US meat processor Smithfield Foods has signalled a moderation in sales growth for the year ahead, while pointing to continued strength in profitability.
The packaged meats and fresh pork producer reported its first full-year results since listing on the Nasdaq, with net sales rising 9.8% to $15.5bn for the 12 months to 28 December.
Following what president and CEO Shane Smith described as a year shaped by “significant market headwinds”, the company is forecasting low single-digit revenue growth for the 2026 financial year.
This outlook includes an additional reporting week but excludes the recently acquired Nathan’s Famous hot dog business, a deal valued at $450m.
Despite the more cautious top-line guidance, Smithfield expects adjusted operating profit to reach between $1.33bn and $1.48bn. The metric increased 30.5% last year to $1.34bn.
The group’s core packaged meats division — its largest revenue contributor — is projected to deliver adjusted operating profit of $1.1bn to $1.2bn, up from $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.”
As part of its long-term investment strategy, Smithfield announced in February a $1.3bn, three-year commitment to build a new processing facility in Sioux Falls, South Dakota. However, the company also confirmed plans to close its dry sausage plant in Springfield, Massachusetts, in August.
Segment performance and outlook
In 2025, the packaged meats division increased sales by 5.3% to $8.71bn, maintaining its position as the group’s primary growth driver.
The fresh pork segment recorded revenue of $8.34bn, up 6%, while hog production saw the strongest growth, with sales rising 13% to $3.39bn — despite ongoing facility closures in that part of the business.
Looking ahead, adjusted operating profit for fresh pork is expected to range between $200m and $260m, compared with $209m last year.
Hog production is forecast to generate between $150m and $200m in adjusted operating profit, building on a recovery in 2025 when the segment returned to profit at $176m, compared with a $152m loss the previous year.
Financial performance
Net income from continuing operations rose 25% to $998m, while diluted earnings per share increased nearly 22% to $2.51.
Reflecting on the results, Smith said: “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.
“Our strong performance was broad-based, with solid execution by each segment.”