Pilgrim's Pride Reports Third Quarter 2025 Results with $4.8 Billion in Net Sales and Operating Income of $492.6 Million

GREELEY, Colo., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's leading food companies, reports its third quarter 2025 financial results. Third Quarter Highlights: Net Sales of $4.8 billion.Consolidated GAAP operating income margin of 10.4%.GAAP Net Income of $343.1 million and GAAP EPS of $1.44. Adjusted Net Income of $362.9 million and Adjusted EPS of $1.52.Adjusted EBITDA of $633.1 million, or a 13.3% margin.U.S. Fresh maintained a strong performance as a result of our diversified portfolio, focus on quality and service, and continued progress in operational excellence. Case Ready and Small Bird benefited from extensive Key Customer demand from retail and QSR, whereas investments in Big Bird unlocked additional efficiencies in production and live operations.U.S. Prepared Foods continues to expand across retail and foodservice as net sales have increased over 25% compared to the prior year. Just Bare® continues to lead growth in the retail frozen fully cooked category as market share has grown by nearly 300 basis points compared to last year and sales velocity remains much higher than category averages.Pilgrim’s continues its growth journey, as recently announced new investments over the next two years totaling over $500 million in the U.S. remain on track to support growth with Key Customers in Fresh and diversify the portfolio through branded offerings in Prepared Foods.In Europe, the company continues to drive innovation and differentiation in the marketplace with a recent 10-year supply agreement of a new product offering to support the growth of a Key Customer. Momentum for Fridge Raiders® and Rollover® also continues to accelerate as each grew faster than category averages.In Mexico, Key Customer demand in fresh continued to grow ahead of the market. Diversification through value added continued as Prepared Foods sales increased by 9% versus last year. Expansion projects to diversify geographical presence and grow prepared foods continue to progress on schedule.Pilgrim’s published its 2024 Sustainability Report that detailed its progress against environmental, social, and governance ambitions. Since 2019, Pilgrim’s has reduced its global Scope 1 & 2 emissions intensity by 23% and improved its Global Safety Index by 77%. Over the past year, Pilgrim’s has also provided 5.7 million training hours to improve team members’ professional skills and career opportunities.Continued strong liquidity position and balance sheet flexibility after investments in growth projects and payments of special dividends totaling $2 billion during the year. Net leverage is approximately 1.0 times of Adjusted EBITDA. (Unaudited) Three Months Ended Nine Months Ended September 28,2025 September 29,2024 Y/Y Change September 28,2025 September 29,2024 Y/Y Change (In millions, except per share and percentages)Net sales $4,759.3 $4,585.0 +3.8% $13,979.7 $13,506.2 +3.5%U.S. GAAP EPS $1.44 $1.47 (2.0)% $4.17 $3.58 +16.5%Operating income $492.6 $508.4 (3.1)% $1,409.4 $1,199.4 +17.5%Adjusted EBITDA(1) $633.1 $660.4 (4.1)% $1,853.2 $1,688.2 +9.8%Adjusted EBITDA margin(1) 13.3% 14.4% -1.1pts 13.3% 12.5% +0.8pts (1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release. “Throughout the quarter, chicken demand remained robust across retail and foodservice given its strong value proposition compared to other proteins," said Fabio Sandri, Pilgrim’s President and CEO. “We continue to strengthen our relationships with Key Customers across all regions and invest accordingly to drive sales growth, enhance margins, and reduce volatility.” Despite volatility in commodity market fundamentals in September, the U.S. business maintained strong results, comparable to last year. Case Ready sales to Key Customers continued to grow faster than category averages, whereas Small Bird benefited from extensive demand among QSRs. Big Bird improved production efficiencies and live operations to mitigate impacts of volatile markets. Diversification efforts through Prepared Foods continue to accelerate given incremental distribution across both retail and foodservice. “Our diversified portfolio across bird sizes, differentiation through higher attribute offerings, and growth in value-added products all moderated the impact of volatile commodity market fundamentals,” remarked Sandri. “Equally important, we strengthened our partnerships with Key Customers through innovation, quality, and service.” Investments in the U.S. to strengthen partnerships with Key Customers and to diversify our portfolio through branded growth in Prepared Foods continue as planned. “Our investments will not only strengthen our competitive advantage, but also further enable our ability to meet demand for higher attribute offerings in Fresh and support the growth of Just Bare® in Prepared Foods,” said Sandri. Europe reinforced Key Customer relationships through new business opportunities. Diversification through brands continues to evolve as Fridge Raiders® achieved new records for household penetration. Rollover® continues to thrive throughout the marketplace from increased distribution with new accounts. Foodservice has grown given incremental distribution from leading QSRs. “Our profitability journey in Europe has entered a new phase,” said Sandri. “As such, we are investing in Key Customer partnerships across our multi-protein platform, driving promotional activity, and developing new offerings to create additional consumer demand. When combined, these efforts can accelerate our efforts to scale our profitable growth.” In Mexico, branded offerings across both Fresh and Prepared Foods continue to grow, and Key Customer partnerships expanded throughout retail. Expansion efforts to build capacity remain on schedule. “Our expansion efforts in Mexico continue to proceed as planned, which will ultimately strengthen our partnerships with Key Customers and further diversify our portfolio through Prepared Foods,” said Sandri. Pilgrim’s recently published its 2024 Sustainability Report, which provided an update on progress against environmental, social, and governance matters. Pilgrim’s continues to make extensive progress in Scope 1 & 2 emissions reduction, safety performance, product integrity and team member development. “Sustainability is a critical component of our overall strategy and business approach,” Sandri concluded. “Through these continued efforts, we remain focused on becoming the most trusted and respected company in our industry while creating a better future for our team members.” Conference Call Information A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, October 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/10203750/100237e3924. 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 62,900 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 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 hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. PILGRIM’S PRIDE CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 28, 2025 December 29, 2024 (In thousands)Cash and cash equivalents $612,582 $2,040,834 Restricted cash and restricted cash equivalents 2,761 2,324 Investment in available-for-sale securities — 10,220 Trade accounts and other receivables, less allowance for credit losses 1,131,047 1,004,334 Accounts receivable from related parties 11,170 2,608 Inventories 1,968,863 1,783,488 Income taxes receivable 65,979 72,414 Assets held for sale 13,540 3,062 Prepaid expenses and other current assets 260,968 200,879 Total current assets 4,066,910 5,120,163 Deferred tax assets 29,507 29,483 Other long-lived assets 93,443 62,019 Operating lease assets, net 242,646 255,713 Intangible assets, net 834,864 806,234 Goodwill 1,327,744 1,239,073 Property, plant and equipment, net 3,357,287 3,137,891 Total assets $9,952,401 $10,650,576 Accounts payable $1,470,607 $1,411,519 Accounts payable to related parties 36,640 15,257 Revenue contract liabilities 55,977 48,898 Accrued expenses and other current liabilities 977,258 1,015,504 Income taxes payable 147,672 60,097 Current maturities of long-term debt 912 858 Total current liabilities 2,689,066 2,552,133 Noncurrent operating lease liabilities, less current maturities 193,435 195,944 Long-term debt, less current maturities 3,091,663 3,206,113 Deferred tax liabilities 407,773 422,952 Other long-term liabilities 14,787 20,038 Total liabilities 6,396,724 6,397,180 Common stock 2,627 2,623 Treasury stock (544,687) (544,687)Additional paid-in capital 2,013,830 1,994,259 Retained earnings 2,157,530 3,157,511 Accumulated other comprehensive loss (87,366) (370,300)Total Pilgrim’s Pride Corporation stockholders’ equity 3,541,934 4,239,406 Noncontrolling interest 13,743 13,990 Total stockholders’ equity 3,555,677 4,253,396 Total liabilities and stockholders’ equity $9,952,401 $10,650,576 PILGRIM’S PRIDE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands, except per share data)Net sales $4,759,342 $4,584,979 $13,979,716 $13,506,227 Cost of sales 4,099,958 3,901,009 12,050,164 11,746,722 Gross profit 659,384 683,970 1,929,552 1,759,505 Selling, general and administrative expense 164,997 144,780 498,233 478,017 Restructuring activities 1,779 30,836 21,890 82,070 Operating income 492,608 508,354 1,409,429 1,199,418 Interest expense, net of capitalized interest 38,157 41,597 122,370 114,041 Interest income (9,167) (22,099) (45,144) (48,308)Foreign currency transaction losses (gains) 5,169 (678) 8,008 (7,240)Miscellaneous, net (2,931) 7,935 (3,209) 5,153 Income before income taxes 461,380 481,599 1,327,404 1,135,772 Income tax expense 118,319 131,609 331,991 284,321 Net income 343,061 349,990 995,413 851,451 Less: Net income attributable to noncontrolling interests 248 130 1,047 867 Net income attributable to Pilgrim’s Pride Corporation $342,813 $349,860 $994,366 $850,584 Weighted average shares of Pilgrim’s Pride Corporation common stock outstanding: Basic 237,546 237,123 237,387 236,953 Effect of dilutive common stock equivalents 980 768 1,024 733 Diluted 238,526 237,891 238,411 237,686 Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding: Basic $1.44 $1.48 $4.19 $3.59 Diluted $1.44 $1.47 $4.17 $3.58 PILGRIM’S PRIDE CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Nine Months Ended September 28, 2025 September 29, 2024 (In thousands)Cash flows from operating activities: Net income $995,413 $851,451 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 334,448 321,768 Deferred income tax expense (benefit) (34,042) 45,220 Stock-based compensation 19,575 9,205 Loan cost amortization 3,718 3,798 Loss on property disposals 2,855 1,104 Accretion of discount related to Senior Notes 1,796 1,898 Asset impairment 844 26,633 Loss (gain) on early extinguishment of debt recognized as a component of interest expense 573 (11,211)Gain on equity-method investments — (6)Changes in operating assets and liabilities: Trade accounts and other receivables (84,675) 62,646 Inventories (138,932) 172,990 Prepaid expenses and other current assets (34,558) (65,555)Accounts payable, accrued expenses and other current liabilities (42,442) 79,672 Income taxes 95,827 151,902 Long-term pension and other postretirement obligations (245) 13,135 Other operating assets and liabilities (39,715) (23,858)Cash provided by operating activities 1,080,440 1,640,792 Cash flows from investing activities: Acquisitions of property, plant and equipment (441,146) (316,949)Proceeds from property disposals 4,143 9,724 Cash used in investing activities (437,003) (307,225)Cash flows from financing activities: Payments for dividend (1,994,347) — Payments on revolving line of credit, long-term borrowings and finance lease obligations (114,772) (151,671)Payment on early extinguishment of debt (2,120) (200)Purchase of noncontrolling interest (1,294) — Proceeds from contribution of capital under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation — 1,425 Payments of capitalized loan costs — (16)Cash used in financing activities (2,112,533) (150,462)Effect of exchange rate changes on cash and cash equivalents 41,281 (29,916)Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (1,427,815) 1,153,189 Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 2,043,158 731,223 Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $615,343 $1,884,412 PILGRIM’S PRIDE CORPORATIONNon-GAAP Financial Measures Reconciliation(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 gains, (2) costs related to litigation settlements, (3) restructuring activities losses, and (4) net income attributable to noncontrolling interests. 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 CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)Net income$343,061 $349,990 $995,413 $851,451 Add: Interest expense, net(a) 28,990 19,498 77,226 65,733 Income tax expense 118,319 131,609 331,991 284,321 Depreciation and amortization 116,426 110,470 334,448 321,768 EBITDA 606,796 611,567 1,739,078 1,523,273 Add: Foreign currency transaction losses (gains)(b) 5,169 (678) 8,008 (7,240)Litigation settlements(c) 19,582 — 85,296 72,190 Restructuring activities losses(d) 1,779 30,836 21,890 82,070 Loss on settlement of pension from plan termination(e) — 10,709 — 10,709 Inventory write-down as a result of hurricane(f) — 8,075 — 8,075 Minus: Net income attributable to noncontrolling interest 248 130 1,047 867 Adjusted EBITDA$633,078 $660,379 $1,853,225 $1,688,210 (a) Interest expense, net, consists of interest expense less interest income.(b) Prior to April 1, 2024, the Company measured the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasured assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasured nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. 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 amounts recognized for both negotiated litigation settlements and reasonable estimates for probable losses. (d) Restructuring activities losses are related to costs incurred, such as severance, lease terminations, asset impairment and other charges, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.(e) This represents a loss recognized on the settlement of pension plan obligations related to plan terminations of our two U.S. defined benefit plans.(f) This primarily represents broiler losses incurred as a result of Hurricane Helene in September 2024. The summary unaudited consolidated income statement data for the twelve months ended September 28, 2025 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the nine months ended September 29, 2024 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 29, 2024 and (2) the applicable unaudited consolidated income statement data for the nine months ended September 28, 2025. PILGRIM'S PRIDE CORPORATIONReconciliation of LTM Adjusted EBITDA(Unaudited) Three Months Ended LTM Ended December 29,2024 March 30,2025 June 29,2025 September 28,2025 September 28,2025 (In thousands)Net income $235,772 $296,343 $356,009 $343,061 $1,231,185Add: Interest expense, net 22,776 16,785 31,451 28,990 100,002Income tax expense 40,725 94,099 119,573 118,319 372,716Depreciation and amortization 111,854 104,518 113,504 116,426 446,302EBITDA 411,127 511,745 620,537 606,796 2,150,205Add: Foreign currency transaction losses (gains) (2,785) (2,053) 4,892 5,169 5,223Litigation settlements 95,038 7,250 58,464 19,582 180,334Restructuring activities losses 11,318 16,612 3,499 1,779 33,208Loss on settlement of pension from plan termination 10,940 — — — 10,940Minus: Net income (loss) attributable to noncontrolling interest (82) 310 489 248 965Adjusted EBITDA $525,720 $533,244 $686,903 $633,078 $2,378,945 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 it is 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 CORPORATIONReconciliation of EBITDA Margin(Unaudited) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)Net income $343,061 $349,990 $995,413 $851,451 7.21% 7.63% 7.12% 6.30%Add: Interest expense, net 28,990 19,498 77,226 65,733 0.61% 0.43% 0.55% 0.49%Income tax expense 118,319 131,609 331,991 284,321 2.49% 2.87% 2.37% 2.11%Depreciation and amortization 116,426 110,470 334,448 321,768 2.44% 2.40% 2.39% 2.38%EBITDA 606,796 611,567 1,739,078 1,523,273 12.75% 13.33% 12.43% 11.28%Add: Foreign currency transaction losses (gains) 5,169 (678) 8,008 (7,240) 0.10% (0.01)% 0.05% (0.05)%Litigation settlements 19,582 — 85,296 72,190 0.41% —% 0.61% 0.53%Restructuring activities losses 1,779 30,836 21,890 82,070 0.04% 0.67% 0.16% 0.61%Loss on settlement of pension from plan termination — 10,709 — 10,709 —% 0.23% —% 0.08%Inventory write-down as a result of hurricane — 8,075 — 8,075 —% 0.18% —% 0.06%Minus: Net income attributable to noncontrolling interest 248 130 1,047 867 0.01% —% 0.01% 0.01%Adjusted EBITDA $633,078 $660,379 $1,853,225 $1,688,210 13.29% 14.40% 13.24% 12.50% Net sales $4,759,342 $4,584,979 $13,979,716 $13,506,227 — — — — 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 CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Three Months Ended Three Months Ended September 28, 2025 September 29, 2024 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands)Net income$259,778 $52,792 $30,491 $343,061 $278,241 $36,209 $35,540 $349,990 Add: Interest expense, net(a) 32,853 (4) (3,859) 28,990 30,734 (4,195) (7,041) 19,498 Income tax expense 94,424 14,135 9,760 118,319 101,478 14,038 16,093 131,609 Depreciation and amortization 72,452 38,170 5,804 116,426 70,121 34,959 5,390 110,470 EBITDA 459,507 105,093 42,196 606,796 480,574 81,011 49,982 611,567 Add: Foreign currency transaction losses (gains)(b) (1) 3,457 1,713 5,169 (1) 202 (879) (678)Litigation settlements(c) 19,582 — — 19,582 — — — — Restructuring activities losses(d) — 1,779 — 1,779 — 30,836 — 30,836 Loss on settlement of pension from plan termination(e) — — — — 10,709 — — 10,709 Inventory write-down as a result of hurricane(f) — — — — 8,075 — — 8,075 Minus: Net income attributable to noncontrolling interest — — 248 248 — — 130 130 Adjusted EBITDA$479,088 $110,329 $43,661 $633,078 $499,357 $112,049 $48,973 $660,379 (a) Interest expense, net, consists of interest expense less interest income.(b) Prior to April 1, 2024, the Company measured the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasured assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasured nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. 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 amounts recognized for both negotiated litigation settlements and reasonable estimates for probable losses. (d) Restructuring activities losses are related to costs incurred, such as severance, lease terminations, asset impairment and other charges, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.(e) This represents a loss recognized on the settlement of pension plan obligations related to plan terminations of our two U.S. defined benefit plans.(f) This primarily represents broiler losses incurred as a result of Hurricane Helene in September 2024. PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited) Nine Months Ended Nine Months Ended September 28, 2025 September 29, 2024 U.S. Europe Mexico Total U.S. Europe Mexico Total (In thousands)Net income$721,336 $149,822 $124,255 $995,413 $579,948 $102,232 $169,271 $851,451 Add: Interest expense, net(a) 94,071 (2,082) (14,763) 77,226 100,266 (8,734) (25,799) 65,733 Income tax expense 243,640 40,058 48,293 331,991 215,655 9,383 59,283 284,321 Depreciation and amortization 209,987 108,236 16,225 334,448 200,006 104,852 16,910 321,768 EBITDA 1,269,034 296,034 174,010 1,739,078 1,095,875 207,733 219,665 1,523,273 Add: Foreign currency transaction losses (gains)(b) 2 3,770 4,236 8,008 — (53) (7,187) (7,240)Litigation settlements(c) 85,296 — — 85,296 72,190 — — 72,190 Restructuring activities losses(d) — 21,890 — 21,890 — 82,070 — 82,070 Loss on settlement of pension from plan termination(e) — — — — 10,709 — — 10,709 Inventory write-down as a result of hurricane(f) — — — — 8,075 — — 8,075 Minus: Net income attributable to noncontrolling interest — — 1,047 1,047 — — 867 867 Adjusted EBITDA$1,354,332 $321,694 $177,199 $1,853,225 $1,186,849 $289,750 $211,611 $1,688,210 (a) Interest expense, net, consists of interest expense less interest income.(b) Prior to April 1, 2024, the Company measured the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasured assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasured nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements were previously recognized in the line item Foreign currency transaction losses (gains) in the Condensed Consolidated Statements of Income. Effective April 1, 2024, the Company changed the functional currency of its Mexico reportable segment from U.S. dollar to Mexican peso, which means all translation gains/losses on outstanding balances are now recognized in accumulated other comprehensive income. 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 amounts recognized for both negotiated litigation settlements and reasonable estimates for probable losses. (d) Restructuring activities losses are related to costs incurred, such as severance, asset impairment, contract termination, and others, as part of multiple ongoing restructuring initiatives throughout our Europe reportable segment.(e) This represents a loss recognized on the settlement of pension plan obligations related to plan terminations of our two U.S. defined benefit plans.(f) This primarily represents broiler losses incurred as a result of Hurricane Helene in September 2024. 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 CORPORATIONReconciliation of Adjusted Operating Income(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)GAAP operating income, U.S. operations$384,123 $419,844 $1,057,916 $907,249 Litigation settlements 19,582 — 85,296 72,190 Adjusted operating income, U.S. operations$403,705 $427,919 $1,143,212 $987,514 Adjusted operating income margin, U.S. operations 14.2% 15.4% 13.6% 12.3% Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)GAAP operating income, Europe operations$69,484 $45,601 $188,974 $100,710 Restructuring activities losses 1,779 30,836 21,890 82,070 Adjusted operating income, Europe operations$71,263 $76,437 $210,864 $182,780 Adjusted operating income margin, Europe operations 5.1% 5.8% 5.3% 4.7% Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)GAAP operating income, Mexico operations$39,001 $42,909 $162,539 $191,459 No adjustments — — — — Adjusted operating income, Mexico operations$39,001 $42,909 $162,539 $191,459 Adjusted operating income margin, Mexico operations 7.4% 8.5% 10.3% 11.9% 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 CORPORATIONReconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In percent)GAAP operating income margin, U.S. operations13.5% 15.1% 12.6% 11.3%Litigation settlements0.7% —% 1.0% 0.9%Adjusted operating income margin, U.S. operations14.2% 15.4% 13.6% 12.3% Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In percent)GAAP operating income margin, Europe operations5.0% 3.5% 4.7% 2.6%Restructuring activities losses0.1% 2.3% 0.6% 2.1%Adjusted operating income margin, Europe operations5.1% 5.8% 5.3% 4.7% Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In percent)GAAP operating income margin, Mexico operations7.4% 8.5% 10.3% 11.9%No adjustments—% —% —% —%Adjusted operating income margin, Mexico operations7.4% 8.5% 10.3% 11.9% 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 (loss) 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 CORPORATIONReconciliation of Adjusted Net Income(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands, except per share data)Net income attributable to Pilgrim's$342,813 $349,860 $994,366 $850,584 Add: Foreign currency transaction losses (gains) 5,169 (678) 8,008 (7,240)Litigation settlements 19,582 — 85,296 72,190 Restructuring activities losses 1,779 30,836 21,890 82,070 Loss on settlement of pension from plan termination — 10,709 — 10,709 Inventory write-down as a result of hurricane — 8,075 — 8,075 Minus: Gain on early extinguishment of debt — (52) — 11,159 Adjusted net income attributable to Pilgrim's before tax impact of adjustments 369,343 398,854 1,109,560 1,005,229 Net tax impact of adjustments(a) (6,420) (11,857) (27,876) (37,423)Adjusted net income attributable to Pilgrim's$362,923 $386,997 $1,081,684 $967,806 Weighted average diluted shares of common stock outstanding 238,526 237,891 238,411 237,686 Adjusted net income attributable to Pilgrim's per common diluted share$1.52 $1.63 $4.54 $4.07 (a) Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above. 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 CORPORATIONReconciliation of GAAP EPS to Adjusted EPS(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands, except per share data)GAAP EPS$1.44 $1.47 $4.17 $3.58 Add: Foreign currency transaction losses (gains) 0.02 — 0.03 (0.03)Litigation settlements 0.08 — 0.36 0.30 Restructuring activities losses 0.01 0.13 0.09 0.35 Loss on settlement of pension from plan termination — 0.05 — 0.05 Inventory write-down as a result of hurricane — 0.03 — 0.03 Minus: Gain on early extinguishment of debt — — — 0.05 Adjusted EPS before tax impact of adjustments 1.55 1.68 4.65 4.23 Net tax impact of adjustments(a) (0.03) (0.05) (0.11) (0.16)Adjusted EPS$1.52 $1.63 $4.54 $4.07 Weighted average diluted shares of common stock outstanding 238,526 237,891 238,411 237,686 (a) Net tax impact of adjustments represents the tax impact of all adjustments shown above. PILGRIM'S PRIDE CORPORATIONSupplementary Selected Segment and Geographic Data(Unaudited) Three Months Ended Nine Months Ended September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 (In thousands)Sources of net sales by geographic region of origin: U.S. $2,836,613 $2,773,391 $8,400,187 $8,016,688Europe 1,392,495 1,308,127 3,995,294 3,877,571Mexico 530,234 503,461 1,584,235 1,611,968Total net sales $4,759,342 $4,584,979 $13,979,716 $13,506,227 Sources of cost of sales by geographic region of origin: U.S. $2,353,296 $2,280,425 $7,040,006 $6,834,091Europe 1,271,148 1,176,286 3,633,510 3,539,695Mexico 475,514 444,298 1,376,648 1,372,936Total cost of sales $4,099,958 $3,901,009 $12,050,164 $11,746,722 Sources of gross profit by geographic region of origin: U.S. $483,317 $492,966 $1,360,181 $1,182,597Europe 121,347 131,841 361,784 337,876Mexico 54,720 59,163 207,587 239,032Total gross profit $659,384 $683,970 $1,929,552 $1,759,505 Sources of operating income by geographic region of origin: U.S. $384,123 $419,844 $1,057,916 $907,249Europe 69,484 45,601 188,974 100,710Mexico 39,001 42,909 162,539 191,459Total operating income $492,608 $508,354 $1,409,429 $1,199,418

Pilgrim's Pride Reports Third Quarter 2025 Results with $4.8 Billion in Net Sales and Operating Income of $492.6 Million

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