HORMEL FOODS REPORTS FOURTH QUARTER AND FULL-YEAR FISCAL 2025 RESULTS USA - English USA - English
Top-Line Strength Continues; Company Sees Clear Path for Profitable Growth in Fiscal 2026
AUSTIN, Minn., Dec. 4, 2025 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported fourth quarter and full-year fiscal 2025 results. All comparisons are to the same period of fiscal 2024 unless otherwise noted.
EXECUTIVE SUMMARY – FISCAL 2025
EXECUTIVE SUMMARY – FOURTH QUARTER
EXECUTIVE COMMENTARY – FISCAL 2025 RESULTS AND FISCAL 2026 OUTLOOK
"We finished fiscal 2025 with another quarter of solid top-line growth, driven by the continued relevance of our brands and the strength of our value-added portfolio," said Jeff Ettinger, interim chief executive officer. "Despite this momentum, profitability remained challenged due to persistent input cost inflation and discrete items. We have taken decisive actions to improve profitability, including targeted pricing initiatives, reductions in administrative expenses, and continued investment in our Transform and Modernize (T&M) initiative. These efforts are laying a solid foundation for improved earnings performance in fiscal 2026."
"Hormel Foods is entering fiscal 2026 with a clear strategic compass and a commitment to reshape our earnings trajectory," said John Ghingo, president. "Our focus is on meeting the evolving needs of consumers through convenient, protein-centric offerings, brand leadership, and operational excellence. Through these efforts, we are committed to driving margin expansion and delivering sustainable, profitable growth. Our next chapter is about elevation — and we're ready to write it."
In fiscal 2026, the Company expects:
Fiscal 2026 Outlook
Net Sales
$12.2 - $12.5 billion
Adj. Operating Income 1
$1.06 - $1.12 billion
Adj. Diluted EPS 1
$1.43 - $1.51
The Company's fiscal 2026 outlook assumes:
DIVIDEND GROWTH
"Demonstrating our long-standing commitment to shareholder returns, we recently announced a 1% increase in our quarterly dividend, raising the annualized rate to $1.17 per share," said Ettinger. "This marks an impressive milestone — 60 years of uninterrupted dividend increases at Hormel Foods — a legacy we're extremely proud of."
ADDITIONAL FINANCIAL DETAILS – FISCAL 2025
Income Statement
Cash Flow Statement
Balance Sheet
SEGMENT HIGHLIGHTS – FOURTH QUARTER
Retail
Volume results and net sales growth in the Retail segment in the fourth quarter of fiscal 2025 were driven by the turkey portfolio, Planters ® snack nuts and Applegate ® products. These gains were partially offset by the strategic decision to discontinue certain offerings of private label snack nuts. Retail segment profit declined in the fourth quarter of fiscal 2025, primarily due to non-cash impairment charges. Adjusted segment profit 1 declined, as net sales growth was more than offset by input cost pressures, mainly due to elevated commodity markets.
Foodservice
Organic net sales 1 growth continued to be broad-based in the Foodservice segment in the fourth quarter of fiscal 2025, with significant contributions from the customized solutions business, branded bacon offerings, branded pepperoni, premium prepared proteins and the Jennie-O ® turkey portfolio, while organic volume 1 was flat. Segment profit declined for the fourth quarter of fiscal 2025, as strong net sales growth was more than offset by impacts from a chicken-product recall and the rise in input costs, mainly due to elevated commodity markets. The Foodservice segment continued to benefit from an extensive range of solutions-based products, its direct-selling organization and a diverse channel presence during the fourth quarter.
International
For the International segment, volume and net sales growth for SPAM ® luncheon meat and the refrigerated portfolio was more than offset by declines in fresh pork exports and competitive pressures in Brazil in the fourth quarter of fiscal 2025. The China market continued to contribute volume and net sales growth in the fourth quarter. Segment profit for the fourth quarter was significantly impacted by the non-cash impairment of a minority investment in Indonesia. Adjusted segment profit 1 declined in the fourth quarter of fiscal 2025, primarily due to commodity input cost pressures and softness in Brazil.
PRESENTATION
A conference call will be webcast at 8 a.m. CT on Dec. 4, 2025. Access is available at investor.hormelfoods.com. The call will also be available via telephone by dialing 800-549-8228 (toll-free) and providing the access code 86853. An audio replay is available at investor.hormelfoods.com. The webcast replay will be available at noon CT, Dec. 4, 2025, and will remain on the website for one year.
ABOUT HORMEL FOODS - Inspired People. Inspired Food.™
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters ®, Skippy ®, SPAM ®, Hormel ® Natural Choice ®, Applegate ®, Justin's ®, Wholly ®, Hormel ® Black Label ®, Columbus ®, Jennie-O ® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food. ™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which are based on the Company's current assumptions and expectations. These statements are typically accompanied by the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "target," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding the Company's fiscal 2026 outlook and future financial and operational performance.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors which could cause the Company's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and the Company's recent corporate restructuring plan; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyber-attacks, security breaches or other IT interruptions; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products; risks related to the Company's ability to respond to changing consumer preferences; damage to the Company's reputation or brand image; risks of litigation; risks associated with trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company's business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement except as otherwise required by law.
Note: Due to rounding, numbers presented throughout this news release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.
END NOTES
1
Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Fourth Quarter Ended
Fiscal Year Ended
In thousands, except per share amounts
October 26,
2025
October 27,
2024
October 26,
2025
October 27,
2024
Net Sales
$ 3,185,661
$ 3,138,091
$ 12,106,160
$ 11,920,797
Cost of Products Sold
2,740,820
2,616,861
10,214,344
9,898,659
Gross Profit
444,842
521,230
1,891,816
2,022,138
Selling, General, and Administrative
223,466
238,587
996,624
1,005,294
Equity in Earnings of Affiliates
(148,453)
11,838
(105,839)
51,088
Goodwill and Intangible Impairment
70,751
—
70,751
—
Operating Income
2,172
294,481
718,603
1,067,932
Interest Income
5,631
6,511
24,227
40,172
Interest Expense
19,599
19,430
78,038
80,894
Other Income (Expense), Net
(9,831)
(1,531)
(1,344)
8,224
Earnings (Loss) Before Income Taxes
(21,627)
280,030
663,449
1,035,434
Provision for Income Taxes
34,577
60,070
185,684
230,803
Effective Tax Rate
(159.9) %
21.5 %
28.0 %
22.3 %
Net Earnings (Loss)
(56,204)
219,960
477,764
804,631
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest
(67)
(236)
(433)
(407)
Net Earnings (Loss) Attributable to Hormel Foods Corporation
$ (56,137)
$ 220,196
$ 478,197
$ 805,038
Net Earnings (Loss) Per Share:
Basic
$ (0.10)
$ 0.40
$ 0.87
$ 1.47
Diluted
$ (0.10)
$ 0.40
$ 0.87
$ 1.47
Weighted-average Shares Outstanding:
Basic
550,511
548,942
550,164
548,129
Diluted
550,511
549,456
550,496
548,832
Dividends Declared Per Share
$ 0.2900
$ 0.2825
$ 1.1600
$ 1.1300
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
Unaudited
In thousands
October 26,
2025
October 27,
2024
Assets
Cash and Cash Equivalents
$ 670,679
$ 741,881
Short-term Marketable Securities
32,909
24,742
Accounts Receivable
784,812
817,908
Inventories
1,747,279
1,576,300
Taxes Receivable
96,791
50,380
Prepaid Expenses and Other Current Assets
73,187
35,265
Total Current Assets
3,405,656
3,246,476
Goodwill
4,924,087
4,923,487
Intangible Assets
1,647,297
1,732,705
Pension Assets
211,826
205,964
Investments in Affiliates
533,984
719,481
Other Assets
431,500
411,889
Property, Plant, and Equipment, Net
2,238,770
2,194,728
Total Assets
$ 13,393,119
$ 13,434,729
Liabilities and Shareholders' Investment
Accounts Payable
$ 731,578
$ 735,604
Accrued Expenses
55,772
66,380
Accrued Marketing Expenses
113,947
108,156
Employee-related Expenses
273,402
283,490
Interest and Dividends Payable
180,700
175,941
Taxes Payable
18,752
21,916
Current Maturities of Long-term Debt
6,646
7,813
Total Current Liabilities
1,380,796
1,399,299
Long-term Debt Less Current Maturities
2,850,778
2,850,944
Pension and Post-retirement Benefits
358,984
379,891
Deferred Income Taxes
661,349
589,366
Other Long-term Liabilities
225,397
211,219
Accumulated Other Comprehensive Loss
(243,646)
(263,331)
Other Shareholders' Investment
8,159,461
8,267,342
Total Liabilities and Shareholders' Investment
$ 13,393,119
$ 13,434,729
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
Fourth Quarter Ended
Fiscal Year Ended
In thousands
October 26,
2025
October 27,
2024
October 26,
2025
October 27,
2024
Operating Activities
Net Earnings (Loss)
$ (56,204)
$ 219,960
$ 477,764
$ 804,631
Depreciation and Amortization
69,373
66,401
263,901
257,756
Equity in Earnings of Affiliates
148,453
(11,838)
105,839
(51,088)
Goodwill and Intangible Impairment
70,751
—
70,751
—
Decrease (Increase) in Working Capital
11,682
24,380
(243,329)
68,157
Other
78,852
109,717
170,326
187,282
Net Cash Provided by (Used in) Operating Activities
322,907
408,621
845,251
1,266,738
Investing Activities
Net Sale (Purchase) of Securities
(766)
17
(6,936)
(6,088)
Proceeds from Sale of Business
—
25,006
13,139
25,006
Purchases of Property, Plant, and Equipment
(91,457)
(83,784)
(310,902)
(256,441)
Proceeds from (Purchases of) Affiliates and Other Investments
(1,419)
(1,290)
(4,702)
(7,970)
Other
42
42
10,808
8,586
Net Cash Provided by (Used in) Investing Activities
(93,601)
(60,008)
(298,592)
(236,907)
Financing Activities
Proceeds from Long-term Debt
—
—
—
497,765
Repayments of Long-term Debt and Finance Leases
(1,580)
(2,220)
(7,830)
(959,017)
Dividends Paid on Common Stock
(159,500)
(154,982)
(633,192)
(614,960)
Other
2,968
6,929
27,025
46,116
Net Cash Provided by (Used in) Financing Activities
(158,112)
(150,273)
(613,996)
(1,030,096)
Effect of Exchange Rate Changes on Cash
295
6,066
(3,866)
5,614
Increase (Decrease) in Cash and Cash Equivalents
71,489
204,405
(71,203)
5,349
Cash and Cash Equivalents at Beginning of Period
599,189
537,476
741,881
736,532
Cash and Cash Equivalents at End of Year
$ 670,679
$ 741,881
$ 670,679
$ 741,881
HORMEL FOODS CORPORATION
SEGMENT DATA
Unaudited
Fourth Quarter Ended
Fiscal Year Ended
In thousands
October 26,
2025
October 27,
2024
%
Change
October 26,
2025
October 27,
2024
%
Change
Volume (lbs.)
Retail
746,581
744,521
0.3
2,873,655
2,915,141
(1.4)
Foodservice
268,640
283,944
(5.4)
1,003,629
1,061,730
(5.5)
International
73,209
79,737
(8.2)
312,435
311,419
0.3
Total Volume (lbs.)
1,088,430
1,108,203
(1.8)
4,189,719
4,288,290
(2.3)
Net Sales
Retail
$ 1,922,817
$ 1,907,071
0.8
$ 7,455,218
$ 7,374,149
1.1
Foodservice
1,088,192
1,046,008
4.0
3,941,795
3,845,118
2.5
International
174,652
185,012
(5.6)
709,146
701,529
1.1
Total Net Sales
$ 3,185,661
$ 3,138,091
1.5
$ 12,106,160
$ 11,920,797
1.6
Segment Profit (Loss)
Retail
$ 46,398
$ 152,932
(69.7)
$ 425,245
$ 562,768
(24.4)
Foodservice
134,404
154,340
(12.9)
554,574
596,292
(7.0)
International
(138,611)
27,058
(612.3)
(80,418)
92,084
(187.3)
Total Segment Profit (Loss)
42,190
334,331
(87.4)
899,400
1,251,144
(28.1)
Net Unallocated Expense
63,750
54,064
17.9
235,519
215,304
9.4
Noncontrolling Interest
(67)
(236)
71.5
(433)
(407)
(6.5)
Earnings (Loss) Before Income Taxes
$ (21,627)
$ 280,030
(107.7)
$ 663,449
$ 1,035,434
(35.9)
APPENDIX: NON-GAAP MEASURES
This news release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company's results and business trends relative to past performance and the Company's competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.
Transform and Modernize (T&M) Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that non-recurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.
Gain (Loss) on Sale of Business
In the first quarter of fiscal 2025, the Company sold Mountain Prairie, LLC, a non-core sow operation, resulting in a loss on the sale. In the fourth quarter of fiscal 2024, the Company sold the Hormel Health Labs, LLC (Hormel Health Labs) business, resulting in a gain on the sale. The Company believes the one-time benefit or detriment from these sales, including transaction costs, are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e. excluded) these impacts.
Legal Matters
From time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.
Litigation Settlements
In fiscal 2025 and 2024, the Company entered into settlement agreements with certain plaintiffs in pending antitrust litigation. In the fourth quarter of fiscal 2025, the Company received proceeds in settlement of a separate legal matter.
Corporate Restructuring Plan
In the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company's future needs, while enabling continued investment in the Company's growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes the charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.
Impairments
In the fourth quarter of fiscal 2025, the Company recorded non-cash impairment charges related to certain intangible assets and an equity method investment. The Company believes these charges are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.
The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this news release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.
Fourth Quarter Ended
Fiscal Year Ended
In thousands, except per share amounts
October 26,
2025
October 27,
2024
October 26,
2025
October 27,
2024
Cost of Products Sold (GAAP)
$ 2,740,820
$ 2,616,861
$ 10,214,344
$ 9,898,659
Transform and Modernize Initiative (1)
(5,406)
(910)
(9,380)
(5,557)
Adjusted Cost of Products Sold (Non-GAAP)
$ 2,735,413
$ 2,615,950
$ 10,204,964
$ 9,893,102
Gross Profit (GAAP)
$ 444,842
$ 521,230
$ 1,891,816
$ 2,022,138
Transform and Modernize Initiative (1)
5,406
910
9,380
5,557
Adjusted Gross Profit (Non-GAAP)
$ 450,248
$ 522,140
$ 1,901,196
$ 2,027,695
SG&A (GAAP)
$ 223,466
$ 238,587
$ 996,624
$ 1,005,294
Transform and Modernize Initiative (2)
(13,697)
(16,440)
(54,926)
(47,456)
Gain (Loss) on Sale of Business
—
3,922
(11,324)
3,922
Corporate Restructuring Plan
(594)
—
(594)
—
Litigation Settlements
11,000
—
10,760
(28,750)
Adjusted SG&A (Non-GAAP)
$ 220,175
$ 226,069
$ 940,540
$ 933,010
Equity in Earnings of Affiliates (GAAP)
$ (148,453)
$ 11,838
$ (105,839)
$ 51,088
Impairment Charges
163,711
—
163,711
—
Adjusted Equity in Earnings of Affiliates (Non-GAAP)
$ 15,259
$ 11,838
$ 57,873
$ 51,088
Goodwill and Intangible Impairment (GAAP)
$ 70,751
$ —
$ 70,751
$ —
Impairment Charges
(70,751)
—
(70,751)
—
Adjusted Goodwill and Intangible Impairment (Non-GAAP)
$ —
$ —
$ —
$ —
Operating Income (GAAP)
$ 2,172
$ 294,481
$ 718,603
$ 1,067,932
Impairment Charges
234,462
—
234,462
—
Transform and Modernize Initiative (1)(2)
19,104
17,350
64,305
53,013
(Gain) Loss on Sale of Business
—
(3,922)
11,324
(3,922)
Corporate Restructuring Plan
594
—
594
—
Litigation Settlements
(11,000)
—
(10,760)
28,750
Adjusted Operating Income (Non-GAAP)
$ 245,332
$ 307,909
$ 1,018,528
$ 1,145,773
Other Income (Expense), Net (GAAP)
$ (9,831)
$ (1,531)
$ (1,344)
$ 8,224
Corporate Restructuring Plan
12,696
—
12,696
—
Adjusted Other Income (Expense), Net (Non-GAAP)
$ 2,865
$ (1,531)
$ 11,352
$ 8,224
Earnings (Loss) Before Income Taxes (GAAP)
$ (21,627)
$ 280,030
$ 663,449
$ 1,035,434
Impairment Charges
234,462
—
234,462
—
Transform and Modernize Initiative (1)(2)
19,104
17,350
64,305
53,013
Corporate Restructuring Plan
13,290
—
13,290
—
(Gain) Loss on Sale of Business
—
(3,922)
11,324
(3,922)
Litigation Settlements
(11,000)
—
(10,760)
28,750
Adjusted Earnings (Loss) Before Income Taxes (Non-GAAP)
$ 234,229
$ 293,459
$ 976,071
$ 1,113,275
Provision for Income Taxes (GAAP)
$ 34,577
$ 60,070
$ 185,684
$ 230,803
Impairment Charges
17,332
—
17,332
—
Transform and Modernize Initiative (1)(2)
5,833
3,730
15,792
11,739
Corporate Restructuring Plan
3,256
—
3,256
—
(Gain) Loss on Sale of Business
—
(843)
2,469
(843)
Litigation Settlements
(2,688)
—
(2,636)
6,333
Adjusted Provision for Income Taxes (Non-GAAP)
$ 58,310
$ 62,957
$ 221,898
$ 248,031
Net Earnings (Loss) Attributable to Hormel Foods Corporation (GAAP)
$ (56,137)
$ 220,196
$ 478,197
$ 805,038
Impairment Charges
217,130
—
217,130
—
Transform and Modernize Initiative (1)(2)
13,271
13,620
48,513
41,274
Corporate Restructuring Plan
10,035
—
10,035
—
(Gain) Loss on Sale of Business
—
(3,078)
8,855
(3,078)
Litigation Settlements
(8,312)
—
(8,124)
22,417
Adjusted Net Earnings (Loss) Attributable to Hormel Foods Corporation (Non-GAAP)
$ 175,987
$ 230,738
$ 754,606
$ 865,650
Diluted Earnings (Loss) Per Share (GAAP)
$ (0.10)
$ 0.40
$ 0.87
$ 1.47
Impairment Charges
0.39
—
0.39
—
Transform and Modernize Initiative (1)(2)
0.02
0.02
0.09
0.08
Corporate Restructuring Plan
0.02
—
0.02
—
(Gain) Loss on Sale of Business
—
(0.01)
0.02
(0.01)
Litigation Settlements
(0.02)
—
(0.01)
0.04
Adjusted Diluted Earnings (Loss) Per Share (Non-GAAP)
$ 0.32
$ 0.42
$ 1.37
$ 1.58
Fourth Quarter Ended
Fiscal Year Ended
In thousands, except per share amounts
October 26,
2025
October 27,
2024
October 26,
2025
October 27,
2024
SG&A as a Percent of Net Sales (GAAP)
7.0 %
7.6 %
8.2 %
8.4 %
Transform and Modernize Initiative (2)
(0.4)
(0.5)
(0.5)
(0.4)
Corporate Restructuring Plan
—
—
—
—
Gain (Loss) on Sale of Business
—
0.1
(0.1)
—
Litigation Settlements
0.3
—
0.1
(0.2)
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)
6.9 %
7.2 %
7.8 %
7.8 %
Operating Margin (GAAP)
0.1 %
9.4 %
5.9 %
9.0 %
Impairment Charges
7.4
—
1.9
—
Transform and Modernize Initiative (1)(2)
0.6
0.6
0.5
0.4
Corporate Restructuring Plan
—
—
—
—
(Gain) Loss on Sale of Business
—
(0.1)
0.1
—
Litigation Settlements
(0.3)
—
(0.1)
0.2
Adjusted Operating Margin (Non-GAAP)
7.7 %
9.8 %
8.4 %
9.6 %
(1)
Comprised primarily of asset write-offs, equipment relocation expenses, and severance related to supply chain and portfolio optimization.
(2)
Comprised primarily of project-based external consulting fees.
Organic Volume and Organic Net Sales (Non-GAAP)
The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of Hormel Health Labs in the Foodservice segment in the fourth quarter of fiscal 2024.
Fourth Quarter Ended
October 26, 2025
October 27, 2024
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
746,581
744,521
—
744,521
0.3
Foodservice
268,640
283,944
(15,251)
268,693
—
International
73,209
79,737
—
79,737
(8.2)
Total Volume (lbs.)
1,088,430
1,108,203
(15,251)
1,092,952
(0.4)
Net Sales
Retail
$ 1,922,817
$ 1,907,071
$ —
$ 1,907,071
0.8
Foodservice
1,088,192
1,046,008
(23,851)
1,022,157
6.5
International
174,652
185,012
—
185,012
(5.6)
Total Net Sales
$ 3,185,661
$ 3,138,091
$ (23,851)
$ 3,114,240
2.3
Fiscal Year Ended
October 26, 2025
October 27, 2024
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
2,873,655
2,915,141
—
2,915,141
(1.4)
Foodservice
1,003,629
1,061,730
(64,274)
997,456
0.6
International
312,435
311,419
—
311,419
0.3
Total Volume (lbs.)
4,189,719
4,288,290
(64,274)
4,224,016
(0.8)
Net Sales
Retail
$ 7,455,218
$ 7,374,149
$ —
$ 7,374,149
1.1
Foodservice
3,941,795
3,845,118
(107,643)
3,737,476
5.5
International
709,146
701,529
—
701,529
1.1
Total Net Sales
$ 12,106,160
$ 11,920,797
$ (107,643)
$ 11,813,154
2.5
Adjusted Segment Profit (Non-GAAP)
Fourth Quarter Ended
October 26, 2025
October 27, 2024
In thousands
GAAP
Non-GAAP
Adjustments (1)
Non-GAAP
GAAP
Non-GAAP
Adjustments (2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 46,398
$ 70,751
$ 117,148
$ 152,932
$ —
$ 152,932
Foodservice
134,404
—
134,404
154,340
—
154,340
International
(138,611)
163,711
25,100
27,058
—
27,058
Total Segment Profit (Loss)
42,190
234,462
276,652
334,331
—
334,331
Net Unallocated Expense
63,750
(21,394)
42,356
54,064
(13,428)
40,636
Noncontrolling Interest
(67)
—
(67)
(236)
—
(236)
Earnings (Loss) Before Income Taxes
$ (21,627)
$ 255,856
$ 234,229
$ 280,030
$ 13,428
$ 293,459
(1)
Retail and International segment profit (loss) adjustments in the fourth quarter of fiscal 2025 were due to non-cash impairment charges. Net Unallocated Expense adjustments were comprised of non-recurring T&M initiative costs, corporate restructuring plan charges, and a favorable litigation settlement.
(2)
Net Unallocated Expense adjustments in the fourth quarter of fiscal 2024 were comprised of non-recurring T&M initiative costs and the gain on the sale of Hormel Health Labs.
Fiscal Year Ended
October 26, 2025
October 27, 2024
In thousands
GAAP
Non-GAAP
Adjustments (1)
Non-GAAP
GAAP
Non-GAAP
Adjustments (2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 425,245
$ 70,751
$ 495,995
$ 562,768
$ —
$ 562,768
Foodservice
554,574
—
554,574
596,292
—
596,292
International
(80,418)
163,711
83,293
92,084
—
92,084
Total Segment Profit (Loss)
899,400
234,462
1,133,863
1,251,144
—
1,251,144
Net Unallocated Expense
235,519
(78,160)
157,359
215,304
(77,841)
137,463
Noncontrolling Interest
(433)
—
(433)
(407)
—
(407)
Earnings Before Income Taxes
$ 663,449
$ 312,622
$ 976,071
$ 1,035,434
$ 77,841
$ 1,113,275
(1)
Retail and International segment profit (loss) adjustments in fiscal 2025 were due to non-cash impairment charges. Net Unallocated Expense adjustments in fiscal 2025 were comprised of non-recurring T&M initiative costs, corporate restructuring plan charges, the loss on sale of Mountain Prairie, LLC, and litigation settlements.
(2)
Net Unallocated Expense adjustments in fiscal 2024 were comprised of non-recurring T&M initiative costs, litigation settlements, and the gain on the sale of Hormel Health Labs.
Forward-looking GAAP to Non-GAAP Measures
The information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.
Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)
To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the anticipated sale of the Justin's ® branded business, a transaction that is expected to close in the first quarter of fiscal 2026.
In billions
Fiscal 2026 Outlook
2025 Results
Change
Net Sales (GAAP)
$ 12.2
-
$ 12.5
$ 12.1
1 %
-
3 %
Divestitures
—
-
—
(0.1)
Organic Net Sales (Non-GAAP)
$ 12.2
-
$ 12.5
$ 12.0
1 %
-
4 %
Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Resulting in an adjusted operating income range (non-GAAP) of $1,059 million to $1,118 million.
Fiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.43 to $1.51.
(1)
Includes estimated one-time consulting expenses related to a former executive officer and estimated non-recurring impacts related to the anticipated sale of the Justin's ® branded business.
INVESTOR CONTACT:
Jess Blomberg
[email protected]
MEDIA CONTACT:
Media Relations
[email protected]
SOURCE Hormel Foods Corporation