Market Data and Key Metrics Changes - In the U.S., ready-to-cook chicken production grew by 1.9% compared to 2024, with USDA estimating a 1.5% growth for 2025 [7][8] - Retail chicken demand increased as consumers sought affordability, with chicken gaining market share in both retail and food service [10][56] - In Europe, chicken remained the fastest-growing category, although overall demand was impacted by rising living costs [19][68] Company Strategy and Development Direction - The company announced a $400 million investment to build a new fully cooked prepared food plant in Georgia, aimed at capitalizing on long-term growth trends [25][39] - The focus remains on portfolio diversification, operational excellence, and enhancing relationships with key customers [22][41] - The company is committed to expanding its prepared foods and branded offerings, particularly in the no antibiotics ever (NAE) segment [49][101] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to inflation and consumer spending concerns, but demand for chicken is expected to remain strong [14][56] - The company anticipates continued growth in the prepared foods segment, supported by strong consumer interest and innovative product offerings [26][39] - Management expressed confidence in meeting growing demand while managing production constraints effectively [76][82] Other Important Information - A special dividend of approximately $500 million was declared, reflecting the company's strong cash flow and balance sheet [7][38] - The company is navigating labor market challenges by overstaffing plants to ensure operational efficiency [88][90] - The effective tax rate for the quarter was 25.1%, with expectations for the full year to approximate 25% [36] Q&A Session Summary Question: Clarification on the $400 million investment in Georgia - The majority of the $400 million will be spent in 2026, with an estimated $50 million to $70 million in 2025 [46][47] Question: Supply versus demand dynamics in the chicken market - Management indicated that while supply is increasing, demand remains strong, particularly in the retail sector [52][56] Question: Update on industry production constraints - The industry is focusing on improving hatchability and productivity to meet demand, with challenges still present [62][63] Question: Margin progression in Europe - Management expects seasonal improvements in margins, with Q4 typically being the strongest [70][68] Question: Profitability outlook in Mexico - The Mexican market remains stable with double-digit growth, despite currency volatility impacting revenue [108]