Smithfield Foods, Inc. (NASDAQ:SFD) shares are trading higher on Tuesday after it reported better-than-expected fourth-quarter results.
Earnings Snapshot
The company reported adjusted EPS of 83 cents, beating the consensus of 68 cents.
Sales of $4.227 billion, up 7.0% year over year, outpaced the Street view of $4.138 billion.
Adjusted operating profit rose 27.8% Y/Y to $402 million. Adjusted operating margin expanded to 9.5%, compared with 8.0% in the year-ago period.
The company’s adjusted EBITDA from continuing operations totaled $502 million, compared with $402 million in the year-ago period.
Adjusted EBITDA margin from continuing operations expanded to 11.9% from 10.2% in the year-ago quarter.
As of Dec. 28, 2025, the company had $3.837 billion of available liquidity consisting of $1.539 billion in cash and equivalents.
On March 23, the firm announced a dividend of 31 cents per share to be paid to shareholders on April 21, 2026.
Nathan’s Famous Acquisition
In January, the company struck a deal to acquire Nathan's Famous, Inc. (NASDAQ:NATH) at roughly $450 million.
Smithfield is offering $102 per share and targeting a close in the first half of 2026, subject to shareholder and regulatory approvals.
Outlook
For FY26, the company sees sales growth in the low-single-digit range.
Also, it projects adjusted operating profit at $1.100 billion–$1.200 billion for the Packaged Meats segment, $200–$260 million for Fresh Pork and $150–$200 million for Hog Production.
This brings total adjusted operating profit to $1.325 billion–$1.475 billion.
Smithfield projects capital expenditures at $350–$450 million, covering both profit-improvement and maintenance projects.
President and CEO Shane Smith said, “Looking ahead to 2026, our objective is to again grow sales and profitability and we see a long runway ahead for future growth led by our flagship Packaged Meats segment and iconic brand portfolio.”
SFD Price Action: Smithfield Foods shares are up 4.13% at $24.45 at publication on Tuesday.
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