Pilgrim’s Pride Corp. (NASDAQ:PPC) reported mixed fourth-quarter results for its 2025 fiscal year, delivering a revenue beat but falling short on profitability. The market’s initial reaction in after-hours trading was negative, with shares declining approximately 1.7%.
Earnings Snapshot: Revenue Beat, EPS Miss
The poultry processing giant posted quarterly sales of $4.52 billion, a 3.3% increase over the same period last year. This figure surpassed analyst expectations, which had called for revenue of approximately $4.45 billion. The top-line strength was attributed to solid demand across its U.S. retail and foodservice channels, alongside growth in its branded prepared foods portfolio.
However, the bottom line told a different story. Pilgrim’s reported adjusted earnings per share (EPS) of $0.68, which came in 9.9% below the consensus estimate of $0.77. This earnings miss highlights margin pressures that overshadowed the revenue gain.
Key Q4 CY2025 Results vs. Estimates:
- Reported Revenue: $4.52 billion
- Vs. Estimate: ~$4.45 billion (Beat)
- Reported Adjusted EPS: $0.68
- Vs. Estimate: $0.77 (Miss)
- Year-over-Year Revenue Growth: +3.3%
- Year-over-Year Adjusted EPS Change: -31.3% (from $0.99 in Q4 2024)
Market Reaction and Price Action
The immediate market response to the earnings release was subdued. The after-market decline of nearly 2% suggests investor focus settled on the profitability shortfall rather than the sales beat. This reaction aligns with a quarter where operational challenges, particularly in the Mexican market and certain commodity segments, compressed margins.
Recent stock performance provides additional context:
- The stock was essentially flat over the past week and two-week period.
- It had shown modest strength over the past month, gaining about 6.9%, which may have reflected optimism heading into the earnings report.
The post-earnings dip indicates that the reported figures did not meet the heightened expectations that may have been building.
Press Release Highlights and Segment Performance
Beyond the headline numbers, management emphasized strategic progress and regional diversification. The company’s full-year 2025 sales reached $18.5 billion, with adjusted EBITDA of $2.3 billion.
U.S. Operations: This segment remained the cornerstone of performance. The Prepared Foods division was a standout, with sales rising over 20% for the full year. The Just Bare® brand achieved a milestone of $1 billion in retail sales, with market share growing from 1% to 13% over three years.
European Operations: The region showed improvement, with adjusted EBITDA rising nearly 9% in the quarter. Growth was driven by branded products like Fridge Raiders® and Rollover®, which outpaced category averages.
Mexican Operations: The quarter was notably challenging for this segment. Management cited increased protein imports and "unbalanced fundamentals" in the live commodity market, which led to a sharp decline in adjusted EBITDA margin to 1.8%, down from much stronger performance earlier in the year.
Capital Return and Financial Position
A significant highlight from the full-year results was the return of $2 billion in cash to shareholders via a special dividend. The company maintained a strong liquidity position, ending the year with a net leverage ratio below 1.1x Adjusted EBITDA, providing flexibility for future growth investments.
Looking Ahead
The press release did not provide specific quantitative financial guidance for the coming year. Analyst estimates currently project full-year 2026 sales of approximately $18.73 billion and Q1 2026 revenue of about $4.39 billion. Investors will likely listen closely to the accompanying conference call for management’s commentary on the trajectory for commodity costs, brand investment, and the recovery of the Mexican operations.
For a detailed breakdown of historical earnings and future analyst estimates for Pilgrim’s Pride, you can review the data here.
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