Smithfield Foods Forecasts Third-Quarter Loss in Fresh-Pork Division
Smithfield Foods (SFD) has forecast an adjusted operating loss of $70–90 million for its fresh-pork division in the third quarter, citing continued compression in market spreads and lower hog prices. This marks a significant shift from a $10 million profit recorded during the same period last year. The company also revised downward expectations for its Hog Production segment to an adjusted operating profit of $25–45 million compared with $89 million previously. Smithfield expects group third-quarter adjusted operating income between $115 and 175 million, down from $310 million in the prior year. However, Packaged Meats remains on track to meet expectations, contributing an expected full-year fiscal 2026 adjusted operating profit of $1.08–1.15 billion. CEO Shane Smith emphasized that while external market conditions are affecting parts of the pork value chain, branded share gains and expanded distribution continue to support performance in Packaged Meats. The company has not revised its full-year fiscal 2026 guidance but plans to update it when third-quarter results are released.
Tickers: $SFD