Pilgrims Pride Corp 10-Q for FY2026 Q1
Pilgrims Pride Corp (PPC)
10-Q
2026-04-30
For: 2026-03-29
View Original
Added on
April 30, 2026
About this 10-Q
Pilgrims Pride Corp filed this 10-Q on April 30, 2026, covering the quarter ended March 29, 2026 (FY2026 Q1).
Headline figures
Quarter ended March 29, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $4.53B
- up 1.6% from $4.46B a year earlier
- Net income
- $101.42M
- down 65.7% from net income of $296.03M a year earlier
- Diluted EPS
- $0.43
- down 65.3% from $1.24 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
| FORM | |||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 29, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from _______ to _______
Commission File number 1-9273
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| (Address of principal executive offices) | (Zip code) | ||||||||||
Registrant’s telephone number, including area code: (970 ) 506-8000
Former name, former address and former fiscal year, if changed since last report: Not Applicable
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ý | Accelerated Filer | ☐ | |||||||||||||||
| Non-accelerated Filer | ☐ | Smaller reporting company | |||||||||||||||
| Emerging growth company | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý
Number of shares outstanding of the issuer’s common stock, $0.01 par value per share, as of April 29, 2026, was 237,921,941 .
INDEX
PILGRIM’S PRIDE CORPORATION
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
1
PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| PILGRIM’S PRIDE CORPORATION | ||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| March 29, 2026 | December 28, 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Trade accounts and other receivables, less allowance for credit losses | ||||||||||||||
| Accounts receivable from related parties | ||||||||||||||
| Inventories | ||||||||||||||
| Income taxes receivable | ||||||||||||||
| Prepaid expenses and other current assets | ||||||||||||||
| Assets held for sale | ||||||||||||||
| Total current assets | ||||||||||||||
| Deferred tax assets | ||||||||||||||
| Other long-lived assets | ||||||||||||||
| Operating lease assets, net | ||||||||||||||
| Intangible assets, net | ||||||||||||||
| Goodwill | ||||||||||||||
| Property, plant and equipment, net | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Accounts payable | $ | $ | ||||||||||||
| Accounts payable to related parties | ||||||||||||||
| Revenue contract liabilities | ||||||||||||||
| Accrued expenses and other current liabilities | ||||||||||||||
| Income taxes payable | ||||||||||||||
| Current maturities of long-term debt | ||||||||||||||
| Total current liabilities | ||||||||||||||
| Noncurrent operating lease liabilities, less current maturities | ||||||||||||||
| Long-term debt, less current maturities | ||||||||||||||
| Deferred tax liabilities | ||||||||||||||
| Other long-term liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
| Common stock | ||||||||||||||
| Treasury stock | ( | ( | ||||||||||||
| Additional paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||||||||
| Total Pilgrim’s Pride Corporation stockholders’ equity | ||||||||||||||
| Noncontrolling interest | ||||||||||||||
| Total stockholders’ equity | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | $ | ||||||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
2
| PILGRIM’S PRIDE CORPORATION | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||||
| Net sales | $ | $ | ||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||
| Selling, general and administrative expense | ||||||||||||||||||||||||||
Restructuring activities | ||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||
| Interest expense, net of capitalized interest | ||||||||||||||||||||||||||
| Interest income | ( | ( | ||||||||||||||||||||||||
| Foreign currency transaction gains (losses) | ( | |||||||||||||||||||||||||
| Miscellaneous, net | ( | ( | ||||||||||||||||||||||||
| Income before taxes | ||||||||||||||||||||||||||
| Income tax expense | ||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||
| Net income attributable to PPC | $ | $ | ||||||||||||||||||||||||
Weighted average shares of Pilgrim’s Pride Corporation common stock outstanding: | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Effect of dilutive common stock equivalents | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding: | ||||||||||||||||||||||||||
| Basic | $ | $ | ||||||||||||||||||||||||
| Diluted | $ | $ | ||||||||||||||||||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3
| PILGRIM’S PRIDE CORPORATION | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Net income | $ | $ | |||||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency translation adjustment: | |||||||||||||||||||||||
| Gains (losses) arising during the period | ( | ||||||||||||||||||||||
| Derivative financial instruments designated as cash flow hedges: | |||||||||||||||||||||||
| Gains arising during the period | |||||||||||||||||||||||
| Reclassification to net earnings for gains realized | ( | ( | |||||||||||||||||||||
| Available-for-sale securities: | |||||||||||||||||||||||
| Losses arising during the period | ( | ( | |||||||||||||||||||||
| Income tax effect | |||||||||||||||||||||||
| Reclassification to net earnings for losses realized | |||||||||||||||||||||||
| Income tax effect | ( | ( | |||||||||||||||||||||
| Defined benefit plans: | |||||||||||||||||||||||
| Losses arising during the period | ( | ( | |||||||||||||||||||||
| Income tax effect | |||||||||||||||||||||||
| Reclassification to net earnings of gains realized | ( | ( | |||||||||||||||||||||
| Income tax effect | |||||||||||||||||||||||
| Total other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
Comprehensive income attributable to Pilgrim’s Pride Corporation | $ | $ | |||||||||||||||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4
| PILGRIM’S PRIDE CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 29, 2026 | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 28, 2025 | $ | ( | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued under compensation plans | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Requisite service period recognition | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 29, 2026 | $ | ( | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 30, 2025 | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 29, 2024 | $ | ( | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock issued under compensation plans | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Requisite service period recognition | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Special cash dividend | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 30, 2025 | $ | ( | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
5
| PILGRIM’S PRIDE CORPORATION | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | $ | ||||||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Deferred income tax benefit | ( | ( | ||||||||||||
| Loss on property disposals | ||||||||||||||
| Loan cost amortization | ||||||||||||||
| Accretion of discount related to Senior Notes | ||||||||||||||
| Asset impairment | ||||||||||||||
| Gain on early extinguishment of debt recognized as a component of interest expense | ( | |||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Trade accounts and other receivables | ( | |||||||||||||
| Inventories | ( | ( | ||||||||||||
| Prepaid expenses and other current assets | ( | |||||||||||||
| Accounts payable, accrued expenses and other current liabilities | ( | ( | ||||||||||||
| Income taxes | ||||||||||||||
| Long-term pension and other postretirement obligations | ( | ( | ||||||||||||
| Other operating assets and liabilities | ( | ( | ||||||||||||
| Cash provided by operating activities | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Acquisitions of property, plant and equipment | ( | ( | ||||||||||||
| Business acquisitions | ( | |||||||||||||
| Proceeds from property disposals | ||||||||||||||
| Cash used in investing activities | ( | ( | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Payments on revolving line of credit, long-term borrowings and finance lease obligations | ( | ( | ||||||||||||
| Cash used in financing activities | ( | ( | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | |||||||||||||
| Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | ( | |||||||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | ||||||||||||||
| Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ | $ | ||||||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest food companies in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. Pilgrim’s is primarily a chicken producer, with pork and lamb operations in the U.K. Pilgrim’s products are sold to foodservice, retail and frozen entrée customers. The Company’s primary distribution is through retailers, foodservice distributors and restaurants throughout the countries listed above. Additionally, the Company exports chicken and pork products (from its U.K. operations) to over 120 countries. Our fresh products consist of refrigerated whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork, pork ribs, and lamb products. The Company’s prepared products include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, processed sausages, bacon, smoked meat, gammon joints, pre-packed meats, sandwich and deli counter meats and meatballs. The Company’s other products include plant-based protein offerings, ready-to-eat meals, multi-protein frozen foods, vegetarian foods and desserts. The Company also provides direct-to-consumer meals and hot food to-go solutions in the U.K. and the Republic of Ireland. We operate feed mills, hatcheries, processing plants and distribution centers in 14 U.S. states, the U.K., Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. As of March 29, 2026, JBS S.A., through its indirect wholly-owned subsidiaries (collectively, “JBS”), beneficially owned 82.2 % of the Company’s outstanding common stock.
Condensed Consolidated Financial Statements
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments unless otherwise disclosed) considered necessary for a fair presentation have been included. Operating results for the three months ended March 29, 2026 are not necessarily indicative of the results that may be expected for the year ending December 27, 2026. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 28, 2025.
The Company operates on the basis of a 52/53 week fiscal year ending on the Sunday falling on or before December 31. Any reference we make to a particular year (for example, 2026) in the notes to these Condensed Consolidated Financial Statements applies to our fiscal year and not the calendar year. The three months ended March 29, 2026 represents the period from December 29, 2025 through March 29, 2026. The three months ended March 30, 2025 represents the period from December 30, 2024 through March 30, 2025.
The Condensed Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries. We eliminate all significant affiliate accounts and transactions upon consolidation.
The Condensed Consolidated Financial Statements have been prepared in conformity with U.S. GAAP using management’s best estimates and judgments. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. Significant estimates made by the Company include the allowance for credit losses, reserves related to inventory obsolescence or valuation, useful lives of long-lived assets, goodwill, identifiable intangible assets, valuation of deferred tax assets, insurance accruals, valuation of pension and other postretirement benefits obligations, income tax accruals, certain derivative positions, and valuations of acquired businesses.
7
Recent Accounting Pronouncements Not Yet Adopted as of March 29, 2026
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40), which requires additional disclosures for certain costs and expenses to help investors better understand major components of an entity’s income statement. The guidance requires additional disclosures for costs and expenses such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The provisions of the new guidance will be effective for annual reporting years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company plans to adopt this guidance as it becomes effective and is assessing the impacts on our Consolidated Financial Statements.
2. REVENUE RECOGNITION
The vast majority of the Company’s revenue is derived from contracts which are based upon a customer ordering its products. While there may be master agreements, the contract is only established when the customer’s order is accepted by the Company. The Company accounts for a contract, which may be verbal or written, when it is approved and committed by both parties, the rights of the parties are identified along with payment terms, the contract has commercial substance and collectability is probable.
The Company evaluates the transaction for distinct performance obligations, which are the sale of its products to customers. Since its products are commodity market-priced, the sales price is representative of the observable, standalone selling price. Each performance obligation is recognized based upon a pattern of recognition that reflects the transfer of control to the customer at a point in time, which is upon destination (customer location or port of destination), and depicts the transfer of control and recognition of revenue. There are instances of customer pick-up at the Company’s facilities, in which case control transfers to the customer at that point and the Company recognizes revenue. The Company’s performance obligations are typically fulfilled within days to weeks of the acceptance of the order.
The Company makes judgments regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from revenue and cash flows with customers. Determination of a contract requires evaluation and judgment along with the estimation of the total contract value and if any of the contract value is constrained. Due to the nature of our business, there is minimal variable consideration, as the contract is established at the acceptance of the order from the customer. When applicable, variable consideration is estimated at contract inception and updated on a regular basis until the contract is completed. Allocating the transaction price to a specific performance obligation based upon the relative standalone selling prices includes estimating the standalone selling prices including discounts and variable consideration.
Disaggregated Revenue
Revenue has been disaggregated into the categories below to show how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows:
| Three Months Ended March 29, 2026 | |||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Fresh | Prepared | Export | Other (a) | Total | |||||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||||||||
| Total net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Three Months Ended March 30, 2025 | |||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Fresh | Prepared | Export | Other (a) | Total | |||||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||||||||
| Total net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(a) Included in Other sales shown above are sales of commodity grains and protein byproducts
8
Additional disaggregation of revenue by sales channel is provided below:
| Three Months Ended March 29, 2026 | |||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Retail | Foodservice | Export | Other | Total | |||||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
Mexico(a) | |||||||||||||||||||||||||||||
| Total net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Three Months Ended March 30, 2025 | |||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Retail | Foodservice | Export | Other | Total | |||||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
Mexico(a) | |||||||||||||||||||||||||||||
| Total net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(a)Included in Mexico foodservice channel are sales to wholesale public meat markets that typically sell product on to foodservice customers. Included in Mexico other channel are sales to live chicken markets.
Contract Costs
The Company can incur incremental costs to obtain or fulfill a contract such as broker expenses that are not expected to be recovered. The amortization period for such expenses is less than one year; therefore, the costs are expensed as incurred.
Taxes
The Company excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer (for example, sales, use, value added and some excise taxes) from the transaction price.
Contract Balances
The Company receives payment from customers based on terms established with the customer. Payments are typically due within 14 to 30 days of delivery. Revenue contract liabilities relate to payments received in advance of satisfying the performance under the customer contract. The revenue contract liabilities relate to customer prepayments and the advanced consideration, such as cash, received from governmental agency contracts for which performance obligations to the end customer have not been satisfied.
Changes in the revenue contract liabilities balance are as follows (in thousands):
| Balance as of December 28, 2025 | $ | ||||
| Revenue recognized | ( | ||||
| Cash received, excluding amounts recognized as revenue during the period | |||||
| Currency translation | |||||
| Balance as of March 29, 2026 | $ | ||||
Accounts Receivable
3. DERIVATIVE FINANCIAL INSTRUMENTS
9
Information regarding the Company’s outstanding derivative instruments and cash collateral posted with brokers is included in the following table:
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Fair values: | |||||||||||
| Commodity derivative assets | $ | $ | |||||||||
| Commodity derivative liabilities | ( | ( | |||||||||
| Foreign currency derivative assets | |||||||||||
| Foreign currency derivative liabilities | ( | ( | |||||||||
| Sales contract derivative liabilities | ( | ( | |||||||||
Margin cash payable(a) | ( | ( | |||||||||
Derivatives coverage(b): | |||||||||||
| Corn | % | % | |||||||||
| Soybean meal | % | % | |||||||||
| Period through which stated percent of needs are covered: | |||||||||||
| Corn | March 2027 | December 2026 | |||||||||
| Soybean meal | March 2027 | December 2026 | |||||||||
(a)Collateral posted with brokers consists primarily of cash, short-term treasury bills or other cash equivalents.
(b)Derivatives coverage is the percent of anticipated commodity needs covered by outstanding derivative instruments through a specified date.
The following table presents the gains and losses of each derivative instrument held by the Company not designated or qualifying as hedging instruments:
| Three Months Ended | ||||||||||||||||||||||||||
Type of Contract (a) | March 29, 2026 | March 30, 2025 | Affected Line Item in the Condensed Consolidated Statements of Income | |||||||||||||||||||||||
| | ||||||||||||||||||||||||||
| Commodity derivatives | $ | $ | ( | Cost of sales | ||||||||||||||||||||||
| Sales contract derivatives | Net sales | |||||||||||||||||||||||||
| $ | $ | ( | ||||||||||||||||||||||||
(a)Amounts represent income (expenses) related to results of operations.
The following tables present the components of the gain or loss on derivatives that qualify as cash flow hedges:
| Gains (Losses) Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| | |||||||||||||||||||||||
| Foreign currency derivatives | $ | $ | |||||||||||||||||||||
| Gains (Losses) Reclassified from AOCI into Income | |||||||||||||||||||||||
| Three Months Ended March 29, 2026 | Three Months Ended March 30, 2025 | ||||||||||||||||||||||
Net sales(a) | Cost of sales(b) | Net sales(a) | Cost of sales(b) | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded | $ | $ | $ | $ | |||||||||||||||||||
| Impact from cash flow hedging instruments: | |||||||||||||||||||||||
| Foreign currency derivatives | ( | ( | ( | ||||||||||||||||||||
(a) Amounts represent income (expenses) related to net sales.
(b) Amounts represent expenses (income) related to cost of sales.
10
4. TRADE ACCOUNTS AND OTHER RECEIVABLES
Trade accounts and other receivables, less allowance for credit losses, consisted of the following:
| March 29, 2026 | December 28, 2025 | |||||||||||||
| (In thousands) | ||||||||||||||
| Trade accounts receivable | $ | $ | ||||||||||||
| Notes receivable from third parties | ||||||||||||||
| Other receivables | ||||||||||||||
| Receivables, gross | ||||||||||||||
Allowance for credit losses (a) | ( | ( | ||||||||||||
| Receivables, net | $ | $ | ||||||||||||
Accounts receivable from related parties(b) | $ | $ | ||||||||||||
(a)Activity in the allowance for credit losses was immaterial in the three months ended March 29, 2026.
(b)Additional information regarding accounts receivable from related parties is included in “Note 15. Related Party Transactions.”
In June 2023, the Company and JBS USA Food Company (“JBS USA”) jointly entered into a receivables purchase agreement with a bank for an uncommitted facility with a maximum capacity of $415.0 million and no recourse to the Company or JBS USA. Under the facility, the Company may sell eligible trade receivables in exchange for cash. Transfers under the agreement are recorded as a sale under ASC 860, Broad Transactions – Transfers and Servicing. At the transfer date, the Company receives cash equal to the face value of the receivables sold less a fee based on the current Secured Overnight Financing Rate (“SOFR”) plus an applicable margin applied over the customer payment term. The fees are immaterial.
5. INVENTORIES
Inventories consisted of the following:
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Raw materials and work-in-process | $ | $ | |||||||||
| Finished products | |||||||||||
| Operating supplies | |||||||||||
| Maintenance materials and parts | |||||||||||
| Total inventories | $ | $ | |||||||||
11
6. GOODWILL AND INTANGIBLE ASSETS
The activity in goodwill by segment for the three months ended March 29, 2026 was as follows:
| December 28, 2025 | Additions | Currency Translation | March 29, 2026 | |||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Europe | ( | |||||||||||||||||||||||||||||||
| Mexico | ( | |||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
On January 13, 2026, the Company acquired 100 % of the equity of Hermitage AI Ltd. from Hermitage Group for £2.3 million, or about $3.1 million. The acquisition was funded with cash on hand. Transaction costs were immaterial and expensed as incurred. The fair value of the net assets acquired was £1.4 million, resulting in goodwill which is reflected in additions in the table above.
Intangible assets consisted of the following:
| December 28, 2025 | Amortization | Currency Translation | March 29, 2026 | |||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||
| Cost: | ||||||||||||||||||||||||||||||||
| Trade names not subject to amortization | $ | $ | — | $ | ( | $ | ||||||||||||||||||||||||||
| Trade names subject to amortization | — | ( | ||||||||||||||||||||||||||||||
| Customer relationships | — | ( | ||||||||||||||||||||||||||||||
| Accumulated amortization: | ||||||||||||||||||||||||||||||||
| Trade names | ( | ( | ( | |||||||||||||||||||||||||||||
| Customer relationships | ( | ( | ( | |||||||||||||||||||||||||||||
| Intangible assets, net | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||
Intangible assets are amortized over the estimated useful lives of the assets as follows:
| Customer relationships | |||||
| Trade names subject to amortization | |||||
At March 29, 2026, the Company assessed if events or changes in circumstances indicated that any asset group-level carrying amounts of its intangible assets might not be recoverable. The Company will perform its annual tests of recoverability of all goodwill and trade names not subject to amortization in the fourth quarter of 2026, which if there were to be an impairment, could be material.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment (“PP&E”), net consisted of the following:
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Land | $ | $ | |||||||||
| Buildings | |||||||||||
| Machinery and equipment | |||||||||||
| Autos and trucks | |||||||||||
| Finance lease assets | |||||||||||
| Construction-in-progress | |||||||||||
| PP&E, gross | |||||||||||
| Accumulated depreciation | ( | ( | |||||||||
| PP&E, net | $ | $ | |||||||||
The Company recognized depreciation expense of $110.1 million and $96.5 million during the three months ended March 29, 2026 and March 30, 2025, respectively.
12
During the three months ended March 29, 2026, the Company incurred $236.2 million on capital projects and transferred $115.2 million of completed projects from construction-in-progress to depreciable assets. During the three months ended March 30, 2025, the Company incurred $98.8 million on capital projects and transferred $63.5 million of completed projects from construction-in-progress to depreciable assets. Capital expenditures in accounts payable and accrued expenses for the periods ended March 29, 2026 and December 28, 2025 were $40.8 million and $40.2 million, respectively.
During the three months ended March 29, 2026, the Company sold certain PP&E for $1.7 million in cash and recognized a net loss of $2.0 million on these sales. During the three months ended March 30, 2025, the Company sold certain PP&E for $1.2 million, in cash and recognized a net loss of $0.9 million, on these sales.
The Company has closed or idled various other facilities in the U.S. and in the U.K. The Board of Directors has not determined if it would be in the best interest of the Company to divest any of these idled assets. Management is therefore not certain that it can or will divest any of these assets within one year, is not actively marketing these assets and, accordingly, has not classified them as assets held for sale. The Company continues to depreciate these assets. As of March 29, 2026, the carrying amounts of these idled assets totaled $18.8 million based on a depreciable value of $114.2 million and accumulated depreciation of $95.4 million.
As of March 29, 2026, the Company assessed if events or changes in circumstances indicated that the asset group-level carrying amounts of its PP&E held for use might not be recoverable. There were no indicators present that required the Company to test the recoverability of the asset group-level carrying amounts of its PP&E held for use at that date.
8. CURRENT LIABILITIES
Current liabilities, other than income taxes and current maturities of long-term debt, consisted of the following components:
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Accounts payable: | |||||||||||
| Trade accounts payable | $ | $ | |||||||||
| Book overdrafts | |||||||||||
| Other payables | |||||||||||
| Total accounts payable | |||||||||||
Accounts payable to related parties(a) | |||||||||||
Revenue contract liabilities(b) | |||||||||||
| Accrued expenses and other current liabilities: | |||||||||||
| Compensation and benefits | |||||||||||
Litigation settlements(c) | |||||||||||
| Accrued sales rebates | |||||||||||
| Insurance and self-insured claims | |||||||||||
| Current maturities of operating lease liabilities | |||||||||||
| Taxes | |||||||||||
| Interest and debt-related fees | |||||||||||
| Other accrued expenses | |||||||||||
| Total accrued expenses and other current liabilities | |||||||||||
| Total | $ | $ | |||||||||
(a) Additional information regarding accounts payable to related parties is included in “Note 15. Related Party Transactions.”
(b) Additional information regarding revenue contract liabilities is included in “Note 2. Revenue Recognition.”
(c) Additional information regarding litigation settlements is included in “Note 17. Commitments and Contingencies.” These amounts may include accruals for both negotiated settlements and reasonable estimates for probable losses.
(d) Additional information regarding derivative liabilities is included in “Note 3. Derivative Financial Instruments.”
13
9. SUPPLIER FINANCE PROGRAMS
The Company maintains supplier finance programs, under which we agree to pay for invoices that are confirmed as valid under the program from participating suppliers to a financing entity. Maturity dates are generally between 65 -120 days and we pay either the supplier or the financing entity depending on the supplier’s election. We do not have an economic interest in a supplier's participation in the program or a direct financial relationship with the financial institution funding the program. As of March 29, 2026 and December 28, 2025, the outstanding balance of confirmed invoices was $217.5 million and $209.4 million respectively and are included in Accounts Payable in the Consolidated Balance Sheets.
10. INCOME TAXES
The Company recorded income tax expense of $30.4 million, a 23.0 % effective tax rate, for the three months ended March 29, 2026, compared to income tax expense of $94.1 million, a 24.1 % effective tax rate, for the three months ended March 30, 2025. The decreased income tax expense in 2026 resulted primarily from the decrease in profit before income taxes.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax-planning strategies in making this assessment. As of March 29, 2026, the Company did not believe it had sufficient positive evidence to conclude that a portion of its foreign net deferred tax assets are more likely than not to be realized.
For the three months ended March 29, 2026 and March 30, 2025, there are immaterial
For the three months ended March 29, 2026 and March 30, 2025, there are immaterial tax effects reflected in income tax expense due to excess tax windfalls and shortfalls related to stock-based compensation.
The Company operates in the U.S. (including multiple state jurisdictions), Puerto Rico and several foreign locations including Mexico, the U.K., the Republic of Ireland and continental Europe. With few exceptions, the Company is no longer subject to examinations by taxing authorities for years prior to 2020 in U.S. federal, state and local jurisdictions, for years prior to 2010 in Mexico, and for years prior to 2017 in the U.K.
On December 30, 2024, the Company entered into a tax sharing agreement (the “Tax Sharing Agreement”) with JBS USA governing the allocation, and certain payment and reimbursement obligations of U.S. income tax liabilities and assets among the Company and its relevant U.S. corporate subsidiaries, on the one hand, and JBS USA and its relevant U.S. subsidiaries, on the other hand. The Tax Sharing Agreement is effective for each tax year beginning on or after December 30, 2024 or such other date in which PPC becomes a member of the Parent Consolidated Group (as defined in the Tax Sharing Agreement).
Starting January 1, 2024, the rules of Pillar II came into effect in several jurisdictions, impacting multinational companies operating in these markets. However, during the first three years of implementation, transitional rules have been introduced to simplify the calculation of the effective tax rate per jurisdiction, facilitating the adaptation of multinational groups to the new requirements.
As the Group is in scope of these rules and operates in multiple jurisdictions where the global minimum tax is effective, including France, Ireland, Luxembourg, Malta, the Netherlands, and the United Kingdom, the Company carried out assessment procedures to analyze the potential impacts arising from these regulations. Based on the analyses conducted to date, no material tax exposure has been identified as a result of the application of this tax.
11. DEBT
Long-term debt and other borrowing arrangements, including current notes payable to banks, consisted of the following components:
14
| Maturity | March 29, 2026 | December 28, 2025 | |||||||||||||||
| (In thousands) | |||||||||||||||||
Senior notes payable, net of discount, at | 2034 | $ | $ | ||||||||||||||
Senior notes payable, net of discount, at | 2033 | ||||||||||||||||
Senior notes payable at | 2032 | ||||||||||||||||
Senior notes payable, net of discount, at | 2031 | ||||||||||||||||
U.S. Credit Facility (defined below) at SOFR plus | 2028 | ||||||||||||||||
Europe Credit Facility (defined below) with notes payable at SONIA plus | 2027 | ||||||||||||||||
Mexico BBVA Credit Facility (defined below) with notes payable at TIIE plus | 2028 | ||||||||||||||||
Mexico Bajio Credit Facility (defined below) with notes payable at TIIE plus | 2030 | ||||||||||||||||
Live Oak CHP Project PACE Loan | 2053 | ||||||||||||||||
| Finance lease obligations | Various | ||||||||||||||||
| Long-term debt | |||||||||||||||||
| Less: Current maturities of long-term debt | ( | ( | |||||||||||||||
| Long-term debt, less current maturities | |||||||||||||||||
| Less: Capitalized financing costs | ( | ( | |||||||||||||||
| Long-term debt, less current maturities, net of capitalized financing costs | $ | $ | |||||||||||||||
The future minimum principal payments due in each of the next five fiscal years as of March 29, 2026, related to the Live Oak CHP Project PACE Loan, are $0.1 million.
Tender Offer
On March 30, 2026, the Company commenced a tender offer pursuant to which it offered to acquire up to $250.0 million aggregate principal amount of its 6.250 % Senior Notes due 2033. On April 14, 2026, the early settlement date, the Company exercised the purchase of $250.0 million aggregate principal amount at a price of $1,056.90 per $1,000.00 principal amount and a total cost of $264.2 million.
Credit Facilities
The following table presents the key terms of our available credit facilities:
| Facility | Limit | Maturity | Rate Basis | Availability (USD) | ||||||||||||||||||||||
U.S. Credit Facility(a) | USD | million | 2028 | SOFR + | $ | million | ||||||||||||||||||||
| Europe Credit Facility | GBP | million | 2027 | SONIA + | million | |||||||||||||||||||||
| Mexico BBVA Credit Facility | MXN | billion | 2028 | TIIE + | million | |||||||||||||||||||||
| Mexico Bajio Credit Facility | MXN | billion | 2030 | TIIE + | million | |||||||||||||||||||||
(a) Availability under the U.S. Credit Facility may be reduced by outstanding letters of credit.
12. STOCKHOLDERS ’ EQUITY
Accumulated Other Comprehensive Income (Loss)
The following tables provide information regarding the changes in accumulated other comprehensive loss:
15
| Three Months Ended March 29, 2026 | |||||||||||||||||||||||||||||
| Losses Related to Foreign Currency Translation | Losses on Derivative Financial Instruments Classified as Cash Flow Hedges | Losses Related to Pension and Other Postretirement Benefits | Losses on Available-for-Sale Securities | Total | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | |||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss (income) to net income | ( | ( | ( | ||||||||||||||||||||||||||
| Currency translation | ( | ( | ( | ||||||||||||||||||||||||||
| Net current period other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
| Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
| Three Months Ended March 30, 2025 | |||||||||||||||||||||||||||||
| Losses Related to Foreign Currency Translation | Losses on Derivative Financial Instruments Classified as Cash Flow Hedges | Losses Related to Pension and Other Postretirement Benefits | Losses on Available-for-Sale Securities | Total | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss (income) to net income | ( | ( | ( | ||||||||||||||||||||||||||
| Currency translation | ( | ( | |||||||||||||||||||||||||||
| Net current period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
| Balance, end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)(a) | |||||||||||||||||
| Details about Accumulated Other Comprehensive Income (Loss) Components | Three Months Ended March 29, 2026 | Three Months Ended March 30, 2025 | Affected Line Item in the Condensed Consolidated Statements of Income (Loss) | ||||||||||||||
| (In thousands) | |||||||||||||||||
| Realized gains (losses) on settlement of foreign currency derivatives classified as cash flow hedges | $ | $ | ( | Net sales | |||||||||||||
| Realized gains on settlement of foreign currency derivatives classified as cash flow hedges | Cost of sales | ||||||||||||||||
| Realized losses on sale of securities | ( | ( | Interest income | ||||||||||||||
Amortization of pension and other postretirement plan actuarial losses(b) | Miscellaneous, net | ||||||||||||||||
| Total before tax | |||||||||||||||||
| Tax expense | ( | ||||||||||||||||
| Total reclassification for the period | $ | $ | |||||||||||||||
(a) Positive amounts represent income to the results of operations while amounts in parentheses represent expenses to the results of operations.
(b) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See “Note 13. Pension and Other Postretirement Benefits.”
Preferred Stock
The Company has authorized 50,000,000 shares of $0.01 par value preferred stock, although no shares have been issued and no shares are outstanding.
16
Restrictions on Dividends
The U.S. Credit Facility and the indentures governing the Company’s senior notes have currently no restrictions on dividends. Under certain triggering events, the U.S. Credit Facility may limit the Company’s ability to declare and pay dividends. Additionally, the Europe Credit Facility may restrict MPH(E) and other Pilgrim’s entities located in the U.K. and Republic of Ireland to, among other things, make payments and distributions to the Company.
13. PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans in the U.K., such as the Tulip Limited Pension Plan and the Geo Adams Group Pension Fund, nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plan. Expenses recognized under all retirement plans totaled $10.2 million and $9.7 million in the three months ended March 29, 2026 and March 30, 2025, respectively.
The Company used a quarter-end measurement date of March 29, 2026 for its pension and postretirement benefits plans. Certain disclosures are listed below. Other disclosures are not material to the financial statements.
Net Periodic Benefit Costs
Net defined benefit pension and other postretirement costs included the following components:
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest cost | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Estimated return on plan assets | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses paid from assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of net gain | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of past service cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net costs (income)(a) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
During the three months ended March 29, 2026, the Company contributed $1.1 million to our pension programs. We anticipate making additional contributions of approximately $0.3 million during the remainder of 2026. The Company contributed $1.0 million to our pension programs during the three months ended March 30, 2025.
Remeasurement
The Company remeasures both plan assets and obligations on a quarterly basis.
Defined Contribution Plans
The Company sponsors two defined contribution retirement savings plans in the U.S. reportable segment for eligible U.S. and Puerto Rico employees. The Company maintains three postretirement plans for eligible employees in the Mexico reportable segment, as required by Mexico law, which primarily cover termination benefits. The Company maintains seven defined contribution retirement savings plans in the Europe reportable segment for eligible U.K. and Europe employees, as required by U.K. and Europe law. The Company’s expenses related to its defined contribution plans totaled $10.2 million and $9.4 million in the three months ended March 29, 2026 and March 30, 2025, respectively.
14. FAIR VALUE MEASUREMENT
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets and liabilities measured at fair value must be categorized into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation:
17
| Level 1 | Unadjusted quoted prices available in active markets for identical assets or liabilities at the measurement date; | |||||||
| Level 2 | Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or | |||||||
| Level 3 | Unobservable inputs, such as discounted cash flow models or valuations. | |||||||
The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.
As of March 29, 2026 and December 28, 2025, the Company held fixed income securities, derivative assets and derivative liabilities that were required to be measured at fair value on a recurring basis. Fixed income securities consist of investments, such as money market funds and commercial paper. Derivative assets and liabilities consist of long and short positions on exchange-traded commodity futures instruments, commodity options instruments, sales contracts instruments, foreign currency instruments to manage translation and remeasurement risk.
The following items were measured at fair value on a recurring basis:
| March 29, 2026 | December 28, 2025 | ||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Fixed income securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Commodity derivative assets | |||||||||||||||||||||||||||||||||||
| Foreign currency derivative assets | |||||||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Commodity derivative liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Foreign currency derivative liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Sales contract derivative liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
See “Note 3. Derivative Financial Instruments” for additional information.
The valuation of financial assets and liabilities classified in Level 1 is based upon unadjusted quoted prices for identical assets or liabilities in active markets. The valuation of financial assets and liabilities in Level 2 is determined using a market approach based upon quoted prices for similar assets and liabilities in active markets or other inputs that are observable for substantially the full term of the financial instrument. The valuation of financial assets in Level 3 is determined using an income approach based on unobservable inputs such as discounted cash flow models or valuations. For each class of assets and liabilities not measured at fair value in the Condensed Consolidated Balance Sheets but for which fair value is disclosed, the Company is not required to provide the quantitative disclosure about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy.
In addition to the fair value disclosure requirements related to financial instruments carried at fair value, accounting standards require interim disclosures regarding the fair value of all of the Company’s financial instruments. The methods and significant assumptions used to estimate the fair value of financial instruments and any changes in methods or significant assumptions from prior periods are also required to be disclosed.
The carrying amounts and estimated fair values of our debt obligations recorded in the Condensed Consolidated Balance Sheets consisted of the following:
| March 29, 2026 | December 28, 2025 | ||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
Fixed-rate senior notes payable at | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Fixed-rate senior notes payable at | ( | ( | ( | ( | |||||||||||||||||||
Fixed-rate senior notes payable at | ( | ( | ( | ( | |||||||||||||||||||
Fixed-rate senior notes payable at | ( | ( | ( | ( | |||||||||||||||||||
Live Oak CHP Project PACE Loan at | ( | ( | ( | ( | |||||||||||||||||||
See “Note 11. Debt” for additional information.
18
The carrying amounts of our cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable, accounts payable and certain other liabilities approximate their fair values due to their relatively short maturities. Derivative assets were recorded at fair value based on quoted market prices and are included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Derivative liabilities were recorded at fair value based on quoted market prices and are included in the line item Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The fair value of the Company’s Level 2 fixed-rate debt obligations was based on the quoted market price at March 29, 2026 or December 28, 2025, as applicable.
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records certain assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges when required by U.S. GAAP. There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.
15. RELATED PARTY TRANSACTIONS
Pilgrim’s has been and, in some cases, continues to be a party to certain transactions with affiliated companies.
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Sales to related parties | |||||||||||||||||||||||
| JBS Toledo N.V. | $ | $ | |||||||||||||||||||||
JBS USA Food Company(a) | |||||||||||||||||||||||
| Other related parties | |||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Cost of goods purchased from related parties | |||||||||||||||||||||||
JBS USA Food Company(a) | $ | $ | |||||||||||||||||||||
| Seara Meats B.V. | |||||||||||||||||||||||
| Penasul UK LTD | |||||||||||||||||||||||
| JBS Asia Co Limited | |||||||||||||||||||||||
| Other related parties | |||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Expenditures paid by related parties | |||||||||||||||||||||||
JBS USA Food Company(b) | $ | $ | |||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Expenditures paid on behalf of related parties | |||||||||||||||||||||||
JBS USA Food Company(b) | $ | $ | |||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||
19
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Accounts receivable from related parties | |||||||||||
| JBS Toledo N.V. | $ | $ | |||||||||
JBS USA Food Company(a)(b) | |||||||||||
| Other related parties | |||||||||||
| Total | $ | $ | |||||||||
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Accounts payable to related parties | |||||||||||
| Seara Meats B.V. | $ | $ | |||||||||
JBS USA Food Company(a) | |||||||||||
| JBS Asia Co Limited | |||||||||||
| Penasul UK LTD | |||||||||||
| Other related parties | |||||||||||
| Total | $ | $ | |||||||||
(a)The Company routinely executes transactions to both purchase products from JBS USA Food Company (“JBS USA”) and sell products to them. As of March 29, 2026, goods purchased and in transit from JBS USA were immaterial and not reflected on our Consolidated Balance Sheets.
(b)The Company has an agreement with JBS USA to allocate costs associated with JBS USA’s procurement of SAP licenses and maintenance services for both companies. Under this agreement, the fees associated with procuring SAP licenses and maintenance services are allocated between the Company and JBS USA in proportion to the percentage of licenses used by each company. The agreement expires on the date of expiration, or earlier termination, of the underlying SAP license agreement. The Company also has an agreement with JBS USA to allocate the costs of supporting the business operations by one consolidated corporate team, which have historically been supported by their respective corporate teams. Expenditures paid by JBS USA on behalf of the Company will be reimbursed by the Company and expenditures paid by the Company on behalf of JBS USA will be reimbursed by JBS USA. The current agreement expires on the earlier of either termination by either party or until the occurrence of any mechanism where JBS USA becomes 100% owner of PPC. The Company also has the Tax Sharing Agreement with JBS USA that governs the allocation, payment, and reimbursement obligations of U.S. income tax liabilities and assets among the Company and its relevant U.S. corporate subsidiaries.
16. REPORTABLE SEGMENTS
The Company operates in three reportable segments: U.S., Europe, and Mexico. The Company’s reportable segments are identified by a combination of factors, including geographic area, regulatory environment, economic environment and product portfolios. Each reportable segment is managed separately through a local management team. The results of each operating, or reportable, segment are provided to the chief operating decision maker (“CODM”) on a regular basis. The Company’s CODM is the President and Chief Executive Officer. The information provided to the CODM at the operating segment level is then used to assess performance and make decisions regarding allocation of key resources. The CODM primarily measures segment profit and evaluates performance based on operating income.
We conduct separate operations in the continental U.S. and in Puerto Rico. For segment reporting purposes, the Puerto Rico operations are included in the U.S. reportable segment. The chicken products processed by the U.S. reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The Europe reportable segment processes primarily fresh chicken, pork products, lamb products, specialty meats, ready meals and other prepared foods that are sold to foodservice, retail and direct to consumer customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
The chicken products processed by the Mexico reportable segment are sold to foodservice, retail and frozen entrée customers. The segment’s primary distribution is through retailers, foodservice distributors and restaurants.
20
Additional information regarding reportable segments is as follows:
| Three Months Ended | |||||||||||||||||||||||
March 29, 2026(a) | March 30, 2025(b) | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total net sales | $ | $ | |||||||||||||||||||||
(a)In addition to the above third party sales, for the three months ended March 29, 2026, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $28.1 million These sales consisted of fresh products, prepared products and grain.
(b)In addition to the above third party sales, for the three months ended March 30, 2025, the U.S. reportable segment had intercompany sales to the Mexico reportable segment of $27.7 million. These sales consisted of fresh products, prepared products and grain.
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total cost of sales | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total gross profit | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Selling, general administrative expenses | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total SG&A expenses | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Restructuring activities charges | |||||||||||||||||||||||
| Europe | $ | $ | |||||||||||||||||||||
21
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total operating income | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Reconciliation of profit or loss (segment operating income) | |||||||||||||||||||||||
| Total operating income | $ | $ | |||||||||||||||||||||
| Interest expense, net of capitalized interest | |||||||||||||||||||||||
| Interest income | ( | ( | |||||||||||||||||||||
| Foreign currency transaction losses (gains) | ( | ||||||||||||||||||||||
| Miscellaneous, net | ( | ( | |||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Net income | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total interest expense | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| U.S. | $ | ( | $ | ( | |||||||||||||||||||
| Europe | ( | ( | |||||||||||||||||||||
| Mexico | ( | ( | |||||||||||||||||||||
| Total interest income | $ | ( | $ | ( | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total income tax expense | $ | $ | |||||||||||||||||||||
22
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total depreciation and amortization | $ | $ | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
Capital expenditures(a) | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Total capital expenditures | $ | $ | |||||||||||||||||||||
(a)Capital expenditures incurred include those that were paid out in cash and those that are still outstanding in accounts payable as of the end of the periods.
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
| Total assets | |||||||||||
| U.S. | $ | $ | |||||||||
| Europe | |||||||||||
| Mexico | |||||||||||
| Eliminations | ( | ( | |||||||||
| Total assets | $ | $ | |||||||||
| March 29, 2026 | December 28, 2025 | ||||||||||
| (In thousands) | |||||||||||
Long-lived assets(a) | |||||||||||
| U.S. | $ | $ | |||||||||
| Europe | |||||||||||
| Mexico | |||||||||||
| Eliminations | ( | ( | |||||||||
| Total long-lived assets | $ | $ | |||||||||
(a)For this disclosure, we exclude financial instruments, deferred tax assets and intangible assets in accordance with ASC 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.
23
| Three Months Ended | |||||||||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Net sales to customers by customer location | |||||||||||||||||||||||
| U.S. | $ | $ | |||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||
| Canada, Caribbean and Central America | |||||||||||||||||||||||
| Africa | |||||||||||||||||||||||
| South America | |||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||
Information regarding net sales attributable to each of our primary product lines and markets served with those products is included in "Note 2. Revenue Recognition." We based the table on our internal sales reports and their classification of products.
17. COMMITMENTS AND CONTINGENCIES
General
The Company is a party to many routine contracts in which it provides general indemnities in the normal course of business to third parties for various risks. Among other considerations, the Company has not recorded a liability for any of these indemnities because, based upon the likelihood of payment, the fair value of such indemnities would not have a material impact on its financial condition, results of operations and cash flows.
Financial Instruments
The Company’s loan agreements generally obligate the Company to reimburse the applicable lender for incremental increased costs due to a change in law that imposes (1) any reserve or special deposit requirement against assets of, deposits with or credit extended by such lender related to the loan, (2) any tax, duty or other charge with respect to the loan (except standard income tax) or (3) capital adequacy requirements. In addition, some of the Company’s loan agreements contain a withholding tax provision that requires the Company to pay additional amounts to the applicable lender or other financing party, generally if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased cost and withholding tax provisions continue for the entire term of the applicable transaction and there is no limitation on the maximum additional amounts the Company could be obligated to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due.
Litigation
The Company is subject to various legal proceedings and claims which arise in the ordinary course of business. In the Company’s opinion, it has made appropriate and adequate accruals for claims where necessary; however, the ultimate liability for these matters is uncertain, and if significantly different than the amounts accrued, the ultimate outcome could have a material effect on the financial condition or results of operations of the Company. The Company cannot predict the outcome of the litigation matters or other actions nor when they will be resolved. The consequences of the pending litigation matters are inherently uncertain, and settlements, adverse actions, or adverse judgments in some or all of these matters, including investigations by the U.S. Department of Justice (“DOJ”) or the Attorneys General, may result in monetary damages, fines, penalties, or injunctive relief against the Company, which could be material and could adversely affect its financial condition or results of operations. Any claims or litigation, even if fully indemnified or insured, could damage the Company’s reputation and make it more difficult to compete effectively or to obtain adequate insurance in the future. In addition, the U.S. government’s recent focus on market dynamics in the meat processing industry could expose the Company to additional costs and risks.
The disclosures defined or referenced in Note 21 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 28, 2025 as the “Broiler Antitrust Litigation,” City of Miami Beach Fire and Police Pension Fund, et al. v. JBS Wisconsin Properties, LLC et al., the Mexican Tax Administration Service's (the "SAT") review of Avícola Pilgrim's Pride de Mexico, S. A. de C.V. (“Avícola”) with regard to the tax year 2010, the SAT's assessments in connection with PPC's acquisition of Tyson de México, and the U.K. Revenue & Customs Authority's review of
24
the 2017 and 2018 tax returns for Onix Investments UK Ltd are hereby incorporated by reference herein, as supplemented by the following disclosures:
“Broiler Antitrust Litigation”
On February 11, 2025, the motions to dismiss Phase 2 of the Broiler Antitrust Litigation that had been filed by PPC and other defendants were denied. Phase 2 discovery has commenced. PPC will continue to defend itself against the direct-action plaintiffs as well as the Broiler Opt Outs. PPC will seek reasonable settlements with the Broiler Opt Outs where they are available. To date, PPC has incurred expenses of $706 million, including $22.9 million in the three months ended March 29, 2026, to cover settlements with various Broiler Opt Outs.
City of Miami Beach Fire and Police Pension Fund, et al. v. JBS Wisconsin Properties, LLC, et al.
On July 17, 2025, a stockholder derivative action entitled City of Miami Beach Fire and Police Pension Fund et al. v. JBS Wisconsin Properties, LLC et al. was filed in the Court of Chancery of the State of Delaware against PPC, as nominal defendant, as well as PPC’s directors, and majority stockholder, JBS Wisconsin Properties, LLC. The complaint alleges, among other things, breaches of fiduciary duties in connection with an amendment to PPC’s Certificate of Incorporation in 2024 that, according to the plaintiffs, benefited JBS Wisconsin Properties, LLC to the detriment of public shareholders, and seeks, among other things, equitable relief. Defendants filed a Motion to Dismiss on October 2, 2025. A tentative settlement was reached on April 10, 2026, the details of which are expected to be memorialized in a formal agreement in due course.
SAT’s tax review of Avícola for tax year 2010
During the first quarter of 2026, the appeal as to tax year 2010 was dismissed by the Supreme Court of Mexico. Accordingly, Avícola has an accrual $18.1 million which is reflected in Income taxes payable in the Condensed Consolidated Balance Sheet as of March 29, 2026.
SAT’s tax assessments in connection with PPC’s 2015 acquisition of Tyson de México
On February 7, 2025, the Collegiate (appellate) Court issued a decision remanding the dispute to the Tax Court. On March 19, 2025, the Tax Court ruled that, for tax purposes and with respect to both assessments, the sale of the equity of Provemex occurred on June 29, 2015, and that Provemex was a Mexican tax resident on that date. PPC appealed this ruling to the Collegiate court on April 23, 2025 and the Collegiate Court ruled in PPC's favor, remanding to the Tax court. The Tax court issued a revised opinion on March 25, 2026 that reaffirmed the assessments against PPC. PPC will continue to defend this matter. The amount under appeal for the assessment, including any penalties and interest, is approximately $269.5 million. PPC will seek a reasonable settlement with the tax authority where it is available. The Company has determined the loss is probable and as such has made an accrual of $88.2 million, which is reflected in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheet as of March 29, 2026.
U.K. Revenue & Customs Authority’s review of the 2017 and 2018 tax returns for Onix Investments UK Ltd
On March 10, 2025, HMRC filed their Statement of Case (a preliminary summary of arguments). A case management timetable has been agreed between Onix and HMRC and approved by the court. A hearing window has been set between January 27, 2027 and February 2, 2027. Onix intends to continue to defend this matter. No accrual has been recorded for this matter.
There have been no other updates or changes in any other material proceedings compared to the audited consolidated financial statements as of and for the year ended December 28, 2025.
25
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Executive Summary
Overview
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $101.4 million, or $0.43 per diluted common share, and income before tax totaling $131.8 million, for the three months ended March 29, 2026. These operating results included net sales of $4.5 billion, gross profit of $345.5 million and $140.8 million of cash provided by operating activities. We generated a consolidated operating margin of 3.6%. For the three months ended March 29, 2026, we generated EBITDA and Adjusted EBITDA of $281.3 million and $308.1 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Global Economic Conditions
Our business is subject to global inflationary trends. U.S. inflation decreased from the fourth quarter of 2025 through January and held steady in February, then sharply rose in March driven by increased energy prices from geopolitical disruptions. The increased energy prices drove a slight increase at the end of the first quarter of 2026 in U.S. food inflation. U.K. inflation eased slightly from the fourth quarter of 2025, then remained relatively stable throughout the first quarter of 2026. The E.U. region also saw a slight decrease in the inflation rate in January 2026, followed by a mild increase in February and sharper increase in March 2026, driven by increased energy prices. In Mexico, inflation rose during the first quarter of 2026 primarily driven by increased food and services prices, with additional increases from higher energy prices and the impact of tariffs. The peso strengthened against the U.S. dollar in January and February of 2026, followed by a sharp weakening in March 2026. Future trends will be impacted by economic uncertainties in Mexico and with their primary trading partners, such as the U.S. The Russia-Ukraine war's impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets.
The ongoing armed conflict involving Iran and the Gulf has led, and may continue to lead, to, among other things, increased volatility and higher prices for commodities, such as energy products and freight on input material costs, increased inflation in various countries, disruptions to global trade and supply chains, including key energy transit routes. Actual or threatened disruptions to maritime shipping lanes and other escalating security tensions have increased various costs. While the supply constraints related to the conflict did not have a material impact on our costs during the current reporting period, prolonged or expanded hostilities could have a more pronounced effect in future periods. Additionally, the Russia-Ukraine war’s impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets.
We are monitoring changes in tariffs and trade policies both in the U.S. and throughout other countries where we operate and do business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized with inputs being made in country and our products being sold in country, demonstrated by our export sales from the U.S. accounting for less than 5% of our total net sales. The impact of trade policy changes is uncertain and evolving; however, we do not anticipate material impacts to our results of operations. We will continue to monitor potential impacts and take mitigation actions as necessary.
We generally respond to ongoing challenges in global economic conditions through discussions with customers to mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Raw Materials and Pricing
Our U.S. and Mexico segments use corn and soybean meal as the main ingredients for feed production, while our Europe segment uses wheat, soybean meal and barley as the main ingredients for feed production. The following table reflects the highest and lowest prices reached on nearby futures for one bushel of corn, one ton of soybean meal, and one metric ton of wheat during the current and previous years:
26
Corn(a) | Soybean Meal(a) | Wheat(a) | |||||||||||||||||||||||||||||||||
| Highest Price | Lowest Price | Highest Price | Lowest Price | Highest Price | Lowest Price | ||||||||||||||||||||||||||||||
| (In whole dollars) | (In whole pounds sterling) | ||||||||||||||||||||||||||||||||||
| 2026 | |||||||||||||||||||||||||||||||||||
| First Quarter | 4.70 | 4.20 | 332.5 | 286.4 | 173.7 | 160.1 | |||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||
| Fourth Quarter | 4.51 | 4.11 | 330.8 | 264.7 | 166.8 | 155.2 | |||||||||||||||||||||||||||||
| Third Quarter | 4.32 | 3.72 | 297.2 | 260.7 | 180.0 | 136.5 | |||||||||||||||||||||||||||||
| Second Quarter | 4.90 | 4.10 | 299.6 | 270.9 | 173.6 | 138.2 | |||||||||||||||||||||||||||||
| First Quarter | 5.02 | 4.36 | 315.8 | 285.9 | 185.6 | 165.0 | |||||||||||||||||||||||||||||
(a)We obtain corn and soybean meal prices from the Chicago Board of Trade, and we obtain wheat prices from the London International Financial Futures and Options Exchange.
U.S. commodity market prices for chicken products during the three months ended March 29, 2026, trended below prior year levels and the historical five-year average. Boneless breast prices rebounded from levels at the beginning of 2026 and trended upward overall, with pricing relatively stable in February before strengthening further in March, albeit below prior year. Supply remained elevated during the first quarter of 2026, reflecting higher egg sets and chick placements late in the prior year that translated into increased headcounts in the first quarter. Average liveweights were also higher in the first quarter of 2026, further contributing to higher production levels. Per the March 2026 U.S. Department of Agriculture (“USDA”) report on poultry slaughter, estimated industry ready-to-cook production during the first quarter of 2026 increased by 3.4% compared to prior year levels.
During the first quarter of 2026, the U.S. chicken market demand fluctuated. Chicken remained a strong value option relative to other proteins amid ongoing pressure on consumer finances. Consumption expenditures outpaced real disposable income and inflation accelerated, driven in part by higher energy and food costs. Volumes grew across both retail and foodservice channels. However, retail growth slowed to 1.3% in the first quarter of 2026, down from 2.8% in the first quarter of 2025, with demand higher in January and weaker in February and March following winter storm-related consumer stock-up activity. In foodservice, chicken offerings continued to expand as operators leaned into value positioning and responded to elevated beef prices, including non-chicken-focused quick service restaurants expanding chicken offerings. However, the sector remained constrained by soft traffic levels, limiting overall upside despite increased menu presence.
Export volume shipments declined about 1.1% from prior year levels as global geopolitical conflicts disrupted trade flows. Export pricing was also slightly lower than prior year levels. U.S. chicken cold storage inventories ended the first quarter of 2026 down 3.4% below the historical five-year average. Breast meat inventories were about 7.5% below prior year levels, while wing and dark meat inventories remained low. The low dark meat cold storage levels reflect increased demand and favorable pricing.
While demand remained strong, supply exceeded previous estimates during the first quarter of 2026 as the industry continued to deliver broad-based productivity gains, including improved hatchability, livability, headcounts, and liveweights, alongside record high egg sets and placements. In response to anticipated strong demand and elevated beef prices, production increased, which limited price gains during the quarter.
The reduction in first quarter of 2026 U.K. poultry volumes reflect normalization in average liveweights from the exceptionally high levels seen in late 2025 and January 2026, rather than any contraction in supply. U.K. poultry headkill during the first quarter was broadly in line with prior-year levels. Egg placements increased year-over-year through the first quarter, supporting continued strength in the domestic egg market. U.K. chicken prices remained stable versus the fourth quarter of 2025, but were modestly lower than the first quarter of 2025.
Commodity prices for chicken in Mexico increased slightly during the first quarter of 2026, though were below prior year average prices. Production was increased in the first quarter to offset expected mortality levels. Overall bird health was better than expected, due to private investments in biosecurity and animal health protocols throughout 2025, resulting in oversupply leading to reduced prices in the first quarter of 2026. Global corn and soybean meal prices were lower in the first quarter of 2026 compared to prior year levels, which helped support higher production levels for poultry in Mexico.
U.K. pork prices declined during the first quarter of 2026, reflecting continued supply pressure, while U.K. pig meat production increased by approximately 5.3% year-over-year, supported by higher slaughter numbers and sustained carcass weights, according to the U.K. Agriculture and Horticulture Development Board. In contrast, E.U. pork prices remained under
27
pressure during the quarter despite longer-term supply contraction, with any price stabilization emerging only toward the end of the period.
Global market prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand, (2) factors such as feed production input costs, further spread of avian influenza, or other bird diseases, both domestically and abroad, (3) uncertainty surrounding the general economy, (4) shifts in trade policy that could influence consumer spending dynamics in price-sensitive market segments, and (5) overall meat protein supply.
Reportable Segments
We operate in three reportable segments: U.S., Europe, and Mexico. We measure segment profit as operating income. Certain corporate expenses are allocated to the Mexico and Europe reportable segments based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. For additional information, see “Note 16. Reportable Segments” of our Condensed Consolidated Financial Statements included in this quarterly report.
Results of Operations
Three Months Ended March 29, 2026 Compared to the Three Months Ended March 30, 2025
Net sales. Net sales generated in the three months ended March 29, 2026 increased $69.6 million, or 1.6%, from net sales generated in the three months ended March 30, 2025. The following table provides net sales information:
| Sources of net sales | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | Impact on Change from Three Months Ended March 30, 2025 | |||||||||||||||||||||||||||||
| Amount | Percent | Sales Volume | Sales Prices | Foreign Currency Translation Impact | ||||||||||||||||||||||||||||
| (In thousands, except percent data) | (In percent) | |||||||||||||||||||||||||||||||
| U.S. | $ | 2,635,398 | $ | (107,791) | (3.9) | % | 0.8 | % | (4.7) | % | NA | |||||||||||||||||||||
| Europe | 1,351,744 | 120,215 | 9.8 | % | 0.3 | % | 2.3 | % | 7.2 | % | ||||||||||||||||||||||
| Mexico | 545,491 | 57,200 | 11.7 | % | 12.0 | % | (15.8) | % | 15.5 | % | ||||||||||||||||||||||
| Total net sales | $ | 4,532,633 | $ | 69,624 | 1.6 | % | ||||||||||||||||||||||||||
Factors impacting net sales year-over-year changes by reportable segment are as follows:
•U.S. net sales decreased $107.8 million, or 3.9%, driven by the following factors:
◦Decrease in sales price per pound of $128.6 million, or 4.7%
▪This decrease was driven primarily by unfavorable market pricing conditions with current year market pricing below historical averages
◦Partially offset by an increase in sales volume of $20.8 million, or 0.8%
•Europe net sales increased $120.2 million, or 9.8%, driven by the following factors:
◦Favorable impact of foreign currency translation of $88.6 million, or 7.2%
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
◦Increase in sales price per pound of $28.1 million, or 2.3%
▪This increase was driven by the pass through of higher input costs, such as labor and utilities
◦Increase in sales volume of $3.5 million, or 0.3%
•Mexico net sales increased $57.2 million, or 11.7% driven by the following factors:
◦Favorable impact of foreign currency translation of $75.5 million, or 15.5%
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
◦Increase in sales volume of $58.8 million, or 12.0%
◦Partially offset by a decrease in sales price per pound of $77.1 million, or 15.8%
▪This decrease was driven by a decrease in commodity chicken pricing
Gross profit and cost of sales. Gross profit decreased by $209.4 million from $554.9 million generated in the three months ended March 30, 2025 to $345.5 million generated in the three months ended March 29, 2026. The following tables provide information regarding gross profit and cost of sales information:
28
| Components of gross profit | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | Percent of Net Sales | ||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| Amount | Percent | March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 4,532,633 | $ | 69,624 | 1.6 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||
| Cost of sales | 4,187,143 | 279,007 | 7.1 | % | 92.4 | % | 87.6 | % | |||||||||||||||||||||||||||
| Gross profit | $ | 345,490 | $ | (209,383) | (37.7) | % | 7.6 | % | 12.4 | % | |||||||||||||||||||||||||
| Sources of gross profit | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | |||||||||||||||||||||
| Amount | Percent | ||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||
| U.S. | $ | 196,558 | $ | (191,064) | (49.3) | % | |||||||||||||||||
| Europe | 120,351 | 4,047 | 3.5 | % | |||||||||||||||||||
| Mexico | 28,581 | (22,366) | (43.9) | % | |||||||||||||||||||
| Total gross profit | $ | 345,490 | $ | (209,383) | (37.7) | % | |||||||||||||||||
| Sources of cost of sales | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | |||||||||||||||||||||
| Amount | Percent | ||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||
| U.S. | $ | 2,438,840 | $ | 83,273 | 3.5 | % | |||||||||||||||||
| Europe | 1,231,393 | 116,168 | 10.4 | % | |||||||||||||||||||
| Mexico | 516,910 | 79,566 | 18.2 | % | |||||||||||||||||||
| Total cost of sales | $ | 4,187,143 | $ | 279,007 | 7.1 | % | |||||||||||||||||
Factors impacting cost of sales year-over-year changes by reportable segment are as follows:
•U.S. cost of sales increased $83.3 million, or 3.5%, driven by the following factors:
◦Increase in cost per pound sold of $65.4 million, or 2.7%
▪This increase was driven primarily by an increase in live operations costs, grower pay, depreciation, utilities, and other operating costs
◦Increase in sales volume of $17.9 million, or 0.8%
▪This increase was driven by consumer demand
•Europe cost of sales increased $116.2 million, or 10.4%, driven by the following factors:
◦Unfavorable impact of foreign currency translation of $78.4 million, or 7.0%
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
◦Increase in cost per pound sold of $34.7 million, or 3.1%
▪This increase was driven by higher input costs, such as labor and utilities
◦Increase in sales volume of $3.1 million, or 0.3%
•Mexico cost of sales increased $79.6 million, or 18.2% driven by the following factors:
◦Unfavorable impact of foreign currency translation of $71.6 million, or 16.4%
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
◦Increase in sales volume of $52.6 million, or 12.0%
▪This increase was driven by market requirements in mix
◦Partially offset by a decrease in cost per pound sold of $44.6 million, or 10.2%
▪This decrease was driven by a decrease in commodity chicken pricing
Operating income and SG&A expense. Operating income decreased by $241.9 million, or 59.8%, from $404.5 million generated in the three months ended March 30, 2025 to $162.6 million generated in the three months ended March 29, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
29
| Components of operating income | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | Percent of Net Sales | ||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| Amount | Percent | March 29, 2026 | March 30, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||||||||||||||
| Gross profit | $ | 345,490 | $ | (209,383) | (37.7) | % | 7.6 | % | 12.4 | % | |||||||||||||||||||||||||
| SG&A expense | 180,169 | 46,390 | 34.7 | % | 3.9 | % | 3.0 | % | |||||||||||||||||||||||||||
| Restructuring activities | 2,765 | (13,847) | (83.4) | % | 0.1 | % | 0.4 | % | |||||||||||||||||||||||||||
| Operating income | $ | 162,556 | $ | (241,926) | (59.8) | % | 3.6 | % | 9.1 | % | |||||||||||||||||||||||||
| Sources of operating income | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | |||||||||||||||||||||
| Amount | Percent | ||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||
| U.S. | $ | 86,909 | $ | (231,897) | (72.7) | % | |||||||||||||||||
| Europe | 64,755 | 15,684 | 32.0 | % | |||||||||||||||||||
| Mexico | 10,892 | (25,713) | (70.2) | % | |||||||||||||||||||
| Total operating income | $ | 162,556 | $ | (241,926) | (59.8) | % | |||||||||||||||||
| Sources of SG&A expense | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | |||||||||||||||||||||
| Amount | Percent | ||||||||||||||||||||||
| (In thousands, except percent data) | |||||||||||||||||||||||
| U.S. | $ | 109,649 | $ | 40,833 | 59.3 | % | |||||||||||||||||
| Europe | 52,831 | 2,210 | 4.4 | % | |||||||||||||||||||
| Mexico | 17,689 | 3,347 | 23.3 | % | |||||||||||||||||||
| Total SG&A expense | $ | 180,169 | $ | 46,390 | 34.7 | % | |||||||||||||||||
Factors impacting SG&A year-over-year changes by reportable segment are as follows:
•U.S. SG&A increased $40.8 million, or 59.3%, driven by an increase in legal settlement expense, legal defense costs, and marketing costs
•Europe SG&A increased $2.2 million, or 4.4%, driven by the unfavorable impact foreign currency translation, partially offset by decreases in overall cost structure
•Mexico SG&A increased $3.3 million, or 23.3%, driven by the unfavorable impact of foreign currency translation
| Sources of restructuring activities charges | Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | ||||||||||||||||||
| Amount | Percent | |||||||||||||||||||
| (In thousands, except percent data) | ||||||||||||||||||||
| Europe | $ | 2,765 | $ | (13,847) | (83.4) | % | ||||||||||||||
Factors impacting restructuring activities charges are as follows:
•Europe restructuring activities charges of $2.8 million for the three months ended March 29, 2026 were incurred primarily as a result of severance related to back office consolidation.
| Three Months Ended March 29, 2026 | Change from Three Months Ended March 30, 2025 | |||||||||||||||||||
| Amount | Percent | |||||||||||||||||||
| (In thousands, except percent data) | ||||||||||||||||||||
| Net interest expense | $ | 30,977 | $ | 14,192 | 84.6 | % | ||||||||||||||
Factors impacting the year-over-year change in net interest expense are as follows:
•A decrease in interest income earned on excess cash due to lower average cash balances
30
| Three Months Ended March 29, 2026 | Three Months Ended March 30, 2025 | |||||||||||||
| (In thousands, except percent data) | ||||||||||||||
Income tax expense | $ | 30,370 | $ | 94,099 | ||||||||||
| Effective tax rate | 23.0 | % | 24.1 | % | ||||||||||
Factors impacting the year-over-year change in income tax expense are as follows:
•A decrease in profit before income taxes
Liquidity and Capital Resources
The following table presents our available sources of liquidity as of March 29, 2026:
| Sources of Liquidity | Facility Amount | Facility Amount (USD) | Amount Outstanding (USD) | Availability (USD) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | NA | NA | NA | $ | 542.4 | |||||||||||||||||||||
| Borrowing arrangements: | ||||||||||||||||||||||||||
U.S. Credit Facility(a) | USD | 850.0 | million | $ | 850.0 | $ | — | $ | 846.0 | |||||||||||||||||
| Europe Credit Facility | GBP | 150.0 | million | 198.9 | — | 198.9 | ||||||||||||||||||||
| Mexico BBVA Credit Facility | MXN | 1.3 | billion | 70.4 | — | 70.4 | ||||||||||||||||||||
| Mexico Bajio Credit Facility | MXN | 1.5 | billion | 82.8 | — | 82.8 | ||||||||||||||||||||
(a)Availability under the U.S. Credit Facility may also reduced by outstanding standby letters of credit.
On March 30, 2026, the Company commenced a tender offer pursuant to which it offered to acquire up to $250.0 million aggregate principal amount of its 6.250% Senior Notes due 2033. On April 14, 2026, the early settlement date, the Company exercised the purchase of $250.0 million aggregate principal amount at a price of $1,056.90 per $1,000.00 principal amount and a total cost of $264.2 million.
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months.
Historical Flow of Funds
| Cash Flows from Operating Activities | Three Months Ended | |||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| (In millions) | ||||||||||||||
| Net income | $ | 101.5 | $ | 296.3 | ||||||||||
| Net noncash expenses | 123.5 | 103.8 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Trade accounts and other receivables | 74.3 | (91.5) | ||||||||||||
| Inventories | (16.0) | (64.2) | ||||||||||||
| Prepaid expenses and other current assets | 10.2 | (44.0) | ||||||||||||
| Accounts payable, accrued expenses and other current liabilities | (157.1) | (118.7) | ||||||||||||
| Income taxes | 18.0 | 51.9 | ||||||||||||
| Long-term pension and other postretirement obligations | (1.2) | (1.4) | ||||||||||||
| Other operating assets and liabilities | (12.4) | (5.3) | ||||||||||||
| Cash provided by operating activities | $ | 140.8 | $ | 126.9 | ||||||||||
Net Noncash Expenses
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $123.5 million for the three months ended March 29, 2026. Net noncash expense items included depreciation and amortization of $118.5 million, stock-based compensation costs of $6.1 million, deferred income tax benefit of $4.9 million,
31
losses on property disposals of $2.0 million, loan cost amortization of $1.2 million, and accretion of discounts related to Senior Notes of $0.6 million.
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $103.8 million for the three months ended March 30, 2025. Net noncash expense items included depreciation and amortization of $104.5 million, deferred income tax benefit of $11.0 million, stock-based compensation costs of $7.0 million, loan cost amortization of $1.2 million, losses on property disposals of $0.9 million, asset impairment of $0.6 million, accretion of discounts related to Senior Notes of $0.6 million, and gain on early extinguishment of debt recognized as component of interest expense of $0.1 million. Other net noncash items were immaterial.
Changes in Operating Assets and Liabilities
The change in trade accounts and other receivables represented a $74.3 million source of cash related to operating activities for the three months ended March 29, 2026. This change primarily resulted from a decrease in trade accounts receivable. The change in trade accounts and other receivables represented a $91.5 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted from an increase in trade accounts receivable primarily due to an increase in sales from more favorable market pricing and a decrease in the use of our discounted accounts receivable program.
The change in inventories represented a $16.0 million use of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from increased live inventories and impact of foreign currency translation. The change in inventories represented a $64.2 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the fourth quarter of 2024.
The change in prepaid expenses and other current assets represented a $10.2 million source of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from a decrease in prepaid indirect taxes in our Mexico and Europe reportable segments, partially offset by an increase in derivative assets. The change in prepaid expenses and other current assets represented a $44.0 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments.
The change in accounts payable, accrued expenses and other current liabilities represented a $157.1 million use of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from the payment of incentive compensation accrued for in 2025 and a decrease in the average days payable outstanding. The change in accounts payable, accrued expenses and other current liabilities represented a $118.7 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from the payment of incentive compensation accrued for in 2024.
The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $18.0 million and $51.9 million source of cash for the three months ended March 29, 2026 and March 30, 2025, respectively.
| Cash Flows from Investing Activities | Three Months Ended | |||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| (In millions) | ||||||||||||||
| Acquisitions of property, plant and equipment | $ | (234.8) | $ | (98.3) | ||||||||||
| Purchase of acquired business, net of cash acquired | (3.1) | — | ||||||||||||
| Proceeds from property disposals | 1.7 | 1.2 | ||||||||||||
| Cash used in investing activities | $ | (236.2) | $ | (97.1) | ||||||||||
Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, and to reduce costs for the three months ended March 29, 2026. Capital expenditures were incurred primarily to improve operational efficiencies, system enhancement projects, and to reduce costs for the three months ended March 30, 2025.
Purchase of acquired business during the three months ended March 29, 2026, is from the equity purchase of Hermitage AI Ltd. from Hermitage Group. For more details, refer to "Note 6. Goodwill and Intangible Assets."
32
| Cash Flows from Financing Activities | Three Months Ended | |||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| (In millions) | ||||||||||||||
| Payments on revolving line of credit, long-term borrowings and finance lease obligations | $ | (0.2) | $ | (3.6) | ||||||||||
| Cash used in financing activities | $ | (0.2) | $ | (3.6) | ||||||||||
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the three months ended March 29, 2026, are related to finance lease payments.
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the three months ended March 30, 2025, are primarily related to open market repurchases of outstanding senior notes.
Long-Term Debt and Other Borrowing Arrangements
Our long-term debt and other borrowing arrangements consist of senior notes, revolving credit facilities and other term loan agreements. For a description, refer to “Note 11. Debt.”
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, and (4) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:
•They do not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;
•They do not reflect changes in, or cash requirements for, our working capital needs;
•They do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt;
•Although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
•They are not adjusted for all noncash income or expense items that are reflected in our statements of cash flows;
•EBITDA does not reflect the impact of earnings or charges attributable to noncontrolling interests;
•They do not reflect the impact of earnings or charges resulting from matters we consider to not be indicative of our ongoing operations; and
•They do not reflect limitations on or costs related to transferring earnings from our subsidiaries to us.
In addition, other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. You should compensate for these limitations by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.
33
| Three Months Ended | |||||
| March 29, 2026 | |||||
| (In thousands) | |||||
| Net income | $ | 101,450 | |||
| Add: | |||||
| Interest expense, net | 30,977 | ||||
| Income tax expense | 30,370 | ||||
| Depreciation and amortization | 118,481 | ||||
| EBITDA | 281,278 | ||||
| Add: | |||||
| Foreign currency transaction losses | 922 | ||||
| Litigation settlements | 23,194 | ||||
| Restructuring activities losses | 2,765 | ||||
| Minus: | |||||
| Net income attributable to noncontrolling interest | 27 | ||||
| Adjusted EBITDA | $ | 308,132 | |||
34
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk-Sensitive Instruments and Positions
The risk inherent in our market risk-sensitive instruments and positions is primarily the potential loss arising from adverse changes in commodity prices, foreign currency exchange rates, interest rates and the credit quality of available-for-sale securities as discussed below. The sensitivity analyses presented do not consider the effects that such adverse changes may have on overall economic activity, nor do they consider additional actions our management may take to mitigate our exposure to such changes. Actual results may differ from those described below.
Commodity Prices
We purchase certain commodities, primarily corn, soybean meal, soybean oil, and wheat, for use as ingredients in the feed we either sell commercially or consume in our live operations. As a result, our earnings are affected by changes in the price and availability of such feed ingredients. We attempt to minimize our exposure to the changing price and availability of such feed ingredients by using various techniques, including, but not limited to, (1) executing purchase agreements with suppliers for future physical delivery of feed ingredients at established prices and (2) purchasing or selling derivative financial instruments such as futures and options.
For this sensitivity analysis, market risk is estimated as a hypothetical 10% increase in the weighted-average cost of our primary feed ingredients as of the periods presented. The impact of this fluctuation, if realized, could be mitigated by related commodity hedging activity. However, fluctuations greater than 10% could occur.
| Three Months Ended March 29, 2026 | |||||||||||
| Amount | Impact of 10% Increase in Feed Ingredient Prices | ||||||||||
| (In thousands) | |||||||||||
Feed ingredient purchases(a) | $ | 804,761 | $ | 80,476 | |||||||
Feed ingredient inventory(b) | 176,429 | 17,643 | |||||||||
(a)Based on our feed consumption, a 10% increase in the price of our feed ingredient purchases would have increased cost of sales for the three months ended March 29, 2026.
(b)A 10% increase in ending feed ingredient prices would have increased inventories as of March 29, 2026.
| March 29, 2026 | |||||||||||
| Amount | Impact of 10% Increase to the Fair Value of Commodity Derivative Assets | ||||||||||
| (In thousands) | |||||||||||
Net commodity derivative assets(a) | $ | 4,657 | $ | 466 | |||||||
(a)We purchase commodity derivative financial instruments, specifically exchange-traded futures and options, in an attempt to mitigate price risk related to our anticipated consumption of commodity inputs for the next 12 months. A 10% increase in corn, soybean meal, soybean oil and wheat prices would have resulted in a change in the fair value of our net commodity derivative position, including margin cash, as of March 29, 2026.
Interest Rates
Fixed-rate debt. Market risk for fixed-rate debt is estimated as the potential decrease in fair value resulting from a hypothetical increase in interest rates of 10%. Using a discounted cash flow analysis, a hypothetical 10% increase in interest rates would have decreased the fair value of our fixed-rate debt by $85.8 million as of March 29, 2026.
Foreign Currency
Mexico Foreign Investments
We are exposed to foreign exchange-related variability of investments and earnings from our Mexican subsidiaries. Foreign currency market risk is the possibility that our financial results or financial position could be better or worse than planned because of changes in foreign currency exchange rates. For this sensitivity analysis, market risk is estimated as a hypothetical 10% change in exchange rates used to convert Mexican peso to U.S. dollars, and the effect of this change on our Mexican foreign investments.
Net Assets. As of March 29, 2026, our Mexican subsidiaries that are denominated in Mexican peso had net assets of $708.7 million. A 10% weakening in Mexican peso against the U.S. dollar exchange rate would cause a decrease in the net
35
assets of our Mexican subsidiaries by $64.4 million. A 10% strengthening in the Mexican peso against the U.S dollar exchange rate would cause an increase in the net assets of our Mexican subsidiaries of $78.7 million.
We are also exposed to the effect of potential currency exchange rate fluctuations to the extent that amounts are repatriated from Mexico to the U.S. The Mexican peso exchange rate can directly and indirectly impact our financial condition and results of operations.
Europe Foreign Investments
We are exposed to foreign exchange-related variability of investments and earnings from our Europe subsidiaries. Foreign currency market risk is the possibility that our financial results or financial position could be better or worse than planned because of changes in foreign currency exchange rates. For this sensitivity analysis, market risk is estimated as a hypothetical 10% change in exchange rates used to convert British pound and euro to U.S. dollars, and the effect of this change on our Europe foreign investments.
Net Assets. As of March 29, 2026, our Europe subsidiaries that are denominated in British pounds had net assets of $1.1 billion. A 10% weakening in British pound against the U.S. dollar exchange rate would cause a decrease in the net assets of our Europe subsidiaries by $100.4 million. A 10% strengthening in the British pound against the U.S dollar exchange rate would cause an increase in the net assets of our Europe subsidiaries of $122.7 million.
Cash flow hedging transactions. We periodically enter into foreign currency forward contracts, which are designated and qualify as cash flow hedges, to hedge foreign currency risk on a portion of sales generated and purchases made by our Europe reportable segment. A 10% weakening or strengthening of the U.S. dollar against the British pound and U.S. dollar against the euro would result in immaterial changes in the fair values of these derivative instruments. No assurance can be given as to how future movements in currency rates could affect our future financial condition or results of operations.
Quality of Investments
Certain retirement plans that we sponsor invest in a variety of financial instruments. We have analyzed our portfolios of investments, and to the best of our knowledge, none of our investments, including money market funds units, commercial paper and municipal securities, have been downgraded, and neither we nor any fund in which we participate hold significant amounts of structured investment vehicles, auction rate securities, collateralized debt obligations, credit derivatives, hedge funds investments, fund of funds investments or perpetual preferred securities. Certain postretirement funds in which we participate hold significant amounts of mortgage-backed securities. However, none of the mortgages collateralizing these securities are considered subprime.
Impact of Inflation
The U.S., Mexico, and most of Europe continue to experience inflation at above-historical levels, though to a lesser degree than in the prior year. None of the locations in which we operate are experiencing hyperinflation. We have responded to these inflationary challenges by continuing negotiations with customers to recoup the extraordinary costs we have experienced. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Forward Looking Statements
Certain written and oral statements made by our Company and subsidiaries of our Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made herein, in our other filings with the SEC, in press releases, and in certain other oral and written presentations. Statements of our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “expect,” “project,” “plan,” “imply,” “intend,” “should,” “foresee” and similar expressions, are forward-looking statements that reflect our current views about future events and are subject to risks, uncertainties and assumptions. Such risks, uncertainties and assumptions include the following:
•Matters affecting the chicken and pork industries generally, including fluctuations in the commodity prices of feed ingredients, pigs and chicken;
•Our ability to maintain contracts that are critical to our operations;
•Our ability to retain management and other key individuals;
36
•Outbreaks of avian influenza or other diseases, either in our own flock or elsewhere, affecting our ability to conduct our operations and/or demand for our poultry products;
•Contamination of our products, which has previously and can in the future lead to product liability claims (for which insurance coverage is expensive, limited and potentially inadequate) and product recalls;
•Media campaigns related to food production, regulatory and customer focus on sustainability, and recent increased focus and attention by the U.S. government on market dynamics;
•Changes in laws or regulations affecting our operations or the application or enforcement thereof, including those relating to climate change, immigration and anti-corruption;
•Competitive factors, inflation and pricing pressures, customer consolidation or the loss of one or more of our largest customers;
•Inability to consummate, or effectively integrate, any acquisition or to realize the associated anticipated cost savings and operating synergies;
•Currency exchange rate fluctuations, developments relating to tariffs and other international trade actions, trade barriers, exchange controls, expropriation and other risks associated with foreign segments;
•Restrictions imposed by, and as a result of, Pilgrim’s leverage;
•Disruptions in international markets, energy supply routes, and other distribution channels for various reasons, including, but not limited to, the ongoing Russia-Ukraine war or wars in the Middle East;
•The impact of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems;
•Our ability to maintain favorable labor relations with our employees and our compliance with labor laws;
•Extreme weather or natural disasters;
•The impact of uncertainties in litigation; and
•Other risks described herein and under “Part I—Item 1A—Risk Factors” in our 2025 Annual Report.
Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond our control.
The Company’s forward-looking statements speak only as of the date of this report or as of the date they are made. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must caution investors and others that other factors may in the future prove to be important and affect our business or results of operations.
37
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), “disclosure controls and procedures” means controls and other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
As of March 29, 2026, the Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation and subject to the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 29, 2026, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that information we are required to disclose in our reports filed with the SEC is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
The Company’s management, including the Chief Executive Officer and Chief Financial Officer, identified no change in the Company’s internal control over financial reporting that occurred during the three months ended March 29, 2026 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
During 2024, the Company completed the first phase of a multi-year implementation of an enterprise resource planning (“ERP”) system. The implementation did not materially affect our internal control over financial reporting during the three months ended March 29, 2026. The third and final phase of the implementation was completed on April 20, 2026 and we do not expect any material effects to our internal control over financial reporting throughout the remainder of the reporting period.
38
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The information required with respect to this item can be found in Part I, Item 1, Notes to Condensed Consolidated Financial Statements, “Note 17. Commitments and Contingencies” in this quarterly report and is incorporated by reference into this Item 1.
ITEM 1A. RISK FACTORS
For a discussion of our potential risks and uncertainties, please see “Part I—Item 1A—Risk Factors” and “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report and “Part I—Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein, in each case as updated by the Company’s periodic filings with the SEC. There have been no material changes to the risk factors previously disclosed in our 2025 Annual Report.
ITEM 5. OTHER INFORMATION
None of the Company’s directors or executive officers adopted terminated
ITEM 6. EXHIBITS
Exhibit No. | Description | |||||||
| 3.1 | ||||||||
| 3.2 | ||||||||
| 31.1 | ||||||||
| 31.2 | ||||||||
| 32.1 | ||||||||
| 32.2 | ||||||||
| 101.INS | Inline XBRL Instance Document | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
| * | Filed herewith. | |||||||
| ** | Furnished herewith. | |||||||
39
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| PILGRIM’S PRIDE CORPORATION | |||||||||||
| Date: April 29, 2026 | /s/ Matthew Galvanoni | ||||||||||
| Matthew Galvanoni | |||||||||||
| Chief Financial Officer and Chief Accounting Officer | |||||||||||
| (Principal Financial Officer, Principal Accounting Officer and Authorized Signatory) | |||||||||||
40
EXHIBIT 31.1
CERTIFICATION BY PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Fabio Sandri, certify that:
1.I have reviewed this quarterly report on Form 10-Q for the quarter ended March 29, 2026, of Pilgrim's Pride Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
| Date: April 29, 2026 | /s/ Fabio Sandri | ||||
| Fabio Sandri | |||||
| Principal Executive Officer | |||||
EXHIBIT 31.2
CERTIFICATION BY PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002
I, Matthew Galvanoni, certify that:
1.I have reviewed this quarterly report on Form 10-Q for the quarter ended March 29, 2026, of Pilgrim's Pride Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
| Date: April 29, 2026 | /s/ Matthew Galvanoni | ||||
| Matthew Galvanoni | |||||
| Principal Financial Officer | |||||
EXHIBIT 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Pilgrim's Pride Corporation (the “Company”), does hereby certify, to such officer's knowledge, that:
The quarterly report on Form 10-Q for the quarter ended March 29, 2026 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: April 29, 2026 | /s/ Fabio Sandri | ||||
| Fabio Sandri | |||||
| Principal Executive Officer | |||||
EXHIBIT 32.2
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
PURSUANT TO 18 U.S.C. § 1350 ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Pilgrim's Pride Corporation (the “Company”), does hereby certify, to such officer's knowledge, that:
The quarterly report on Form 10-Q for the quarter ended March 29, 2026 (the “Form 10-Q”) of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: April 29, 2026 | /s/ Matthew Galvanoni | ||||
| Matthew Galvanoni | |||||
| Principal Financial Officer | |||||