Smithfield Foods Reports Record First Half Fiscal 2026 Operating Profit, Demonstrating Strength of Vertically Integrated Model

* Record First Half Operating Profit Reflects Resilient Business Model; Disciplined Execution * Strong Balance Sheet and Cash Flows Provide Financial Flexibility * Updated FY 2026 Outlook to Reflect External Macro Environment SMITHFIELD, Va., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (Nasdaq: SFD), an American food company and an industry leader in value-added packaged meats and fresh pork, today reported results for its fiscal 2026 second quarter ended June 28, 2026.

Second Quarter Fiscal 2026 Financial Highlights * Net sales of $3.7 billion, down 2.3% from the second quarter of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the second quarter of 2025 as well as the earlier Easter holiday this year * Operating profit of $290 million, up 11.6% from the second quarter of 2025; record second quarter adjusted operating profit((1)) of $300 million, up slightly from the second quarter of 2025 * Operating profit margin of 7.8%, compared to 6.9% in the second quarter of 2025; Adjusted operating profit margin((1)) of 8.1%, compared to 7.9% in the second quarter of 2025 * Packaged Meats operating profit of $265 million, compared to operating profit of $301 million and adjusted operating profit((1)) of $296 million in the second quarter of 2025 * Packaged Meats operating profit margin of 13.1%, compared to operating profit margin of 14.5% and adjusted operating profit margin((1)) of 14.2% in the second quarter of 2025 * Net income((2)) of $238 million, up 26.6% from the second quarter of 2025; Adjusted net income((1)(2) )of $245 million, up 13.2% from the second quarter of 2025 * Diluted and adjusted diluted earnings((1)(2)) of $0.60 and $0.62 per share, respectively; compared to $0.48 and $0.55 per share, respectively, in the second quarter of 2025 First Six Months Fiscal 2026 Financial Highlights * Net sales of $7.5 billion, down 0.8% from the first half of 2025, with the year-over-year decline primarily due to non-recurring sales to our Hog Production joint ventures in the first half of 2025 * Operating profit of $623 million, up 7.1% from the first half of 2025; Record first half adjusted operating profit((1)() )of $638 million, up 2.3% from the first half of 2025 * Operating profit margin of 8.3%, compared to 7.7% in the first half of 2025; Adjusted operating profit margin((1)) of 8.5%, compared to 8.3% in the first half of 2025 * Packaged Meats operating profit of $540 million, compared to operating profit of $567 million and adjusted operating profit((1)) of $562 million the first half of 2025 * Packaged Meats operating profit margin of 12.9%, compared to operating profit margin of 13.8% and adjusted operating profit margin((1)) of 13.7% in the first half of 2025 * Net income((2)) of $484 million, up 17.6% from the first half of 2025; Adjusted net income((1)(2)) of $496 million, up 11.8% from the first half of 2025 * Diluted and adjusted diluted earnings((1)(2)) of $1.23 and $1.25 per share, respectively; compared to $1.05 and $1.13 per share, respectively, in the first half of 2025 * Net cash flows from operating activities of $204 million for the first half of 2026 increased $96 million from the first half of 2025 ________________________ ((1) A non-GAAP measure. Please see the table in the Non-GAAP Financial Measures section for a reconciliation to the most comparable GAAP measure.) ((2) Refers to net income attributable to Smithfield, adjusted net income attributable to Smithfield and adjusted net income attributable to Smithfield per diluted common share.)