Pilgrim's Pride Reports Weaker Q2 Earnings Amid Supply Pressures
Pilgrim's Pride Corporation (NASDAQ: PPC) reported weaker second-quarter results in fiscal 2026, with net revenue declining to $4.63 billion from $4.76 billion a year earlier and adjusted EBITDA falling sharply to $360 million compared to $686.9 million previously. The drop was attributed to higher U.S. chicken supply outpacing demand growth and lower commodity pricing, which compressed margins. Despite the challenging environment, retail and foodservice channels showed resilience with increased volumes in prepared foods—up nearly 14% year-over-year—and strong performance from its Just Bare brand, now holding almost a 15% share of frozen fully cooked chicken. The company also managed to reduce debt through a $250 million bond tender offer while maintaining capital spending plans. Mexico operations were particularly affected by excess protein supply and legal settlement expenses totaling $136 million. CEO Fabio Sandri noted that U.S. production growth is expected to moderate in the second half due to fading improvements in bird livability, though demand trends remain favorable.
Topics: chicken supply commodity pricing EBITDA decline Pilgrim's Pride Q2 earnings