Tyson Foods, Inc. Q2 FY2026 earnings call

• Overall pleased with second quarter performance and raising AOI guidance for the year. • Focused on disciplined execution, diversified multi-protein portfolio, and balanced capital allocation. • Shift to segment operating income working as intended, empowering business leaders. • Chicken delivered strong quarter with 12.2% margin, volume growth, and improved execution. • Prepared Foods saw segment operating income increase despite higher commodity costs, with share gains and innovation. • Beef completed manufacturing footprint optimization, expects benefits in coming quarters. • Pork performed well in stable environment. • International segment continued momentum. • Using AI-driven insights for innovation, like Jimmy Dean protein breakfast platform. • Retail performance superior to competitors, digital growth stronger than in-store

Chicken: Segment operating income $523 million, 12.2% margin; sales up 3.5% year over year, total chicken volume up 1.7%, retail and food service volumes grew nearly three times faster than total volume. Prepared Foods: Segment operating income $352 million, margin 14%; sales grew 4.8%, volume grew 0.4%, gained share in volume, dollars, and units. Beef: Segment results reflected cattle cycle volatility; completed manufacturing footprint optimization, expects benefits to build, outlook for remainder of year implies lower losses in back half than front half. Pork: Performed well in stable operating environment, segment operating income $41 million, margin 2.6%; reliable pork raw materials and integrated network improving mix. International: Continued momentum, benefits from increasing demand for protein and diversified portfolio

• Full year sales expected to be up 2% to 4% year over year. • Total company adjusted operating income range $2.2 to $2.4 billion, increased by $100 million at midpoint. • Interest expense approximately $365 million, lower than previous guidance by $5 million; tax rate around 25%. • CapEx expected between $700 million and $1 billion; free cash flow range $1.2 to $1.8 billion. • Prepared Foods segment operating income expected $1.25 to $1.35 billion. • Chicken segment operating income range $1.9 to $2.05 billion, increased by $200 million at midpoint. • Beef segment operating income loss between $500 and $350 million. • Pork segment operating income $250 to $300 million. • International segment operating income $150 to $200 million. • Corporate expenses and amortization anticipated $950 to $975 million

Q: Congrats on strong results and asked about sustainability of chicken performance and role of genetics.

A: Momentum real, not commodity-driven, genetics business contributing about a third of quarter-over-quarter improvement, new genetics line with more upside to come.

Q: Pivot to prepared foods, asked about why gaining market share.

A: Strong demand, disciplined execution, multi-year strategy working, control of controllables like pricing, promotion, distribution, service.

Q: On pork, asked about confidence in guidance range.

A: Balanced market supporting, consumer demand good relative to beef, some seasonal and operational factors in quarter not expected to repeat.

Q: Update on beef plant closure and pork supply.

A: Beef business moving forward, pork supply outlook stable, no interruptions from disease yet, light farrowing watched but not red flag.

Q: Clarification on encouragement of momentum and what it means.

A: Room for earnings upside from continuous improvement, operational excellence end to end.

Q: Questions on chicken cost position and genetics impact.

A: Chicken business different from commodity peers, genetics business has potential for significant segment operating income, back half expected to be as good as or better than first half