Pilgrim’s Pride (PPC 1.14%) reported its financial results for the second quarter of fiscal 2025 on July 30, 2025. The company exceeded analyst forecasts for both GAAP revenue and non-GAAP EPS, posting non-GAAP earnings per share (EPS) of $1.70, which surpassed the non-GAAP consensus estimate of $1.57. Revenue (GAAP) reached $4.76 billion, topping GAAP estimates of $4.62 billion, and increasing from $4.56 billion in the prior-year quarter (GAAP, Q2 FY2024). Management approved a special $500 million dividend, reflecting strong balance sheet health. Overall, the quarter was highlighted by strength in U.S. prepared and branded poultry, margin expansion in Europe, and a Steady—but more volatile—performance in Mexico, where foreign exchange and year-ago comparables pressured margins.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.70 | $1.57 | $1.67 | 1.8 % |
| EPS (GAAP) | $1.49 | $1.37 | 8.8 % | |
| Revenue (GAAP) | $4.76 billion | $4.62 billion | $4.56 billion | 4.3 % |
| Adjusted EBITDA | $687 million | $656 million | 4.7 % | |
| Adjusted EBITDA Margin | 14.4 % | 14.4 % | 0.0 pp |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Focus Areas
Pilgrim’s Pride is a leading global poultry company, supplying fresh, value-added, and prepared chicken products in the U.S. Europe, Mexico, and more than 120 export markets. Its business model hinges on vertical integration, spanning everything from feed production to distribution, to control cost and product quality tightly. The company employs around 62,200 people across 49 hatcheries, 35 feed mills, 39 processing plants, and 29 distribution centers.
Recent strategies focus on product and geographic diversification, margin improvement, and operational efficiency. Key success factors include maintaining control over costs (notably feed), expanding sales of higher-margin prepared foods, investing in facilities, and keeping careful compliance with health and environmental regulations. Pilgrim’s Pride manages volatility by balancing exposure between commodity chicken, value-added (prepared) products, and retail- or contract-oriented sales.
Quarter Highlights: Financial and Operational Performance
Pilgrim’s Pride’s non-GAAP earnings and GAAP revenue exceeded analyst expectations. The significant revenue increase was supported by robust performance in the U.S. business, where GAAP net sales and GAAP operating income both increased. GAAP net sales rose 5.9% to $2.82 billion compared to Q2 FY2024, and GAAP operating income for U.S. operations increased 15.3% to $354.99 million compared to Q2 FY2024. Prepared Foods—a category of fully cooked and value-added chicken products—saw over 20% sales growth as the company ramped up production to meet demand from both retail and foodservice. The Just Bare brand surpassed a 10% market share in fully cooked chicken, showing Pilgrim’s increasing reach with branded offerings.
In Europe, GAAP revenue improved by 5.4% to $1.37 billion compared to Q2 FY2024, with adjusted operating income margin in Europe expanding from 4.7% in Q2 FY2024 to 5.4%. The company credited this to sales growth with key retail customers, new product launches like the Rollover cooked chicken lineup, and efficiency gains. GAAP operating income in Europe increased to $70.4 million from $24.0 million in Q2 FY2024, rising to $70.4 million (GAAP operating income for Europe segment). The business benefited from innovation, and portfolio diversification, especially through brands like Fridge Raiders and Richmond.
Mexico faced a more challenging period. Revenue in Mexico declined 4.7% to $565.7 million compared to Q2 FY2024. GAAP operating income for Mexico fell to $86.9 million compared to $108.8 million in Q2 FY2024. Currency headwinds (Mexican peso depreciation against the U.S. dollar) and a tough comparison to an unusually strong year-ago quarter (Q1 FY2024) played a significant role. Despite this, chicken volumes shipped in Mexico climbed by over 5%. Management highlighted ongoing investment in capacity expansion and further diversification of offerings as ways to support long-term growth, even as short-term results can swing due to live bird market volatility.
Pilgrim’s Pride saw steady Adjusted EBITDA growth, increasing to $687 million, with Adjusted EBITDA margin stable at 14.4%. GAAP operating income was $512.3 million, 16.2% higher than a year ago. The company’s margin expansion in several segments was strongest in the U.S. commodity “Big Bird” business, where higher market prices and improved operations drove profitability. At the same time, more stable contracted and retail businesses saw profitability lag commodity segments, reflecting current market dynamics as management returned some cost savings to large retail partners.
Several one-time items impacted results. Litigation settlement expenses reached $58.5 million, which affected GAAP income but were excluded from adjusted metrics. Capital expenditures for the first half of FY2025 were $259.3 million. Once fully operational, this plant is expected to boost U.S. prepared foods sales by over 40% from current levels and create over 630 jobs.
The board approved a $500 million special dividend ($2.10 per share), underscoring Pilgrim’s Pride’s strong liquidity and financial flexibility. This is a one-off distribution, above and beyond ordinary regular dividends. Net leverage remained under one times adjusted EBITDA.
Business Context and Product Developments
Pilgrim’s Pride’s primary product categories are fresh chicken, value-added prepared foods (such as marinated fillets and pre-cooked, branded meals), and fully cooked chicken products. The U.S. segment remains the company’s largest revenue and profit source. This quarter, fresh chicken sales experienced continued “strong demand, focus on quality and service, and improved operational efficiencies.”
The prepared foods segment recorded record output, supporting both growing retail and foodservice demand. Just Bare, a branded product family, increased share in the fully cooked chicken subcategory to more than 10%, supported by national retail and foodservice expansion. The brand also achieved industry recognition for innovation and consumer appeal.
In Europe, growth initiatives centered on innovating the prepared foods lineup and expanding distribution of key brands. Rollover—a product line offering ready-to-eat chicken—is an area of focus. Fridge Raiders, a brand of protein snacks, also gained distribution and market prominence. Segment operating income improved sharply as efforts to streamline operations and optimize product mix generated higher returns.
For Mexico, both fresh and prepared foods remain core categories. In Mexico, volumes increased over 5% compared to the prior year, and new capacity additions remain on track to support future growth. Management cited steady demand, ongoing brand and product innovation, and capacity expansion as central strategies for this market.
Vertical integration—control of feed mills, hatcheries, processing plants, and distribution—remains a defining feature for Pilgrim’s Pride. This approach allows it to manage costs, maintain food safety standards, and respond quickly to shifting consumer and regulatory requirements. Approximately 85% of the company’s feed mix comes from corn and soybean meal, with wheat comprising a smaller portion, based on FY2024 feed cost composition. Pilgrim’s regularly uses derivatives and contracts to help manage raw material cost swings.
Outlook and Forward-Looking Information
Management did not issue formal new financial guidance with this quarter’s earnings release. However, it reiterated its focus on capital discipline, long-term investment in high-growth prepared foods and international markets, and restraint in passing cost savings directly back to key retailers where contracted pricing dampens profit upside. Capital spending for FY2025 remains targeted at $750 million, with major supply and capacity expansions beginning to come online in 2026 and 2027.
For the upcoming quarters, investors should monitor the trend in commodity (feed) costs, as future volatility could pressure margins. Earnings in Mexico may remain uneven due to currency moves and market swings. Legal settlements and restructuring activity, especially in Europe, should be watched for their impact on reported profits. The one-time special dividend of approximately $500 million was announced. PPC does not currently pay a regular dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
