Smithfield Posts $145 Million in Adjusted Operating Profit in Third Quarter
Key Facts
Smithfield Foods reported fiscal third-quarter results on October 27, posting adjusted operating profit of $145 million, within the range of $115 million to $175 million it announced in September. Consolidated sales totaled $3.437 billion in the three months ended September 27, 2026, down 8.3% from $3.747 billion in the same period a year earlier. The combined result reflected divergent performance across the company’s businesses, with packaged meats supporting earnings while fresh pork posted an operating loss. Chief Executive Shane Smith said the result was within the announced range and was led by packaged meats. He added that weaker commodity markets pressured the company’s upstream businesses.
Operating profit was $127 million, compared with $310 million in fiscal third-quarter 2025, while adjusted operating profit was $145 million, versus $310 million a year earlier. Lower profitability was also reflected in diluted earnings per share, which were $0.23, compared with $0.63 in the same period. Adjusted diluted earnings per share were $0.26, down from $0.58 a year earlier. The comparison shows a year-over-year decline in profitability measures, although adjusted profit remained within the range the company had previously set. Smithfield reported the results after the fiscal period ended on September 27.
The packaged meats segment posted operating profit of $230 million in the third quarter, up from $226 million in the same period of 2025. By contrast, the fresh pork segment recorded an operating loss of $89 million, after posting operating profit of $10 million a year earlier. Hog production operating profit was $34 million, compared with $89 million in the prior-year third quarter. Smith said results were led by packaged meats, which he described as the company’s core business. The segment results highlight the widening gap between packaged meats performance and pressure in the company’s upstream pork businesses.
Smithfield had lowered its outlook for the fresh pork segment on September 8, estimating an adjusted operating loss of $70 million to $90 million in the third quarter. In the same update, it forecast adjusted operating profit of $25 million to $45 million for hog production and total adjusted operating profit of $115 million to $175 million for the company. The company attributed the fresh pork outlook reduction to a further decline in the U.S. Department of Agriculture’s pork cutout value and the resulting contraction in the near-term market spread. It also tied a more cautious outlook for hog production to lower prices. Actual results for the two segments came against that backdrop, with a fresh pork loss and lower hog production profit compared with the year-earlier period.
The company lowered its fiscal 2026 outlook and now expects sales to decline from 2025 by a low-single-digit percentage. It also set a range of $900 million to $1 billion for total adjusted operating profit. Smithfield said its outlook takes into account weakness in fresh pork and hog markets. It added that it expects commodity markets to continue pressuring its upstream businesses in the fourth quarter. The annual outlook update follows a quarter in which packaged meats posted operating profit of $230 million, compared with $226 million a year earlier, while results in the two upstream segments weakened.
Smithfield announced that it had completed its acquisition of Nathan’s Famous, saying the deal strengthens its portfolio of brands. The acquisition closed on October 26, 2026, one day before the third-quarter results announcement. The company’s fiscal 2026 outlook includes about two months of Nathan’s results after the deal closed. On September 27, Smithfield had $3.481 billion in available liquidity, including $1.178 billion in cash and cash equivalents and $2.303 billion available under credit facilities. The disclosure presents these figures alongside the quarterly results update and annual outlook.
Smithfield shares, listed under the ticker SFD, closed at $18.31 on October 26, the latest close before the results announcement in the available data. The results conference was scheduled for October 27 at 9:00 a.m. Eastern time. The company said a replay of the conference would be available through November 3. Discussing the results, Smith said adjusted operating profit was within the range the company gave in September, led by packaged meats. He also said commodity market pressure on upstream businesses is expected to continue in the fourth quarter.