PILGRIMS PRIDE CORP Q3 FY2026 earnings call

• U.S. Operational Updates:

  • Completed expansion at Ellijay, Georgia plant to support high-value small boneless chicken category.
  • Live production and yield efficiencies improved; operational excellence initiatives exceeded targets.
  • Prepared Foods segment saw volume growth >15% YoY and nearly doubled profitability compared to Q3 2025.
  • New prepared foods plant in Walker County, Georgia construction progressing, commissioning expected H2 2027.
  • JustBear brand outpaced frozen fully-cooked category; Pilgrims Flaming Hot Chicken launch received strong marketplace acceptance.

• European Market Dynamics:

  • Poultry remained fastest-growing retail category due to affordability focus.
  • Meals offerings grew double digits via targeted promotions.
  • Richmond sausage brand challenged by intense private label competition and raw material costs.
  • Food service demand tepid with declining QSR visits; acquisition of Walker’s Deli anticipated early 2027 to integrate high-welfare pork value chain.

• Mexican Market Progress:

  • Fresh branded offerings led growth with volumes up >40% YoY; JustBear brand volumes more than doubled.
  • Improved live commodity supply-demand fundamentals in late Q3.
  • Continued investment in automation and prepared foods; ramp-up of South/Peninsula region investments on track.

• Sustainability & ESG:

  • Scope 1 and 2 greenhouse gas emissions intensity lowered by >20% since 2019.
  • Global safety index improved by >60% YoY.
  • Better Futures tuition program enrolled 220 team members/dependents in 2025.

• U.S. Business: Net revenues of $4.7 billion (down 5.5% YoY) with adjusted EBITDA of $185.2 million (down from $479.1 million in Q3 2025). Adjusted EBITDA margin was 6.9% (vs. 16.9% prior year). Revenue decline driven by lower commodity pricing and internal supply shifts to prepared foods.
• Europe: Net revenues declined 1% YoY. Adjusted EBITDA was $102 million (down from $110.4 million). Adjusted EBITDA margin was 7.4% (vs. 7.9% prior year). Performance supported by poultry strength but pressured by pork margins and food service traffic declines.
• Mexico: Net revenues increased 13% YoY. Adjusted EBITDA was $29.1 million (down from $43.7 million). Adjusted EBITDA margin was 4.9% (vs. 8.2% prior year). Volume growth offset by lower market pricing and competitive protein availability.

• Full-year Net Interest Expense: Anticipated to be approximately $130 million (excluding $16.3M loss on early debt extinguishment).
• Full-year Capital Expenditures: Estimated to approximate $875 million.
• Effective Tax Rate: Expected to approximate 26% based on geographical mix of pre-tax earnings.
• Long-term Leverage Target: Maintaining target leverage ratio of 2x to 3x last 12 months adjusted EBITDA; current ratio is 1.76x.
• No specific full-year revenue or EBITDA guidance provided for the remainder of 2026 beyond quarterly results and CapEx estimates.

• Commodity Price Volatility: Uncertainty in corn, soybean meal, and wheat markets due to weather, export dynamics, and geopolitical disruptions (Black Sea).
• Supply Chain Disruptions: Potential impact of avian influenza bans and trade restrictions, particularly regarding imports from Brazil affecting meat availability.
• Competitive Pressure: Increased availability of competing proteins at historically low prices impacting margins in Mexico and prepared foods.
• Regulatory and Trade Risks: Ongoing volatility in Middle East trade routes and potential changes in Chinese import policies affecting U.S. exports.
• Cost Inflation: Sustained escalation of production costs and imported pork competition pressuring European margins.

N/A - The conference operator explicitly stated that the company will not be taking questions today, concluding the call immediately after management's closing remarks.