Smithfield Foods Inc., a U.S.-based food company majority-owned by Hong Kong-based WH Group, reported consolidated sales of $15.53 billion for fiscal year 2025, an increase of 9.8% compared to $14.14 billion in fiscal year 2024. The company's operating profit rose by 15.6% to $1.29 billion, up from $1.12 billion in the previous fiscal year. Net income from continuing operations attributable to Smithfield was $987 million, a 26.0% increase from $783 million in fiscal year 2024. The company's Packaged Meats segment contributed 56% of total sales and 85% of overall operating profit.
The increase in sales was primarily driven by higher average sales prices in both the Packaged Meats and Fresh Pork segments, with increases of 5.6% and 5.8%, respectively. The Hog Production segment also saw a sales increase of 13.0%, attributed to sales of commercial hog inventories, transportation services, and other ancillary goods and services to Murphy Family Farms and VisionAg, as well as increased grain and feed sales. These factors more than offset a 23.4% decrease in the number of market hogs sold due to the company's Hog Production Reform initiative. The company's effective tax rate decreased to 22.3% in fiscal year 2025, compared to 25.5% in fiscal year 2024, primarily due to the conclusion of certain U.S. federal income tax matters in fiscal year 2024 and by a non-taxable gain recognized in fiscal year 2025 for a one-time benefit on company-owned life insurance policies.
Strategic developments during the fiscal year included the announcement of a proposed $1.3 billion investment in a new combined fresh pork and packaged meats processing facility in Sioux Falls, South Dakota, contingent upon board and regulatory approvals. Additionally, Smithfield entered into an agreement to acquire all outstanding shares of Nathan's Famous Inc. for $102.00 per share in cash, expected to close in the first half of 2026, pending regulatory approvals. The company also continued its Hog Production Reform, selling hog production assets in Utah and entering into agreements with Murphy Family Farms and VisionAg to procure hogs.
Key operational developments included the completion of an initial public offering (IPO) in January 2025, raising $236 million in net proceeds, and a secondary offering in September 2025, where WH Group sold additional shares. As of December 28, 2025, Smithfield employed approximately 32,000 individuals in the U.S. and 2,500 in Mexico, with approximately 44% of the U.S. workforce covered by collective bargaining agreements. The company sold its products to approximately 4,300 customers, with Walmart Inc. accounting for approximately 15% of consolidated sales.
Looking ahead, Smithfield Foods intends to continue driving growth in its Packaged Meats segment through mix improvement, volume growth, and innovation. The company also plans to enhance the Fresh Pork segment by maximizing the value of each hog across channels and achieving best-in-class hog production operations through genetic transformation, herd health improvements, and procurement and nutrition savings. The company anticipates annual capital expenditures in the range of $350 million to $450 million, inclusive of both repairs and maintenance and profit improvement projects. The company also intends to pay annual cash dividends in an amount equal to $1.25 per share of common stock for fiscal year 2026.
About SMITHFIELD FOODS INC
Smithfield Foods, Inc. is a leading U.S. producer of packaged meats and fresh pork products, operating through segments including Packaged Meats, Fresh Pork, and Hog Production. The company offers iconic brands like Smithfield, Eckrich, and Nathan’s Famous, serving retail, foodservice, and export markets. With a focus on quality, innovation, and sustainability, it leverages integrated supply chains and strategic partnerships to deliver high-quality, affordable food globally.
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