Hormel Foods 2025 Q4 Earnings Sharp Net Loss Amid Revenue Growth

Hormel Foods (HRL) reported mixed Q4 2025 results, with revenue rising 1.5% to $3.19 billion but a net loss of $56.2 million, a 125.6% decline year-over-year. The company issued cautiously optimistic 2026 guidance, projecting adjusted EPS of $1.43–$1.51 and organic sales growth of 1–4%.

Revenue

Hormel’s total revenue grew to $3.19 billion in Q4 2025, driven by a 2% increase in organic sales. The Retail segment led with $1.92 billion in sales, while Foodservice contributed $1.09 billion. International revenue totaled $174.65 million, reflecting ongoing challenges in markets like Brazil and Indonesia.

Earnings/Net Income

The company swung to a $0.10 per share loss in Q4 2025, a 125% deterioration from a $0.40 profit in Q4 2024. Despite the loss, Hormel has maintained profitability for over 20 years in this period, underscoring its operational resilience.

Post-Earnings Price Action Review

The strategy of buying HRL when it beats revenue 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.

CEO Commentary

Interim CEO Jeffrey Ettinger described fiscal 2025 as “challenging,” citing elevated input costs and operational setbacks. He emphasized the “Transform and Modernize” initiative and a 9% reduction in corporate positions to drive efficiency. For 2026, Ettinger expressed cautious optimism, projecting margin improvements and leveraging the company’s protein-centric portfolio.

Guidance

Hormel outlined 2026 guidance: organic sales growth of 1–4%, adjusted operating income growth of 4–10%, and adjusted EPS of $1.43–$1.51. Key drivers include pricing actions, productivity gains, and SG&A savings from restructuring.

Additional News

Recent non-earnings developments include a securities class-action investigation by the Schall Law Firm, prompted by a Wall Street Journal article highlighting price pressures and leadership changes. Hormel also announced a 0.9% dividend increase to $0.2925 per share, marking its 60th consecutive annual raise. Additionally, the company announced a corporate restructuring plan, reducing 250 positions to streamline operations.