GREELEY, Colo. — Pilgrim’s Pride Corp. has reported its second quarter 2026 financial results.
Second quarter highlights include: Net sales of $4.6 billion; Consolidated GAAP operating income margin of 1.4 percent; GAAP net income of $13.2 million and GAAP EPS of 6 cents; Adjusted net income of $153.9 million, and adjusted EPS of 64 cents. Adjusted EBITDA of $360 million, or a 7.8 percent margin, with adjusted EBITDA margins of 8.7 percent in the U.S., 7.6 percent in Europe, and 3.9 percent in Mexico.
U.S. Fresh volumes rose from increased demand across both retail and foodservice. Profitability declined from previous year due to commodity market pricing reductions, while margins increased sequentially from last quarter with improvements in our productivity, completion of plant upgrades and gains in live operations. Pilgrim’s continues to improve its portfolio and support key customer growth with the investment in Ellijay, Ga., to increase deboning in the small bird category, the company reported.
U.S. Prepared Foods drove profitable growth as sales and margins both rose from last year. Just Bare® retail sales increased more than 30 percent versus prior year, making it the second largest brand in the fully cooked category, Pilgrim’s said, adding that, construction of the new prepared foods facility in Walker County, Ga., remains on schedule.
Pilgrim’s also noted that it maintained strong liquidity position to support future growth opportunities as the company’s net leverage ratio is currently 1.43x adjusted EBITDA, below the target of 2x to 3x.
“Throughout the quarter, chicken demand remained firm in all regions as affordability continued to resonate with consumers across retail and foodservice,” Fabio Sandri, Pilgrim’s president and CEO, said in the announcement. “We continued our investments to drive sales growth and reduce volatility, mitigating downsides in the chicken commodity markets.”
In the second quarter, counter-seasonal movements in the jumbo commodity cutout market emerged as values fell more than 25 percent from the prior year. While profitability declined compared to last year, margins improved sequentially with the completion of plant upgrades and improvements in live operations.
Case Ready and Small Bird volumes grew from incremental distribution with key customers, the company said. Investments in Big Bird for portioning equipment continue to support the growth of Prepared Foods, moderating the impact of commodity market declines. Additional investments were announced in Ellijay, Ga., to support the long-term growth of key customers in the boneless category.
“While consumer interest in chicken continued to be healthy across all channels, supply growth rose faster than demand,” Sandri said. “Our relentless focus on closing operational gaps and further investments in plant upgrades to increase our internal supply capabilities and support key customer growth will further improve our ability to mitigate the impact of volatile commodity fundamentals, creating a more resilient earnings profile.”
Pilgrim’s U.S. Prepared Foods continues to drive profitable growth as sales and margins expanded compared to prior year. Just Bare continues to lead growth within the frozen fully cooked category, growing market share by nearly 300 basis points over the past year.
“The growth of Just Bare continues to demonstrate our ability to diversify our portfolio through brands,” Sandri added. “Our investment in Walker County, Ga., will further enhance our operational capabilities, accelerating momentum of our value-added line up.”
Mexico increased volumes through growth in both fresh and prepared. In Fresh, branded offerings in retail rose nearly 30 percent compared to last year. Prepared experienced similar success as Pilgrims® value-added products grew over double digits in both retail and foodservice.
Margins were compressed versus last year as counter-seasonal growing conditions for chickens, supporting a significant increase in production. Total protein supply also expanded further given additional egg availability and pork imports. Projects to drive sales and mitigate the impact of commodity volatility remain on schedule. The new prepared foods line in Porvenir started production on schedule, and expansion in the Southern Peninsula proceeds as planned.
“Demand for chicken continues to be robust throughout Mexico despite a significant increase in overall protein supply,” Sandri said. “The growth of our branded offerings and prepared foods along with our investments will further mitigate challenges from live commodity markets, improving our margin profile while reducing risk.”
