Smithfield Foods shares fall 2% as litigation charges weigh on earnings

Published 12/08/2025, 11:00
 Smithfield Foods shares fall 2% as litigation charges weigh on earnings

SMITHFIELD, Va. - Smithfield Foods, Inc. (NASDAQ:SFD) reported in-line second-quarter earnings on Tuesday, along with solid revenue growth and an improved full-year outlook.

The company’s shares fell 2.03% in pre-market trading following the release.

The packaged meats and fresh pork producer posted adjusted earnings per share of $0.55 for the fiscal second quarter ended June 29, 2025, matching analyst expectations. Revenue climbed 11% YoY to $3.79 billion, surpassing the consensus estimate of $3.62 billion. The company’s quarterly results included $73 million in litigation charges that impacted profitability.

Smithfield’s Packaged Meats segment, its largest business unit, generated operating profit of $301 million with a 14.5% operating margin. However, this represented a decline from the 17% margin reported in the same quarter last year.

"Our strong second quarter results demonstrate the agility and resilience of our business as we navigate a dynamic macroeconomic environment," said Smithfield President and CEO Shane Smith. "Through our iconic and diversified brand portfolio, our Packaged Meats segment is delivering on consumers’ needs for quality protein at a great value."

The company raised its full-year outlook, now projecting total adjusted operating profit between $1.15 billion and $1.35 billion. Smithfield also increased its Hog Production segment adjusted operating profit forecast to between $0 and $100 million, while reaffirming its Packaged Meats segment outlook of $1.05 billion to $1.15 billion.

Fresh Pork segment operating profit fell 39.3% to $35 million, while the Hog Production segment swung to a $22 million profit from a $2 million loss in the year-ago period.

Smithfield maintained its quarterly dividend of $0.25 per share, with the next payment scheduled for August 28, 2025, supporting an annual dividend rate of $1.00 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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