US meat packer Smithfield Foods is predicting a slowdown in sales growth but with potential upside in operating profit for its new fiscal year.
The packaged meats and fresh pork supplier announced its first full-year results today (24 March) since going public on the Nasdaq exchange, with net sales up 9.8% at $15.5bn in the period to 28 December.
After a year that president and CEO Shane Smith said was marked by “significant market headwinds”, Smithfield Foods is guiding to low-single-digit sales growth for the 2026 financial year.
That is despite an extra week of reporting. However, the 53-week outlook does not include the Nathan’s Famous hot-dog business it has acquired this year, a transaction valued at $450m.
Smithfield Foods, a subsidiary of China’s WH Group, expects adjusted operating profit to deliver a range of $1.33bn to $1.48bn. The metric rose 30.5% last year to $1.34bn.
Its largest sales revenue generator, packaged meats, is forecast to post an adjusted operating profit of $1.1bn to $1.2bn, superior to the $1.09bn in 2025.
“Looking ahead to 2026, our objective is to again grow sales and profitability and we see a long runway ahead for future growth led by our flagship packaged meats segment and iconic brand portfolio,” Smith said.
“Our culture of continuous improvement enables us to drive efficiencies and continuously unlock value across our business. We are investing capital in a disciplined manner to support our growth strategies, generate attractive returns and build sustainable long-term value for our shareholders.”
Smithfield Foods announced a $1.3bn three-year investment in a new processing facility in Sioux Falls, South Dakota, in February. However, the same month the company said its dry sausage plant in Springfield, Massachusetts, would close in August.
Last year, packaged meats boosted sales by 5.3% to $8.71bn. Smithfield Foods’ fresh pork segment posted sales of $8.34bn, up 6%.
Hog production, where the company has been closing facilities of late, saw sales rise 13% to $3.39bn.
The adjusted operating profit outlook for pork has been set at $200-260m, compared to last year’s $209m, a decrease of 7.6%.
Hog production is expected to deliver $150-$200m in adjusted operating profit. The sector saw a turnaround last year, with the metric rebounding to a $176m profit versus a $152m loss in the corresponding period.
Meanwhile, net income from continuing operations rose 25% to $998m. Diluted EPS from continuing operations climbed almost 22% to $2.51.
“Given significant market headwinds, our record results are a true testament to the power of our diversified product portfolio, our vertically integrated model and our relentless focus on operational excellence,” Smith said.
“Our strong performance was broad-based, with solid execution by each segment.”
