Pilgrim’s Pride Reports Second Quarter 2026 Results
GREELEY, Colo., July 29, 2026 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's leading food companies, reports its second quarter 2026 financial results.
Second Quarter Highlights
•Net Sales of $4.6 billion.
•Consolidated GAAP Operating Income margin of 1.4%.
•GAAP Net Income of $13.2 million and GAAP EPS of $0.06. Adjusted Net Income of $153.9 million, and Adjusted EPS of $0.64.
•Adjusted EBITDA of $360.0 million, or a 7.8% margin, with Adjusted EBITDA margins of 8.7% in the U.S., 7.6% in Europe, and 3.9% in Mexico.
•U.S. Fresh volumes rose from increased demand across both retail and foodservice. Profitability declined from previous year due to commodity market pricing reductions, while margins increased sequentially from last quarter with improvements in our productivity, completion of plant upgrades and gains in live operations. Pilgrim’s continues to improve its portfolio and support key customer growth with the investment in Ellijay, Ga., to increase deboning in the small bird category.
•U.S. Prepared Foods drove profitable growth as sales and margins both rose from last year. Just Bare® retail sales increased over 30% versus prior year, making it the second largest brand in the fully cooked category. Construction of the new prepared foods facility in Walker County, Ga., remains on schedule.
•Europe sales and volumes rose from continued marketplace momentum for poultry and meals offerings. Sales of Rollover® grew double digits whereas Fridge Raiders® remained steady. Margins in the UK pork segment continue to be impacted by excess imports from European countries.
•Mexico volumes grew from last year with improved growing conditions and as retail fresh volumes of Pilgrim’s® rose over 30%. Margins in the live commodity markets were impacted by increased domestic production and imports in chicken, greater egg availability, and additional pork imports. Ramp up of live operations in the Southern Peninsula continues to be on track.
•Pilgrim’s approach to engaging its team members and supporting its communities garnered multiple awards across regions for workplace satisfaction, including “America’s Greatest Workplaces” by Newsweek in the U.S., “Employer of the Year” by The Grocer in Europe, and the “Exceptional Companies Award” by the Institute for the Promotion of Quality in Mexico.
•Maintained strong liquidity position to support future growth opportunities as the company’s net leverage ratio is currently 1.43x Adjusted EBITDA, below the target of 2x to 3x.
1
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
Y/Y Change
June 28, 2026
June 29, 2025
Y/Y Change
(In millions, except per share and percentages)
Net sales
$
4,626.2
$
4,757.4
(2.8)
%
$
9,158.9
$
9,220.4
(0.7)
%
U.S. GAAP EPS
$
0.06
$
1.49
(96.0)
%
$
0.48
$
2.73
(82.4)
%
Operating income
$
66.0
$
512.3
(87.1)
%
$
228.5
$
916.8
(75.1)
%
Adjusted EBITDA(1)
$
360.0
$
686.9
(47.6)
%
$
668.1
$
1,220.1
(45.2)
%
Adjusted EBITDA margin(1)
7.8
%
14.4
%
(6.6)
pts
7.3
%
13.2
%
(5.9)
pts
(1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
“Throughout the quarter, chicken demand remained firm in all regions as affordability continued to resonate with consumers across retail and foodservice,” said Fabio Sandri, Pilgrim’s President and CEO. “We continued our investments to drive sales growth and reduce volatility, mitigating downsides in the chicken commodity markets.”
In the second quarter, counter-seasonal movements in the jumbo commodity cutout market emerged as values fell more than 25% from the prior year. While profitability declined compared to last year, margins improved sequentially with the completion of plant upgrades and improvements in live operations.
Case Ready and Small Bird volumes grew from incremental distribution with Key Customers. Investments in Big Bird for portioning equipment continue to support the growth of Prepared Foods, moderating the impact of commodity market declines. Additional investments were announced in Ellijay, Ga., to support the long-term growth of Key Customers in the boneless category.
“While consumer interest in chicken continued to be healthy across all channels, supply growth rose faster than demand.” said Sandri. “Our relentless focus on closing operational gaps and further investments in plant upgrades to increase our internal supply capabilities and support Key Customer growth will further improve our ability to mitigate the impact of volatile commodity fundamentals, creating a more resilient earnings profile.”
U.S. Prepared Foods continues to drive profitable growth as sales and margins expanded compared to prior year. Just Bare® continues to lead growth within the frozen fully cooked category, growing market share by nearly 300 basis points over the past year.
“The growth of Just Bare® continues to demonstrate our ability to diversify our portfolio through brands,” Sandri said. “Our investment in Walker County, Ga., will further enhance our operational capabilities, accelerating momentum of our value-added line up.”
In Europe, volumes to Key Customers in retail rose faster than the overall grocery channel, as poultry and meal offerings continued to resonate throughout the market. These growth areas helped compensate for pressured pork margins due to increased European imports to the UK, additional costs driven by the Middle East conflict, and decreases in foodservice traffic.
“Our diversified portfolio continues to demonstrate adaptability needed to meet consumer needs and drive volume growth through Key Customer partnerships,” commented Sandri. “Equally important, we’ve secured additional distribution through our innovation and branded offerings that will further expand our presence.”
Mexico increased volumes through growth in both fresh and prepared. In Fresh, branded offerings in retail rose nearly 30% compared to last year. Prepared experienced similar success as Pilgrims® value-added products grew over double digits in both retail and foodservice.
Margins were compressed versus last year as counter-seasonal growing conditions for chickens, supporting a significant increase in production. Total protein supply also expanded further given additional egg availability and pork imports.
2
Projects to drive sales and mitigate the impact of commodity volatility remain on schedule. The new prepared foods line in Porvenir started production on schedule, and expansion in the Southern Peninsula proceeds as planned.
“Demand for chicken continues to be robust throughout Mexico despite a significant increase in overall protein supply,” remarked Sandri. “The growth of our branded offerings and prepared foods along with our investments will further mitigate challenges from live commodity markets, improving our margin profile while reducing risk.”
Pilgrim’s was also recognized as a top employer of choice by multiple entities across all regions, resulting from the company’s partnerships with its team members and communities, its training and development programs, and overall workplace satisfaction.
“Culture is paramount to our success,” concluded Sandri. “It attracts talent, retains team members and ultimately drives the success of our business. We will continue to be vigilant in embedding our unique values, strategies, and methods throughout all aspects of our organization.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, July 30, at 7 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://dpregister.com/sreg/10210422/1046c71b5dc
You may also reach the pre-registration link by logging in through the investor section of our website at
https://ir.pilgrims.com in the “Events & Presentations” section.
For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”
Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com.
###
About Pilgrim’s Pride
Pilgrim’s employs approximately 63,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product
3
recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Contact:
Andrew Rojeski
Head of Strategy, Investor Relations, & Sustainability
IRPPC@pilgrims.com
www.pilgrims.com
4
PILGRIM’S PRIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 28, 2026
December 28, 2025
(In thousands)
Cash and cash equivalents
$
388,843
$
640,235
Restricted cash and cash equivalents
9,461
—
Trade accounts and other receivables, less allowance for credit losses
897,865
1,164,903
Accounts receivable from related parties
28,219
13,398
Inventories
2,025,304
2,031,259
Income taxes receivable
79,793
103,702
Prepaid expenses and other current assets
290,745
272,809
Assets held for sale
—
11,057
Total current assets
3,720,230
4,237,363
Deferred tax assets
28,869
31,211
Other long-lived assets
153,311
113,195
Operating lease assets, net
249,464
257,784
Intangible assets, net
798,240
832,066
Goodwill
1,315,103
1,338,884
Property, plant and equipment, net
3,764,707
3,533,027
Total assets
$
10,029,924
$
10,343,530
Accounts payable
$
1,579,442
$
1,588,569
Accounts payable to related parties
30,591
43,516
Revenue contract liabilities
31,407
37,622
Accrued expenses and other current liabilities
1,008,263
1,095,858
Income taxes payable
94,339
123,769
Current maturities of long-term debt
913
924
Total current liabilities
2,744,955
2,890,258
Noncurrent operating lease liabilities, less current maturities
189,824
199,315
Long-term debt, less current maturities
2,861,359
3,093,113
Deferred tax liabilities
437,530
452,326
Other long-term liabilities
32,858
14,787
Total liabilities
6,266,526
6,649,799
Common stock
2,631
2,627
Treasury stock
(544,687)
(544,687)
Additional paid-in capital
2,034,816
2,023,609
Retained earnings
2,360,323
2,245,523
Accumulated other comprehensive loss
(103,236)
(47,022)
Total Pilgrim’s Pride Corporation stockholders’ equity
3,749,847
3,680,050
Noncontrolling interest
13,551
13,681
Total stockholders’ equity
3,763,398
3,693,731
Total liabilities and stockholders’ equity
$
10,029,924
$
10,343,530
5
`
PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands, except per share data)
Net sales
$
4,626,230
$
4,757,365
$
9,158,863
$
9,220,374
Cost of sales
4,286,478
4,042,070
8,473,621
7,950,206
Gross profit
339,752
715,295
685,242
1,270,168
Selling, general and administrative expense
265,103
199,457
445,272
333,236
Restructuring activities
8,699
3,499
11,464
20,111
Operating income
65,950
512,339
228,506
916,821
Interest expense, net of capitalized interest
49,860
42,475
87,707
84,213
Interest income
(3,750)
(11,024)
(10,620)
(35,977)
Foreign currency transaction losses (gains)
(1,338)
4,892
(416)
2,839
Miscellaneous, net
(614)
414
(1,777)
(278)
Income before income taxes
21,792
475,582
153,612
866,024
Income tax expense
8,572
119,573
38,942
213,672
Net income
13,220
356,009
114,670
652,352
Less: Net income attributable to noncontrolling interests
(157)
489
(130)
799
Net income (loss) attributable to Pilgrim’s Pride Corporation
$
13,377
$
355,520
$
114,800
$
651,553
Weighted average shares of common stock outstanding:
Basic
237,928
237,381
237,820
237,308
Effect of dilutive common stock equivalents
915
1,046
881
1,046
Diluted
238,843
238,427
238,701
238,354
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:
Basic
$
0.06
$
1.50
$
0.48
$
2.75
Diluted
$
0.06
$
1.49
$
0.48
$
2.73
6
PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 28, 2026
June 29, 2025
(In thousands)
Cash flows from operating activities:
Net income
$
114,670
$
652,352
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
241,787
218,022
Asset impairment
22,263
846
Loss on early extinguishment of debt recognized as a component of interest expense
17,569
1,419
Stock-based compensation
11,211
14,185
Deferred income tax benefit
(5,691)
(19,493)
Loan cost amortization
2,689
2,491
Loss on property disposals
2,604
1,990
Accretion of discount related to Senior Notes
1,125
1,211
Gain on equity method investments
—
(3)
Changes in operating assets and liabilities:
Trade accounts and other receivables
239,435
(74,961)
Inventories
(7,604)
(105,692)
Prepaid expenses and other current assets
(17,457)
(17,434)
Accounts payable, accrued expenses and other current liabilities
(127,640)
(34,570)
Income taxes
(6,688)
8,048
Long-term pension and other postretirement obligations
1,259
(1,469)
Other operating assets and liabilities
(17,686)
(24,839)
Cash provided by operating activities
471,846
622,103
Cash flows from investing activities:
Acquisitions of property, plant and equipment
(465,189)
(259,283)
Proceeds from property disposals
10,375
2,912
Business acquisitions
(3,073)
—
Cash used in investing activities
(457,887)
(256,371)
Cash flows from financing activities:
Payments on revolving line of credit, long-term borrowings and finance lease obligations
(313,312)
(90,654)
Proceeds from revolving line of credit and long-term borrowings
73,667
—
Payments on early extinguishment of debt
(14,548)
(2,120)
Payments for dividend
—
(1,495,497)
Cash used in financing activities
(254,193)
(1,588,271)
Effect of exchange rate changes on cash and cash equivalents
(1,697)
37,700
Increase (decrease) in cash, cash equivalents and restricted cash
(241,931)
(1,184,839)
Cash, cash equivalents and restricted cash, beginning of period
640,235
2,043,158
Cash, cash equivalents and restricted cash, end of period
$
398,304
$
858,319
7
PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigation settlements, (3) restructuring activities losses, (4) asset impairment, and (5) net income (loss) attributable to noncontrolling interest. EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands)
Net income
$
13,220
$
356,009
$
114,670
$
652,352
Add:
Interest expense, net(a)
46,110
31,451
77,087
48,236
Income tax expense
8,572
119,573
38,942
213,672
Depreciation and amortization
123,306
113,504
241,787
218,022
EBITDA
191,208
620,537
472,486
1,132,282
Add:
Foreign currency transaction losses (gains)(b)
(1,338)
4,892
(416)
2,839
Litigation settlements(c)
135,711
58,464
158,905
65,714
Restructuring activities losses(d)
8,699
3,499
11,464
20,111
Asset impairment(e)
25,558
—
25,558
—
Minus:
Net income (loss) attributable to noncontrolling interest(e)
(157)
489
(130)
799
Adjusted EBITDA
$
359,995
$
686,903
$
668,127
$
1,220,147
8
(a)Interest expense, net, consists of interest expense less interest income.
(b)Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance.
(e)Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
9
The summary unaudited consolidated income statement data for the 12 months ended June 28, 2026 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 28, 2026 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 28, 2025 and (2) the applicable unaudited consolidated income statement data for the six months ended June 28, 2026.
PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)
Three Months Ended
LTM Ended June 28, 2026
September 28, 2025
December 28, 2025
March 29, 2026
June 28, 2026
(In thousands)
Net income
$
343,061
$
87,931
$
101,450
$
13,220
$
545,662
Add:
Interest expense, net
28,990
33,044
30,977
46,110
139,121
Income tax expense
118,319
86,803
30,370
8,572
244,064
Depreciation and amortization
116,426
121,709
118,481
123,306
479,922
EBITDA
606,796
329,487
281,278
191,208
1,408,769
Add:
Foreign currency transaction losses (gains)
5,169
(1,231)
922
(1,338)
3,522
Litigation settlements
19,582
77,363
23,194
135,711
255,850
Restructuring activities losses
1,779
9,464
2,765
8,699
22,707
Asset impairment
—
—
—
25,558
25,558
Minus:
Net income (loss) attributable to noncontrolling interest
248
(62)
27
(157)
56
Adjusted EBITDA
$
633,078
$
415,145
$
308,132
$
359,995
$
1,716,350
10
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
Three Months Ended
Six Months Ended
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands, except percent of net sales)
Net income
$
13,220
$
356,009
$
114,670
$
652,352
0.29
%
7.48
%
1.25
%
7.08
%
Add:
Interest expense, net
46,110
31,451
77,087
48,236
0.99
%
0.66
%
0.84
%
0.52
%
Income tax expense
8,572
119,573
38,942
213,672
0.19
%
2.51
%
0.43
%
2.32
%
Depreciation and amortization
123,306
113,504
241,787
218,022
2.66
%
2.38
%
2.64
%
2.36
%
EBITDA
191,208
620,537
472,486
1,132,282
4.13
%
13.03
%
5.16
%
12.28
%
Add:
Foreign currency transaction
losses (gains)
(1,338)
4,892
(416)
2,839
(0.03)
%
0.10
%
—
%
0.03
%
Litigation settlements
135,711
58,464
158,905
65,714
2.94
%
1.23
%
1.72
%
0.71
%
Restructuring activities losses
8,699
3,499
11,464
20,111
0.19
%
0.07
%
0.13
%
0.22
%
Asset impairment
25,558
—
25,558
—
0.55
%
—
%
0.28
%
—
%
Minus:
Net income (loss) attributable to noncontrolling interest
(157)
489
(130)
799
—
%
0.01
%
—
%
0.01
%
Adjusted EBITDA
$
359,995
$
686,903
$
668,127
$
1,220,147
7.78
%
14.42
%
7.29
%
13.23
%
Net sales
$
4,626,230
$
4,757,365
$
9,158,863
$
9,220,374
11
Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Three Months Ended
Three Months Ended
June 28, 2026
June 29, 2025
U.S.
Europe
Mexico
Total
U.S.
Europe
Mexico
Total
(In thousands)
(In thousands)
Net income (loss)
$
(44,045)
$
46,969
$
10,296
$
13,220
$
239,262
$
54,880
$
61,867
$
356,009
Add:
Interest expense, net(a)
47,963
(1,510)
(343)
46,110
35,651
(174)
(4,026)
31,451
Income tax expense (benefit)
(13,610)
15,244
6,938
8,572
78,204
16,001
25,368
119,573
Depreciation and amortization
79,972
36,598
6,736
123,306
71,149
36,929
5,426
113,504
EBITDA
70,280
97,301
23,627
191,208
424,266
107,636
88,635
620,537
Add:
Foreign currency transaction losses (gains)(b)
(1)
(169)
(1,168)
(1,338)
4
685
4,203
4,892
Litigation settlements(c)
135,711
—
—
135,711
58,464
—
—
58,464
Restructuring activities losses(d)
—
8,699
—
8,699
—
3,499
—
3,499
Asset impairment(e)
25,558
—
—
25,558
—
—
—
—
Minus:
Net income (loss) attributable to noncontrolling interest
—
—
(157)
(157)
—
—
489
489
Adjusted EBITDA
$
231,548
$
105,831
$
22,616
$
359,995
$
482,734
$
111,820
$
92,349
$
686,903
(a)Interest expense, net, consists of interest expense less interest income.
(b)Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance.
(e)Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
12
Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Six Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
U.S.
Europe
Mexico
Total
U.S.
Europe
Mexico
Total
(In thousands)
(In thousands)
Net income (loss)
$
(2,211)
$
100,254
$
16,627
$
114,670
$
461,558
$
97,030
$
93,764
$
652,352
Add:
Interest expense, net(a)
81,826
(3,619)
(1,120)
77,087
61,218
(2,078)
(10,904)
48,236
Income tax expense (benefit)
(1,495)
30,573
9,864
38,942
149,216
25,923
38,533
213,672
Depreciation and amortization
154,477
74,120
13,190
241,787
137,535
70,066
10,421
218,022
EBITDA
232,597
201,328
38,561
472,486
809,527
190,941
131,814
1,132,282
Add:
Foreign currency transaction losses (gains)(b)
(1)
(1,139)
724
(416)
3
313
2,523
2,839
Litigation settlements(c)
158,905
—
—
158,905
65,714
—
—
65,714
Restructuring activities losses(d)
—
11,464
—
11,464
—
20,111
—
20,111
Asset impairment(d)
25,558
—
—
25,558
—
—
—
—
Minus:
Net income (loss) attributable to noncontrolling interest
—
—
(130)
(130)
—
—
799
799
Adjusted EBITDA
$
417,059
$
211,653
$
39,415
$
668,127
$
875,244
$
211,365
$
133,538
$
1,220,147
(a)Interest expense, net, consists of interest expense less interest income.
(b)Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are related to costs incurred, such as severance.
(e)Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
13
Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands)
GAAP operating income (loss), U.S. operations
$
(11,112)
$
354,987
$
75,797
$
673,793
Litigation settlements
135,711
58,464
158,905
65,714
Asset impairment
25,558
—
25,558
—
Adjusted operating income, U.S. operations
$
150,157
$
413,451
$
260,260
$
739,507
Adjusted operating income margin, U.S. operations
5.7
%
14.7
%
4.9
%
13.3
%
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands)
GAAP operating income, Europe operations
$
60,551
$
70,419
$
125,306
$
119,490
Restructuring activities losses
8,699
3,499
11,464
20,111
Adjusted operating income, Europe operations
$
69,250
$
73,918
$
136,770
$
139,601
Adjusted operating income margin, Europe operations
5.0
%
5.4
%
5.0
%
5.4
%
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands)
GAAP operating income, Mexico operations
$
16,511
$
86,933
$
27,403
$
123,538
No adjustments
—
—
—
—
Adjusted operating income, Mexico operations
$
16,511
$
86,933
$
27,403
$
123,538
Adjusted operating income margin, Mexico operations
2.8
%
15.4
%
2.4
%
11.7
%
14
Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In percent)
GAAP operating income (loss) margin, U.S. operations
(0.4)
%
12.6
%
1.4
%
12.1
%
Litigation settlements
5.1
%
2.1
%
3.0
%
1.2
%
Asset impairment
1.0
%
—
%
0.5
%
—
%
Adjusted operating income margin, U.S. operations
5.7
%
14.7
%
4.9
%
13.3
%
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In percent)
GAAP operating income margin, Europe operations
4.4
%
5.1
%
4.6
%
4.6
%
Restructuring activities losses
0.6
%
0.3
%
0.4
%
0.8
%
Adjusted operating income margin, Europe operations
5.0
%
5.4
%
5.0
%
5.4
%
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In percent)
GAAP operating income margin, Mexico operations
2.8
%
15.4
%
2.4
%
11.7
%
No adjustments
—
%
—
%
—
%
—
%
Adjusted operating income margin, Mexico operations
2.8
%
15.4
%
2.4
%
11.7
%
15
Adjusted net income attributable to Pilgrim's Pride Corporation ("Pilgrim's") is calculated by adding to net income attributable to Pilgrim's certain items of expense and deducting from net income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands, except per share data)
Net income attributable to Pilgrim's
$
13,377
$
355,520
$
114,800
$
651,553
Add:
Foreign currency transaction losses (gains)
(1,338)
4,892
(416)
2,839
Litigation settlements
135,711
58,464
158,905
65,714
Restructuring activities losses
8,699
3,499
11,464
20,111
Asset impairment
25,558
—
25,558
—
Loss on early extinguishment of debt recognized
as a component of interest expense(a)
17,569
—
17,569
—
Adjusted net income attributable to Pilgrim's before tax impact
199,576
422,375
327,880
740,217
Net tax impact of adjustments(b)
(45,706)
(16,178)
(52,305)
(21,456)
Adjusted net income attributable to Pilgrim's
$
153,870
$
406,197
$
275,575
$
718,761
Weighted average diluted shares of common stock outstanding
238,843
238,427
238,701
238,354
Adjusted net income attributable to Pilgrim's per common diluted share
$
0.64
$
1.70
$
1.15
$
3.02
(a) The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in the second quarter of 2026.
(b) Net tax impact of adjustments represents the tax impact of all adjustments shown above.
16
Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
Three Months Ended
Six Months Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
(In thousands, except per share data)
U.S. GAAP EPS
$
0.06
$
1.49
$
0.48
$
2.73
Add:
Foreign currency transaction losses (gains)
—
0.02
—
0.01
Litigation settlements
0.55
0.25
0.66
0.28
Restructuring activities losses
0.04
0.01
0.05
0.08
Asset impairment
0.11
—
0.11
—
Loss on early extinguishment of debt recognized
as a component of interest expense(a)
0.07
—
0.07
—
Adjusted EPS attributable to Pilgrim's before tax impact
0.83
1.77
1.37
3.10
Net tax impact of adjustments(b)
(0.19)
(0.07)
(0.22)
(0.08)
Adjusted EPS
$
0.64
$
1.70
$
1.15
$
3.02
Weighted average diluted shares of common stock outstanding
238,843
238,427
238,701
238,354
(a) The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in the second quarter of 2026.
(b) Net tax impact of adjustments represents the tax impact of all adjustments shown above.
