Smithfield Foods, Inc. (NASDAQ: SFD) reported its financial results for the fourth quarter and full fiscal year ended December 28, 2025, including annual sales of $15.5 billion and operating profit of $1.29 billion.
The company said full-year sales increased 9.8% compared with fiscal 2024, while operating profit rose 15.6%. Adjusted operating profit reached $1.34 billion, reflecting a 30.5% increase year over year.
The results mark the company’s first full fiscal year following its return to U.S. public markets, a period during which management said it focused on executing strategic priorities across its packaged meats, fresh pork, and hog production segments.
#Quarterly Performance and Segment Results
In the fourth quarter, Smithfield reported sales of $4.2 billion, up 7.0% from the same period in 2024. Operating profit for the quarter totaled $400 million, representing a 19.6% increase year over year, while adjusted operating profit rose 27.8% to $402 million.
The packaged meats segment remained the largest contributor to earnings, generating more than $300 million in quarterly operating profit. The segment has now recorded annual operating profit above $1 billion for four consecutive years, according to the company.
Other segments showed mixed performance. Fresh pork reported operating profit gains in the fourth quarter, while hog production returned to profitability following losses in the prior year, reflecting operational adjustments and cost changes.
#Dividend and 2026 Outlook
Smithfield said it paid $1.00 per share in dividends during fiscal 2025 and declared a quarterly dividend of $0.3125 per share payable in April 2026. The company indicated this would result in an annual dividend rate of $1.25 per share for fiscal 2026, subject to board approval and financial conditions.
For fiscal 2026, the company expects sales to increase by a low-single-digit percentage compared with 2025. It projected total adjusted operating profit between $1.33 billion and $1.48 billion and capital expenditures ranging from $350 million to $450 million.
Segment-level guidance includes projected adjusted operating profit of $1.1 billion to $1.2 billion for packaged meats, $200 million to $260 million for fresh pork, and $150 million to $200 million for hog production.
The outlook excludes the potential impact of a proposed acquisition of Nathan’s Famous and a planned processing facility investment in Sioux Falls, South Dakota.
#Operational Developments and Strategy Context
During fiscal 2025, Smithfield continued restructuring its hog production operations, reducing internal herd size from 14.6 million to 11.1 million head. The company said the changes contributed to improved cost structure and profitability in that segment.
The company also expanded distribution and product mix within its packaged meats business, which helped offset higher input costs and changing consumer demand conditions.
Additionally, Smithfield entered into an agreement to acquire Nathan’s Famous, a transaction that remains subject to regulatory approvals and closing conditions.
#Industry and Risk Considerations
Smithfield’s performance comes amid ongoing volatility in commodity markets, including fluctuations in feed and livestock costs that can affect margins. The company also cited risks related to supply chain dependencies, regulatory compliance, and global trade conditions in its forward-looking disclosures.
Like other food producers, Smithfield faces pressure to balance input costs with consumer pricing and demand trends. The company’s ability to execute operational changes and maintain profitability across segments remains a key factor in its outlook.
The company noted that its forward-looking statements, including financial projections and strategic initiatives, are subject to uncertainties and may differ from actual results depending on market and operational conditions.