| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 4.5K | 1.6% |
| Total Income | 4.5K | 1.6% |
| Expenditure | 4.4K | 7.7% |
| PBT | 131.82 | 66.2% |
| Net Profit | 101.42 | 65.7% |
| OPM | 3.59% | 5.48pp |
| NPM | 2.24% | 4.39pp |
| EPS | 0.43 | 65.6% |
Pilgrim's Pride Reports Q1 2026 Net Sales of $4.5 Billion, Operating Income Down 59.8%
30 Apr 2026 · 30 Apr, 3:42 pm
Summary
Pilgrim's Pride Corporation reported first quarter 2026 net sales of $4,532.6 million, a modest 1.6% increase year-over-year. Despite the revenue growth, profitability saw a significant decline, with GAAP Operating Income falling by 59.8% to $162.6 million and GAAP EPS decreasing by 65.3% to $0.43. Adjusted EBITDA also dropped by 42.2% to $308.1 million, reflecting challenges from plant downtime, weather events, and weakened commodity fundamentals, particularly impacting the U.S. Fresh business. However, the U.S. Prepared Foods segment demonstrated strong performance with record retail volumes and nearly 40% growth in Just Bare® sales, while Europe maintained steady results and Mexico achieved double-digit volume growth in its branded portfolio. Management highlighted healthy chicken demand and progress on growth and portfolio projects aimed at reinforcing a more resilient earnings profile.
Key Highlights
- 1
Pilgrim's Pride Corporation reported first quarter 2026 net sales of $4,532.6 million, representing a 1.6% increase compared to the prior year.
- 2
GAAP Operating income for Q1 2026 significantly decreased by 59.8% year-over-year, reaching $162.6 million, resulting in a consolidated GAAP Operating Income margin of 3.6%.
- 3
GAAP Net Income stood at $101.5 million, with GAAP Earnings Per Share (EPS) declining by 65.3% year-over-year to $0.43.
- 4
Adjusted EBITDA for the quarter was $308.1 million, a 42.2% decrease from the previous year, with the Adjusted EBITDA margin contracting by 5.2 percentage points to 6.8%.
- 5
The U.S. Prepared Foods segment continued its accelerated growth, achieving record retail volumes, notably with Just Bare® retail sales increasing by nearly 40% year-over-year.
- 6
Mexico's branded portfolio in Fresh and Prepared Foods saw volumes grow by over 10% compared to last year, despite compressed margins due to increased supply levels.
- 7
The company maintained a strong liquidity position with a net leverage ratio of 1.25x Adjusted EBITDA, well below its target range of 2x to 3x.
Management Comments
Fabio Sandri
During the quarter, chicken demand continued to be healthy across all regions. Overall business fundamentals remained positive given chicken’s affordability, consumer momentum in retail and foodservice, and ample grain supplies. Equally important, we made significant progress on our growth and portfolio projects, reinforcing the foundation for a more resilient earnings profile.
Fabio Sandri
Our operations underwent a significant amount of transition over the past several months. Not only will these investments reduce volatility of our portfolio, but they also further enhance our capabilities to meet growing demand from Key Customers in the upcoming months.
Fabio Sandri
Once complete, our Walker County facility will enhance margins and further drive sales growth for U.S. Prepared Foods. It will also increase diversification within our U.S. business given our expansion in brands and valued-added products, ultimately creating more stable earnings.
Fabio Sandri
Europe’s performance reflects the benefits of diversification. As consumers became increasingly focused on value, many of our offerings throughout our portfolio were readily available to meet their needs across retail and foodservice.
Fabio Sandri
Our investments in Mexico will drive growth and diversification through more value-added offerings and expanded geographic presence in the live commodity market.
Fabio Sandri
Our achievement in emissions intensity reduction reflects our long-standing focus on driving sustainability throughout our business. We are proud to announce the achievement of the initial Scope 1 & 2 emissions intensity reduction targets called for in the bond; and, we will continue to drive sustainability through improved efficiencies, ultimately creating opportunities and a better future for our team members.
Informational and educational content only. Not investment advice.