Βι¶ΉΣ³» (NYSE: HRL), a Fortune 500 global branded food company, today reported fourth quarter and full-year fiscal 2025 results. All comparisons are to the same period of fiscal 2024 unless otherwise noted.
EXECUTIVE SUMMARY – FISCAL 2025
- Net sales of $12.1 billion; organic net sales1 up 2%
- Operating income of $719 million; adjusted operating income1 of $1,019 million
- Operating margin of 5.9%; adjusted operating margin1 of 8.4%
- Earnings before income taxes of $663 million; adjusted earnings before income taxes1 of $976 million
- Effective tax rate of 28.0%
- Diluted earnings per share of $0.87; adjusted diluted earnings per share1 of $1.37
- Cash flow from operations of $845 million
EXECUTIVE SUMMARY – FOURTH QUARTER
- Net sales of $3.2 billion; organic net sales1 up 2%
- Operating income of $2 million; adjusted operating income1 of $245 million
- Operating margin of 0.1%; adjusted operating margin1 of 7.7%
- Non-cash impairment charges of $234 million, primarily related to a minority investment in the International segment and certain intangible assets in the Retail segment
- Loss before income taxes of $22 million; adjusted earnings before income taxes1 of $234 million
- Diluted loss per share of $0.10; adjusted diluted earnings per share1 of $0.32
- Cash flow from operations of $323 million
EXECUTIVE COMMENTARY – FISCAL 2025 RESULTS AND FISCAL 2026 OUTLOOK
“We finished fiscal 2025 with another quarter of solid top-line growth, driven by the continued relevance of our brands and the strength of our value-added portfolio,” said Jeff Ettinger, interim chief executive officer. “Despite this momentum, profitability remained challenged due to persistent input cost inflation and discrete items. We have taken decisive actions to improve profitability, including targeted pricing initiatives, reductions in administrative expenses, and continued investment in our Transform and Modernize (T&M) initiative. These efforts are laying a solid foundation for improved earnings performance in fiscal 2026.”
“Βι¶ΉΣ³» is entering fiscal 2026 with a clear strategic compass and a commitment to reshape our earnings trajectory,” said John Ghingo, president. “Our focus is on meeting the evolving needs of consumers through convenient, protein-centric offerings, brand leadership, and operational excellence. Through these efforts, we are committed to driving margin expansion and delivering sustainable, profitable growth. Our next chapter is about elevation — and we’re ready to write it.”
In fiscal 2026, the Company expects:
- Net sales in the range of $12.2 billion to $12.5 billion; organic net sales1 growth of 1% to 4%
- Operating income in the range of $0.96 billion to $1.03 billion
- Adjusted operating income1 in the range of $1.06 billion to $1.12 billion, growth of 4% to 10%
- Diluted earnings per share in the range of $1.29 to $1.39
- Adjusted diluted earnings per share1 in the range of $1.43 to $1.51, growth of 4% to 10%
| Fiscal 2026 Outlook | |
| Net Sales | $12.2 - $12.5 billion |
| Adj. Operating Income1 | $1.06 - $1.12 billion |
| Adj. Diluted EPS1 | $1.43 - $1.51 |
The Company’s fiscal 2026 outlook assumes:
- Net sales growth across each reporting segment, despite a pressured consumer environment
- A modest improvement in most commodity markets during the second half of the year, compared to fiscal 2025, though still above historical levels
- Strong brand investments, with advertising support above recent levels
- Benefits from growth and efficiency programs, including the T&M initiative and a recently announced program to reduce administrative expenses
- Continued earnings pressure in the first quarter and earnings growth expected for the remainder of the year
- An effective tax rate in the range of 21.5% to 22.5%
- Capital expenditures in the range of $260 million to $290 million
- Depreciation and amortization expense of approximately $280 million
DIVIDEND GROWTH
“Demonstrating our long-standing commitment to shareholder returns, we recently announced a 1% increase in our quarterly dividend, raising the annualized rate to $1.17 per share,” said Ettinger. “This marks an impressive milestone — 60 years of uninterrupted dividend increases at Βι¶ΉΣ³» — a legacy we’re extremely proud of.”
ADDITIONAL FINANCIAL DETAILS – FISCAL 2025
Income Statement
- Operating margin and adjusted operating margin1 were 5.9% and 8.4%, respectively, compared to 9.0% and 9.6%, respectively, in the prior year.
- Selling, general and administrative expenses as a percent of net sales and adjusted selling, general and administrative expenses as a percent of net sales1 were 8.2% and 7.8%, respectively, compared to 8.4% and 7.8%, respectively, in the prior year.
- Advertising investments were $148 million, compared to $163 million in the prior year.
- The effective tax rate was 28.0%, compared to 22.3% in the prior year.
Cash Flow Statement
- Cash flow from operations was $845 million.
- Dividends paid to shareholders were a record $633 million.
- Capital expenditures were $311 million, compared to $256 million last year. During the year, the Company invested in capacity expansions for HORMEL® FIRE BRAISED™ and APPLEGATE® products, data and technology, people and animal safety, and the Jiaxing, China, facility.
- Depreciation and amortization expense was $264 million.
Balance Sheet
- The Company remained in a strong financial position at fiscal year-end, with ample liquidity and a conservative level of debt.
- Cash on hand was $671 million at fiscal year-end, a decrease of $71 million from the beginning of the fiscal year.
- Inventories at fiscal year-end were $1.7 billion, an increase of $171 million from the beginning of the fiscal year.
- Total long-term debt, including current maturities, was $2.9 billion at fiscal year-end.
SEGMENT HIGHLIGHTS – FOURTH QUARTER
Retail
- Volume flat
- Net sales up 1%
- Segment profit down 70%; adjusted segment profit1 down 23%
Volume results and net sales growth in the Retail segment in the fourth quarter of fiscal 2025 were driven by the turkey portfolio, PLANTERS® snack nuts and APPLEGATE® products. These gains were partially offset by the strategic decision to discontinue certain offerings of private label snack nuts. Retail segment profit declined in the fourth quarter of fiscal 2025, primarily due to non-cash impairment charges. Adjusted segment profit1 declined, as net sales growth was more than offset by input cost pressures, mainly due to elevated commodity markets.
Foodservice
- Volume down 5%, organic volume1 flat
- Net sales up 4%, organic net sales1 up 6%
- Segment profit down 13%
Organic net sales1 growth continued to be broad-based in the Foodservice segment in the fourth quarter of fiscal 2025, with significant contributions from the customized solutions business, branded bacon offerings, branded pepperoni, premium prepared proteins and the JENNIE-O® turkey portfolio, while organic volume1 was flat. Segment profit declined for the fourth quarter of fiscal 2025, as strong net sales growth was more than offset by impacts from a chicken-product recall and the rise in input costs, mainly due to elevated commodity markets. The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization and a diverse channel presence during the fourth quarter.
International
- Volume down 8%
- Net sales down 6%
- Segment profit down 612%; adjusted segment profit1 down 7%
For the International segment, volume and net sales growth for SPAM® luncheon meat and the refrigerated portfolio was more than offset by declines in fresh pork exports and competitive pressures in Brazil in the fourth quarter of fiscal 2025. The China market continued to contribute volume and net sales growth in the fourth quarter. Segment profit for the fourth quarter was significantly impacted by the non-cash impairment of a minority investment in Indonesia. Adjusted segment profit1 declined in the fourth quarter of fiscal 2025, primarily due to commodity input cost pressures and softness in Brazil.
PRESENTATION
A conference call will be webcast at 8 a.m. CT on Dec. 4, 2025. Access is available at . The call will also be available via telephone by dialing 800-549-8228 (toll-free) and providing the access code 86853. An audio replay is available at investor.hormelfoods.com. The webcast replay will be available at noon CT, Dec. 4, 2025, and will remain on the website for one year.
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END NOTES
1 Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.