Smithfield Foods hits US$987M profit in 2025
Packaged Meats leads revenue growth as acquisitions and investments drive expansion
USA – Smithfield Foods Inc. posted its highest adjusted operating profit in fiscal year 2025, driven by a strong fourth quarter despite global economic pressures and changing consumer habits.
The company reported net income of US$987 million, or US$2.51 per share, slightly above US$953 million, or US$2.51 per share, from the previous year, while total revenue grew 9.8% from US$14.1 billion to US$15.5 billion.
Operating profit rose 15.6% to nearly US$1.3 billion, resulting in an operating margin of 8.3%, with quarterly results showing US$327 million profit, equal to US$0.83 per share, compared with US$204 million, or US$0.54 per share, in the same period last year.
Smithfield’s Packaged Meats segment generated US$8.8 billion in revenue, up 5.3% from US$8.3 billion, while operating profit decreased 6.4% to US$1.1 billion, marking the second-highest profit for the segment.
Raw material costs contributed to the decline, with bellies and trim rising 19% and ham increasing 9% year-over-year, yet the company maintained performance through product mix adjustments, expanded retail presence, and higher foodservice volumes.
Smithfield announced plans to acquire Nathan’s Famous Inc. for approximately US$450 million, securing full rights to the brand it has licensed since 2014 and allowing integration across retail and foodservice channels.
Packaged Meats President Steve France said owning the brand would eliminate integration risk and allow the company to expand marketing, innovation, and distribution efforts.
In its North America Pork division, Donovan Owens was appointed president, overseeing Fresh Pork, Hog Production, and Commodity Risk Management functions after previously leading the Fresh Pork segment.
Fresh Pork operating profit fell 19.7% to US$214 million, despite revenue growth of 6% to US$8.3 billion, while Hog Production revenue increased 13% to US$3.4 billion as the company reduced herd size from 14.6 million head in 2024 to 11.1 million in 2025.
Smithfield also announced plans to develop a new packaged meats and fresh pork processing facility in Sioux Falls, SD, with targeted capital expenditure of US$350 million to US$450 million in 2026 and a projected investment of up to US$1.3 billion over three years, pending permits.
The company emphasised that the investment would support long-term growth and modernise its processing operations, aiming to improve efficiency and expand production capacity across its packaged meats and pork businesses.
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