Executive Summary

Smithfield delivered record third-quarter results: revenue $3.747B (+12.4% YoY), GAAP diluted EPS from continuing operations $0.63, and adjusted diluted EPS $0.58, with adjusted operating profit of $310M and margin 8.3% .
Results beat Wall Street consensus: revenue $3.6126B* and EPS $0.50*; actuals imply a revenue beat of ~$134M and EPS beat of ~$0.08, aided by vertical integration and strong Hog Production profitability* .
Guidance raised again: total company adjusted operating profit to $1.225B–$1.325B (midpoint +$25M QoQ), Hog Production up to $125M–$150M, Fresh Pork lowered to $150M–$200M, Packaged Meats narrowed to $1.060B–$1.110B; capex reduced to $350M–$400M; tax rate reaffirmed at 23–25% .
Catalysts: resilient Packaged Meats margin (10.8%) despite raw input inflation, profit migration from Fresh Pork to Hog Production in the integrated model, and continued innovation/brand investment (e.g., Prime Fresh, dry sausage, Mike’s Hot Honey Bacon) .

What Went Well and What Went Wrong

What Went Well

Packaged Meats delivered second-highest Q3 profit on record ($226M) with a 10.8% margin; management emphasized mix optimization, pricing discipline, and innovation despite input cost inflation .
Hog Production profit surged: adjusted operating profit $89M vs $40M a year ago, driven by improved commodity markets and operational optimization on retained farms .
CEO tone on execution: “record third-quarter adjusted operating profit… disciplined execution of our strategies,” highlighting vertically integrated model benefits in a cautious consumer environment .

What Went Wrong

Fresh Pork faced compressed industry market spread; ~-$40M market headwind YoY, while segment adjusted operating profit fell $18M YoY to $10M (0.5% margin), reflecting higher hog prices and tariff challenges .
Input cost inflation: bellies +40%, trim +35–68%, ham +14% YoY pressured Packaged Meats profitability despite pricing and cost actions .
Other segment adjusted operating profit fell $10M YoY due to lower bioscience volumes; management also flagged cautious consumer behavior and potential SNAP benefit timing impacts .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Billions)	$3.334	$3.786	$3.747
Operating Profit ($USD Millions)	$285	$260	$310
Adjusted Operating Profit ($USD Millions)	$286	$298	$310
GAAP Diluted EPS – Continuing Ops ($)	$0.53	$0.48	$0.63
Adjusted Diluted EPS – Continuing Ops ($)	$0.53	$0.55	$0.58
Net Income Margin (%)	6.3%	5.0%	6.7%
Adjusted EBITDA Margin (%)	11.5%	10.1%	10.6%

Segment Sales ($USD Millions)

Segment	Q3 2024	Q3 2025
Packaged Meats	$1,917	$2,090
Fresh Pork	$1,951	$2,185
Hog Production	$738	$813
Other	$117	$131
Consolidated	$3,334	$3,747

Segment Operating Profit and Margins

Segment	Q3 2024 OP ($MM)	Q3 2024 Margin (%)	Q3 2025 OP ($MM)	Q3 2025 Margin (%)
Packaged Meats	$239	12.5%	$226	10.8%
Fresh Pork	$28	1.4%	$10	0.5%
Hog Production	$40	5.5%	$89	10.9%
Other	$20	17.1%	$10	7.7%
Operating Profit (Consolidated)	$285	8.5%	$310	8.3%

KPIs and Operational Metrics

KPI	Q3 2024	Q3 2025
Packaged Meats Avg Selling Price YoY	—	+9.2%
Packaged Meats Volume	—	Flat
Raw Materials Cost Change YoY	—	Bellies +40%; Trim +35–68%; Ham +14%
Fresh Pork Avg Selling Price YoY	—	+12%
Fresh Pork Volume	—	Flat overall; U.S. retail +5%
Hog Production Heads Produced	—	-25% (~850k head) vs prior year
External Grain/Feed Sales	—	+$120M YoY
Liquidity	—	$3.069B; cash $0.773B; net debt/adj. EBITDA 0.8x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Company Sales Growth (%)	FY2025	Low-to-mid single-digit	Low-to-mid single-digit (ex JV sales)	Maintained
Packaged Meats Adjusted OP ($MM)	FY2025	$1,050–$1,150	$1,060–$1,110	Tightened/Narrowed
Fresh Pork Adjusted OP ($MM)	FY2025	$150–$250	$150–$200	Lowered
Hog Production Adjusted OP ($MM)	FY2025	$0–$100	$125–$150	Raised
Total Company Adjusted OP ($MM)	FY2025	$1,150–$1,350	$1,225–$1,325	Raised (midpoint +$25M QoQ)
Capital Expenditures ($MM)	FY2025	$400–$500	$350–$400	Lowered (timing)
Effective Tax Rate (%)	FY2025	23.0–25.0	23.0–25.0	Maintained
Dividend per Share ($)	FY2025	$1.00 expected; paid $0.25 in Apr & May; Aug announced $0.25	$1.00 expected; paid Apr, May, Aug $0.25; remaining quarters $0.25	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Vertical Integration & Hog Production rationalization	Q1 guidance: Hog Production -$50M to +$50M; integrated model emphasized . Q2 guidance raised to $0–$100M .	Hog Production guidance raised to $125–$150M; production under 11.5M hogs (~40% of needs) with medium-term target ~30% vertical integration .	Improving profitability; continued downsizing of high-cost farms.
Packaged Meats mix & innovation	Q1 Packaged Meats OP $266M (13.1% margin) . Q2 adjusted OP $296M; innovation pipeline .	Second-highest Q3 profit ($226M, 10.8% margin); brand campaigns (We Speak Pork, Eckrich), Prime Fresh volume up double digits; dry sausage +~8% .	Resilient margins despite inflation; mix shifting to everyday, higher-margin items.
Input costs & tariffs/macro	Q2 noted resilience amid macro; Fresh Pork navigating tariffs .	Elevated inputs: bellies +40%, trim +35–68%, ham +14%; Fresh Pork pressured by tighter spread; tariff environment cited .	Persistent inflation; spreads compressed; disciplined pricing mitigates.
Supply chain & automation (technology)	Q2 capex $400–$500 focused on automation/throughput .	Capex lowered to $350–$400 due to project timing; ongoing automation and logistics optimization .	Ongoing cost structure improvement; timing shift to 2026.
Consumer & SNAP	Not highlighted in Q1; limited in Q2.	Cautious consumer, value-seeking; potential delayed SNAP payments baked into outlook; SNAP-linked sales ~7.5% industry dollars .	Monitoring near-term risk; diversified portfolio mitigates impact.
Beef vs pork substitution	Not highlighted.	Beef recovery not seen until late 2027; pork positioned well on value .	Supportive cross-protein dynamics for pork.

Management Commentary

CEO: “We delivered record third-quarter adjusted operating profit of $310 million… underscoring the power of our brand and private label portfolio strategy” .
CFO: “Strong profit growth in our hog production segment more than offset market headwinds… adjusted operating profit margin of 8.3%” .
Strategy: five priorities—grow Packaged Meats via mix/volume/innovation; maximize Fresh Pork net realizable value; best-in-class Hog Production cost structure; optimize operations/SG&A/procurement; evaluate synergistic M&A .
Innovation: Prime Fresh lunch meat volume up double digits; Smithfield Anytime Favorites quarter hams volume share +5.7 pts; Curly’s BBQ meals volume share +1.4 pts; launch of Mike’s Hot Honey Bacon .

Q&A Highlights

Pricing vs volume in Packaged Meats: volumes flat; pricing power maintained amid +~12% costs YoY; selective promotions to protect category profitability .
Hog Production strategy: target ~30% vertical integration over medium term; removing highest-cost farms; maintain assured supply to Fresh Pork .
Input cost/seasonality: elevated belly/trim markets easing seasonally into Thanksgiving, but demand still strong; pork supported vs high beef prices .
Capex timing: guidance lowered due to project timing shifts into early 2026, continued focus on automation and returns discipline .
SNAP funding: potential November disruptions modeled; overall impact expected to be minor given protein demand and portfolio breadth .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise
Revenue ($USD)	$3,612,602,920*	$3,747,000,000	+$134,397,080*
EPS (Adjusted/Normalized) ($)	$0.50033*	$0.58	+$0.07967*

Values marked with an asterisk (*) retrieved from S&P Global.

Consensus breadth: Revenue estimates (n=3); EPS estimates (n=6). Beat driven by Hog Production outperformance and disciplined pricing/mix in Packaged Meats, partially offsetting compressed Fresh Pork spreads .

Key Takeaways for Investors

Vertical integration working: profit migration from Fresh Pork to Hog Production helped deliver record Q3 results despite compressed spreads and tariff headwinds .
Packaged Meats resilience: 10.8% margin amid raw input spikes (bellies +40%, trim +35–68%, ham +14%); disciplined pricing and mix favored everyday, higher-margin items .
Guidance momentum: total adjusted OP midpoint raised to $1.275B; Hog Production range lifted; Fresh Pork tempered; capex timing reduced to $350–$400M, with automation focus .
Balance sheet strength: liquidity $3.069B; net debt/adj. EBITDA 0.8x—ample flexibility for investment and dividends ($1.00/share expected for FY25) .
Near-term watch items: seasonality in cutout/belly markets, consumer caution/SNAP timing, and tariff impacts on Fresh Pork profitability .
Medium-term thesis: continued portfolio mix improvements, brand investments, and hog cost optimization should support margin durability and earnings growth .
Actionable: Expect sell-side estimate revisions upward on EPS and total adjusted OP; monitor spreads and input costs for Packaged Meats margins, and quarterly progress toward ~30% hog production target .

Notes:

Q3 2025 8-K press release (Item 2.02) and exhibits reviewed in full .
Q3 2025 earnings call transcripts read in full - - -.
Prior quarters’ earnings press releases: Q2 2025 and Q1 2025 read for trend analysis - -.
No additional Q3 press releases found in period search [ListDocuments returned 0 press-release items for Q3 window].

SMITHFIELD FOODS INC (SFD)·Q3 2025 Earnings Summary