Hormel Foods Reports Fourth Quarter and Full-Year Fiscal 2025 Results

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December 4, 2025

Austin, Minn.

Top-Line Strength Continues; Company Sees Clear Path for Profitable Growth in Fiscal 2026

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

Net sales of $12.1 billion; organic net sales¹ up 2%
Operating income of $719 million; adjusted operating income¹ of $1,019 million
Operating margin of 5.9%; adjusted operating margin¹ of 8.4%
Earnings before income taxes of $663 million; adjusted earnings before income taxes¹ of $976 million
Effective tax rate of 28.0%
Diluted earnings per share of $0.87; adjusted diluted earnings per share¹ of $1.37
Cash flow from operations of $845 million

EXECUTIVE SUMMARY – FOURTH QUARTER

Net sales of $3.2 billion; organic net sales¹ up 2%
Operating income of $2 million; adjusted operating income¹ of $245 million
Operating margin of 0.1%; adjusted operating margin¹ of 7.7%
Non-cash impairment charges of $234 million, primarily related to a minority investment in the International segment and certain intangible assets in the Retail segment
Loss before income taxes of $22 million; adjusted earnings before income taxes¹ of $234 million
Diluted loss per share of $0.10; adjusted diluted earnings per share¹ of $0.32
Cash flow from operations of $323 million

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:

Net sales in the range of $12.2 billion to $12.5 billion; organic net sales¹ growth of 1% to 4%
Operating income in the range of $0.96 billion to $1.03 billion
Adjusted operating income¹ in the range of $1.06 billion to $1.12 billion, growth of 4% to 10%
Diluted earnings per share in the range of $1.29 to $1.39
Adjusted diluted earnings per share¹ in the range of $1.43 to $1.51, growth of 4% to 10%

	Fiscal 2026 Outlook
Net Sales	$12.2 – $12.5 billion
Adj. Operating Income¹	$1.06 – $1.12 billion
Adj. Diluted EPS¹	$1.43 – $1.51

The Company’s fiscal 2026 outlook assumes:

Net sales growth across each reporting segment, despite a pressured consumer environment
A modest improvement in most commodity markets during the second half of the year, compared to fiscal 2025, though still above historical levels
Strong brand investments, with advertising support above recent levels
Benefits from growth and efficiency programs, including the T&M initiative and a recently announced program to reduce administrative expenses
Continued earnings pressure in the first quarter and earnings growth expected for the remainder of the year
An effective tax rate in the range of 21.5% to 22.5%
Capital expenditures in the range of $260 million to $290 million
Depreciation and amortization expense of approximately $280 million

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

Operating margin and adjusted operating margin¹ were 5.9% and 8.4%, respectively, compared to 9.0% and 9.6%, respectively, in the prior year.
Selling, general and administrative expenses as a percent of net sales and adjusted selling, general and administrative expenses as a percent of net sales¹ were 8.2% and 7.8%, respectively, compared to 8.4% and 7.8%, respectively, in the prior year.
Advertising investments were $148 million, compared to $163 million in the prior year.
The effective tax rate was 28.0%, compared to 22.3% in the prior year.

Cash Flow Statement

Cash flow from operations was $845 million.
Dividends paid to shareholders were a record $633 million.
Capital expenditures were $311 million, compared to $256 million last year. During the year, the Company invested in capacity expansions for HORMEL^® FIRE BRAISED™ and APPLEGATE^® products, data and technology, people and animal safety, and the Jiaxing, China, facility.
Depreciation and amortization expense was $264 million.

Balance Sheet

The Company remained in a strong financial position at fiscal year-end, with ample liquidity and a conservative level of debt.
Cash on hand was $671 million at fiscal year-end, a decrease of $71 million from the beginning of the fiscal year.
Inventories at fiscal year-end were $1.7 billion, an increase of $171 million from the beginning of the fiscal year.
Total long-term debt, including current maturities, was $2.9 billion at fiscal year-end.

SEGMENT HIGHLIGHTS – FOURTH QUARTER

Retail

Volume flat
Net sales up 1%
Segment profit down 70%; adjusted segment profit¹ down 23%

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 profit¹ declined, as net sales growth was more than offset by input cost pressures, mainly due to elevated commodity markets.

Foodservice

Volume down 5%, organic volume¹ flat
Net sales up 4%, organic net sales¹ up 6%
Segment profit down 13%

Organic net sales¹ 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 volume¹ 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

Volume down 8%
Net sales down 6%
Segment profit down 612%; adjusted segment profit¹ down 7%

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 profit¹ 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.

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END NOTES

¹ Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.

About Hormel Foods – Inspired People. Inspired Food.™

Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with approximately $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.