HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS
Company Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third Quarter and Strong Year-to-Date Performance
(Aug. 27, 2026) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the third quarter of fiscal 2026, which ended July 26, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.
• Operating income of $111 million; a djusted operating income 1 of $266 million
• Earnings before income taxes of $103 million; a djusted earnings before income taxes 1 of $258 million
• Diluted earnings per share of $0.11; a djusted diluted earnings per share 1 of $0.37
"We delivered solid third quarter results, growing our adjusted earnings and continuing to advance our fiscal 2026 objectives,” said Jeff Ettinger, interim chief executive officer. "With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026 and remain confident in delivering adjusted earnings growth for the year consistent with, or above, our long-term algorithm."
"We continued to make progress against our strategic priorities during the quarter," said John Ghingo, president and chief executive officer-elect. "While net sales declined, the results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure. At the same time, several of our Retail priority brands delivered growth, and Foodservice once again outperformed industry trends, supported by the strength of our solutions-based offerings and operator partnerships. As we continue to enhance our capabilities and sharpen our focus, we remain committed to disciplined execution and positioning the company for long-term success.”
• Expects net sales to be in the range of $12.1 billion to $12.2 billion, reflecting organic net sales 1 growth of 1% to 2%
• Updates operating income guidance to be in the range of $0.83 billion to $0.87 billion, which includes the estimated loss related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia, and a litigation settlement
• Raises adjusted operating income 1 guidance to be in the range of $1.08 billion to $1.12 billion, reflecting growth of 6% to 10%
• Updates diluted earnings per share guidance to be in the range of $1.06 to $1.12
• Raises adjusted diluted earnings per share 1 guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%
During the third quarter of fiscal 2026, the Company announced a definitive agreement to sell its Brazil operations, operated under the
brand, and classified the business as held for sale. The divestiture reflects the Company's ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.
The transaction successfully closed in the early part of the fourth quarter of fiscal 2026. The expected impacts of the divestiture are reflected in the Company's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter of fiscal 2026, the impact of the divestiture will be excluded from year-over- year comparisons in the Company's non-GAAP organic volume¹ and organic net sales¹ metrics.
Organic net sales 1 decreased in the third quarter of fiscal 2026, as declines in commodity turkey and private label snack nuts were partially offset by strong performance in value-added turkey offerings, contract manufacturing and
® snack nuts. Additional priority brands that delivered solid growth during the quarter include the
chili. Segment profit decreased for the third quarter of fiscal 2026, as lower net sales and higher logistics expenses were partially offset by lower selling, general and administrative expenses.
The third quarter of fiscal 2026 marked the 12 th consecutive quarter of organic net sales 1 growth for the Foodservice segment. Organic net sales¹ growth was broad-based despite the impact of lower commodity-based pricing in portions of the portfolio. Growth was driven by multiple product groups and categories, led by significant contributions from premium prepared proteins, branded pepperoni and
™ meats, also delivered strong net sales results. Segment profit increased for the third quarter of fiscal 2026, as higher net sales and favorable pork input costs were partially offset by higher logistics and selling, general and administrative expenses.
For the International segment, organic net sales¹ declined in the third quarter of fiscal 2026. While branded export demand remained resilient during the quarter, the recognition of certain
• Operating margin and adjusted operating margin 1 were 3.7% and 9.0%, respectively, compared to 7.9% and 8.4%, 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 sales 1 were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%, respectively, in the prior year.
• Significant discrete pre-tax items included: a loss of $56 million related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia of $48 million and a litigation settlement of $38 million.
• The effective tax rate was 42.3%, compared to 22.3% last year, and was significantly impacted by one-time items.
• Cash flow from operations was $241 million, an increase of 54% compared to the prior year.
• Capital expenditures were $68 million, compared to $72 million last year. The largest projects in the third quarter of fiscal 2026 were related to infrastructure enhancements and investments in data and technology.
• Depreciation and amortization expense was $66 million, compared to $65 million last year.
• The Company returned $161 million to stockholders during the quarter through dividends.
• The Company remained in a strong financial position at quarter end, with ample liquidity and a conservative level of debt.
• Cash on hand, excluding assets held for sale, was $840 million at quarter end, an increase of $169 million from the end of fiscal 2025.
• Inventories were $1.8 billion at quarter end, an increase of $54 million from the end of fiscal 2025.
A conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983 (international) and providing the conference ID 915 330 197. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Aug. 27, 2026, and will remain on the website for one year.
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include
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 and one of America’s most responsible companies by Newsweek, was 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. For more information, visit hormelfoods.com.
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 guidance and future financial and operational performance. 3 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 that 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 related to acquisitions, joint ventures, equity investments, and divestitures; 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 unfavorable changes in the Company's relationships with third parties; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyberattacks, security breaches or other IT interruptions; labor relations and labor availability risks; 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 government regulation; risks related to 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 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 press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.
Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.
1 Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information.
July 26, 2026 October 26, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Cash and Cash Equivalents $ 839,639 $ 670,679 Short-term Marketable Securities 28,807 32,909 Accounts and Other Receivables, 733,460 813,989 Net Inventories 1,801,567 1,747,279 Taxes Receivable 58,688 96,791 Prepaid Expenses and Other Current 53,420 44,010 Assets Assets Held for Sale 10,659 — Total Current Assets 3,526,238 3,405,656 Goodwill 4,867,763 4,924,087 Intangible Assets 1,572,850 1,647,297 Pension Assets 204,135 211,826 Investments in Affiliates 527,864 533,984 Other Assets 430,139 431,500 Property, Plant, and Equipment, 2,163,025 2,238,770 Net Total Assets $ 13,292,014 $ 13,393,119 Liabilities and Shareholders’ Investment Accounts Payable & Accrued $ 771,154 $ 787,350 Expenses Accrued Marketing Expenses 133,313 113,947 Employee-related Expenses 250,072 273,402 Interest and Dividends Payable 175,646 180,700 Taxes Payable 10,690 18,752 Current Maturities of Long-term 505,634 6,646 Debt Liabilities Held for Sale 27,483 — Total Current Liabilities 1,873,991 1,380,796 Long-term Debt Less Current 2,349,489 2,850,778 Maturities Pension and Postretirement 351,174 358,984 Benefits Deferred Income Taxes 653,360 661,349 Other Long-term Liabilities 204,345 225,397 Accumulated Other Comprehensive -236,907 -243,646 Loss Other Shareholders’ Investment 8,096,561 8,159,461 Total Liabilities and Shareholders’ $ 13,292,014 $ 13,393,119 Investment
This press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company’s results and business trends relative to past performance and the Company’s competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are nonrecurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that nonrecurring costs associated with the T&M initiative are not reflective of the Company’s ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.
As part of its ongoing portfolio management activities, the Company may periodically divest certain businesses to better align its portfolio with its strategic objectives and long-term growth strategy. The Company believes the one-time impacts from these transactions, including transaction costs, are not reflective of the Company’s ongoing operating cost structure, are not indicative of the Company’s core operating performance, and are not meaningful when comparing the Company’s operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts. Transactions affecting comparability include the Brazil transaction, the whole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain Prairie, LLC divestiture.
In the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company’s future needs, while enabling continued investment in the Company’s growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes certain charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.
On October 27, 2025, the Company entered into a consulting agreement (Consulting Agreement) with its former Chief Executive Officer (CEO), pursuant to which the former CEO is expected to provide consulting services to the Company until April 2027. Consulting costs related to the Consulting Agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes nonrecurring costs associated with the Consulting Agreement are not reflective of the Company’s ongoing operating cost structure, are not indicative of the Company’s core operating performance, and are not meaningful when comparing the Company’s operating performance against that of prior periods; therefore, the Company is excluding these discrete costs. 9
From time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company’s core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company’s operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.
In the third quarter of fiscal 2026, the Company executed a settlement agreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the Company entered into a settlement agreement with certain plaintiffs in an antitrust lawsuit.
In the third quarter of fiscal 2026, the Company recorded a non-cash impairment charge related to a minority investment in Indonesia. The Company believes these charges are not indicative of the Company’s core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company’s operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts.
The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.
SG&A as a Percent of Net Sales 10.9 % 8.5 % 9.9 % 8.7 % (GAAP) Transform and Modernize -0.4 -0.4 -0.4 -0.5 Initiative(2) Gain (Loss) on Divestitures -1.9 — -1.1 -0.1 Corporate Restructuring Plan — — -0.1 — Consulting Agreement — — -0.1 — Litigation Settlements -1.3 — -0.4 — Adjusted SG&A as a Percent of Net Sales 7.3 % 8.1 % 7.8 % 8.1 % (Non-GAAP) Operating Margin (GAAP) 3.7 % 7.9 % 6.4 % 8.0 % Transform and Modernize 0.4 0.5 0.4 0.5 Initiative(1)(2) (Gain) Loss on Divestitures 1.9 — 1.1 0.1 Corporate Restructuring Plan — — 0.1 — Consulting Agreement — — 0.1 — Litigation Settlements 1.3 — 0.4 — Impairments 1.6 — 0.5 — Adjusted Operating Margin 9.0 % 8.4 % 9.0 % 8.7 % (Non-GAAP)
(1) Comprised primarily of costs related to supply chain and portfolio optimization.
(1) International segment profit (loss) adjustments in the third quarter of fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, an unfavorable litigation settlement, nonrecurring T&M initiative costs, and corporate restructuring plan charges.
(2) Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were comprised of nonrecurring T&M initiative costs.
(1) International segment profit (loss) adjustments in the first nine months of fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, nonrecurring T&M initiative costs, an unfavorable litigation settlement, corporate restructuring plan charges, and Consulting Agreement costs.
(2) Net Unallocated Expense adjustments in the first nine months of fiscal 2025 were comprised of nonrecurring T&M initiative costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable litigation settlement. 13
The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of the Company's controlling equity interest in Justin's, LLC in the first quarter of fiscal 2026.
The information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.
To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale of the
branded business in the first quarter of fiscal 2026 and the sale of its Brazil operations in the fourth quarter of fiscal 2026.
The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.
Resulting in an adjusted operating income range (non-GAAP) of $1,075 million to $1,115 million.
The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a non-GAAP measure that excludes items impacting comparability.
Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45 to $1.51. 15
Full text with the tables
HORMEL FOODS REPORTS THIRD QUARTER FISCAL 2026 RESULTS
Company Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third Quarter
and Strong Year-to-Date Performance
AUSTIN, Minn.
(Aug. 27, 2026) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global
branded food company, today reported results for the third quarter of fiscal
2026, which ended July 26, 2026. All comparisons are to the comparable period of
fiscal 2025, unless otherwise noted.
EXECUTIVE SUMMARY — THIRD QUARTER
• Net sales of $2.96 billion; organic net sales 1 down 2%
• Operating income of $111 million; a djusted operating income 1 of $266 million
• Operating margin of 3.7% ; adjusted operating margin 1 of 9.0%
• Earnings before income taxes of $103 million; a djusted earnings before income
taxes 1 of $258 million
• Diluted earnings per share of $0.11; a djusted diluted earnings per share 1 of
$0.37
• Cash flow from operations of $241 million
EXECUTIVE COMMENTARY
"We delivered solid third quarter results, growing our adjusted earnings and
continuing to advance our fiscal 2026 objectives,” said Jeff Ettinger, interim
chief executive officer. "With our strong year-to-date performance and continued
opportunities ahead, we are raising and narrowing our adjusted earnings outlook
for fiscal 2026 and remain confident in delivering adjusted earnings growth for
the year consistent with, or above, our long-term algorithm."
"We continued to make progress against our strategic priorities during the
quarter," said John Ghingo, president and chief executive officer-elect. "While
net sales declined, the results reflected the impacts of portfolio-shaping
actions, lower commodity-based pricing in portions of the business and a
consumer environment that remains under pressure. At the same time, several of
our Retail priority brands delivered growth, and Foodservice once again
outperformed industry trends, supported by the strength of our solutions-based
offerings and operator partnerships. As we continue to enhance our capabilities
and sharpen our focus, we remain committed to disciplined execution and
positioning the company for long-term success.”
FULL YEAR FISCAL 2026 GUIDANCE
For fiscal 2026, the Company:
• Expects net sales to be in the range of $12.1 billion to $12.2 billion,
reflecting organic net sales 1 growth of 1% to 2%
• Updates operating income guidance to be in the range of $0.83 billion to $0.87
billion, which includes the estimated loss related to the Brazil divestiture, a
non-cash impairment charge related to a minority investment in Indonesia, and a
litigation settlement
• Raises adjusted operating income 1 guidance to be in the range of $1.08
billion to $1.12 billion, reflecting growth of 6% to 10%
• Updates diluted earnings per share guidance to be in the range of $1.06 to
$1.12
• Raises adjusted diluted earnings per share 1 guidance to be in the range of
$1.45 to $1.51, reflecting growth of 6% to 10%
Updated Previous
Net Sales $12.1 - $12.2 billion $12.2 - $12.5 billion
Organic Net Sales1Growth 1% - 2% 1% - 4%
Rate
Diluted Earnings per Share $1.06 - $1.12 $1.28 - $1.37
Adj. Diluted Earnings per $1.45 - $1.51 $1.43 - $1.51
Share1
1
PORTFOLIO SHAPING
During the third quarter of fiscal 2026, the Company announced a definitive
agreement to sell its Brazil operations, operated under the
Ceratti
®
brand, and classified the business as held for sale. The divestiture reflects
the Company's ongoing efforts to simplify and streamline its portfolio and focus
its international strategy on markets with the strongest long-term growth
opportunities.
The transaction successfully closed in the early part of the fourth quarter of
fiscal 2026. The expected impacts of the divestiture are reflected in the
Company's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter
of fiscal 2026, the impact of the divestiture will be excluded from year-over-
year comparisons in the Company's non-GAAP organic volume¹ and organic net
sales¹ metrics.
SEGMENT HIGHLIGHTS – THIRD QUARTER
Retail
• Volume down 9%; organic volume 1 down 9%
• Net sales down 4%; organic net sales 1 down 3%
• Segment profit down 4%
Organic net sales 1 decreased in the third quarter of fiscal 2026, as declines
in commodity turkey and private label snack nuts were partially offset by strong
performance in value-added turkey offerings, contract manufacturing and
Planters
® snack nuts. Additional priority brands that delivered solid growth during the
quarter include the
SPAM
®
family of products,
Applegate
®
natural and organic meats, and
Hormel
®
chili. Segment profit decreased for the third quarter of fiscal 2026, as lower
net sales and higher logistics expenses were partially offset by lower selling,
general and administrative expenses.
Foodservice
• Volume down 1%; organic volume 1 down 1%
• Net sales up 2%; organic net sales 1 up 2%
• Segment profit up 3%
The third quarter of fiscal 2026 marked the 12 th consecutive quarter of organic
net sales 1 growth for the Foodservice segment. Organic net sales¹ growth was
broad-based despite the impact of lower commodity-based pricing in portions of
the portfolio. Growth was driven by multiple product groups and categories, led
by significant contributions from premium prepared proteins, branded pepperoni
and
Jennie-O
® turkey. Additional branded products, including
Austin Blues
®
smoked meats,
Hormel
®
Natural Choice
®
meats and
Hormel
®
Fire Braised
™ meats, also delivered strong net sales results. Segment profit increased for
the third quarter of fiscal 2026, as higher net sales and favorable pork input
costs were partially offset by higher logistics and selling, general and
administrative expenses.
International
• Volume down 11%; organic volume 1 down 11%
• Net sales down 5%; organic net sales 1 down 4%
• Segment profit down 254%; adjusted segment profit 1 flat
For the International segment, organic net sales¹ declined in the third quarter
of fiscal 2026. While branded export demand remained resilient during the
quarter, the recognition of certain
SPAM
®
export sales was adversely impacted due to a one-time legal-entity transition.
Segment profit was significantly impacted by a non-cash impairment charge.
Adjusted segment profit 1 was comparable to the prior year, as minority
investment performance offset weaker results in Brazil.
2
ADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026
Income Statement
• Operating margin and adjusted operating margin 1 were 3.7% and 9.0%,
respectively, compared to 7.9% and 8.4%, 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 sales
1 were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%, respectively, in
the prior year.
• Advertising investments were $34 million, compared to $41 million last year.
• Significant discrete pre-tax items included: a loss of $56 million related to
the Brazil divestiture, a non-cash impairment charge related to a minority
investment in Indonesia of $48 million and a litigation settlement of $38
million.
• The effective tax rate was 42.3%, compared to 22.3% last year, and was
significantly impacted by one-time items.
Cash Flow Statement
• Cash flow from operations was $241 million, an increase of 54% compared to the
prior year.
• Capital expenditures were $68 million, compared to $72 million last year. The
largest projects in the third quarter of fiscal 2026 were related to
infrastructure enhancements and investments in data and technology.
• Depreciation and amortization expense was $66 million, compared to $65 million
last year.
• The Company returned $161 million to stockholders during the quarter through
dividends.
Balance Sheet
• The Company remained in a strong financial position at quarter end, with ample
liquidity and a conservative level of debt.
• Cash on hand, excluding assets held for sale, was $840 million at quarter end,
an increase of $169 million from the end of fiscal 2025.
• Inventories were $1.8 billion at quarter end, an increase of $54 million from
the end of fiscal 2025.
PRESENTATION
A conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is
available at hormelfoods.com by clicking on "Investors." The call will also be
available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983
(international) and providing the conference ID 915 330 197. An audio replay is
available at hormelfoods.com. The webcast replay will be available at noon CT,
Aug. 27, 2026, and will remain on the website for one year.
ABOUT HORMEL FOODS
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food
company with over $12 billion in annual revenue. Its brands include
Planters
®
,
Skippy
®
,
SPAM
®
,
Hormel
®
Natural Choice
®
,
Applegate
®
,
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 and one of America’s most responsible
companies by Newsweek, was 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. 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 guidance and future financial and operational performance.
3
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 that 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 related to acquisitions, joint ventures, equity investments,
and divestitures; 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 unfavorable changes in
the Company's relationships with third parties; risk of the Company's inability
to protect information technology (IT) systems against, or effectively respond
to, cyberattacks, security breaches or other IT interruptions; labor relations
and labor availability risks; 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 government
regulation; risks related to 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 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 press release may not
sum precisely to the totals provided, and percentages may not precisely reflect
the absolute figures.
Reclassifications: Certain prior year amounts have been reclassified to conform
to the current year presentation.
END NOTES
1 Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for
more information.
INVESTOR CONTACT
Jess Blomberg
ir@hormel.com
MEDIA CONTACT
Laura Cederberg
media@hormel.com
4
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
July July Nine July July
Quar… 26, 27, Months 26, 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 2,961… $ 3,03… $ 8,96… $ 8,920…
Sales
Cost
of 2,489… 2,54… 7,50… 7,473…
Prod…
Sold
Gross 471,5… 487,… 1,45… 1,446…
Prof…
Sell…
Gene… 323,5… 258,… 883,… 773,1…
and
Admi…
Equi…
in
Earn… -37,1… 11,1… -4,0… 42,614
of
Affi…
Oper… 110,9… 239,… 571,… 716,4…
Inco…
Inte… 6,661 4,877 19,6… 18,596
Inco…
Inte… 19,635 19,4… 59,1… 58,438
Expe…
Other
Inco… 5,227 11,3… 11,3… 8,488
(Exp…
Net
Earn…
Befo… 103,1… 236,… 543,… 685,0…
Inco…
Taxes
Prov…
for 43,638 52,8… 144,… 151,1…
Inco…
Taxes
Effe…
Tax 42.3 % 22.3 % 26.7 % 22.1 %
Rate
Net 59,519 183,… 398,… 533,9…
Earn…
Less:
Net
Earn…
(Los… -55 -46 -182 -366
Attr…
to
Nonc…
Inte…
Net
Earn…
Attr…
to $ 59,573 $ 183,… $ 398,… $ 534,3…
Horm…
Foods
Corp…
Net
Earn…
Per
Shar…
Basic $ 0.11 $ 0.33 $ 0.72 $ 0.97
Dilu… $ 0.11 $ 0.33 $ 0.72 $ 0.97
Weig…
Shar…
Outs…
Basic 550,6… 550,… 550,… 550,0…
Dilu… 551,0… 550,… 550,… 550,3…
Divi…
Decl… $ 0.2925 $ 0.29… $ 0.87… $ 0.8700
Per
Share
5
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands
Unaudited
July 26, 2026 October 26, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Cash and Cash Equivalents $ 839,639 $ 670,679
Short-term Marketable Securities 28,807 32,909
Accounts and Other Receivables, 733,460 813,989
Net
Inventories 1,801,567 1,747,279
Taxes Receivable 58,688 96,791
Prepaid Expenses and Other
Current 53,420 44,010
Assets
Assets Held for Sale 10,659 —
Total Current Assets 3,526,238 3,405,656
Goodwill 4,867,763 4,924,087
Intangible Assets 1,572,850 1,647,297
Pension Assets 204,135 211,826
Investments in Affiliates 527,864 533,984
Other Assets 430,139 431,500
Property, Plant, and Equipment, 2,163,025 2,238,770
Net
Total Assets $ 13,292,014 $ 13,393,119
Liabilities and Shareholders’
Investment
Accounts Payable & Accrued $ 771,154 $ 787,350
Expenses
Accrued Marketing Expenses 133,313 113,947
Employee-related Expenses 250,072 273,402
Interest and Dividends Payable 175,646 180,700
Taxes Payable 10,690 18,752
Current Maturities of Long-term 505,634 6,646
Debt
Liabilities Held for Sale 27,483 —
Total Current Liabilities 1,873,991 1,380,796
Long-term Debt Less Current 2,349,489 2,850,778
Maturities
Pension and Postretirement 351,174 358,984
Benefits
Deferred Income Taxes 653,360 661,349
Other Long-term Liabilities 204,345 225,397
Accumulated Other Comprehensive -236,907 -243,646
Loss
Other Shareholders’ Investment 8,096,561 8,159,461
Total Liabilities and
Shareholders’ $ 13,292,014 $ 13,393,119
Investment
6
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
July July Nine July
Quarter 26, 27, Months 26, July 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Opera…
Activ…
Net $ 59,519 $ 183,696 $ 398,666 $ 533,968
Earni…
Depre…
and 66,427 64,692 202,348 194,527
Amort…
Equity
in
Earni… 37,110 -11,153 4,061 -42,614
of
Affil…
Loss
(Gain) 57,379 — 94,085 10,800
on
Dives…
Decre…
(Incr…
in
Worki… -2,174 -95,844 111 -255,011
Capit…
Net of
Dives…
Other 22,339 15,307 69,481 80,674
Net
Cash
Provi…
by 240,599 156,698 768,752 522,345
(Used
in)
Opera…
Activ…
Inves…
Activ…
Net
Sale
(Purc… 3,498 -1,434 3,372 -6,170
of
Secur…
Proce…
from
Sale -2,979 — 97,056 13,139
of
Busin…
Purch…
of
Prope… -68,163 -72,194 -219,3… -219,444
Plant,
and
Equip…
Proce…
from
(Purc…
of) — -584 -5,316 -3,283
Affil…
and
Other
Inves…
Other 6,119 7,890 11,952 10,767
Net
Cash
Provi…
by -61,526 -66,323 -112,2… -204,991
(Used
in)
Inves…
Activ…
Finan…
Activ…
Repay…
of
Long-…
Debt -1,773 -2,005 -5,425 -6,250
and
Finan…
Leases
Divid…
Paid
on -160,9… -159,4… -481,4… -473,692
Common
Stock
Other -283 -1,784 -1,609 24,057
Net
Cash
Provi…
by -163,0… -163,2… -488,4… -455,884
(Used
in)
Finan…
Activ…
Effect
of
Excha…
Rate 1,291 2,381 5,368 -4,161
Chang…
on
Cash
Incre…
(Decr…
in
Cash,
Cash
Equiv… 17,345 -70,499 173,417 -142,692
and
Cash
Held
for
Sale
Cash,
Cash
Equiv…
and
Cash
Held 826,750 669,688 670,679 741,881
for
Sale
at
Begin…
of
Period
Cash,
Cash
Equiv…
and
Cash
Held 844,095 599,189 844,095 599,189
for
Sale
at End
of
Period
Less:
Cash
Held 4,457 — 4,457 —
for
Sale
Cash
and
Cash
Equiv… $ 839,639 $ 599,189 $ 839,639 $ 599,189
at End
of
Period
7
HORMEL FOODS CORPORATION
SEGMENT DATA
In thousands
Unaudited
July July Nine July July
Qua… 26, 27, % Mon… 26, 27, %
End… 2026 2025 Chan… End… 2026 2025 Chan…
──────────────────────────────────────────────────────────────────────────────
Vo…
(l…
Re… 648… 712… -9.1 2,00… 2,1… -5.7
Fo… 244… 248… -1.5 733,… 734… -0.2
In… 75,… 85,… -10.8 231,… 239… -3.1
To…
Vo… 969… 1,0… -7.4 2,97… 3,1… -4.2
(l…
Net
Sa…
Re… $ 1,7… $ 1,8… -4.3 $ 5,41… $ 5,5… -2.1
Fo… 1,0… 986… 1.6 2,99… 2,8… 5.1
In… 178… 187… -4.7 546,… 534… 2.2
To…
Net $ 2,9… $ 3,0… -2.4 $ 8,96… $ 8,9… 0.5
Sa…
Se…
Pr…
Re… $ 118… $ 122… -3.7 $ 369,… $ 378… -2.4
Fo… 144… 140… 2.7 456,… 420… 8.7
In… -29… 18,… -254… 15,8… 58,… -72.8
To…
Se… 233… 282… -17.3 842,… 857… -1.7
Pr…
Net
Un… 130… 45,… 185.0 298,… 171… 74.0
Ex…
No… -55 -46 -20.4 -182 -366 50.2
In…
Ea…
Be… $ 103… $ 236… -56.4 $ 543,… $ 685… -20.7
In…
Ta…
8
APPENDIX: NON-GAAP MEASURES
This press release includes measures of financial performance that are not
defined by U.S. generally accepted accounting principles (GAAP). The Company
utilizes these non-GAAP measures to understand and evaluate operating
performance on a consistent basis. These measures may also be used when making
decisions regarding resource allocation and in determining incentive
compensation. The Company believes these non-GAAP measures provide useful
information to investors because they aid analysis and understanding of the
Company’s results and business trends relative to past performance and the
Company’s competitors. Non-GAAP measures are not intended to be a substitute for
GAAP measures in analyzing financial performance. These non-GAAP measures are
not calculated in accordance with GAAP and may be different from non-GAAP
measures used by other companies.
Transform and Modernize (T&M) Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M
initiative. In presenting non-GAAP measures, the Company adjusts for (i.e.,
excludes) expenses for this initiative that are nonrecurring, which are
primarily project-based external consulting fees and expenses related to supply
chain and portfolio optimization (e.g., asset write-offs, severance, or
relocation-related costs). The Company believes that nonrecurring costs
associated with the T&M initiative are not reflective of the Company’s ongoing
operating cost structure; therefore, the Company is excluding these discrete
costs. The Company does not adjust for (i.e., does not exclude) certain costs
related to the T&M initiative that are expected to continue after the project
ends, such as software license fees and internal employee expenses, because
those costs are considered ongoing in nature as a component of normal operating
costs. The Company also does not adjust for savings realized through the T&M
initiative as these are considered ongoing in nature and reflective of expected
future operating performance.
Gain or Loss on Divestitures
As part of its ongoing portfolio management activities, the Company may
periodically divest certain businesses to better align its portfolio with its
strategic objectives and long-term growth strategy. The Company believes the
one-time impacts from these transactions, including transaction costs, are not
reflective of the Company’s ongoing operating cost structure, are not indicative
of the Company’s core operating performance, and are not meaningful when
comparing the Company’s operating performance against that of prior periods.
Thus, the Company has adjusted for (i.e., excluded) these impacts. Transactions
affecting comparability include the Brazil transaction, the whole-bird turkey
transaction, the Justin's, LLC transaction, and the Mountain Prairie, LLC
divestiture.
Corporate Restructuring Plan
In the fourth quarter of fiscal 2025, the Company commenced a corporate
restructuring plan, the focus of which is to reduce administrative expenses,
improve efficiencies, and align the workforce to the Company’s future needs,
while enabling continued investment in the Company’s growth. The costs incurred
to execute the corporate restructuring plan and the charges incurred under the
program are primarily related to severance and employee benefit costs. Because
the Company believes certain charges incurred under the corporate restructuring
plan do not reflect future operating costs and are not meaningful when comparing
the Company's operating performance against that of prior periods, the Company
adjusts for (i.e., excludes) these impacts.
Consulting Agreement
On October 27, 2025, the Company entered into a consulting agreement (Consulting
Agreement) with its former Chief Executive Officer (CEO), pursuant to which the
former CEO is expected to provide consulting services to the Company until April
2027. Consulting costs related to the Consulting Agreement include cash and
share-based compensation, which were primarily recognized in the first quarter
of fiscal 2026. The Company believes nonrecurring costs associated with the
Consulting Agreement are not reflective of the Company’s ongoing operating cost
structure, are not indicative of the Company’s core operating performance, and
are not meaningful when comparing the Company’s operating performance against
that of prior periods; therefore, the Company is excluding these discrete costs.
9
Legal Matters
From time to time, the Company receives proceeds or incurs expenses related to
discrete legal matters that the Company believes are not indicative of the
Company’s core operating performance, do not reflect expected future operating
income or costs, and are not meaningful when comparing the Company’s operating
performance against that of prior periods. The Company adjusts for (i.e.,
excludes) these impacts.
Litigation Settlements
In the third quarter of fiscal 2026, the Company executed a settlement agreement
with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the Company
entered into a settlement agreement with certain plaintiffs in an antitrust
lawsuit.
Impairments
In the third quarter of fiscal 2026, the Company recorded a non-cash impairment
charge related to a minority investment in Indonesia. The Company believes these
charges are not indicative of the Company’s core operating performance, do not
reflect expected future operating income or costs, and are not meaningful when
comparing the Company’s operating performance against that of prior periods.
Thus, the Company has adjusted for (i.e., excluded) these impacts.
The tables below show the calculations to reconcile from the GAAP measures to
the non-GAAP measures presented in this press release. The tax provision expense
or benefit of each of the pre-tax items excluded from the Company's GAAP results
was computed based on the facts and tax implications associated with each item.
HORM…
FOODS
CORP… In
RECO… thous…
OF except
NON-… per July July Nine July July
MEAS… share Quarter 26, 27, Months 26, 27,
Unau… amoun… Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost
of
Prod… $ 2,489… $ 2,545,… $ 7,501,… $ 7,473…
Sold
(GAA…
Tran…
and -447 -1,010 -2,222 -3,973
Mode…
Init…
Adju…
Cost
of $ 2,489… $ 2,544,… $ 7,499,… $ 7,469…
Prod…
Sold
(Non…
SG&A $ 323,5… $ 258,713 $ 883,822 $ 773,1…
(GAA…
Tran…
and -11,7… -13,485 -36,448 -41,2…
Mode…
Init…
Gain
(Los… -57,3… — -94,911 -11,3…
on
Dive…
Corp…
Rest… 26 — -8,505 —
Plan
Cons… — — -7,775 —
Agre…
Liti… -37,5… — -37,500 -240
Sett…
Adju…
SG&A $ 216,8… $ 245,228 $ 698,684 $ 720,3…
(Non…
Equi…
in
Earn… $ -37,1… $ 11,153 $ -4,061 $ 42,614
of
Affi…
(GAA…
Impa… 48,218 — 48,218 —
Adju…
Equi…
in
Earn… $ 11,109 $ 11,153 $ 44,157 $ 42,614
of
Affi…
(Non…
10
HORM…
FOODS
CORP… In
RECO… thous…
OF except
NON-… per July July Nine July July
MEAS… share Quarter 26, 27, Months 26, 27,
Unau… amoun… Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Oper…
Inco… $ 110,9… $ 239,748 $ 571,713 $ 716,4…
(GAA…
Tran…
and 12,239 14,496 38,669 45,202
Mode…
Init…
(Gai…
Loss 57,379 — 94,911 11,324
on
Dive…
Corp…
Rest… -26 — 8,505 —
Plan
Cons… — — 7,775 —
Agre…
Liti… 37,500 — 37,500 240
Sett…
Impa… 48,218 — 48,218 —
Adju…
Oper… $ 266,2… $ 254,244 $ 807,292 $ 773,1…
Inco…
(Non…
Earn…
Befo…
Inco… $ 103,1… $ 236,514 $ 543,531 $ 685,0…
Taxes
(GAA…
Tran…
and 12,239 14,496 38,669 45,202
Mode…
Init…
(Gai…
Loss 57,379 — 94,911 11,324
on
Dive…
Corp…
Rest… -26 — 8,505 —
Plan
Cons… — — 7,775 —
Agre…
Liti… 37,500 — 37,500 240
Sett…
Impa… 48,218 — 48,218 —
Adju…
Earn…
Befo… $ 258,4… $ 251,010 $ 779,110 $ 741,8…
Inco…
Taxes
(Non…
Prov…
for
Inco… $ 43,638 $ 52,818 $ 144,865 $ 151,1…
Taxes
(GAA…
Tran…
and 2,999 3,233 9,474 9,960
Mode…
Init…
(Gai…
Loss 303 — 4,525 2,469
on
Dive…
Corp…
Rest… -6 — 2,084 —
Plan
Cons… — — — —
Agre…
Liti… 9,188 — 9,188 52
Sett…
Impa… — — — —
Adju…
Prov…
for $ 56,120 $ 56,051 $ 170,136 $ 163,5…
Inco…
Taxes
(Non…
Net
Earn…
Attr…
to $ 59,573 $ 183,742 $ 398,848 $ 534,3…
Horm…
Foods
Corp…
(GAA…
Tran…
and 9,241 11,263 29,195 35,242
Mode…
Init…
(Gai…
Loss 57,076 — 90,386 8,855
on
Dive…
Corp…
Rest… -20 — 6,421 —
Plan
Cons… — — 7,775 —
Agre…
Liti… 28,313 — 28,313 188
Sett…
Impa… 48,218 — 48,218 —
Adju…
Net
Earn…
Attr…
to $ 202,4… $ 195,005 $ 609,156 $ 578,6…
Horm…
Foods
Corp…
(Non…
11
HORM…
FOODS
CORP… In
RECO… thous…
OF except
NON-… per July July Nine July July
MEAS… share Quarter 26, 27, Months 26, 27,
Unau… amoun… Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Dilu…
Earn…
Per $ 0.11 $ 0.33 $ 0.72 $ 0.97
Share
(GAA…
Tran…
and 0.02 0.02 0.05 0.06
Mode…
Init…
(Gai…
Loss 0.10 — 0.16 0.02
on
Dive…
Corp…
Rest… — — 0.01 —
Plan
Cons… — — 0.01 —
Agre…
Liti… 0.05 — 0.05 —
Sett…
Impa… 0.09 — 0.09 —
Adju…
Dilu…
Earn… $ 0.37 $ 0.35 $ 1.11 $ 1.05
Per
Share
(Non…
SG&A as a Percent of Net Sales 10.9 % 8.5 % 9.9 % 8.7 %
(GAAP)
Transform and Modernize -0.4 -0.4 -0.4 -0.5
Initiative(2)
Gain (Loss) on Divestitures -1.9 — -1.1 -0.1
Corporate Restructuring Plan — — -0.1 —
Consulting Agreement — — -0.1 —
Litigation Settlements -1.3 — -0.4 —
Adjusted SG&A as a Percent of
Net Sales 7.3 % 8.1 % 7.8 % 8.1 %
(Non-GAAP)
Operating Margin (GAAP) 3.7 % 7.9 % 6.4 % 8.0 %
Transform and Modernize 0.4 0.5 0.4 0.5
Initiative(1)(2)
(Gain) Loss on Divestitures 1.9 — 1.1 0.1
Corporate Restructuring Plan — — 0.1 —
Consulting Agreement — — 0.1 —
Litigation Settlements 1.3 — 0.4 —
Impairments 1.6 — 0.5 —
Adjusted Operating Margin 9.0 % 8.4 % 9.0 % 8.7 %
(Non-GAAP)
(1) Comprised primarily of costs related to supply chain and portfolio
optimization.
(2) Comprised primarily of project-based external consulting fees.
12
ADJUSTED SEGMENT PROFIT (NON-GAAP)
Qu…
En…
Ju… J…
26, 2…
20… 2…
──────────────────────────────────────────────────────────────────────────────
In GA… N… N… G… N… N…
t… A… A…
S…
P…
(…
R… $ 11… $ — $ 11… $ 12… $ — $ 12…
F… 14… — 14… 14… — 14…
I… -2… 48… 18… 18… — 18…
T…
S… 23… 48… 28… 28… — 28…
P…
(…
N…
U… 13… -1… 23… 45… -1… 31…
E…
N… -55 — -55 -46 — -46
I…
E…
B… $ 10… $ 15… $ 25… $ 23… $ 14… $ 25…
I…
T…
(1) International segment profit (loss) adjustments in the third quarter of
fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense
adjustments were comprised of gain (loss) on divestitures, an unfavorable
litigation settlement, nonrecurring T&M initiative costs, and corporate
restructuring plan charges.
(2) Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were
comprised of nonrecurring T&M initiative costs.
Ni…
Mo…
En…
Ju… J…
26, 2…
20… 2…
──────────────────────────────────────────────────────────────────────────────
In GA… N… N… G… N… N…
t… A… A…
S…
P…
(…
R… $ 36… $ — $ 36… $ 37… $ — $ 37…
F… 45… — 45… 42… — 42…
I… 15… 48… 64… 58… — 58…
T…
S… 84… 48… 89… 85… — 85…
P…
(…
N…
U… 29… -1… 11… 17… -5… 11…
E…
N… -1… — -1… -3… — -3…
I…
E…
B… $ 54… $ 23… $ 77… $ 68… $ 56… $ 74…
I…
T…
(1) International segment profit (loss) adjustments in the first nine months of
fiscal 2026 were due to a non-cash impairment charge. Net Unallocated Expense
adjustments were comprised of gain (loss) on divestitures, nonrecurring T&M
initiative costs, an unfavorable litigation settlement, corporate restructuring
plan charges, and Consulting Agreement costs.
(2) Net Unallocated Expense adjustments in the first nine months of fiscal 2025
were comprised of nonrecurring T&M initiative costs, the loss on the divestiture
of Mountain Prairie, LLC and an unfavorable litigation settlement.
13
ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)
The non-GAAP measures of organic volume and organic net sales are presented to
provide investors with additional information to facilitate the comparison of
past and present operations. Organic volume and organic net sales exclude the
impact of the sale of the Company's controlling equity interest in Justin's, LLC
in the first quarter of fiscal 2026.
Qu…
En…
Ju… Ju…
26, 27,
20… 20…
──────────────────────────────────────────────────────────────────────────────
In No… No…
t… GA… GA… Di… Or… %
Ch…
V…
(…
R… 64… 71… -3… 70… -8…
F… 24… 24… -3… 24… -1…
I… 75… 85… -68 85… -1…
T…
V… 96… 1,… -3… 1,… -7…
(…
N…
S…
R… $ 1,… $ 1,… $ -1… $ 1,… -3…
F… 1,… 98… -1… 98… 1.8
I… 17… 18… -5… 18… -4…
T…
N… $ 2,… $ 3,… $ -2… $ 3,… -1…
S…
Ni…
Mo…
En…
Ju… Ju…
26, 27,
20… 20…
──────────────────────────────────────────────────────────────────────────────
In No… No…
t… GA… GA… Di… Or… %
Ch…
V…
(…
R… 2,… 2,… -8… 2,… -5…
F… 73… 73… -7… 73… -0…
I… 23… 23… -1… 23… -3…
T…
V… 2,… 3,… -9… 3,… -3…
(…
N…
S…
R… $ 5,… $ 5,… $ -4… $ 5,… -1…
F… 2,… 2,… -4… 2,… 5.2
I… 54… 53… -1… 53… 2.4
T…
N… $ 8,… $ 8,… $ -5… $ 8,… 1.0
S…
14
FORWARD-LOOKING GAAP TO NON-GAAP MEASURES
The information below reconciles the estimated fiscal 2026 GAAP measures to the
corresponding estimated adjusted non-GAAP measures.
Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)
To provide a clearer comparison of past and present net sales performance, the
Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale
of the
Justin's
®
branded business in the first quarter of fiscal 2026 and the sale of its Brazil
operations in the fourth quarter of fiscal 2026.
Fiscal
In 2026 2025
billi… Outlo… Results Change
──────────────────────────────────────────────────────────────────────────────
Net
Sales $ 12.1 - $ 12.2 $ 12.1 0% - 1%
(GAAP)
Dives… — - — -0.1
Organ…
Net $ 12.1 - $ 12.2 $ 12.0 1% - 2%
Sales
(Non-…
Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP
measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
• Operating income (GAAP) in the range of $826 million to $869 million
• Adjustments for gains and losses on divestitures of $94.9 million
• Adjustments for the T&M initiative of $49.0 million to $52.0 million
• Adjustment for a non-cash impairment of $48.2 million
• Adjustment for a litigation settlement of $37.5 million
• Adjustments for corporate restructuring plan-related charges of $8.5 million
• Adjustment for the Consulting Agreement of $7.8 million
Resulting in an adjusted operating income range (non-GAAP) of $1,075 million to
$1,115 million.
Fiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a
non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
• Diluted earnings per share (GAAP) in the range of $1.06 to $1.12
• Adjustments for gains and losses on divestitures of $0.16
• Adjustment for a non-cash impairment of $0.09
• Adjustments for the T&M initiative of $0.07
• Adjustment for a litigation settlement of $0.05
• Adjustments for corporate restructuring plan-related charges of $0.01
• Adjustment for the Consulting Agreement of $0.01
Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45 to
$1.51.
15