Pilgrim’s Pride adjusted earnings fall 50% to $316.3 million in third quarter

Key Facts

Net income attributable to Pilgrim’s Pride fell to $117.606 million in the third quarter ended September 27, 2026, from $342.813 million a year earlier, while net income under U.S. accounting standards was $116.317 million. In its earnings statement, the company said diluted earnings per share under those standards declined 66.0% to $0.49, from $1.44 in the third quarter of 2025. Net sales fell 2.2% to $4.6532 billion from $4.7593 billion. Operating income contracted more sharply, falling 61.1% to $191.5 million from $492.6 million. Adjusted earnings before interest, taxes, depreciation and amortization fell 50.0% to $316.3 million from $633.1 million, while the margin narrowed to 6.8% from 13.3% a year earlier, a decline of 6.5 percentage points.

The company attributed pressure in the U.S. market to an imbalance between supply growth and demand. It said U.S. Department of Agriculture reports showed supplies rising 2.2% year over year in the third quarter, outpacing overall demand growth and weighing on commodity cutout values compared with the previous period. Chief Executive Fabio Sandri said consumers maintained their interest in chicken across retail and foodservice channels, even as the market saw a “significant increase in supply.” The company added that U.S. fresh chicken demand posted mid-single-digit volume growth compared with levels near record highs a year earlier. Volumes were flat from the previous quarter, supported by promotions and expanded distribution, the statement said. This meant sustained consumer interest did not prevent increased supply from weighing on cut prices and profitability during the period.

Performance varied across the company’s businesses and geographic regions. In U.S. prepared foods, volumes rose more than 15% from a year earlier, while retail sales for the Just Bare brand increased more than 25%, as it continued to lead growth in the fully cooked chicken category, the company said. In Mexico, business profitability improved from the previous quarter as live poultry market fundamentals strengthened. The company’s volumes with major retail partners there also rose more than 8% year over year. In Europe, the statement said volumes and sales across its poultry and meals portfolio increased from a year earlier, as value-conscious shoppers turned to the company’s products. Regional margins, however, contracted amid challenging pork market fundamentals and continued increases in input costs.

On financing, the company said its net leverage ratio to adjusted earnings before interest, taxes, depreciation and amortization was 1.76 times, below its target range of two to three times. In the market, the company’s shares closed at $27.75 on October 21, then $28.09 on October 22 and $28.13 on October 23. They fell to $27.33 on October 26, then $27.09 on October 27. Those session closes show an initial rise followed by declines over the final two days, without closing-price data identifying the reason for the move. The earnings statement did not provide a new outlook for the stock’s performance.

In the sector, the U.S. Department of Agriculture’s Economic Research Service, in an update issued October 19, raised its forecasts for broiler production and exports for 2026 and 2027 and lowered its price forecasts for 2027. The published summary did not include numerical values for these revisions. Pilgrim’s Pride said construction of its new prepared foods facility in Walker County, Georgia, was on track, with operations expected to begin in the second half of 2027. Separately, the company had announced on October 9 the formation of an independent special committee to evaluate an unsolicited offer from JBS, received on August 18, to acquire the shares it does not already own. The committee selected legal and financial advisers, and the filing said the board would not approve the transaction without a positive recommendation from the committee, and that completion was not guaranteed. The company scheduled its third-quarter earnings call for October 29, 2026, at 7 a.m. Mountain Time and 9 a.m. Eastern Time, and said it would not take questions during the call.