Tyson Foods posts strong adjusted earnings despite legal costs; reaffirms FY 2025 guidance
Key Financials (Q2 FY2025 vs Q2 FY2024):
• Sales: $13.07 billion (flat)
• GAAP Operating Income: $100 million (down 68%)
• Adjusted Operating Income: $515 million (up 27%)
• GAAP EPS: $0.02 (down from $0.41)
• Adjusted EPS: $0.92 (up 48%)
Six-Month Highlights (First Half FY2025 vs FY2024):
• Sales: $26.70 billion (up 1.2%)
• GAAP Operating Income: $680 million (up 25%)
• Adjusted Operating Income: $1.17 billion (up 44%)
• GAAP EPS: $1.03 (up 45%)
• Adjusted EPS: $2.06 (up 57%)
• Free Cash Flow: $382 million (down from $556 million)
Segment Highlights (Q2 FY2025):
• Beef: Adjusted operating loss of $149M; impacted by legal costs.
• Pork: Adjusted operating income of $55M (up from $33M).
• Chicken: Adjusted operating income surged to $312M (up from $160M).
• Prepared Foods: Stable at $244M adjusted operating income.
• International/Other: Adjusted operating income of $53M (up from $14M).
Outlook for FY2025:
• Sales: Flat to up 1%
• Total adjusted operating income: $1.9B to $2.3B
• Segment adjusted OI ranges:
o Beef: $(400)M to $(200)M
o Pork: $100M to $200M
o Chicken: $1.0B to $1.3B
o Prepared Foods: $900M to $1.1B
• Capital expenditures: $1.0B–$1.2B
• Free cash flow: $1.0B–$1.6B
• Tax rate: ~25%
• Liquidity: $3.2B as of March 29, 2025
• Net debt/Adjusted EBITDA: 2.3x
CEO Comment:
Donnie King emphasized strong operational execution and consistent improvements in adjusted earnings, noting Tyson’s position to meet high protein demand with its diversified portfolio.

Tyson Foods reported strong first-quarter 2025 results, with sales increasing to $13.6 billion, up 2.3% from the previous year. Operating income surged to $580 million, a 151% increase, while adjusted operating income rose 60% to $659 million. Earnings per share improved to $1.01 from $0.30 in the prior year, with adjusted EPS reaching $1.14.

The company experienced growth across key segments, with notable improvements in chicken and pork operations. Chicken operating income more than doubled to $351 million, while pork rose to $59 million. Beef operations remained in negative territory but improved significantly, reducing losses from $206 million to $64 million.

Tyson raised its full-year 2025 outlook, now expecting total adjusted operating income between $1.9 billion and $2.3 billion. Chicken remains the strongest segment, with projected adjusted operating income between $1.0 billion and $1.3 billion. The company anticipates stable to slightly increased sales for the year, continued strong liquidity above $1 billion, and capital expenditures between $1.0 billion and $1.2 billion.

CEO Donnie King highlighted Tyson’s improved execution, particularly in the chicken segment, and reaffirmed the company’s focus on meeting growing consumer demand for protein products.