Pilgrim’s Pride Q1 2026 profit falls as earnings drop to US$162.6M
Margins contract across key regions despite growth in prepared foods and Mexico volumes.
USA – Pilgrim’s Pride Corporation posted a significant decline in profitability for the first quarter of fiscal 2026, even as overall revenue recorded modest growth compared with the previous year.
Net sales for the three months ended March 29 totalled US$4.53 billion, up 1.6% from US$4.46 billion in the same quarter last year, supported by mixed performance across its operating regions.
Operating income dropped 59.8% to US$162.6 million, as the company absorbed higher costs associated with production changes and external disruptions.
Adjusted EBITDA fell 42.2% to US$308.1 million, with the margin narrowing to 6.8% from 12.0% a year earlier, reflecting weaker profitability across the business.
Chief executive Fabio Sandri said the lower earnings were mainly the result of planned downtime tied to facility upgrades, including the conversion of the Russellville, Alabama, plant into a case-ready operation, as well as operational efficiency projects involving larger birds, alongside weather disruptions and softer pricing conditions.
Prepared Foods and Regional Performance
In the U.S. prepared foods segment, performance improved as retail demand increased, with the Just Bare brand recording close to 40% year-over-year sales growth driven by broader distribution.
The company also maintained construction progress on a new value-added production facility in Walker County, Georgia, which remains on track as part of its expansion strategy.
In Europe, operations held steady with stable volumes and margins despite weaker consumer sentiment, supported by a diversified product portfolio.
In Mexico, branded fresh and prepared product volumes rose by more than 10% year over year, though margins were squeezed by higher market live poultry supply.
Separately, Pilgrim’s Pride confirmed that it exceeded its Scope 1 and Scope 2 emissions-intensity reduction targets linked to its 2025 sustainability-linked bond, thereby meeting its initial environmental performance milestone.
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