Smithfield Foods Delivers Record Third Quarter with Broad-Based Profit Growth and Outlook Upgrades

Sales and Segment Performance: Third Quarter Highlights Double-Digit Growth Across the Board

Smithfield Foods, Inc. (NASDAQ:SFD) has posted record financial results for its fiscal third quarter ended September 28, 2025. Net sales rose 12.4% to $3.75 billion versus the same quarter in 2024, driven by robust demand and disciplined execution, despite higher raw material costs and ongoing caution in consumer spending.

Notably, all core business segments saw healthy sales growth. Packaged Meats remained the company’s powerhouse with $2.09 billion in sales—up 9.1% year-over-year—while Fresh Pork rose 12% to $2.19 billion. Hog Production grew 10.1% to $813 million, with other operations posting a 12.1% uptick. This sales momentum translated into a consolidated segment growth rate of 10.5%.

Profitability Strengthens: Operating Profit and Margins Edge Higher Despite Cost Pressures

Operating profit climbed to $310 million in the third quarter, reflecting an 8.9% gain over the previous year. Packaged Meats delivered an operating profit of $226 million and a strong margin of 10.8%, marking the second-best third quarter in its history. Fresh Pork and Hog Production posted operating profits of $10 million and $89 million, respectively, with Hog Production profits surging 119.8% year-over-year.

Net income attributable to Smithfield from continuing operations increased to $248 million ($0.63 per share). Adjusted net income came in at $230 million ($0.58 per share).

Balance Sheet and Liquidity Remain Strong, Supporting Growth Initiatives

Smithfield finished the quarter with $773 million in cash and $3.07 billion of total available liquidity. The ratio of net debt to adjusted EBITDA stands at just 0.8x, indicating strong financial flexibility for further investment and dividend payments. Capital expenditures are now projected between $350 million and $400 million for the full year, underlining continued commitment to both maintenance and profit improvement projects.

Outlook Upgraded: Higher Profit Targets for 2025

Buoyed by third quarter results and stable operations, Smithfield raised its adjusted operating profit outlook for the year to a range of $1.23 billion to $1.33 billion. Segment guidance was also lifted for both the Packaged Meats ($1.06–$1.11 billion) and Hog Production ($125–$150 million) divisions, reflecting management’s confidence in the face of volatile input costs. The full-year sales forecast is reaffirmed at low-to-mid-single-digit percentage growth over 2024 levels.

CEO Perspective: Discipline, Diversification, and Vertical Integration Pay Off

President and CEO Shane Smith attributed the record results to Smithfield’s strategic discipline and vertical integration model, highlighting the company’s ability to offset rising costs in one segment with gains in another. "Despite persistent higher raw material costs and cautious consumer spending, our Packaged Meats segment posted the second best third quarter profit on record. We also benefitted from vertical integration as higher Hog Production segment profits more than offset raw material cost headwinds in Fresh Pork and Packaged Meats," Smith stated.

Key Takeaways for Investors: Focused Growth Amid Headwinds

Smithfield Foods’ third quarter sets a confident tone for the remainder of fiscal 2025. Sustained segment growth, an upgraded profit outlook, and conservative leverage position the company to continue its trajectory—even with raw material volatility and global uncertainties. Investors should watch for updates on execution during the company’s conference call and as year-end approaches.

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