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- **Record Q3 Profit**: $310 million adjusted operating profit, +8.5% YoY, driven byPackaged Meats and Hog Production.
- **Packaged Meats Resilience**: $226 million profit (+9.1% YoY) despite 12% raw material cost increase.
- **Hog Production Growth**: Segment profit doubles YoY, with 2025 outlook raised to $125 million-$150 million.
- **Liquidity Strength**: $3.1 billion liquidity and 0.8x net debt/EBITDA ratio.
- **SNAP Risk**: Potential 7.5% revenue impact if SNAP benefits delayed, but pork affordability mitigates risk.

**【CEO Summary Section】**
- Delivered record Q3 adjusted operating profit of $310 million, up 8.5% YoY, driven byPackaged Meats and Hog Production segments.
- Packaged Meats segment achieved $226 million in adjusted operating profit, up 9.1% YoY, despite higher raw material costs.
- Fresh Pork segment mitigated 50% of industry market spread compression through operational efficiency and channel diversification.
- Hog Production segment adjusted operating profit doubled YoY, benefiting from cost optimization and higher hog prices.
- Raised 2025 adjusted operating profit outlook by $25 million to $1.225 billion-$1.321 billion.

**【CFO Financial Commentary】**
- Consolidated sales of $3.7 billion, up 12.4% YoY, driven by Hog Production and Packaged Meats growth.
- Adjusted EPS of $0.58, up 9.4% YoY, reflecting strong profitability across segments.
- Capital expenditures expected at $350 million-$400 million, with 50% allocated to growth initiatives.
- Balance sheet remains strong with $3.1 billion liquidity and net debt/EBITDA ratio of 0.8x.

**【Q&A Highlights】**
- Packaged Meats volumes flat Q3 but gaining market share through innovation (e.g., Smithfield Prime Fresh lunchmeat up double digits).
- Hog Production target to reduce self-sufficiency to 30% by resizing to 10 million hogs annually.
- SNAP delays could impact low-income consumers, but pork affordability remains key competitive advantage.
- Beef trim costs expected to remain elevated through 2026, with no material recovery in beef supply until 2027.

Smithfield Foods, Inc. (SFD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SFD

SFD fundamentals

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