Yahoo Finance

• Revenue: $13.1 billion, including a $343 million reduction related to a legal contingency accrual.

• Adjusted Operating Income: Increased by 27% to $515 million.

• Adjusted Earnings Per Share: Grew more than 48%.

• Prepared Foods Margin: Expanded by 50 basis points year-over-year.

• Chicken Segment: Adjusted operating income nearly doubled, marking the best second quarter performance since fiscal 2016.

• Pork Segment: Adjusted operating income increased 67%, the strongest second quarter result in three years.

• Free Cash Flow: $382 million year-to-date.

• Net Leverage Ratio: 2.3 times.

• Liquidity: $3.2 billion after paying off a $750 million term loan.

• Capital Expenditures: $464 million year-to-date.

• Dividends: $349 million year-to-date.

• Warning! GuruFocus has detected 9 Warning Signs with TSN.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tyson Foods Inc (NYSE:TSN) reported its fourth consecutive quarter of year-over-year growth in sales, adjusted operating income, and adjusted earnings per share.

• The company achieved a 48% growth in adjusted earnings per share, driven by improved operating performance and strategic execution.

• Prepared foods segment delivered double-digit margins, expanding by 50 basis points versus the prior year, with a focus on operational excellence and innovation.

• The chicken segment reported its best second-quarter adjusted operating income in nine years, with strong operational execution and lower grain costs.

• Tyson Foods Inc (NYSE:TSN) is optimizing its logistics and distribution infrastructure, expected to generate around $200 million in annual savings by 2030.

Negative Points

• The beef segment is facing challenging market conditions with limited cattle availability, pressuring spreads and impacting profitability.

• Second-quarter enterprise sales were impacted by a $343 million reduction related to a legal contingency accrual, primarily affecting the pork segment.

• Despite strong quarterly results, Tyson Foods Inc (NYSE:TSN) did not raise its full-year guidance, citing uncertainties such as tariffs and consumer pressure.

• The company anticipates continued investments in the chicken segment, which may impact operating income in the second half of the year.

• The macroeconomic environment remains dynamic, with potential impacts from tariffs and consumer behavior affecting future performance.

Q & A Highlights

Q: You beat consensus expectations this quarter on the profit line, but you didn't raise guidance for the full year. How did the result come through versus your internal expectations and what's coming through better or worse than expected? A: Donnie King, President and CEO, explained that the quarter demonstrated the importance of Tyson's multi-protein, multi-channel portfolio. Despite challenging market conditions in beef, Tyson increased total adjusted operating income by 27%, with chicken showing standout performance. The company remains excited about FY25, expecting profitability growth over the last part of the year, and reaffirmed guidance of $1.9 billion to $2.3 billion in adjusted operating income.