Smithfield Foods, Inc. (NASDAQ: SFD) has reported strong financial results for its fiscal 2025 second quarter ended June 29, 2025. The company's net sales increased by 11.0% to $3.8 billion from the second quarter of 2024. The operating profit stood at $260 million, with an adjusted operating profit of $298 million. The operating margin was reported at 6.9%, while the adjusted operating margin was 7.9%.
In the first six months of fiscal 2025, Smithfield Foods recorded net sales of $7.6 billion, representing a 10.2% increase from the first half of 2024. The operating profit for this period was $582 million, with an adjusted operating profit of $624 million. The operating margin was 7.7%, while the adjusted operating margin was 8.3%.
The company reported diluted earnings per share from continuing operations attributable to Smithfield of $0.48 per share for the second quarter of 2025. The adjusted diluted earnings per share from continuing operations attributable to Smithfield increased to $0.55 per share, up from $0.51 per share in the second quarter of 2024. For the first six months of fiscal 2025, diluted earnings per share from continuing operations attributable to Smithfield were reported at $1.05 per share, while the adjusted diluted earnings per share from continuing operations attributable to Smithfield increased to $1.13 per share, up from $0.83 per share in the first half of 2024.
A review of the financial results shows an increase in total segment sales by 6.2% for the three months ended June 29, 2025, and by 6.6% for the six months ended June 29, 2025, compared to the same periods in 2024. The packaged meats segment's operating profit for the three months ended June 29, 2025, was $301 million, with an operating profit margin of 14.5%, and an adjusted operating profit of $296 million, with an adjusted operating profit margin of 14.2%. For the first six months of fiscal 2025, the packaged meats segment recorded an operating profit of $567 million, with an operating profit margin of 13.8%, and an adjusted operating profit of $562 million, with an adjusted operating profit margin of 13.7%.
Furthermore, the fresh pork segment's operating profit for the three months ended June 29, 2025, was $35 million, while the hog production segment reported an operating profit of $22 million. For the first six months of fiscal 2025, the fresh pork segment's operating profit was $117 million, and the hog production segment's operating profit was $23 million.
As of June 29, 2025, Smithfield Foods had $3,225 million of available liquidity, comprising $928 million in cash and cash equivalents and $2,297 million of availability under its committed credit facilities. The company ended the second quarter with a ratio of net debt to adjusted EBITDA from continuing operations on a trailing twelve months basis of 0.7x.
Looking ahead, for fiscal year 2025, the company has adjusted its outlook, with increased expectations for total company sales, packaged meats segment adjusted operating profit, fresh pork segment adjusted operating profit, and hog production segment adjusted operating profit. The company also reaffirmed its capital expenditures and effective tax rate for the fiscal year 2025.
Smithfield Foods' strong financial position and improved outlook for the hog production segment have allowed the company to raise its full-year adjusted operating profit outlook, enabling it to invest in growth strategies and generate value for shareholders over the long term. The market has reacted to these announcements by moving the company's shares -3.04% to a price of $24.405. For the full picture, make sure to review SMITHFIELD FOODS INC's 8-K report.
