Pilgrim's Pride profit drops over 65% despite higher Q1 revenue

Pilgrim's Pride Corp. reported first-quarter net income of $101.4 million, a sharp decline from the prior year, as operational challenges and lower commodity values in its U.S. business offset a modest 1.6 percent increase in sales.

"During the quarter, chicken demand continued to be healthy across all regions,” Fabio Sandri, Pilgrim’s President and CEO, said in a statement. “Overall business fundamentals remained positive given chicken’s affordability, consumer momentum in retail and foodservice, and ample grain supplies.”

The poultry giant posted revenue of $4.53 billion, up from $4.46 billion a year earlier. However, U.S. GAAP earnings per share fell 65.3 percent to $0.43 from $1.24. Adjusted EBITDA, a key measure of profitability, was $308.1 million, a 42.2 percent drop from the $533.2 million reported in the first quarter of 2025.

The company's performance was a story of regional divergence. While Europe showed resilience, the core U.S. market faced significant headwinds. Adjusted operating income in the U.S. fell to $110.1 million from $326.1 million a year ago, with margins contracting to 4.2 percent from 11.9 percent. The company cited planned plant downtime, winter storm impacts, and a decline in commodity chicken prices as primary reasons for the weaker results.

Metric	Q1 2026 Actual	Q1 2025 Actual	Y/Y Change
Net Sales	$4.53B	$4.46B	+1.6%
GAAP EPS	$0.43	$1.24	-65.3%
Adjusted EPS	$0.51	$1.31	-61.1%
Adjusted EBITDA	$308.1M	$533.2M	-42.2%

Segment Performance

In the U.S., while the Fresh business struggled, the Prepared Foods division saw accelerating growth. Sales of the company's Just Bare® brand jumped nearly 40 percent compared to last year, benefiting from increased distribution.

Europe delivered steady results, with adjusted operating income of $67.5 million, slightly up from $65.7 million in the prior year. The company said its balanced portfolio helped it navigate declining consumer confidence in the region.

Mexico's adjusted operating income saw a steep decline to $10.9 million from $36.6 million, which the company attributed to compressed margins from increased chicken supply in the live commodity market.

The significant drop in profitability, despite top-line growth, signals that cost and operational pressures are weighing on Pilgrim's Pride. Investors will be looking for more color on margin recovery and the outlook for the U.S. market during the company's conference call scheduled for April 30.

This article is for informational purposes only and does not constitute investment advice.