SMITHFIELD FOODS INC
For the period ended Sep 27, 2026. Filed Oct 27, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2026 · Filed Oct 27, 2026
SFD$19.30-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-28; filed 2026-08-11.
0000091388-26-000051
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-27; filed 2026-10-27.
0000091388-26-000069
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 243 previous paragraphs and 279 current paragraphs.
137 unchanged; 78 reworded; 51 added; 20 removed; 8 previous and 13 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
One Big Beautiful Bill
Current report
On July 4, 2025, the Tax Relief for American Families and Workers Act of 2025 (commonly known as the “One Big Beautiful Bill” or “OBBB”) was signed into law. This comprehensive legislation made several significant changes to federal tax law, including:
Current report
•Permanently reinstating 100% bonus depreciation and adding 100% bonus deprecation for real property placed in service after January 19, 2025 and used in production activity
Current report
•Permanently reinstating the immediate expensing of research and development (“R&D”) in the U.S for years 2022 and beyond
Current report
•Permanently restoring the earnings before interest, taxes, depreciation and amortization (“EBITDA”)-based limitations for interest deduction under the IRS Tax Code.
Current report
In the third quarter of 2025, following the enactment of the OBBB, we reclassified approximately $77 million of deferred tax assets related to R&D capitalization to prepaid expenses and other current assets.
Current report
Nathan’s Famous, Inc. Acquisition
Current report
On October 26, 2026, we acquired Nathan’s Famous, Inc. (“Nathan’s”) for $441 million, including $18 million in transaction costs. Additionally, we assumed debt totaling $47 million (approximately $10 million net of cash acquired), which we repaid subsequent to the acquisition. The acquisition was funded using cash on hand.
Current report
Substantially all of the fair value of the gross assets acquired is concentrated in the Nathan’s Famous trade name. Therefore, the transaction will be accounted for as an asset acquisition in the fourth quarter of fiscal year 2026. As of the date of issuance of these condensed consolidated financial statements, the accounting for the acquisition, including the allocation of the purchase price to the acquired assets and assumed liabilities, has not been completed.
Current report
Elizabeth, New Jersey Facility
Current report
On June 30, 2025, we exited our leased Elizabeth, New Jersey facility, a small specialty dry sausage production facility, and consolidated production across our network. Costs associated with closing the plant primarily include equipment that we disposed of prior to the end of the asset’s useful life. The charges associated with the closing were not material.
Current report
On October 16, 2026, we entered into agreements with VisionAg Hog Production, LLC (“VisionAg”) pursuant to which we will sell approximately 40,000 sows and the associated commercial hog inventories located on certain Company-owned and contract farms in North Carolina to VisionAg, and assign certain contract grower agreements to VisionAg. The sale of sows will be financed through an interest-bearing note over a 30-month period. We also entered into a ten-year master lease agreement to lease the associated company-owned hog production facilities to a contract grower for VisionAg. These leases provide for annual base rent of approximately $1 million and include the option to purchase the leased properties during the lease term at predetermined prices. In addition, the parties amended existing supply, transportation, genetic material, and other commercial agreements to support the transition of the operations. We continue to maintain commercial relationships with VisionAg under these amended agreements, including a long-term market hog supply agreement. As a result of these agreements, we expect to produce approximately nine hundred thousand fewer hogs per year, which will be supplied by VisionAg
Current report
Packaged Meats. Segment sales decreased by $108 million, or 5.2%, primarily attributable to a 5.3% decrease in our average sales price, which was largely driven by lower raw material costs, which translated into lower sales prices of our packaged meats products. Sales volume increased slightly year-over-year.
Current report
Hog Production. Segment sales decreased by $122 million, or 15.0%, driven by the following factors, which more than offset an approximately 40,000, or 1.3%, increase in the number of market hogs sold:
Current report
•An $11 million decrease in breeding stock sales.
Current report
Fresh Pork. Segment sales decreased by $465 million, or 7.4%, driven by a 3.9% decrease in our average sales price and a 3.6% decrease in sales volume due to softer domestic consumer demand and a global oversupply of pork. The decrease in our average sales price outperformed the 7.0% decrease in the fresh pork cut-out values reported by the USDA, which averaged $0.97 per pound in the first nine months of 2026.
Current report
Hog Production. Segment sales decreased by $353 million, or 13.7%, driven by the following factors:
Current report
•A $16 million decrease in breeding stock sales.
Current report
•A decrease of approximately $15 million in raw material and operating costs.
Current report
•The impact of $5 million in employee retention tax credits recognized in the second quarter of 2025.
Current report
•The impact of $5 million in employee retention tax credits recognized in the second quarter of 2025.
Current report
•A $74 million increase in raw material costs in our Mexico operations, primarily attributable to the increase in sales volume.
Current report
•A $17 million increase in manufacturing and distribution costs in our Mexico operations, primarily attributable to the increase in sales volume.
Current report
•An $11 million increase in costs in our Bioscience operations.
Current report
SG&A decreased by $79 million, or 12.3%, driven primarily by the following factors:
Current report
•Litigation-related charges totaling $13 million were recorded in the first nine months of 2026 compared to $80 million in the first nine months of 2025, which were not allocated to our operating segments.
Current report
•A $15 million decrease in variable compensation accruals driven by lower earnings.
Current report
•A $7 million reduction in foreign exchange losses, which are not allocated to our operating segments.
Current report
•A $5 million reduction in losses on the sale of receivables due to the termination of the Monetization Facility (as defined below under Liquidity and Capital Resources—Credit Facilities), which are not allocated to our operating segments.
Current report
•A $5 million reduction in Pension Benefit Guaranty Corporation fees, which are not allocated to our operating segments.
Current report
•A $7 million increase in stock-based compensation.
Current report
(1)The third quarter and first nine months of 2026 include gains recognized in connection with the lease of hog production farms to contract growers for Murphy Family Farms, which were accounted for as sales-type leases. Upon commencement of the leases, the underlying farm assets were derecognized from property, plant and equipment, and the resulting gains were recognized.
Current report
(3)The third quarter and first nine months of 2025 include a $6 million gain related to the settlement of a commercial dispute.
Current report
Interest Expense, Net
Current report
Interest expense, net decreased by $5 million, or 47.1%, and $11 million, or 33.3%, for the third quarter and first nine months of 2026, respectively, due to higher levels of cash and cash equivalents earning interest in the current year.
Current report
Income tax expense decreased year-over-year by $41 million, or 57.9%, for the third quarter and $39 million, or 19.3%, for the first nine months primarily due to lower earnings year-over-year. Our effective tax rate increased to 24.8% for the third quarter of 2026 from 22.2% for the same period in 2025 primarily due to tax settlements recognized in the third quarter of 2026, partially offset by a favorable adjustment resulting from the completion of our prior-year tax return. Our effective tax rate decreased to 22.2% for the first nine months of 2026 from 23.4% for the first nine months of 2025, primarily due to changes in the amount of deductible compensation for certain officers and the favorable adjustment resulting from the completion of our prior-year tax return recognized in the third quarter of 2026.
Current report
Monetization Facility
Current report
On July 22, 2025, we terminated an uncommitted $250 million accounts receivable monetization facility (“Monetization Facility”) and paid $232 million to participating banks to reacquire the outstanding balance of accounts receivable previously sold under the facility. The Monetization Facility was originally established to provide us with additional liquidity and working capital flexibility. In light of our liquidity position and internal capital resources as of July 22, 2025, we determined that the Monetization Facility was no longer cost-effective or necessary. There were no early termination penalties or other material exit costs incurred in connection with the termination of the Monetization Facility.
Current report
Debt Refinancing
Current report
On October 14, 2026, we entered into a $600 million senior unsecured delayed draw term loan facility (“Term Loan”). The Term Loan bears interest at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin and matures three years from the funding date, which will occur prior to December 23, 2026. The Term Loan’s financial covenants are consistent with our existing Senior Revolving Credit Facility. We will use the proceeds from the Term Loan to repurchase the outstanding $600 million aggregate principal amount of our senior unsecured notes due February 2027. In connection with entering into the Term Loan, we incurred approximately $1 million of debt issuance costs, which will be amortized into interest expense over the three-year term of the Term Loan upon funding the loan.
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (20)
Previous report
Nathan’s Famous, Inc. Pending Acquisition
Previous report
Packaged Meats. Segment sales decreased by $56 million, or 2.7%, primarily attributable to a 5.5% decrease in sales volume, partially offset by a 2.9% increase in our average sales price. The decrease in volume was primarily attributable to the timing of the Easter holiday, which occurred earlier in 2026, resulting in lower volume of seasonal hams in the second quarter of 2026. The Easter holiday timing also favorably impacted sales mix year-over-year, which contributed to the increase in average sales price.
Previous report
Hog Production. Segment sales decreased by $69 million, or 8.2%, driven by the following factors:
Previous report
Packaged Meats. Segment sales increased by $69 million, or 1.7%, primarily attributable to a 2.7% increase in average sales price, partially offset by a 1.0% decrease in sales volume. The increase in average sales price was primarily attributable higher raw material costs, which translated into higher sales prices of our packaged meats products. The decrease in volume was primarily attributable to cautious consumer spending and competitive pricing pressures.
Previous report
Hog Production. Segment sales decreased by $232 million, or 13.1%, driven by the following factors:
Previous report
These decreases were partially offset by increases in raw material costs and operating costs of approximately $12 million and $4 million, respectively.
Previous report
•A $5 million increase in manufacturing and distribution costs in our Mexico operations, primarily attributable to the increase in sales volume.
Previous report
Packaged Meats. Cost of sales in our Packaged Meats segment increased by $92 million, or 2.7%, driven by the following factors:
Previous report
•A $49 million increase in raw material costs.
Previous report
•A $13 million increase in manufacturing and distribution costs in our Mexico operations, primarily attributable to the increase in sales volume.
Previous report
•A $5 million decrease in charges associated with our workforce reduction and administrative optimization initiatives and decision to close our satellite offices in Lisle, Illinois and Kansas City, Missouri, which were not allocated to our operating segments.
Previous report
Income tax expense was relatively consistent year-over-year while our effective tax rate decreased to 21.3% for the second quarter of 2026 compared to 24.6% for the same period in 2025, and to 21.8% for the first half of 2026, compared to 24.0% for the first half of 2025. These decreases were primarily driven by favorable tax settlements recognized in the second quarter of 2026.
Previous report
(Income) Loss From Equity Method Investments
Previous report
(Income) loss from equity method investments shifted to income of $4 million and $2 million in the second quarter and first half of 2026, respectively, compared to losses of $3 million and $8 million in the comparable periods of 2025, reflecting improved performance at Monarch Bio Energy, LLC and Murphy Family Farms.
Previous report
Nathan’s
Previous report
We expect to pay approximately $450 to $500 million for our pending acquisition of Nathan’s, including transaction costs and the payoff of assumed debt. The transaction is expected to close during the second half of 2026, subject to obtaining regulatory approvals and other customary closing conditions.
Previous report
(3)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
Previous report
(5)Consists primarily of accelerated depreciation charges, retention and severance costs and other incremental costs associated with our decision to exit our leased Springfield, Massachusetts dry sausage production facility.
Previous report
(6)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
Previous report
(8)Represents the recognition of employee retention tax credits received under the CARES Act.
Reworded paragraphs (78)
Previous wording
Smithfield Foods, Inc., together with its subsidiaries (“Smithfield,” “the Company,” “we,” “us” or “our”) is an American food company that employs approximately 31,500 people in the United States (“U.S.”) and 2,500 people in Mexico. We boast a portfolio of high-quality, iconic brands, such as Smithfield®, Eckrich® and Nathan’s Famous®, among many others. We are an indirect, majority-owned subsidiary of Hong Kong-based WH Group Limited (“WH Group”).
Current wording
Smithfield Foods, Inc., together with its subsidiaries (“Smithfield,” “the Company,” “we,” “us” or “our”) is an American food company that employs approximately 31,000 people in the United States (“U.S.”) and 2,500 people in Mexico. We boast a portfolio of high-quality, iconic brands, such as Smithfield®, Eckrich® and Nathan’s Famous®, among many others. We are an indirect, majority-owned subsidiary of Hong Kong-based WH Group Limited (“WH Group”).
Previous wording
Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31. Each of the second quarters of fiscal years 2026 and 2025, which ended on June 28, 2026 and June 29, 2025, respectively, consisted of 13 weeks. Each of the first halves of fiscal years 2026 and 2025 consisted of 26 weeks.
Current wording
Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31. Each of the third quarters of fiscal years 2026 and 2025, which ended on September 27, 2026 and September 28, 2025, respectively, consisted of 13 weeks. Each of the first nine months of fiscal years 2026 and 2025 consisted of 39 weeks.
Previous wording
The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous Company-owned farms and farms that are owned and operated by contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells livestock feed and grains and provides transportation and other ancillary services to external customers. In fiscal year 2025 and through the second quarter of fiscal year 2026, approximately 60% of the Hog Production segment’s cost of goods sold was from animal feed, which is derived primarily from corn and soybean meal.
Current wording
The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous Company-owned farms and farms that are owned and operated by contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells livestock feed and grains and provides transportation and other ancillary services to external customers.
Previous wording
In our Fresh Pork segment, the primary drivers of external sales are the consistent level of global pork consumption, our ability to maximize the value of each hog and our ability to leverage our different end markets including retail, foodservice, industrial and export channels. Through ongoing product innovation, we seek to appeal to ever-changing consumer preferences, including demand for convenience and smaller portion sizes as well as expanded interests in new and varied flavors. We also seek to increase the value of raw materials through whole-hog utilization and by appealing to differentiated, global tastes and preferences. We leverage multiple sales channels to optimize profitability, including value-added retail, export markets, industrial, pharmaceutical and pet foods.
Current wording
In our Fresh Pork segment, the primary drivers of external sales are global demand for pork, our ability to maximize the value of each hog and our ability to leverage our different end markets including retail, foodservice, industrial and export channels. Through ongoing product innovation, we seek to appeal to ever-changing consumer preferences, including demand for convenience and smaller portion sizes as well as expanded interests in new and varied flavors. We also seek to increase the value of raw materials through whole-hog utilization and by appealing to differentiated, global tastes and preferences. We leverage multiple sales channels to optimize profitability, including value-added retail, export markets, industrial, pharmaceutical and pet foods.
Previous wording
We export our products to over 30 countries, including China. Those exports primarily consist of fresh pork products. For the quarter ended June 28, 2026, our export sales into China accounted for approximately 2% of our total sales. As of June 28, 2026, products we export to China faced tariffs that ranged from 25% to 47%, with most products subject to 47% tariff rates.
Current wording
We export our products to over 30 countries, including China. Those exports primarily consist of fresh pork products. During the first nine months of 2026, our export sales into China accounted for approximately 2% of our total sales. As of September 27, 2026, products we export to China faced tariffs that ranged from 25% to 47%, with most products subject to 47% tariff rates.
Previous wording
Like other participants in our industry, we are subject to various laws and regulations administered by federal, state and other government entities, including the U.S. Environmental Protection Agency and corresponding state agencies, as well as the U.S. Department of Agriculture (“USDA”), the U.S. Food and Drug Administration, the U.S. Occupational Safety and Health Administration, the Commodity and Futures Trading Commission and similar agencies in foreign countries.
Current wording
Like other participants in our industry, we are subject to various laws and regulations administered by federal, state and other government entities, including the U.S. Environmental Protection Agency and corresponding state agencies, as well as the U.S. Department of Agriculture (“USDA”), the U.S. Food and Drug Administration, the
Previous wording
As of June 28, 2026 and December 28, 2025, we had contingent liabilities totaling $148 million and $149 million, respectively, classified in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters, including those described below. We did not record any significant charges for litigation matters in the first half of 2026. In the second quarter of 2025, we recorded charges totaling $80 million for litigation matters, including those described below, in SG&A in the condensed consolidated statements of income. These matters will not affect our profits or losses in future periods unless our accruals prove to be insufficient or excessive. It is reasonably possible that a change in our estimates may occur in the near term and that our accruals could be insufficient. We are unable to estimate the amount of possible loss in excess of our accruals, which could be material. Additionally, legal expenses incurred in our and our subsidiaries’ defense of these claims and any payments made to plaintiffs through unfavorable verdicts or otherwise could negatively impact our cash flows and our liquidity position.
Current wording
As of September 27, 2026 and December 28, 2025, we had contingent liabilities related to litigation matters totaling $159 million and $149 million, respectively, classified in accrued expenses and other current liabilities on the condensed consolidated balance sheets. During the third quarter and first nine months of 2026, we recorded litigation-related charges of $13 million. During the first nine months of 2025, we recorded litigation-related charges of $80 million, with no charges recorded during the third quarter of 2025. These charges were recorded in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statements of income. These matters will not affect our profits or losses in future periods unless our accruals prove to be insufficient or excessive. It is reasonably possible that a change in our estimates may occur in the near term and that our accruals could be insufficient. We are unable to estimate the amount of possible loss in excess of our accruals, which could be material. Additionally, legal expenses incurred in our and our subsidiaries’ defense of these claims and any payments made to plaintiffs through unfavorable verdicts or otherwise could negatively impact our cash flows and our liquidity position.
Previous wording
On February 16, 2026, we announced that we had initiated the approval process to construct a new state-of-the-art combined fresh pork and packaged meats processing facility in Sioux Falls, South Dakota, which would replace our existing 117-year-old facility. Our preliminary estimate of the proposed investment is up to $1.3 billion over the next three years. This investment is contingent on approval by the Company’s board of directors as well as permitting and other regulatory approvals. If approved, construction is anticipated to begin in the first half of 2027 with production estimated to commence by the end of 2028. Additionally, if the project moves forward, we plan to accelerate depreciation and may incur other incremental costs related to closing the existing plant, which are currently under evaluation.
Current wording
On February 16, 2026, we announced that we had initiated the approval process to construct a new state-of-the-art combined fresh pork and packaged meats processing facility in Sioux Falls, South Dakota, which would replace our existing 117-year-old facility. Our preliminary estimate of the proposed investment is up to $1.3 billion. This investment is contingent on approval by the Company’s board of directors as well as permitting and other regulatory approvals. If approved, construction is anticipated to begin in the first half of 2027 with production estimated to commence by the end of 2028. Additionally, if the project moves forward, we plan to accelerate depreciation and may incur other incremental costs related to closing the existing plant, which are currently under evaluation.
Previous wording
On January 20, 2026, we entered into an agreement to acquire all of the issued and outstanding shares of Nathan’s Famous, Inc. (“Nathan’s”) for $102.00 per share in cash. The acquisition is expected to be funded using cash on hand. Since March 2014, we have held an exclusive license to manufacture, distribute, market and sell “Nathan’s Famous” branded hot dogs, sausages, corned beef and certain other ancillary products through retail outlets in the U.S. and Canada and Sam’s Clubs in Mexico. The license is scheduled to expire in March 2032. Completion of the transaction remains contingent upon meeting several conditions specified in the merger agreement, which include securing approval from the holders of a majority of Nathan’s outstanding common stock, obtaining clearance from the Committee on Foreign Investment in the United States, and fulfilling other standard closing requirements. We expect the transaction to close in the second half of 2026.
Current wording
From March 2014 until the acquisition date, we held an exclusive license to manufacture, distribute, market and sell “Nathan’s Famous” branded hot dogs, sausages, corned beef and certain other ancillary products through retail outlets in the U.S. and Canada and Sam’s Clubs in Mexico. The license was scheduled to expire in March 2032.
Previous wording
During the second quarter and first half of 2026, we recognized $3 million and $6 million, respectively, in accelerated depreciation and employee termination benefits in cost of sales in the condensed consolidated statement of income. The lease terminates in March 2027 and we expect to recognize an additional $4 million in exit costs through the termination date.
Current wording
In October 2026, we exited our leased Springfield, Massachusetts dry sausage production facility and consolidated production across our network, including at our Nashville, Tennessee facility. The decision to close the Springfield facility was part of the Company’s ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies. During the third quarter and first nine months of 2026, we recognized $5 million and $11 million, respectively, in accelerated depreciation and amortization, employee termination benefits and other exit costs in cost of sales in the condensed consolidated statement of income. The lease terminates in March 2027 and we expect to recognize an additional $2 million in exit costs through the termination date.
Previous wording
In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes. As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity. As a result of this initiative, during the second quarter and first half of 2026, we recognized $4 million and $5 million, respectively, in restructuring costs in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statement of income and anticipate additional one-time restructuring costs totaling approximately $5 million for the remainder of fiscal year 2026.
Current wording
In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes. As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity. As a result of this initiative, during the third quarter and first nine months of 2026, we recognized $3 million and $8 million, respectively, in restructuring costs in SG&A in the condensed consolidated statement of income and anticipate additional one-time restructuring costs totaling approximately $3 million in the fourth quarter of fiscal year 2026.
Previous wording
In the second quarter of 2025, we announced a plan to close our satellite offices in Lisle, Illinois and Kansas City, Missouri and move work performed at those locations to our headquarters in Smithfield, Virginia. As a result, we estimated and accrued $4 million of employee termination benefit costs in SG&A in the consolidated statement of income in the second quarter of 2025 for personnel who are not expected to relocate. Subsequent office closure costs were not material.
Current wording
In the second quarter of 2025, we announced a plan to close our satellite offices in Lisle, Illinois and Kansas City, Missouri and move work performed at those locations to our headquarters in Smithfield, Virginia. As a result, we estimated and accrued $4 million of employee termination benefit costs in SG&A in the condensed consolidated statement of income in the second quarter of 2025 for personnel who are not expected to relocate. Subsequent office closure costs were not material.
Previous wording
In the fourth quarter of fiscal year 2024, we contributed $3 million in cash in exchange for a 25% minority interest in a North Carolina-based hog production company, Murphy Family Farms LLC (“Murphy Family Farms”). In the first quarter of 2025 we contributed $450,000 in cash in exchange for a 9% minority interest in another North Carolina-based hog production company, VisionAg Hog Production, LLC (“VisionAg”). As part of the formation of these entities we collectively sold approximately 178,000 sows and related inventories located on Company-owned and contract farms in North Carolina to Murphy Family Farms and VisionAg. We subsequently sold the commercial hog inventories associated with such sows to Murphy Family Farms and VisionAg. Murphy Family Farms and VisionAg are now hog suppliers to us and supply approximately 3.9 million hogs annually. We supply animal feed and other supplies and provide certain support services to Murphy Family Farms and VisionAg.
Current wording
In the fourth quarter of fiscal year 2024, we contributed $3 million in cash in exchange for a 25% minority interest in a North Carolina-based hog production company, Murphy Family Farms LLC (“Murphy Family Farms”). In the first quarter of 2025 we contributed $450,000 in cash in exchange for a 9% minority interest in another North Carolina-based hog production company, VisionAg Hog Production, LLC (“VisionAg”). As part of the formation of these entities we collectively sold approximately 178,000 sows and related inventories located on Company-owned and contract farms in North Carolina to Murphy Family Farms and VisionAg. We subsequently sold the commercial hog inventories associated with such sows to Murphy Family Farms and VisionAg.
Previous wording
The following discussion provides an analysis of our results of operations for the second quarter of 2026 compared to the second quarter of 2025 and for the first half of 2026 compared to the first half of 2025.
Current wording
The following discussion provides an analysis of our results of operations for the third quarter of 2026 compared to the third quarter of 2025 and for the first nine months of 2026 compared to the first nine months of 2025.
Previous wording
Fresh Pork. Segment sales decreased by $72 million, or 3.5%, primarily attributable to a 2.0% decrease in sales volume and a 1.5% decrease in our average sales price. The decrease in sales volume was primarily driven by a decline in the number of hogs harvested. The decrease in our average sales price outperformed the 5.3% decrease in the fresh pork cut-out values reported by the USDA, which averaged $0.97 per pound in the second quarter of 2026, driven by weaker belly and ham markets.
Current wording
Fresh Pork. Segment sales decreased by $371 million, or 17.0%, driven by an 11.4% decrease in our average sales price and a 6.3% decrease in sales volume due to softer domestic consumer demand and a global oversupply of pork. The decrease in our average sales price outperformed the 15.3% decrease in the fresh pork cut-out values reported by the USDA, which averaged $0.97 per pound in the third quarter of 2026.
Previous wording
These decreases were partially offset by a 9.0% increase in our average market hog sales price, inclusive of the effects of hedging, while the lean hog price index published by the Chicago Mercantile Exchange ("CME") decreased 3.3% year-over-year.
Current wording
•A 5.2% decrease in our average market hog sales price, inclusive of the effects of hedging, driven by a 14.5% decrease, year-over-year, in the lean hog price index published by the Chicago Mercantile Exchange ("CME").
Previous wording
•A $238 million decrease in sales to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the first half of 2025 in connection with the formation of these entities.
Current wording
•A decrease of approximately $74 million in sales to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the prior year in connection with the formation of these entities.
Previous wording
•A $14 million decrease in grain sales to other third parties.
Current wording
•A decrease of approximately $12 million in grain sales to other third parties.
Previous wording
Other. Segment sales increased by $103 million, or 45.8%, primarily due to a 47.7% increase in volume and a $40 million increase from the impact of foreign currency translation, partially offset by a 15.4% decrease in average sales price in our Mexico operations. Sales volume increased due to higher sales of our Fresh Pork segment products through our Mexico operations and improved capacity utilization. The decrease in average sales price was largely driven by lower market prices for fresh pork and live hogs in Mexico.
Current wording
Other. Segment sales increased by $20 million, or 15.2%, primarily due to a 29.2% increase in volume and an $11 million increase from the impact of foreign currency translation, partially offset by a 23.0% decrease in average sales price associated with our Mexico operations. The increase in sales volume was due to higher sales of our Fresh
Previous wording
•Fresh Pork. The decrease in inter-segment sales by our Fresh Pork segment was primarily attributable to lower market values for fresh pork components sold to our Packaged Meats segment, partially offset by a 2.8% increase in inter-segment sales volume.
Current wording
•Fresh Pork. The decrease in inter-segment sales by our Fresh Pork segment was primarily attributable to lower market values for fresh pork components sold to our Packaged Meats segment.
Previous wording
Fresh Pork. Segment sales decreased by $94 million, or 2.3%, primarily attributable to a 2.3% decrease in sales volume driven by a decline in the number of hogs harvested. The average selling price remained consistent year-over-year.
Current wording
Packaged Meats. Segment sales decreased by $39 million, or 0.6%, attributable to a 0.6% decrease in sales volume. The average sales price remained consistent year-over-year.
Previous wording
•A $94 million year-over-year decrease in sales to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the second quarter of 2025 in connection with the formation of these entities.
Current wording
•A decrease of approximately $312 million in sales to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the prior year in connection with the formation of these entities.
Previous wording
•A $13 million decrease in grain sales to other third parties.
Current wording
•A decrease of approximately $25 million in grain sales to other third parties.
Previous wording
•A decrease in the number of market hogs sold of 150,000, or 2.6%, primarily due to the formation of Murphy Family Farms and VisionAg.
Current wording
•A decrease in the number of market hogs sold of 110,000, or 1.3%, primarily due to the formation of Murphy Family Farms and VisionAg.
Previous wording
These decreases were partially offset by a 4.9% increase in our average market hog sales price, inclusive of the effects of hedging, while the lean hog price index published by the CME decreased 1.5% year-over-year.
Current wording
These decreases were partially offset by a 1.5% increase in our average market hog sales price, inclusive of the effects of hedging, while the lean hog price index published by the CME decreased 6.3% year-over-year.
Previous wording
Other. Segment sales increased by $33 million, or 27.6%, primarily due to a 33.2% increase in volume and a $16 million increase from the impact of foreign currency translation, partially offset by a 13.7% decrease in average sales price in our Mexico operations. Sales volume increased due to higher sales of our Fresh Pork segment products through our Mexico operations and improved capacity utilization. The decrease in average sales price was largely driven by lower market prices for fresh pork and live hogs in Mexico.
Current wording
Other. Segment sales increased by $123 million, or 34.5%, primarily due to a 41.2% increase in volume and a $51 million increase from the impact of foreign currency translation, partially offset by an 18.1% decrease in average sales price associated with our Mexico operations. Sales volume increased due to higher sales of our Fresh Pork segment products through our Mexico operations and improved capacity utilization. The decrease in average sales price was largely driven by lower market prices for fresh pork and live hogs in Mexico.
Previous wording
•Fresh Pork. The decrease in inter-segment sales by our Fresh Pork segment was primarily attributable to lower market values for fresh pork components sold to our Packaged Meats segment, partially offset by a 1.4% increase in inter-segment sales volume.
Current wording
•Fresh Pork. The decrease in inter-segment sales by our Fresh Pork segment was primarily attributable to lower market values for fresh pork components sold to our Packaged Meats segment, partially offset by an increase in sales volume to our Mexico operations.
Previous wording
•Hog Production. The decrease in inter-segment sales by our Hog Production segment was primarily attributable to our strategic initiative to optimize our hog production operations, which reduced the number of hogs produced by our Hog Production segment, as well as lower live hog market prices.
Current wording
•Hog Production. The decrease in inter-segment sales by our Hog Production segment was primarily attributable to lower live hog market prices.
Previous wording
•A $38 million increase in manufacturing and distribution costs primarily driven by higher fuel and freight costs and other inflationary pressures.
Current wording
Packaged Meats. Cost of sales in our Packaged Meats segment decreased by $118 million, or 6.6%, driven primarily by a $143 million decrease in raw material costs resulting from a decline in raw material market prices. This decrease was partially offset by a $26 million increase in manufacturing and distribution costs primarily driven by higher fuel and freight costs and other inflationary pressures.
Previous wording
Fresh Pork. Cost of sales in our Fresh Pork segment decreased by $52 million, or 2.6%, driven primarily by a $59 million decrease in raw material costs driven by the lower sales volume and lower market prices for live hogs, partially offset by the following factors:
Current wording
Fresh Pork. Cost of sales in our Fresh Pork segment decreased by $269 million, or 12.6%, driven primarily by a $275 million decrease in raw material costs resulting from lower market prices for live hogs and lower sales volume, partially offset by a $7 million increase in manufacturing costs.
Previous wording
Hog Production. Cost of sales in our Hog Production segment decreased by $111 million, or 13.7%, primarily due to:
Current wording
Hog Production. Cost of sales in our Hog Production segment decreased by $66 million, or 9.2%, primarily due to the following factors:
Previous wording
•A $105 million decrease in cost of goods sold to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the first half of 2025 in connection with the formation of these entities.
Current wording
•A decrease of approximately $37 million in cost of goods sold to Murphy Family Farms and VisionAg, primarily driven by the initial sale of commercial hog inventories in the prior year in connection with the formation of these entities.
Previous wording
•A $18 million decrease in cost of grain sold to other third parties.
Current wording
•A decrease of approximately $11 million in cost of grain sold to other third parties.
Previous wording
•A $4 million decrease in the cost of breeding stock sales.
Current wording
•A $2 million decrease in the cost of breeding stock sales.
Previous wording
Other. Cost of sales in our Other segment increased by $42 million, or 39.4%, driven primarily by the following factors:
Current wording
Other. Cost of sales in our Other segment increased by $34 million, or 29.6%, driven primarily by the following factors:
Previous wording
•A $57 million increase in raw material costs in our Mexico operations, primarily attributable the increase in sales volume.
Current wording
•A $17 million increase in raw material costs in our Mexico operations, primarily attributable the increase in sales volume.
Previous wording
•A $15 million unfavorable impact from foreign currency translation.
Current wording
•A $10 million unfavorable impact from foreign currency translation.
Previous wording
SG&A decreased by $78 million, or 28.9%, driven primarily by accruals for litigation charges totaling $80 million in the second quarter of 2025, partially offset by a $4 million increase in marketing and advertising expenses.
Current wording
•A $4 million increase in manufacturing and distribution costs in our Mexico operations, primarily attributable to the increase in sales volume.
Previous wording
Packaged Meats. Cost of sales in our Packaged Meats segment decreased by $24 million, or 1.4%, driven primarily by a $45 million decrease in raw material costs resulting from lower sales volume attributable to the timing of the Easter holiday. This decrease was partially offset by the following factors:
Current wording
Packaged Meats. Cost of sales in our Packaged Meats segment decreased by $26 million, or 0.5%, driven by a $95 million decrease in raw material cost primarily attributable to lower raw material market prices, which more than offset the following factors:
Previous wording
•A $15 million increase in manufacturing and distribution costs primarily driven by higher fuel and freight costs and other inflationary pressures.
Current wording
•A $63 million increase in manufacturing and distribution costs primarily driven by higher fuel and freight costs and other inflationary pressures.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
Approximately 60% of the Hog Production segment’s cost of goods sold is from animal feed, which is derived primarily from corn and soybean meal.
Current report — wording carried from elsewhere
U.S. Occupational Safety and Health Administration, the Commodity and Futures Trading Commission and similar agencies in foreign countries.
Current report — wording carried from elsewhere
Following this transaction, Murphy Family Farms and VisionAg will supply us with approximately 4.8 million hogs annually. We continue to supply animal feed and other supplies and provide certain support services to Murphy Family Farms and VisionAg.
Current report — wording carried from elsewhere
Pork segment products through our Mexico operations and improved capacity utilization. The decrease in average sales price was largely driven by lower market prices for fresh pork and live hogs in Mexico.
Current report — wording carried from elsewhere
•A $9 million increase in marketing and advertising expenses primarily recognized in the Packaged Meats segment.
Current report — wording carried from elsewhere
These decreases were partially offset by the following factors:
Current report — wording carried from elsewhere
•A $17 million increase in marketing and advertising expenses primarily recognized in the Packaged Meats segment.
Current report — wording carried from elsewhere
Securitization Facility agreement. As of September 27, 2026, we had $22 million in letters of credit issued under the Securitization Facility. None of the letters of credit were drawn upon.
Current report — wording carried from elsewhere
(5)Consists of contract termination costs, loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.
Current report — wording carried from elsewhere
(8)Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.
Current report — wording carried from elsewhere
(9)Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.
Current report — wording carried from elsewhere
(5)Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
Current report — wording carried from elsewhere
(8)Consists of employee termination benefit costs and other closure costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
On February 6, 2026, we announced our decision to exit our leased Springfield, Massachusetts dry sausage production facility by the end of August 2026 and consolidate production across our network, including at our recently acquired Nashville, Tennessee facility. The decision to close the Springfield facility is part of the Company’s ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies.
Previous report — wording carried elsewhere
•An $18 million increase in raw material costs in our Mexico operations, primarily attributable the increase in sales volume.
Previous report — wording carried elsewhere
(2)Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.
Previous report — wording carried elsewhere
(4)Consists of employee termination benefits and restructuring costs associated with workforce reduction and administrative process optimization initiatives.
Previous report — wording carried elsewhere
(6)Consists of employee termination benefit costs and other closure costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.
Previous report — wording carried elsewhere
(7)Represents the recognition of employee retention tax credits received under the CARES Act.
Previous report — wording carried elsewhere
(8)Consists of a gain recognized for the settlement of an insurance claim associated with past litigation.
Previous report — wording carried elsewhere
(9)Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.