Hormel Foods 2025 Q4 Earnings Adjusted EPS of $0.32 Beats Estimates as Net Loss Widens 61.8%

Hormel Foods reported Q4 2025 earnings with adjusted EPS of $0.32, surpassing estimates by $0.02, while revenue of $3.19 billion fell short by $30 million. The company raised 2026 guidance, projecting adjusted EPS of $1.43–$1.51 and net sales of $12.2–$12.5 billion.

Revenue

Revenue was driven by the Retail segment, which saw a 1% increase to $3.19 billion, while Foodservice reported a 4% rise in net sales. International operations, however, faced a 6% decline in net sales, primarily due to the impairment of a minority investment in Indonesia.

Earnings/Net Income

The company’s net loss widened to $590.17 million in Q4 2025, a 61.8% increase from the prior year, with GAAP EPS of -$0.10. Adjusted EPS of $0.32 exceeded estimates, but the GAAP loss highlighted ongoing margin pressures. While adjusted EPS of $0.32 exceeded estimates, GAAP EPS of -$0.10 reflected a significant net loss, indicating mixed financial performance.

Post-Earnings Price Action Review

The strategy of buying HRL when revenues miss and holding for 30 days resulted in a significant loss. The strategy returned -49.90%, underperforming the benchmark by 135.79%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.57, the strategy indicated a high risk and a sure loss in this backtested scenario.

CEO Commentary

Jeffrey Ettinger, Interim CEO, emphasized fiscal 2025 challenges, including elevated input costs and production disruptions. The “Transform and Modernize” initiative aims to offset margin pressures, with plans to reduce 9% of corporate/sales positions. Strategic priorities for 2026 include innovation in protein-centric products and portfolio reshaping.

Guidance

For fiscal 2026, Hormel expects organic sales growth of 1%–4%, adjusted EPS of $1.43–$1.51, and adjusted operating income growth of 4%–10%. Key drivers include pricing actions, T&M savings, and pork cost declines, though beef and nut costs remain headwinds.

Additional News

Hormel Foods announced a corporate restructuring, cutting 250 jobs to reduce administrative expenses and reinvest in growth initiatives. The company also raised its quarterly dividend by 0.9% to $0.2925 per share, marking its 60th consecutive annual increase. Additionally, interim CEO Jeffrey Ettinger replaced the CFO, signaling a strategic shift amid ongoing operational challenges.