Second Quarter 2026
Filed Jul 29, 2026Pilgrim’s Pride Reports Second Quarter 2026 Results
Net sales, GAAP operating income, GAAP EPS and Adjusted EBITDA declined materially from the prior year, while management reported firm chicken demand, volume growth in several businesses and sequential margin improvement in U.S. Fresh.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended June 28, 2026GAAP | $4,626.2 million | – | (2.8) % |
| Net sales, six months ended June 28, 2026GAAP | $9,158.9 million | – | (0.7) % |
| Consolidated GAAP Operating Income margin, second quarter 2026GAAP | 1.4% | – | – |
| Operating income, three months ended June 28, 2026GAAP | $66.0 million | – | (87.1) % |
| Operating income, six months ended June 28, 2026GAAP | $228.5 million | – | (75.1) % |
| GAAP Net Income, second quarter 2026GAAP | $13.2 million | – | – |
| U.S. GAAP EPS, three months ended June 28, 2026GAAP | $0.06 | – | (96.0) % |
| U.S. GAAP EPS, six months ended June 28, 2026GAAP | $0.48 | – | (82.4) % |
| Adjusted Net Income, second quarter 2026non-GAAP | $153.9 million | – | – |
| Adjusted EPS, second quarter 2026non-GAAP | $0.64 | – | – |
| Adjusted EBITDA, three months ended June 28, 2026non-GAAP | $360.0 million | – | (47.6) % |
| Adjusted EBITDA, six months ended June 28, 2026non-GAAP | $668.1 million | – | (45.2) % |
| Adjusted EBITDA margin, three months ended June 28, 2026non-GAAP | 7.8 % | – | (6.6) pts |
| Adjusted EBITDA margin, six months ended June 28, 2026non-GAAP | 7.3 % | – | (5.9) pts |
| U.S. Adjusted EBITDA margin, second quarter 2026non-GAAP | 8.7% | – | – |
| Europe Adjusted EBITDA margin, second quarter 2026non-GAAP | 7.6% | – | – |
| Mexico Adjusted EBITDA margin, second quarter 2026non-GAAP | 3.9% | – | – |
| Net leverage rationon-GAAP | 1.43x Adjusted EBITDA | – | – |
What drove it
- Chicken demand remained firm across retail and foodservice in all regions, supported by affordability.
- U.S. Fresh volumes rose as demand increased across retail and foodservice; Case Ready and Small Bird volumes grew through incremental distribution with Key Customers.
- U.S. Prepared Foods sales and margins rose from the prior year, with Just Bare retail sales increasing over 30% versus the prior year.
- Europe sales and volumes rose as poultry and meals offerings continued to gain marketplace momentum.
- Mexico volumes grew from the prior year in fresh and prepared products, supported by improved growing conditions and branded retail demand.
- Management cited productivity improvements, completed plant upgrades and gains in live operations as drivers of sequential U.S. margin improvement.
Concerns
- The jumbo commodity cutout market fell more than 25% from the prior year, contributing to lower profitability versus the prior year.
- Supply growth rose faster than demand, according to management.
- U.S. Fresh profitability declined from the prior year because of commodity market pricing reductions.
- UK pork margins remained pressured by excess imports from European countries, while Europe also faced Middle East conflict-related costs and lower foodservice traffic.
- Mexico live commodity margins were affected by increased domestic chicken production, greater egg availability and additional pork imports.
What to watch
- Completion and operating benefits from plant upgrades, productivity initiatives and live-operations improvements.
- The Ellijay, Ga., deboning investment supporting small-bird and boneless-category growth for Key Customers.
- Construction progress at the new prepared foods facility in Walker County, Ga.
- Ramp-up of live operations in the Southern Peninsula and the expanded prepared-foods line in Porvenir.
- The pace of chicken supply growth relative to demand and ongoing commodity-market pricing conditions.
- Margin progression in U.S. Fresh, the UK pork segment and Mexico live commodity markets.
Balance sheet and cash flow
- Net leverage ratio is currently 1.43x Adjusted EBITDA, below the target of 2x to 3x.
Analysis
Pilgrim’s reported a substantially weaker year-over-year earnings quarter despite resilient demand and volume trends. Net sales for the three months ended June 28, 2026 were $4,626.2 million, down (2.8) %, while GAAP operating income fell to $66.0 million from $512.3 million. GAAP Net Income was $13.2 million and U.S. GAAP EPS was $0.06, compared with $1.49 in the prior-year period. Adjusted EBITDA declined to $360.0 million from $686.9 million, and Adjusted EBITDA margin declined to 7.8 % from 14.4 %.
Commodity conditions were the central earnings pressure. Management stated that jumbo commodity cutout values fell more than 25% from the prior year and that supply growth rose faster than demand. U.S. Fresh profitability declined versus the prior year because of commodity market pricing reductions. Mexico margins were also compressed by increased domestic chicken production, greater egg availability and additional pork imports. In Europe, UK pork margins remained pressured by excess European imports, with additional costs tied to the Middle East conflict and lower foodservice traffic.
Volume and portfolio trends were more constructive than the consolidated earnings comparison. U.S. Fresh volumes rose across retail and foodservice, while Case Ready and Small Bird volumes grew through incremental Key Customer distribution. U.S. Prepared Foods delivered higher sales and margins versus the prior year, and Just Bare retail sales increased over 30% versus the prior year. Europe sales and volumes rose, and Mexico increased volumes in both fresh and prepared products. Management also reported sequential U.S. margin improvement from productivity, completed plant upgrades and gains in live operations.
Investment activity remains directed toward higher-value and customer-focused capacity. The company highlighted the Ellijay, Ga., deboning investment, portioning equipment in Big Bird, the Walker County, Ga., prepared-foods facility, the Porvenir prepared-foods line and Southern Peninsula live-operations expansion. No forward financial guidance was provided in the supplied filing text. Financial flexibility was characterized by a net leverage ratio of 1.43x Adjusted EBITDA, below the stated target of 2x to 3x.
The key operating issue is whether volume growth, branded and prepared-food expansion, and plant-related productivity can continue to offset weak live commodity pricing. Investors should focus on the durability of sequential U.S. Fresh margin improvement, the evolution of protein supply relative to chicken demand, pressure in UK pork and Mexico commodity markets, and the execution of the announced capacity investments.
Management, verbatim
Throughout the quarter, chicken demand remained firm in all regions as affordability continued to resonate with consumers across retail and foodservice. We continued our investments to drive sales growth and reduce volatility, mitigating downsides in the chicken commodity markets.
Fabio Sandri, Pilgrim’s President and CEO
While consumer interest in chicken continued to be healthy across all channels, supply growth rose faster than demand. Our relentless focus on closing operational gaps and further investments in plant upgrades to increase our internal supply capabilities and support Key Customer growth will further improve our ability to mitigate the impact of volatile commodity fundamentals, creating a more resilient earnings profile.
Fabio Sandri, Pilgrim’s President and CEO
Demand for chicken continues to be robust throughout Mexico despite a significant increase in overall protein supply. The growth of our branded offerings and prepared foods along with our investments will further mitigate challenges from live commodity markets, improving our margin profile while reducing risk.
Fabio Sandri, Pilgrim’s President and CEO
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Segment revenue was not reported for U.S., Europe or Mexico.
- Segment operating income and segment Adjusted EBITDA amounts were not reported.
- Gross profit and gross margin were not reported.
- Operating expenses were not reported.
- GAAP net income prior-year and prior-quarter comparisons were not reported.
- Adjusted net income and Adjusted EPS prior-year and prior-quarter comparisons were not reported.
- Prior-quarter values and explicit sequential percentage changes for consolidated financial metrics were not reported.
- Operating cash flow and free cash flow were not reported.
- Cash, total debt and liquidity amounts were not reported.
- Share repurchases and dividends were not reported.
- Tax rate was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.