Pilgrim Stock Earnings Reports

Pilgrim's Pride reported Q1 2026 net revenues of $4.53 billion and adjusted EBITDA of $308.1 million (6.8% margin), down from $533.2 million (12.0%) a year ago. The margin decline was driven primarily by weaker commodity values (notably a much lower jumbo cutout and lower small-bird deli prices), planned downtime and ramp costs from plant conversions and deboning/portioning investments, bird health issues in parts of the U.S., and weather-related interruptions in February. Prepared Foods was a clear growth bright spot—Just BARE retail sales rose nearly 40%—and Russellville was converted to case-ready to support key customer growth. Europe produced steady sales and margins (benefiting from poultry and meals and restructuring gains); Mexico delivered double-digit branded growth but saw margin compression from excess live supply and imports. Supply dynamics: USDA reported a 3.4% year-over-year ready-to-cook production increase in Q1 (most growth concentrated in March); USDA expects ~2% production growth for 2026 overall. Feed costs were generally manageable with corn roughly at 2025 levels and soy/meal supported by Chinese buying but global supplies limiting upside. CapEx was $235 million in Q1 (driven by conversion and prepared foods investments); full-year CapEx guidance remains $900–$950 million. Financial position is strong: liquidity of ~$1.75 billion, net debt $2.55 billion and leverage ~1.25x LTM adjusted EBITDA (well below the 2–3x target). The company also reported surpassing its 2025 Scope 1 and 2 emissions intensity reduction targets tied to sustainability-linked bonds. Management emphasized continuing investments to shift mix toward higher-margin, less volatile prepared and case-ready products while maintaining disciplined capital allocation and operational excellence.