Tyson Foods posts mixed Q1 results amid beef challenges
Prepared Foods and Chicken show gains while Beef struggles; layoffs continue at Nebraska plant
USA – Tyson Foods Inc. reported first-quarter revenues of US$14.31 billion for the period ending December 27, 2025, up 5.1% from US$13.62 billion in the same quarter last year.
Net income attributable to the company dropped sharply to US$85 million, or 24 cents per share, from US$359 million, or US$1.01 per share, a year earlier.
The company recorded GAAP operating income of US$302 million, down 48% from US$580 million in Q1 2025, while adjusted operating income fell 13% to US$572 million from US$659 million.
Donnie King, president and CEO, said the results reflect performance across Tyson’s portfolio, noting growth in Prepared Foods and Chicken segments, and expressed confidence in improving controllable aspects of the business in 2026.
The Chicken segment generated US$4.21 billion in sales, up from US$4.07 billion, while adjusted operating income declined 2.5% to US$459 million from US$471 million, with volumes falling 3.9% and average prices down 0.1%.
Tyson’s Beef business posted US$5.77 billion in sales, an 8.15% increase from US$5.34 billion last year, but suffered an adjusted operating loss of US$319 million, compared to a US$26 million loss in the prior year.
Sales in the Pork division slipped slightly to US$1.609 billion from US$1.617 billion, as volume rose 1.6% but average prices declined by the same margin, resulting in adjusted operating income of US$50 million, down from US$73 million.
The Prepared Foods unit reported US$2.67 billion in revenue, up from US$2.47 billion, while operating income increased to US$322 million from US$297 million.
International operations contributed US$582 million in sales, slightly below last year’s US$584 million, with volumes declining 0.8% and average prices rising 0.5%.
Tyson forecasted capital expenditures for fiscal 2026 between US$700 million and US$1 billion, covering both maintenance projects and profit improvement initiatives.
In related developments, Tyson announced a temporary continuation of limited beef processing at its Lexington, Nebraska plant even as layoffs proceed, retaining approximately 292 workers, around 9% of the 3,200-employee workforce.
The retained staff will remain on payroll for periods ranging from a few days to just over six months to support closure-related activities, with fewer than half expected to continue past January.
The facility is set to close following prolonged cattle shortages that have increased operational costs for beef processors nationwide, with processing remaining restricted during the transition phase.
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