Pilgrim’s Pride Adjusted Earnings Reach $0.49 a Share Despite Net Income Decline
Key Facts
Pilgrim’s Pride reported adjusted earnings of $0.49 a share in the third quarter of 2026, topping the Zacks estimate of $0.48, while revenue came to $4.65 billion, 1.16% above the consensus estimate. The modest beat came alongside a sharp decline in earnings from a year earlier, amid pressure on the U.S. chicken sector. Net sales were $4,653.2 million, down 2.2% from $4,759.3 million in the third quarter of 2025. Net income attributable to the company also fell to $117.606 million from $342.813 million. Chief Executive Fabio Sandri said demand for chicken products remained strong, with consumers across regions continuing to prioritize affordability and convenience.
Weaker earnings also showed in results under U.S. accounting standards, with diluted earnings per share falling to $0.49 from $1.44 in the year-earlier period. Adjusted EBITDA fell to $316.3 million from $633.1 million a year earlier. The margin on that measure narrowed to 6.8% from 13.3%, showing that the Zacks beat did not offset the decline in annual operating performance. The company said U.S. chicken supplies increased 2.2% year over year during the quarter. It said supply growth outpaced overall demand growth, weighing on commodity chicken cutout values to levels below those of the prior-year period.
The pressure follows the company’s second-quarter results, when management said supply growth had outpaced demand and commodity chicken market values had fallen more than 25% year over year in that quarter. The company said then that margins had improved sequentially from the prior quarter, despite lower profitability than a year earlier. In the third quarter, excess U.S. supply continued to weigh on commodity product values, while demand for chicken remained supported by consumers’ focus on affordability and convenience, Sandri said. The U.S. prepared foods segment stood out as a source of strength, with volumes up more than 15% from a year earlier. Retail sales of the Just Bare brand also rose more than 25%, the company said.
Performance varied across the regions where the company operates. In Europe, sales and volumes remained stable, but margins came under pressure from difficult pork market fundamentals and continued increases in input costs. In Mexico, sales rose as fresh branded offerings at retail outlets expanded by more than 40% from a year earlier. The results highlight the differing sources of pressure and growth across the company’s businesses, from abundant chicken supply in the United States and pork and input costs in Europe to increased retail offerings in Mexico. On the balance sheet, the company said net leverage was 1.76 times adjusted EBITDA. That is below its target range of two to three times, according to its statement.
As it expands its prepared foods business, the company expects to complete its pending acquisition of Walkers Deli & Sausage in early 2027. In August, it said the target operates four production facilities at a single site in Leicester and employs about 1,150 people. Completion remains subject to approval by the U.K. Competition and Markets Authority and consultation with employees. Separately, Pilgrim’s Pride said construction of its new prepared foods facility in Walker County, Georgia, was on schedule. The facility is expected to begin operations in the second half of 2027.
The company also faces a separate process involving an unsolicited takeover offer from JBS for the shares it does not own. Pilgrim’s Pride said its board had formed a special committee of independent, disinterested directors to review and evaluate the offer. The company received the offer on August 18, 2026, and said any transaction would require the committee’s recommendation and approval by a majority of votes cast by shareholders unaffiliated with JBS. It also said there was no assurance that a definitive agreement would be reached or a transaction completed. In the market, EL7 data showed PPC shares closed at $26.38 on October 28, 2026.