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Item 2. Management’s Discussion and Analysis

2026-04-28 compared with 2025-10-28 · 268 added, 449 removed, 319 unchanged (69% of the section changed)

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We are an indirect, majority-owned subsidiary of Hong Kong-based WH Group Limited (“WH Group”).

Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31.

Each of the first quarters of fiscal years 2026 and 2025, which ended on March 29, 2026 and March 30, 2025, respectively, consisted of 13 weeks.

We conduct our operations through three reportable segments:

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operations that process live hogs into a wide variety of primal, sub-primal and offal products, such as bellies, butts, hams, loins, picnics and ribs.

In fiscal year 2024, the Fresh Pork segment sourced approximately half of its raw materials from our Hog Production segment and half from third-party farmers with whom we partner across the U.S.

In fiscal year 2025, we expect that approximately 40% of the hogs processed by the Fresh Pork segment will be sourced from the Hog Production segment as a result of our new partnerships in Murphy Family Farms and VisionAg, which are described under “Recent Developments—Hog Production Reform” below.

The Fresh Pork segment sources approximately 40% of its raw materials from our Hog Production segment, with the remainder fro m farmers with whom we partner across the U.S.

Approximately one-third of our fresh pork products, including the majority of hams, bellies and trimmings, is transferred to our Packaged Meats segment.

Externally, we sell our fresh pork products to domestic retail, foodservice and industrial customers, as well as to export markets, including, among others, China, Mexico, Japan, South Korea and Canada.

Externally, we sell our fresh pork products to domestic retail, foodservice and industrial customers, as well as to export markets, including, among others, Mexico, China, Japan, South Korea and Canada.

Hog Production Segment

The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous Company-owned farms and farms that are owned and operated by third-party contract farmers.

Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment.

The Hog Production segment also sells grains and feed to external customers.

In fiscal year 2024 and through the third quarter of 2025, approximately 60% of the Hog Production segment’s cost of goods sold was from animal feed, which is derived primarily from corn and soybean meal.

Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31.

Unless otherwise noted, all references to the third quarter of 2025 and the three months ended September 28, 2025 are to the 13-week period ended September 28, 2025.

All references to the third quarter of 2024 and the three months ended September 29, 2024 are to the 13-week period ended September 29, 2024.

Each of the nine months ended September 28, 2025 and September 29, 2024 consisted of 39-weeks.

The Hog Production segment also sells livestock feed and grains and provides transportation and other ancillary services to external customers.

In fiscal year 2025 and the first quarter of fiscal year 2026, approximately 60% of the Hog Production segment’s cost of goods sold was from animal feed, which is derived primarily from corn and soybean meal.

Key Factors and Recent Developments Affecting Our Results of Operations and Financial Condition

Our operating results and financial condition have been and/or may be impacted in the future by several key factors and recent developments.

Growth Strategies

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We have several strategic initiatives to grow our business, reduce costs and enhance our profitability and margins.

These include:

• driving growth in our Packaged Meats segment;

• further enhancing the profitability of our Fresh Pork segment;

• continuing to invest in innovation;

• optimizing operational and supply chain efficiencies;

• executing synergistic and complementary mergers and acquisitions.

Key Factors and Recent Developments Affecting Our Results of Operations and Financial Condition

The following are key factors and recent developments that have influenced our results of operations in the past and/or may influence our results in the future.

A comprehensive discussion of our growth strategies is provided in Part II, Item 1.

Business—Our Growth Strategies in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

Sales Drivers

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Through ongoing product innovation, we seek to appeal to ever-changing consumer preferences, including demand for convenience and smaller portion sizes as well as expanded interests in new and varied flavors.

We also seek to capitalize on export markets as an outlet for increasing the value of raw materials through whole-hog utilization and by appealing to differentiated, global tastes and preferences.

Our cost as a percentage of sales varies based on fluctuations of raw materials prices, as well as manufacturing, distribution and marketing costs.

Raw materials are the largest component of our total cost of goods sold, with feed

ingredients and hogs accounting for the majority share.

We also seek to increase the value of raw materials through whole-hog utilization and by appealing to differentiated, global tastes and preferences.

We leverage multiple sales channels to optimize profitability, including value-added retail, export markets, industrial, pharmaceutical and pet foods.

Our cost as a percentage of sales varies based on fluctuations of raw material prices, as well as manufacturing, distribution and marketing costs.

Raw materials are the largest component of our total cost of goods sold, with feed ingredients and hogs accounting for the majority share.

The prices of feed ingredients, hogs and pork fluctuate based on market dynamics which can affect our margins.

We enter into hedging transactions for these commodities when we determine conditions are appropriate to mitigate the inherent price risks.

In addition, our operating costs are affected by fuel prices, which also fluctuate based on market dynamics.

We enter into hedging transactions for commodities such as feed ingredients, hogs and fuel when we determine conditions are appropriate to mitigate the inherent price risks.

While this hedging may limit our ability to participate in gains from favorable commodity fluctuations, it also reduces the risk of loss from adverse changes in raw material prices.

We continue to optimize the size of our hog production operations and procure a greater mix of hogs from independent suppliers with market-based supply agreements in order to supply our Fresh Pork segment.

We have reduced the size of our internal hog production from a peak of 17.6 million head in 2019 to 14.6 million head in 2024, and we continue to explore opportunities for reduced internal production.

We expect to produce under 11.5 million head in 2025, which would represent approximately 40% of the hogs processed by our Fresh Pork segment.

We have reduced the size of our internal hog production from a peak of 17.6 million head in 2019 to 11.1 million head in 2025, which represents approximately 40% of the hogs processed by our Fresh Pork segment.

We continue to explore opportunities to reduce internal production over the medium term.

We are pursuing best-in-class manufacturing principles in our plants by employing automation to redeploy labor to higher value tasks, increasing yields and driving efficiency by reducing complexity.

In our logistics and distribution network, we have reduced transportation and warehousing costs by improving transportation carrier mix, maximizing utilization of our cold storage and trucking assets, improving supply and demand planning and optimizing inventory levels.

In our logistics and distribution network, we actively manage transportation and warehousing costs by evaluating transportation carrier mix, optimizing transportation routes, maximizing utilization of our cold storage and trucking assets, improving supply and demand planning and optimizing inventory levels.

Our results of operations will continue to depend on our ability to (1) manage raw material cost movements through optimizing our hog production operations, hedging, forward purchasing, strategic sourcing negotiations and passing inflationary cost increases to customers, (2) operate our manufacturing and logistics footprint efficiently and competitively and (3) continue to attract and retain customers and consumers through effective sales and marketing spend.

Initial Public Offering

On January 29, 2025, we completed our initial public offering (“IPO”) of 26,086,958 shares of common stock, representing 7% of the total outstanding shares, at a price of $20.00 per share.

We issued 13,043,479 shares of common stock bringing the total number of outstanding shares to 393,112,711.

The remaining 13,043,479 shares of common stock were sold by WH Group, through its indirect wholly owned subsidiary SFDS UK Holdings Limited, our only shareholder at the time.

We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees.

As a result of the IPO, our common stock is listed on the Nasdaq Global Select Market under the ticker “SFD.”

We export our products to over 30 countries, including China.

Those exports primarily consist of fresh pork products.

For the first nine months of 2025, our export sales into China accounted for approximately 2% of our total sales.

As of September 28, 2025, products we export to China faced tariffs that ranged from 25% to 57%, with most products subject to 57% tariff rates.

For the quarter ended March 29, 2026, our export sales into China accounted for approximately 2% of our total sales.

As of March 29, 2026, products we export to China faced tariffs that ranged from 25% to 47%, with most products subject to 47% tariff rates.

Trade relations between the U.S.

and China are fluid.

China previously had proposed imposing tariff rates on our products ranging from 140% to 172%, but implementation of those increased rates was paused until November 10, 2025.

China previously had proposed imposing tariff rates on our products ranging from 140% to 172%, but implementation of those increased rates have been repeatedly paused.

It is impossible for us to predict whether tariff rates imposed on our products by China will increase, decrease or stay the same, or whether China will ban imports from the U.S.

altogether, and we will adjust our sales strategy accordingly.

Geopolitical Conflicts and Market Volatility

Recent hostilities and geopolitical tensions in multiple regions, including the Middle East, Ukraine, and parts of Central and South America, have contributed to increased volatility in global oil, energy, commodity and transportation markets.

Ongoing sanctions, export controls, and other governmental actions associated with these conflicts have impacted and may continue to impact the price and availability of oil and other key inputs.

Energy prices directly influence freight, logistics and certain raw material costs across our supply chain, which have increased and may continue to increase our operating costs.

In addition, these conditions have disrupted trade flows and contributed to broader macroeconomic uncertainty, which could impact demand for our products.

The duration and overall impact of these conflicts remain uncertain.

We will continue to monitor developments and take measures to minimize the impact on our operations.

Like other participants in our industry, we are subject to various laws and regulations administered by federal, state and other government entities, including the U.S.

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In addition, individuals may initiate litigation against us.

As of September 28, 2025 and December 29, 2024, we had contingent liabilities totaling $153 million and $141 million, respectively, in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters.

Charges totaling $80 million were recorded in the nine months ended September 28, 2025 and are included in SG&A in the condensed consolidated statements of income.

None of these charges were recorded in the third quarter of 2025.

We did not record any significant charges for litigation matters in the three and nine months ended September 29, 2024.

As of March 29, 2026 and December 28, 2025, we had contingent liabilities totaling $149 million in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters.

We did not record any significant charges for litigation matters in the three months ended March 29, 2026 and March 30, 2025.

These matters will not affect our profits or losses in future periods unless our accruals prove to be insufficient or excessive.

It is reasonably possible that a change in our estimates may occur

in the near term and that our accruals could be insufficient.

It is reasonably possible that a change in our estimates may occur in the near term and that our accruals could be insufficient.

We are unable to estimate the amount of possible loss in excess of our accruals, which could be material.

Additionally, in the second quarter of 2025, we settled a claim against an insurance carrier and received $29 million in proceeds for the recovery of losses we incurred in connection with past litigation.

As a result, we recognized a $29 million gain on the insurance recovery in the second quarter of 2025.

The gain was recognized in operating gains in the condensed consolidated statement of income and we classified the proceeds in operating activities in the condensed consolidated statement of cash flows in the second quarter of 2025.

For further information related to our litigation matters, refer to “Note 15:

Regulation and Contingencies” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

One Big Beautiful Bill

On July 4, 2025, the Tax Relief for American Families and Workers Act of 2025 (commonly known as the “One Big Beautiful Bill” or “OBBB”) was signed into law.

This comprehensive legislation made several significant changes to federal tax law, including:

• Permanently reinstating 100% bonus depreciation and adding 100% bonus deprecation for real property placed in service after January 19, 2025 and used in production activity.

• Permanently reinstating the immediate expensing of research and development (“R&D”) in the U.S for years 2022 and beyond.

• Permanently restoring certain earnings before interest, taxes, depreciation and amortization (“EBITDA”)-based limitations for interest deduction under the IRS Tax Code.

In the third quarter of 2025, following the enactment of the OBBB, the Company reclassified approximately $77 million of deferred tax assets related to R&D capitalization to current taxes receivable.

Employee Retention Tax Credits

In the second quarters of 2025 and 2024, we recognized $10 million and $87 million, respectively, of employee retention tax credits, substantially all in cost of sales in the condensed consolidated statements of income.

For more information, see “Note 7:

Employee Retention Tax Credits” to the condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

Elizabeth, New Jersey Facility Closure

On June 30, 2025, we closed our leased Elizabeth, New Jersey dry sausage production facility and consolidated production across our network.

Costs associated with closing the plant primarily include equipment that we disposed of prior to the end of the asset’s useful life.

The charges associated with the closing were not material.

This facility was accounted for in the Packaged Meats segment.

Office Closures

In the second quarter of 2025, we announced a plan to close our satellite offices in Lisle, Illinois and Kansas City, Missouri and move work performed at those locations to our headquarters in Smithfield, Virginia.

As a result, we estimated and accrued $4 million of employee termination benefit costs in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statement of income in the second quarter of 2025 for personnel who are not expected to relocate.

Sioux Falls Plant Construction

On February 16, 2026, we announced that we had initiated the approval process to construct a new state-of-the-art combined fresh pork and packaged meats processing facility in Sioux Falls, South Dakota.

The proposed facility would replace our existing 117-year-old plant currently located in Sioux Falls, South Dakota.

Our preliminary estimate of the proposed investment is up to $1.3 billion over the next three years.

This investment is contingent on approval by the Company’s board of directors as well as permitting and other regulatory approvals.

If approved, construction is anticipated to begin in the first half of 2027 with production estimated to commence by the end of 2028.

Additionally, if the project moves forward, we plan to accelerate depreciation and may incur other incremental costs related to closing the existing plant, which are currently under evaluation.

Nathan’s Famous Pending Acquisition

On January 20, 2026, we entered into an agreement to acquire all of the issued and outstanding shares of Nathan’s Famous Inc.

(“Nathan’s”) for $102.00 per share in cash.

The acquisition is expected to be funded using cash on hand.

Since March 2014, we have held an exclusive license to manufacture, distribute, market and sell “Nathan’s Famous” branded hot dogs, sausages, corned beef and certain other ancillary products through retail outlets in the U.S.

and Canada and Sam’s Clubs in Mexico.

The license is scheduled to expire in March 2032.

Completion of the transaction remains contingent upon meeting several conditions specified in the merger agreement.

These include securing approval from the holders of a majority of Nathan’s outstanding common stock, obtaining clearance from the Committee on Foreign Investment in the United States (“CFIUS”), and fulfilling other standard closing requirements.

However, given the impact of the partial government shutdown on statutory deadlines for CFIUS’s review process, our anticipated closing timeline has shifted, and we now expect the transaction to close in the second half of 2026.

Restructuring and Optimization

Springfield, Massachusetts Facility

On February 6, 2026, we announced our decision to exit our leased Springfield, Massachusetts dry sausage production facility by the end of August 2026 and consolidate production across our network, including at our recently acquired Nashville, Tennessee facility.

The decision to close the Springfield facility is part of the Company’s ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies.

In the first quarter of 2026, we recognized $2 million in accelerated depreciation and employee termination benefits in cost of sales in the condensed consolidated statement of income.

We expect to recognize additional charges associated with the exit of the facility totaling approximately $8 million over the second and third quarters of fiscal year 2026.

Administrative Process Optimization

In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes.

As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity.

As a result of this initiative, we recognized $1 million in restructuring costs in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statement of income in the first quarter of fiscal year 2026 and anticipate additional one-time restructuring costs totaling approximately $10 million for the remainder of fiscal year 2026.

Workforce Reduction

In the first quarter of 2025, we implemented a reduction in workforce initiative to streamline our operations and reduce operating expenses.

We eliminated certain corporate and plant positions and recognized employee

termination benefit costs totaling $9 million in the condensed consolidated statement of income in the first quarter of 2025 with $6 million classified in SG&A and $2 million classified in cost of sales.

Initial Public Offering

On January 29, 2025, we completed our initial public offering (“IPO”) of 26,086,958 shares of common stock, which represents 7% of the total outstanding shares, at a price of $20.00 per share.

We issued 13,043,479 shares of common stock bringing the total number of outstanding shares to 393,112,711.

The remaining 13,043,479 shares of common stock were sold by WH Group, through its indirect wholly owned subsidiary SFDS UK Holdings Limited (“SFDS UK”), our only shareholder at the time.

WH Group granted the underwriters a 30-day option to purchase up to 3,913,042 additional shares of our common stock.

On February 20, 2025, the underwriters partially exercised such option and purchased 2,506,936 additional shares of common stock from WH Group.

We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees.

As a result of the IPO, our common stock is listed on the Nasdaq Global Select Market under the ticker “SFD.”

In connection with the IPO, we granted to our directors and certain of our employees and certain directors and employees of WH Group:

(1) options to purchase 9,822,467 shares with an exercise price equal to the IPO price and an aggregate grant date fair value of $30 million and (2) 1,527,000 restricted stock units (“RSUs”) with an aggregate grant date fair value of $31 million.

The options and substantially all RSUs vest over a five year period, with 20% vesting each year.

We recognized compensation expense totaling $2 million and $6 million associated with these equity instruments during the three and nine months ended September 28, 2025.

Unrecognized compensation expense totaled $39 million as of September 28, 2025, which is expected to be recognized on a straight-line basis over the remaining vesting period of 4.3 years.

Secondary Offering

In the third quarter of 2025, WH Group, through its indirect wholly owned subsidiary SFDS UK, sold another 22,461,452 shares of our common stock in a secondary offering.

The sale did not affect the number of shares outstanding, nor did we receive any proceeds from the sale of stock by WH Group.

Following this offering, WH Group owns approximately 87.0% of our shares of common stock.

Altoona, Iowa Facility Closure

On August 30, 2024, we closed our Altoona, Iowa ham boning facility and consolidated production volume into other locations to improve manufacturing efficiencies.

Costs associated with closing the plant primarily include operating lease assets and equipment that we disposed of prior to the expiration of the lease term or end of the asset’s useful life.

The charges associated with the closing were not material.

Altoona was accounted for in the Fresh Pork segment.

European Carve-Out

On August 26, 2024, we completed a carve-out and transfer of our European operations to WH Group.

As a result, we derecognized the assets and liabilities of our former European operations through equity.

No gain or loss was recognized on the transaction.

The historical results of operations, assets and liabilities, and cash flows of the European operations have been condensed and reported as discontinued operations in the condensed consolidated financial statements for all periods presented.

Dry Sausage Facility Acquisition

On July 30, 2024, we acquired a dry sausage production facility located in Nashville, Tennessee from Cargill Meat Solutions Corporation for $38 million.

The acquisition is part of our strategy to grow our value-added packaged

meats business and serve the growing demand for high-quality pepperoni, salami, charcuterie and other dry sausage products.

We eliminated certain corporate and plant positions and recognized employee termination benefit costs totaling $9 million in the condensed consolidated statement of income in the first quarter of 2025 with $6 million classified in SG&A and $2 million classified in cost of sales.

Hog Production Reform

Beginning in 2023, we have taken a number of actions to optimize the size of our Hog Production segment’s operations and improve its cost structure, including ceasing certain farm operations, terminating certain agreements with underperforming contract farmers and reducing the size of our hog production business (“Hog Production Reform”).

In the fourth quarter of fiscal year 2024, we became a member of a North Carolina-based company, Murphy Family Farms LLC (“Murphy Family Farms”), by contributing $3 million in cash in exchange for a 25% minority interest.

We additionally sold approximately 150,000 sows and related inventories located on Company-owned and contract farms in North Carolina to Murphy Family Farms.

Subsequent to the end of fiscal year 2024, on December 30, 2024, we sold the commercial hog inventories associated with such sows to Murphy Family Farms.

Murphy Family Farms is now a hog supplier to us and supplies approximately 3.2 million hogs annually.

We supply animal feed and other supplies and provide certain support services to Murphy Family Farms.

On February 24, 2025, we became a member of a North Carolina-based company, VisionAg Hog Production, LLC (“VisionAg”), by contributing $450,000 in cash in exchange for a 9% minority interest.

We additionally sold approximately 28,000 sows and the associated commercial hog inventories located on certain Company-owned and contract farms in North Carolina to VisionAg.

VisionAg is now a hog supplier to us and supplies approximately 600,000 hogs annually.

In addition, we supply animal feed and provide certain support services to VisionAg.

In the nine months ended September 29, 2024, we recognized charges totaling $13 million associated with Hog Production Reform in cost of sales in the condensed consolidated statements of income.

Amounts recognized for all other periods presented were not material.

Beginning in 2023, we undertook a number of actions to optimize the size of our Hog Production segment’s operations and improve its cost structure, including ceasing certain farm operations, terminating certain agreements with underperforming contract farmers and reducing the size of our hog production business (“Hog Production Reform”).

In the fourth quarter of fiscal year 2024, we contributed $3 million in cash in exchange for a 25% minority interest in a North Carolina-based hog production company, Murphy Family Farms LLC (“Murphy Family Farms”).

In the first quarter of 2025 we contributed $450,000 in cash in exchange for a 9% minority interest in another North Carolina-based hog production company, VisionAg Hog Production, LLC (“VisionAg”).

As part of the formation of these entities we collectively sold approximately 178,000 sows and related inventories located on Company-owned and contract farms in North Carolina to Murphy Family Farms and VisionAg.

We subsequently sold the commercial hog inventories associated with such sows to Murphy Family Farms and VisionAg.

Murphy Family Farms and VisionAg are now hog suppliers to us and supply approximately 3.9 million hogs annually.

We supply animal feed and other supplies and provide certain support services to Murphy Family Farms and VisionAg.

Results of Operations

Consolidated Results of Continuing Operations

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

Consolidated Results

Three Months Ended

March 29, 2026 March 30, 2025 $ Change % Change

(in millions)

Sales $ 3,800 $ 3,771 $ 29 0.8 %

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Interest expense, net 8 11 (3) (28.6) %

Non-operating gains (19) (7) (11) 154.5 % (17) (13) (3) 25.4 %

Income from continuing operations before income taxes 318 276 43 15.5 % 876 745 131 17.7 %

Non-operating losses 1 6 (5) (79.8) %

Income before income taxes 323 304 19 6.4 %

Income tax expense 72 72 — 0.3 %

Loss (income) from equity method investments (4) (3) (2) 69.9 % 4 (1) 6 NM

Net income from continuing operations 252 209 43 20.5 % 667 581 87 14.9 %

Net income from continuing operations attributable to noncontrolling interests 4 7 (3) (44.2) % 7 9 (1) (14.7) %

Net income from continuing operations attributable to Smithfield $ 248 $ 202 $ 46 22.7 % $ 660 $ 572 $ 88 15.4 %

Operating Profit by Segment

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

Loss from equity method investments 2 5 (3) (63.0) %

Net income 249 227 22 9.9 %

Net income attributable to noncontrolling interests 4 4 — 1.6 %

Net income attributable to Smithfield $ 246 $ 224 $ 22 10.0 %

Operating Profit (Loss) and Operating Profit Margin by Segment

Three Months Ended

March 29, 2026 March 30, 2025 Change % Change

(in millions, except percentages and basis points)

Operating profit:

Packaged Meats $ 275 $ 266 $ 9 3.6 %

$ 226 $ 239 $ (14) (5.7) % $ 792 $ 855 $ (62) (7.3) %

10 28 (18) (63.8) % 127 196 (69) (35.1) %

Fresh Pork 78 82 (4) (4.3) %

Hog Production 4 1 3 282.6 %

89 40 48 119.8 % 112 (136) 248 NM

10 20 (10) (49.6) % 32 18 13 72.2 %

Other 12 14 (3) (18.4) %

Corporate expenses (26) (29) 3 11.0 %

Unallocated (1)

(10) (12) 2 13.2 %

Operating profit $ 333 $ 321 $ 11 3.4 %

Operating profit margin:

Packaged Meats 12.8 % 13.1 % (32) bps

Fresh Pork 3.9 % 4.0 % (13) bps

Hog Production 0.5 % 0.1 % 41 bps

Other 6.7 % 13.7 % (700) bps

Consolidated 8.7 % 8.5 % 22 bps

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(1) We do not allocate certain items to our operating segments such as litigation charges, exit and disposal costs, insurance recoveries, gains and losses on the sale of property, plant and equipment and other assets, accelerated depreciation, and employee termination benefits, among others.

Results of Operations Analysis

The following discussion provides an analysis of our results of operations for the third quarter of 2025 compared to the third quarter of 2024 and for the first nine months of 2025 compared to the first nine months of 2024.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

The following discussion provides an analysis of our results of operations for the first quarter of 2026 compared to the first quarter of 2025.

Three Months Ended

March 29, 2026 March 30, 2025 $ Change % Change

(in millions)

Sales by segment:

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(519) (535) 16 (3.1) %

— — — NM (1) — — 26.9 %

Total inter-segment sales eliminations (1,303) (1,322) 19 (1.5) %

Consolidated sales $ 3,800 $ 3,771 $ 29 0.8 %

Third Quarter—2025 vs.

Packaged Meats.

Segment sales increased by $174 million, or 9.1%, primarily attributable to a 9.2% increase in our average sales price.

The increase in average sales price was primarily due to higher raw material costs, which translated into higher sales prices of our packaged meats products.

Sales volume remained consistent year-over-year.

Segment sales increased by $234 million, or 12.0%, primarily attributable to a 12.0% increase in our average sales price.

The increase in the average sales price was driven by lower U.S.

pork production coupled with continued strong demand for pork.

Fresh pork cut-out values reported by the USDA averaged $1.14 per pound in the third quarter of 2025, up 16.9% from the same period a year ago.

Lower prices for certain pork by-products, which are not included in the USDA cut-out values, driven by reduced exports to China, resulted in a smaller increase in our average sales price relative to the USDA.

Sales volume remained consistent year-over-year.

Segment sales increased by $125 million, or 6.2%, primarily attributable to a 3.5% increase in sales volume and a 2.6% increase in our average sales price.

The increase in volume was primarily attributable to higher holiday ham sales due to the timing of Easter, which occurred earlier in 2026 as compared to 2025.

increase in average sales price was primarily due to higher raw material costs, which translated into higher sales prices of our packaged meats products.

Segment sales decreased by $21 million, or 1.1%, primarily attributable to a 2.6% decrease in sales volume partially offset by a 1.5% increase in our average sales price.

The decrease in volume was primarily driven by a 2.1% decline in the number of hogs harvested.

The increase in our average sales price is directionally aligned with the 1.1% increase in the fresh pork cut-out values reported by the USDA, which averaged $0.96 per pound in the first quarter of 2026, primarily due to continued strong demand for pork despite a slight increase in U.S.

pork production.

Hog Production.

Segment sales increased by $75 million, or 10.1%, primarily due to the following factors, which more than offset an approximately 850,000, or 25%, decrease in the number of market hogs sold due to our Hog Production Reform initiative:

• A $120 million increase in grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• Other sales to Murphy Family Farms and VisionAg totaling $69 million in the second quarter of 2025, consisting primarily of the sale of commercial hog inventories and transportation services.

Segment sales decreased by $163 million, or 17.5%, primarily due to the one-time sale of commercial hog inventories in the first quarter of 2025 in connection with the formation of Murphy Family Farms and VisionAg.

The number of market hogs sold decreased by 125,000, or 4.2%, year-over-year primarily due to the formation of these entities.

These decreases were partially offset by:

• A 0.9% increase in our average market hog sales price, inclusive of the effects of hedging, driven by a higher lean hog price index published by the Chicago Mercantile Exchange (“CME”).

Segment sales increased by $14 million, or 12.1%, due to a 12.9% increase in average sales price and a 9.2% increase in volume in our Mexico operations.

These increases reflect the implementation of a new strategy, under which our Mexico operations began importing ham and other fresh pork products primarily from our Fresh Pork segment for resale to customers in Mexico, which supports growth in Mexico’s fresh pork sales.

The increase was partially offset by lower sales in our Bioscience operations.

• A $7 million increase in other sales to Murphy Family Farms and VisionAg.

Segment sales increased by $70 million, or 66.9%, due to a 63.5% increase in volume and a $24 million increase from the favorable impact of foreign currency translation, partially offset by a 9.9% decrease in the average sales price in our Mexico operations.

Sales volume increased due to higher production driven by improved capacity utilization and higher sales of our Fresh Pork segment products through our Mexico operations.

The decrease in average sales price was largely driven by lower market prices for fresh pork and live hogs in Mexico.

Inter-segment Eliminations

• Fresh Pork.

The increase in inter-segment sales by our Fresh Pork segment was attributable to higher market values for fresh pork components sold to our Packaged Meats segment, partially offset by a 3.1% decrease in sales volume.

• Hog Production.

The decrease in inter-segment sales by our Hog Production segment was attributable to our strategic initiative to optimize our hog production operations, which reduced the number of hogs produced by our Hog Production segment.

First Nine Months—2025 vs.

Packaged Meats.

Segment sales increased by $332 million, or 5.7%, as a result of a 5.8% increase in average sales price.

The increase in average sales price was primarily due to higher raw material costs, which translated into higher sales prices of our packaged meats products.

Sales volume remained consistent year-over-year.

Segment sales increased by $428 million, or 7.3%, primarily attributable to a 6.7% increase in our average sales price and a 0.6% increase in sales volume.

The increase in the average sales price is directionally aligned with the 8.7% increase in the cut-out values reported by the USDA, which averaged $1.04 per pound in the first nine months of 2025, primarily due to lower U.S.

pork production coupled with continued strong demand for pork.

Hog Production.

Segment sales increased by $365 million, or 16.5%, primarily due to the following factors, which more than offset an approximately 2.5 million, or 23%, decrease in the number of market hogs sold due to our Hog Production Reform initiative:

• Sales of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg totaling $340 million in the first nine months of 2025.

• A $309 million increase in grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• A 7.9% increase in our average market hog sales price, inclusive of the effects of hedging, driven by an increase in the lean hog price index published by the CME.

Inter-segment Eliminations

• Fresh Pork.

• Hog Production.

Cost of Sales

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

Three Months Ended

March 29, 2026 March 30, 2025 $ Change % Change

(in millions)

Packaged Meats

7 unchanged sentences

Cost of sales $ 3,289 $ 3,262 $ 28 0.8 %

Third Quarter—2025 vs.

Packaged Meats.

Cost of sales in our Packaged Meats segment increased by $193 million, or 12.2%, driven primarily by a $203 million increase in raw material costs attributable to the effect of higher fresh pork market prices, which more than offset lower manufacturing, freight and cold storage costs.

Cost of sales in our Fresh Pork segment increased by $257 million, or 13.7%, driven primarily by a $262 million increase in raw material costs attributable to higher market prices for hogs, which more than offset lower freight costs.

Hog Production.

Cost of sales in our Hog Production segment increased by $29 million, or 4.2%, due to:

• A $121 million increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• Costs associated with sales of other goods and services to Murphy Family Farms and VisionAg totaling $46 million in the third quarter of 2025, consisting primarily of hog inventories and transportation services.

These increases were partially offset by a $93 million decrease in raw material costs, a $27 million decrease in operating costs and a $19 million decrease in the cost of breeding stock sales, largely attributable to the reduction in the size of our hog production operations.

Cost of sales in our Other segments increased by $24 million, or 26.2%, driven primarily by the following factors:

• A $21 million increase in raw material costs in our Mexico operations reflects the implementation of a new strategy, under which our Mexico operations began importing ham and other fresh pork products primarily from our Fresh Pork segment for resale to customers in Mexico, which supports growth in Mexico’s fresh pork sales.

• A $5 million charge recognized in the third quarter of 2025 to write down inventories in our Bioscience operations to their estimated net realizable values.

First Nine Months—2025 vs.

Packaged Meats.

Cost of sales in our Packaged Meats segment increased by $410 million, or 8.7%, driven primarily by the following factors, which more than offset lower freight and cold storage costs:

• A $404 million increase in raw material costs attributable to the effect of higher fresh pork market prices.

• A $32 million decrease in employee retention tax credits.

Cost of sales in our Fresh Pork segment increased by $509 million, or 9.2%, driven primarily by the following factors, which more than offset lower freight and cold storage costs:

• A $530 million increase in raw material costs attributable to higher market prices for hogs and higher sales volume.

• A $35 million decrease in employee retention tax credits.

Cost of sales in our Packaged Meats segment increased by $116 million, or 7.0%, driven primarily by a $94 million increase in raw material costs and higher sales volume attributable to the timing of the Easter holiday.

Additionally, manufacturing and distribution costs increased by $22 million due in part to the increase in sales volume.

Cost of sales in our Fresh Pork segment decreased by $12 million, or 0.6%, driven primarily by a $17 million decrease in raw material costs, partially offset by a $5 million increase in manufacturing and distribution

The decrease in raw material costs was driven by lower sales volume, partially offset by higher market prices for live hogs.

Hog Production.

Cost of sales in our Hog Production segment increased by $122 million, or 5.3%, due to:

• A $308 million increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• The sale of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg, which increased cost of sales by $306 million in the first nine months of 2025.

• An $8 million decrease in employee retention tax credits.

These increases were partially offset by a $319 million decrease in raw material costs, a $132 million decrease in operating costs and a $48 million decrease in the cost of breeding stock sales, largely attributable to the reduction in the size of our hog production operations.

Cost of sales in our Hog Production segment decreased by $164 million, or 17.8%, primarily due the one-time sale of commercial hog inventories to Murphy Family Farms and VisionAg in the first quarter of 2025.

Additionally, raw material costs decreased by $21 million largely attributable to the reduction in the size of our hog production operations.

Cost of sales in our Other segment increased by $72 million, or 85.7%, driven primarily by a $53 million increase in raw material costs and a $14 million increase in manufacturing and distribution costs in our Mexico operations, mainly attributable to the increase in sales volume and the impact of foreign currency translation.

Selling, General and Administrative Expenses

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

Three Months Ended

March 29, 2026 March 30, 2025 $ Change % Change

(in millions)

Packaged Meats

3 unchanged sentences

10 12 (2) (17.0) %

5 5 — 0.3 % 17 17 — 0.5 %

Corporate expenses

26 29 (3) (11.0) %

Unallocated 5 9 (4) (45.3) % 116 22 94 NM

Unallocated 7 12 (5) (43.1) %

Selling, general and administrative expenses $ 180 $ 197 $ (17) (8.6) %

Third Quarter—2025 vs.

SG&A decreased by $22 million, or 11.1%, primarily due to various broad-based expense saving measures, including our workforce reduction initiative.

First Nine Months—2025 vs.

SG&A increased by $50 million, or 8.4%, primarily due to the following factors, which more than offset various broad-based expense savings, including those attributable to our workforce reduction initiative:

• An $80 million increase in litigation charges for the first nine months of 2025, which were not allocated to our operating segments.

• Accruals for employee termination benefits totaling $11 million for the first nine months of 2025 related to our workforce reduction initiative and the decision to close our satellite offices in Lisle, Illinois and Kansas City, Missouri.

These charges were not allocated to our operating segments.

SG&A decreased by $17 million, or 8.6%, driven by a continued focus on cost reduction and disciplined spending, partially offset by a $4 million increase in marketing and advertising expense.

Additionally, the first quarter of 2025 included a $6 million charge for employee termination benefits associated with a workforce reduction initiative, which was not allocated to our business segments.

Operating Gains

The following table provides details of operating gains.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

Three Months Ended

March 29, 2026 March 30, 2025

(in millions)

Insurance recoveries (1)

$ (2) $ (3) $ (37) $ (4)

Gain on disposal of assets $ (1) $ (2)

Insurance recoveries (1)

Other operating gains — (1)

(6) (2) (7) (3)

Operating gains $ (1) $ (9)

________________

(1) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(2) Includes a $6 million gain recognized in the third quarter of 2025 related to the settlement of a commercial dispute.

Interest Expense, Net

Interest expense, net decreased by $6 million, or 35.9%, and $19 million, or 36.7%, for the third quarter and first nine months of 2025, respectively, due to higher levels of cash and cash equivalents earning interest in the current year.

Non-Operating Gains

The following table provides details of non-operating gains.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(1) Consists of a gain recognized in connection with a settlement of an insurance claim associated with property damage.

Non-Operating Losses

The following table provides details of non-operating (gains) losses.

Three Months Ended

March 29, 2026 March 30, 2025

(in millions)

Gain on nonqualified retirement plan assets (1)

$ (23) $ (9) $ (29) $ (18)

Loss on assets held in rabbi trusts (1)

Net pension and postretirement benefits cost (2)

Other non-operating gains (2) —

Non-operating gains $ (19) $ (7) $ (17) $ (13)

Non-operating losses $ 1 $ 6

________________

(1) Includes a $17 million gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

(1) Assets held in rabbi trusts are used to fund nonqualified defined benefit pension and deferred compensation plans.

(2) Includes the components of net pension and postretirement benefits cost other than service cost, which is included in operating profit.

1 unchanged sentence

Income Tax Expense

Income tax expense increased year-over-year by $2 million, or 2.6%, for the third quarter and $39 million, or 23.8%, for the first nine months primarily due to higher earnings year-over-year.

Our effective tax rate attributable to continuing operations decreased to 22.2% for the third quarter of 2025 compared to 25.0% for the third quarter of 2024.

The decrease was primarily driven by a non-taxable gain recognized in the third quarter of 2025 for the death

benefit on company-owned life insurance policies.

Our effective tax rate attributable to continuing operations increased to 23.4% for the first nine months of 2025 compared to 22.2% for the first nine months of 2024.

The increase was primarily attributable to the deductibility of certain officer compensation.

Loss (Income) from Equity Method Investments

For the first nine months of 2025, results from our equity method investments declined to a loss of $4 million, compared to income of $1 million in the prior-year period primarily due to losses incurred by Murphy Family Farms.

Income tax expense remained consistent while our effective tax rate decreased to 22.2% for the first quarter of 2026 compared to 23.6% for the first quarter 2025.

The decrease was primarily driven by changes in interest accruals for unrecognized tax benefits.

Liquidity and Capital Resources

Our sources of liquidity include cash and cash equivalents on hand together with availability under our committed revolving credit facilities.

As of September 28, 2025, we had $3,069 million of available liquidity consisting of $773 million in cash and cash equivalents and $2,297 million of availability under our committed credit facilities.

Availability under our committed credit facilities is reduced by the principal amount of any outstanding commercial paper.

As of March 29, 2026, we had $3,683 million of available liquidity consisting of $1,386 million in cash and cash equivalents and $2,298 million of availability under our committed credit facilities.

We believe that our current liquidity position is strong and that our cash flows from operations and availability under our credit facilities will be sufficient to meet our working capital needs and financial obligations and commitments for at least the next twelve months.

Credit Facilities

September 28, 2025

March 29, 2026

Facility Capacity Borrowing

8 unchanged sentences

Senior Unsecured Revolving Credit Facility

In February 2025, we refinanced our $2,100 million senior unsecured revolving credit facility (“Senior Revolving Credit Facility”), extending the maturity date from May 21, 2027 to February 12, 2030 with the option to extend the maturity date for up to two one-year periods, subject to obtaining the lenders’ consent and satisfaction of certain other conditions.

The Senior Revolving Credit Facility capacity remains at $2,100 million.

As part of the new agreement, there are no longer any subsidiary guarantors under the Senior Revolving Credit Facility which also released the subsidiary guarantors from our Senior Unsecured Notes.

We maintain a $2,100 million senior unsecured revolving credit facility (“Senior Revolving Credit Facility”), which matures in February 2030 with the option to extend the maturity date for up to two one-year periods, subject to obtaining the lenders’ consent and satisfaction of certain other conditions.

The Senior Revolving Credit Facility bears interest at the Secured Overnight Financing Rate plus a margin ranging from 0.875% to 1.50% per annum, or, at our election, at a base rate plus a margin ranging from 0.00% to 0.50% per annum, in each case depending on our senior unsecured debt ratings.

The Senior Revolving Credit Facility also contains financial maintenance covenants requiring us to maintain a maximum total consolidated leverage ratio (ratio of consolidated funded debt to consolidated capitalization, each as defined in the Senior Revolving Credit Facility) of 0.50 to 1.00 (which we may elect to increase to 0.55 to 1.00 with respect to any fiscal quarter in which a material acquisition is consummated and the immediately following three consecutive fiscal quarters, subject to certain restrictions) and a minimum interest coverage ratio (“ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest expense, each as defined in the Senior Revolving Credit Facility”) of 3.50 to 1.00.

coverage ratio (ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest expense, each as defined in the Senior Revolving Credit Facility) of 3.50 to 1.00.

Our Senior Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on our ability and that of our subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets subject to their security interest, or enter into transactions with affiliates, each subject to certain exceptions as set forth therein.

3 unchanged sentences

As part of the Securitization Facility, certain accounts receivable of our major domestic meat processing subsidiaries are sold to a wholly-owned “bankruptcy remote” special purpose vehicle (“SPV”).

The SPV pledges all such accounts receivable not otherwise sold pursuant to the Monetization Facility (as defined below) as security for loans made, and letters of credit issued, by participating lenders under the Securitization Facility.

The SPV pledges all such accounts receivable as security for loans made and letters of credit issued by participating lenders under the Securitization Facility.

The SPV is included in our condensed consolidated financial statements and therefore the accounts receivable owned by it are included in our condensed consolidated balance sheets.

However, the accounts receivable owned by the SPV are separate and distinct from our other assets and are not available to our other creditors should we become insolvent.

As of September 28, 2025, the SPV held $632 million of accounts receivable.

As of March 29, 2026, the SPV held $694 million of accounts receivable.

We must maintain certain ratios related to the collection of our receivables as a condition of the Securitization Facility agreement.

As of September 28, 2025, we had $28 million in letters of credit issued under the Securitization Facility.

As of March 29, 2026, we had $27 million in letters of credit issued under the Securitization Facility.

None of the letters of credit were drawn upon.

Monetization Facility

In addition to the Securitization Facility, until July 22, 2025, we maintained an uncommitted $250 million accounts receivable monetization facility (“Monetization Facility”).

At Smithfield’s election and subject to the purchasing banks’ approval, certain accounts receivable were sold by the SPV to purchasing banks, so long as the uncollected outstanding amount of accounts receivable sold pursuant to the Monetization Facility did not exceed $250 million in the aggregate at any time, among other limitations.

In the event of a sale, the purchasing banks assumed all credit risk related to the receivables while we maintained risk associated with customer disputes.

We accounted for the sale of receivables to a purchasing bank by derecognizing the receivables from our condensed consolidated balance sheet upon transfer of control to the purchasing bank, and recognized a discount on the sale in SG&A in the condensed consolidated statement of income.

The proceeds from the sale of receivables are included in net cash flows from operating activities in the condensed consolidated statement of cash flows.

On behalf of the purchasing banks, we serviced all receivables sold under the Monetization Facility.

In the first quarter of 2023, we sold $227 million of accounts receivable at a discount and received proceeds totaling $225 million.

We reinvested $24 million and $793 million of cash collections from customers in the revolving sale of accounts receivable to purchasing banks in the third quarter of 2025 and 2024, respectively, and $2,085 million and $2,836 million in the first nine months of 2025 and 2024, respectively.

We recognized charges totaling $3 million in the third quarter of 2024 and $5 million and $10 million in the first nine months of 2025 and 2024, respectively, attributable to the discount on the sale of accounts receivable in SG&A in the condensed consolidated statements of income.

The charges for the third quarter of 2025 were not material.

On July 22, 2025, we terminated the Monetization Facility and paid $232 million to participating banks to reacquire the outstanding balance of accounts receivable previously sold under the facility.

The Monetization Facility was originally established to provide us with additional liquidity and working capital flexibility.

In light of our liquidity position and internal capital resources as of July 22, 2025, we determined that the Monetization Facility was no longer cost-effective or necessary.

There were no early termination penalties or other material exit costs incurred in connection with the termination of the Monetization Facility.

Cash Flows From Operating Activities of Continuing Operations

Nine Months Ended

September 28, 2025 September 29, 2024

Cash Flows From Operating Activities

Three Months Ended

March 29, 2026 March 30, 2025

(in millions)

1 unchanged sentence

Net income $ 249 $ 227

Net income from discontinued operations — (179)

Net income from continuing operations $ 667 $ 581

Adjustments to reconcile net income from continuing operations to net cash flows from operating activities of continuing operations:

Adjustments to reconcile net income to net cash flows used in operating activities:

Depreciation and amortization 83 83

4 unchanged sentences

Change in accrued expenses and other current liabilities (11) (80)

Net cash flows from operating activities of continuing operations $ 121 $ 233

The decrease in net cash flows from operating activities of continuing operations year-over-year was primarily driven by changes in working capital, partially offset by higher earnings.

Net cash flows used in operating activities $ (65) $ (166)

The decrease in net cash flows used in operating activities year-over-year was primarily driven by changes in working capital and higher earnings.

The following describes the significant changes in working capital:

• Accounts receivable.

Accounts receivable increased in the first nine months of 2025 primarily driven by the termination of our Monetization Facility in July 2025 and the sale of commercial hog inventories and feed to Murphy Family Farms and VisionAg.

Accounts receivable increased in the first quarter of 2026 primarily driven by the timing of the Easter holiday.

Sales to Murphy Family Farms and VisionAg also contributed to the increases in both time periods with a larger impact in the first quarter of 2025 related to the one-time sales of commercial hog inventories in connection with the formation of these entities.

• Inventories .

Inventories increased in both periods driven by increases in meat inventories largely due to a seasonal build-up in preparation for the holiday season.

These increases were partially offset by lower hog inventory volumes, reflecting the impact of the Hog Production Reform.

The effect was more pronounced in 2025 due to the sale of commercial hog inventories to Murphy Family Farms and VisionAg.

Additionally, feed inventories declined in both periods as a result of the routine consumption of grain purchased during the prior-year harvest.

However, exceptionally strong harvest yields in 2025 moderated the rate of decline compared to the same period in the prior year.

Both periods reflect higher meat inventories and lower hog and feed inventories.

Meat inventories increased in each period primarily due to a seasonal build in advance of the summer grilling season.

Additionally, meat inventories were higher at the end of the first quarter of 2025 due to the later timing of the Easter holiday.

Hog inventories declined in both periods as a result of Hog Production

Reform, with a more pronounced impact in the first quarter of 2025.

Feed inventories decreased in both periods due to the normal consumption of grain purchased during the prior-year harvest.

• Accounts payable .

2 unchanged sentences

• Accrued expenses and other current liabilities.

Accrued expenses and other current liabilities typically decline in the first quarter of each year due to the payment of variable compensation earned in the prior year.

The year-over-year variance was mainly attributable to changes in accruals related to litigation matters, open hedging positions, and obligations to banks participating in the Monetization Facility.

Additionally, the decrease in accrued expenses and other current liabilities in the first nine months of 2024 reflects the payout of contract termination and other exit costs attributable to our Hog Production Reform activities.

Cash Flows From Investing Activities of Continuing Operations

Nine Months Ended

September 28, 2025 September 29, 2024

Accrued expenses and other current liabilities decrease seasonally in the first quarter each year due to payout of variable compensation earned in prior years.

The decrease in both periods was partially offset by increases in current income taxes payable.

The year-over-year change is attributable to a lower variable compensation payout and a larger increase to income taxes payable in the first quarter of 2026.

The change in both periods is primarily attributable to derivative gains and losses that are deferred in accumulated other comprehensive loss and subsequently reclassified into earnings as the underlying transactions affect earnings.

Cash Flows From Investing Activities

Three Months Ended

March 29, 2026 March 30, 2025

(in millions)

1 unchanged sentence

Capital expenditures $ (88) $ (79)

Investments in partnerships and other assets (10) (5)

Net expenditures from breeding stock transactions (6) (7)

Proceeds from sale of property, plant and equipment and other assets 6 8

Insurance proceeds 7 2

Cash receipts on notes receivable 14 1

Net cash flows used in investing activities of continuing operations $ (239) $ (305)

Net cash flows used in investing activities $ (80) $ (85)

The following items explain the significant investing activities:

1 unchanged sentence

Capital expenditures for both periods consisted primarily of various plant automation and improvement projects.

• Investments in partnerships and other assets.

Investments in partnerships and other assets includes capital contributions totaling $7 million and $5 million to a biogas joint venture in the first nine months of 2025 and 2024, respectively.

• Cash receipts on notes receivable .

Cash receipts on notes receivable consists of cash received primarily related to sales of assets to Murphy Family Farms and VisionAg.

Cash Flows From Financing Activities of Continuing Operations

Nine Months Ended

September 28, 2025 September 29, 2024

Cash receipts on notes receivable consists of cash received primarily related to sales of breeding stock and related assets to Murphy Family Farms and VisionAg, which we financed through interest bearing notes.

Cash Flows From Financing Activities

Three Months Ended

March 29, 2026 March 30, 2025

(in millions)

Cash flows from financing activities:

Payment of dividends $ (297) $ (270)

Principal payments on long-term debt and finance lease obligations (1) (20)

Repayments to Securitization Facility — (14)

Proceeds from Securitization Facility — 14

Net repayments to revolving credit facilities — (1)

Net proceeds from issuance of common stock $ — $ 236

Net cash flows used in financing activities of continuing operations $ (64) $ (290)

Net cash flows from (used in) financing activities $ (5) $ 236

The following items explain the significant financing activities:

• Payment of dividends.

In both periods, $1 million of dividends was paid to the noncontrolling interest holder of our consolidated subsidiary, Granjas Carroll de Mexico, S.

de C.V., (commonly known as “Altosano”), and the remainder was paid to our shareholders.

• Net proceeds from issuance of common stock .

4 unchanged sentences

We plan to continue to support the business in 2026 through capital expenditures in the range of $350 million to $450 million, inclusive of profit improvement projects, such as packaged meats capacity expansion and automation, as well as repairs and maintenance.

On April 22, 2025, May 29, 2025 and August 28, 2025, we paid dividends of $0.25 per share to our shareholders.

We anticipate remaining quarterly dividends for fiscal year 2025 will be $0.25 per share, resulting in an annual dividend rate for fiscal year 2025 of $1.00 per share.

If approved by our board of directors and completed on the expected schedule, we estimate that our investment in a new fresh pork and packaged meats processing facility in Sioux Falls, South Dakota will be up to $1.3 billion over the next three years.

Nathan’s Famous

We expect to pay approximately $450 to $500 million for our pending acquisition of Nathan’s, including transaction costs and the payoff of assumed debt.

The transaction is expected to close during the second half of 2026, subject to obtaining regulatory approvals and other customary closing conditions.

Returning cash to shareholders in the form of dividends is also a top priority for the Company.

On March 23, 2026, our Board declared a quarterly cash dividend of $0.3125 per share of common stock, which was paid on April 21, 2026, to shareholders of record on April 7, 2026.

We anticipate the remaining quarterly dividends in fiscal year 2026 will be unchanged, resulting in an annual dividend rate in fiscal year 2026 of $1.25 per share.

The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.

Monarch Sale Notice

On January 16, 2025, TPG Rise Climate (“TPG”), one of the other two equal joint venture partners in Monarch Bio Energy, LLC (“Monarch”), delivered a sale notice under the joint venture agreement, pursuant to which Monarch must pursue a sale of the joint venture.

In the event that a sale of Monarch is not consummated before January 17, 2026, TPG may require that Monarch purchase TPG’s ownership interests in Monarch.

Altosano Redeemable Noncontrolling Interest

The noncontrolling interest (“NCI”) holders in Altosano currently have the right to exercise a put option that would obligate us to redeem 40% of their interest.

The noncontrolling interest (“NCI”) holders in Granjas Carroll de Mexico, S.

de C.V., (commonly known as “Altosano”) currently have the right to exercise a put option that would obligate us to redeem 40% of their interest.

After December 31, 2027 the NCI holders in Altosano have the right to exercise a put option for the remainder of their interest.

The redemption value for the NCI is fair value.

As of September 28, 2025, the value of the NCI on our condensed consolidated balance sheet was $257 million.

As of March 29, 2026, the value of the NCI on our condensed consolidated balance sheet was $311 million.

Contingent Losses

5 unchanged sentences

We are exposed to market risks primarily from changes in commodity prices, and to a lesser degree, interest rates and foreign exchange rates.

To mitigate these risks, we utilize derivative instruments to hedge our exposure to changing prices and rates, as more fully described in “Quantitative and Qualitative Disclosures About Market Risk” and “Note 10:

To mitigate these risks, we utilize derivative instruments to hedge our exposure to changing prices and rates, as more fully described in Part I, Item 3 “Quantitative and Qualitative Disclosures About Market Risk” and “Note 8:

Derivative Financial Instruments” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

2 unchanged sentences

Conversely, when the value of our open derivative contracts increases, our brokers may be required to deliver margin deposits to us for a portion of the increase.

Over the past twelve quarters, the maximum amount of margin deposits held by our brokers and counterparties at any given time was $121 million.

the past twelve quarters, the maximum amount of margin deposits held by our brokers and counterparties at any given time was $121 million.

The effects, positive or negative, on liquidity resulting from our risk management activities historically have tended to be mitigated by offsetting changes in cash prices in our core business.

For example, in a period of rising grain prices, gains resulting from long grain derivative positions would generally be offset by higher cash prices paid to

farmers and other suppliers in spot markets.

For example, in a period of rising grain prices, gains resulting from long grain derivative positions would generally be offset by higher cash prices paid to farmers and other suppliers in spot markets.

These offsetting changes do not always occur, however, in the same amounts or in the same period, with lag times of as much as twelve months.

In June 2025, Monarch refinanced its debt, repaying a debt facility of up to $61 million that Smithfield and certain other joint ventures partners in Monarch had joint and severally guaranteed.

Smithfield was released from the guaranty and no longer provides a guaranty of Monarch’s debt.

Non-GAAP Measures

4 unchanged sentences

• the tax effects of the foregoing items.

Adjusted Net Income from Continuing Operations Attributable to Smithfield and Adjusted Net Income from Continuing Operations per Common Share Attributable to Smithfield

The following table provides a reconciliation of net income from continuing operations attributable to Smithfield to adjusted net income from continuing operations attributable to Smithfield.

Adjusted net income from continuing operations attributable to Smithfield and adjusted net income from continuing operations per common share attributable to Smithfield are non-GAAP measures.

Adjusted Net Income Attributable to Smithfield and Adjusted Net Income per Diluted Common Share Attributable to Smithfield

The following table provides a reconciliation of net income attributable to Smithfield to adjusted net income attributable to Smithfield.

Adjusted net income attributable to Smithfield and adjusted net income per diluted common share attributable to Smithfield are non-GAAP measures.

We believe these non-GAAP measures are useful for investors because they exclude the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

Although we believe these non-GAAP measures provide a better comparison of our year-over-year performance and are frequently used by investors and securities analysts in their evaluations of companies, they have limitations as analytical tools.

As such, adjusted net income from continuing operations attributable to Smithfield and adjusted net income from continuing operations per common share attributable to Smithfield are not intended to be alternatives to net income from continuing operations, net income from continuing operations per common share or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Nine Months Ended Affected income statement

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

As such, adjusted net income attributable to Smithfield and adjusted net income per diluted common share attributable to Smithfield are not intended to be alternatives to net income, net income per diluted common share or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Affected income statement

March 29, 2026 March 30, 2025

(in millions, except per share data)

Net income from continuing operations attributable to Smithfield $ 248 $ 202 $ 660 $ 572

Litigation charges — — 73 — SG&A

Reduction in workforce (1)

Net income attributable to Smithfield $ 246 $ 224

Incremental costs from destruction of property (1)

3 — Cost of sales

Office closures (2)

Hog Production Reform (3)

Plant closures 2 1 Cost of sales

Reduction in workforce and optimization (2)

— 2 Cost of sales

Hog Production Reform — 2 Cost of sales

Hog Production Reform — (1) Operating gains

Plant closure — — 2 — Cost of sales

Incremental costs from destruction of property — — — 4 Cost of sales

Employee retention tax credits (4)

— — (10) (86) Cost of sales

Employee retention tax credits (4)

— — — (1) SG&A

Insurance recoveries (3)

— (6) Operating gains

Company-owned life insurance gain (6)

(17) — (17) — Non-operating gains

Income tax effect of non-GAAP adjustments (4)

(2) (1) Income tax expense

Adjusted net income from continuing operations attributable to Smithfield $ 230 $ 203 $ 674 $ 518

Net income from continuing operations attributable to Smithfield per diluted common share $ 0.63 $ 0.53 $ 1.68 $ 1.51

Adjusted net income from continuing operations attributable to Smithfield per diluted common share $ 0.58 $ 0.53 $ 1.72 $ 1.36

Adjusted net income attributable to Smithfield $ 251 $ 227

Net income attributable to Smithfield per diluted common share $ 0.62 $ 0.57

Adjusted net income attributable to Smithfield per diluted common share $ 0.64 $ 0.58

________________

(1) Consists of severance costs associated with a workforce reduction initiative.

Total severance costs round up to $9 million.

(2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(3) Consists of contract termination costs, loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

(4) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

(5) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(6) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

(1) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.

(2) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives.

Total severance costs round up to $9 million for the first quarter of 2025.

(3) Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.

(4) Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.

EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations and Adjusted EBITDA Margin from Continuing Operations

The following table provides a reconciliation of net income from continuing operations to EBITDA from continuing operations and adjusted EBITDA from continuing operations.

EBITDA from continuing operations, adjusted EBITDA from continuing operations and adjusted EBITDA margin from continuing operations are non-GAAP measures.

We believe EBITDA from continuing operations is a useful measure to our stakeholders because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis.

We believe adjusted EBITDA from continuing operations is a useful measure as it excludes the effect of discontinued operations, non-operating gains and losses, and other items that are unusual

in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

We believe adjusted EBITDA margin from continuing operations is a useful measure as it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

The following table provides a reconciliation of net income to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA.

EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures.

We believe EBITDA is a useful measure to our stakeholders because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis.

We believe adjusted EBITDA is a useful measure as it excludes the effect of non-operating gains and losses and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

We believe adjusted EBITDA margin is a useful measure as it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities.

We believe these non-GAAP measures provide a more comparable year-over-year analysis.

Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies, they have limitations as analytical tools.

As such, EBITDA from continuing operations, adjusted EBITDA from continuing operations and adjusted EBITDA margin from continuing operations are not intended to be alternatives to net income from continuing operations or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Nine Months Ended Twelve Months Ended Affected Income Statement Account

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 September 28, 2025 December 29, 2024

As such, EBITDA, adjusted EBITDA and adjusted EBITDA margin are not intended to be alternatives to net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Twelve Months Ended Affected Income Statement Account

March 29, 2026 March 30, 2025 March 29, 2026 December 28, 2025

(in millions, except percentages)

Net income from continuing operations $ 252 $ 209 $ 667 $ 581 $ 884 $ 798

Net income $ 249 $ 227 $ 1,021 $ 998

Interest expense, net 8 11 37 41

2 unchanged sentences

83 83 332 332

EBITDA from continuing operations $ 416 $ 382 $ 1,152 $ 1,050 $ 1,576 $ 1,474

EBITDA $ 413 $ 393 $ 1,674 $ 1,654

Litigation charges — — 73 73 SG&A

Reduction in workforce (1)

— — 6 — 6 — SG&A

Reduction in workforce (1)

Reduction in workforce and optimization (1)

— 2 — 2 Cost of sales

Office closures (2)

— — 4 — 4 — SG&A

Plant closure (3)

Incremental costs from destruction of property (3)

3 — 3 — Cost of sales

Plant closures (4)

1 1 1 1 Cost of sales

Hog Production Reform (5)

2 unchanged sentences

— (1) (3) (4) Operating gains

Incremental costs from destruction of property — — — 4 — 4 Cost of sales

Employee retention tax credits (7)

— — (10) (10) Cost of sales

Employee retention tax credits (6)

— — — (1) — (1) SG&A

Insurance recoveries (8)

2 unchanged sentences

— — (17) (17) Non-operating gains

Adjusted EBITDA from continuing operations $ 398 $ 383 $ 1,175 $ 976 $ 1,577 $ 1,379

Net income margin from continuing operations 6.7 % 6.3 % 5.9 % 5.7 % 5.8 % 5.6 %

Adjusted EBITDA margin from continuing operations 10.6 % 11.5 % 10.4 % 9.6 % 10.3 % 9.7 %

Adjusted EBITDA $ 417 $ 396 $ 1,699 $ 1,677

Net income margin 6.6 % 6.0 % 6.6 % 6.4 %

Adjusted EBITDA margin 11.0 % 10.5 % 10.9 % 10.8 %

________________

(1) Consists of severance costs associated with a workforce reduction initiative.

Total severance costs round up to $9 million.

(1) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives.

Total severance costs round up to $9 million and $12 million for the first quarter of 2025 and fiscal year 2025, respectively.

(2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(3) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.

(4) Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.

1 unchanged sentence

Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.

(5) Includes a $32 million gain on the sale of our Utah hog farms and a $6 million gain on the sale of breeding stock to Murphy Family Farms in the fourth quarter of 2024.

(6) Represents the recognition of employee retention tax credits received under the CARES Act.

(7) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(6) Fiscal year 2025 and twelve months ended March 29, 2025 includes a $3 million gain on the sale of certain of our hog farms in Missouri.

(7) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act.

(8) Consists of gains recognized in connection with settlements of insurance claims associated with past litigation and property damage.

(9) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

Net Debt and Ratio of Net Debt to Adjusted EBITDA from Continuing Operations

The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income from continuing operations, and the ratio of net debt to adjusted EBITDA from continuing operations.

Net debt and the ratio of net debt to adjusted EBITDA from continuing operations are non-GAAP measures.

Net Debt and Ratio of Net Debt to Adjusted EBITDA

The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income, and the ratio of net debt to adjusted EBITDA.

Net debt and the ratio of net debt to adjusted EBITDA are non-GAAP measures.

We believe net debt is a useful measure as it helps to give investors a clear understanding of our financial position.

Net debt is also used to calculate certain leverage ratios.

We believe the ratio of net debt to adjusted EBITDA from continuing operations is a useful measure as it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA from continuing operations, which is used as an operating performance measure.

We believe the ratio of net debt to adjusted EBITDA is a useful measure as it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA, which is used as an operating

performance measure.

We believe these non-GAAP measures provide a more comparable year-over-year analysis.

Although net debt and the ratio of net debt to adjusted EBITDA from continuing operations are frequently used by investors and securities analysts in their evaluations of companies, these non-GAAP measures have limitations as analytical tools.

As such, net debt and the ratio of net debt to adjusted EBITDA from continuing operations are not intended to be alternatives to total debt and finance lease obligations and the ratio of total debt and finance lease obligations to net income from continuing operations or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Although net debt and the ratio of net debt to adjusted EBITDA are frequently used by investors and securities analysts in their evaluations of companies, these non-GAAP measures have limitations as analytical tools.

As such, net debt and the ratio of net debt to adjusted EBITDA are not intended to be alternatives to total debt and finance lease obligations and the ratio of total debt and finance lease obligations to net income or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Twelve Months Ended

September 28,

2026 December 28,

(in millions, except ratios)

Current portion of long-term debt and capital lease $ 3 $ 3

Current portion of long-term debt and finance lease obligations $ 602 $ 3

Long-term debt and finance lease obligations 1,401 2,000

2 unchanged sentences

Net debt $ 618 $ 464

Net income from continuing operations $ 884 $ 798

Adjusted EBITDA from continuing operations $ 1,577 $ 1,379

Ratio of total debt and finance lease obligations to net income from continuing operations 2.3x 2.5x

Ratio of net debt to adjusted EBITDA from continuing operations 0.8x 0.8x

Net income $ 1,021 $ 998

Adjusted EBITDA $ 1,699 $ 1,677

Ratio of total debt and finance lease obligations to net income 2.0x 2.0x

Ratio of net debt to adjusted EBITDA 0.4x 0.3x

Adjusted Operating Profit and Adjusted Operating Profit Margin

2 unchanged sentences

We believe these non-GAAP measures are useful to investors because they provide a better understanding of underlying operating results and trends of established, ongoing operations of our segments, excluding the impact of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

These non-GAAP measures are not intended to be alternatives to operating profit, operating profit margin or any other performance measures

derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended

September 28, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

Unallocated (3)

(in millions, except percentages)

Operating profit (loss) $ 226 $ 10 $ 89 $ 10 $ (24) $ (1) $ 310

Hog Production Reform — — — — — 1 1

Insurance recoveries — — — — — (2) (2)

Adjusted operating profit (loss) $ 226 $ 10 $ 89 $ 10 $ (24) $ (1) $ 310

Operating profit (loss) margin 10.8 % 0.5 % 10.9 % 7.7 % NM NM 8.3 %

Adjusted operating profit (loss) margin 10.8 % 0.5 % 10.9 % 7.7 % NM NM 8.3 %

These non-GAAP measures are not intended to be alternatives to operating profit, operating profit margin or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended

September 29, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

Unallocated (3)

(in millions, except percentages)

Operating profit (loss) $ 239 $ 28 $ 40 $ 20 $ (28) $ (15) $ 285

Hog Production Reform (4)

— — — — — 3 3

Insurance recoveries (5)

— — — — — (3) (3)

Adjusted operating profit (loss) $ 239 $ 28 $ 40 $ 20 $ (28) $ (14) $ 286

Operating profit (loss) margin 12.5 % 1.4 % 5.5 % 17.1 % NM NM 8.5 %

Adjusted operating profit (loss) margin 12.5 % 1.4 % 5.5 % 17.1 % NM NM 8.6 %

________________

(1) Includes our Mexico and Bioscience operations.

(2) Represents general corporate expenses for management and administration of the business.

(3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.

(4) Consists of loss on asset disposals, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

(5) Consists of a gain recognized in the third quarter of 2024 for the settlement of a claim with an insurance carrier to recover losses incurred in connection with past litigation.

Nine Months Ended September 28, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

Unallocated (3)

(in millions, except percentages)

Operating profit (loss) $ 792 $ 127 $ 112 $ 32 $ (79) $ (92) $ 892

Litigation charges — — — — — 73 73

Reduction in workforce (4)

— — — — — 9 9

Office closures (5)

— — — — — 4 4

Plant closure — — — — — 2 2

Hog Production Reform — — — — — 2 2

Employee retention tax credits (6)

(5) (5) — — — — (10)

Insurance recoveries (7)

— — — — — (36) (36)

Adjusted operating profit (loss) $ 787 $ 122 $ 112 $ 32 $ (79) $ (40) $ 934

Operating profit (loss) margin 12.8 % 2.0 % 4.3 % 8.9 % NM NM 7.9 %

Adjusted operating profit (loss) margin 12.7 % 1.9 % 4.3 % 8.9 % NM NM 8.3 %

Nine Months Ended September 29, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

Unallocated (3)

March 29, 2026 March 30, 2025

(in millions, except percentages)

Operating profit (loss) $ 855 $ 196 $ (136) $ 18 $ (92) $ (59) $ 783

Hog Production Reform (8)

— — — — — 13 13

Operating profit $ 333 $

Incremental costs from destruction of property (1)

Plant closures 2 1

Reduction in workforce and optimization (2)

Hog Production Reform — 1

Insurance recoveries (3)

— — — — — (4) (4)

Employee retention tax credits (6)

(38) (41) (8) — — — (87)

Adjusted operating profit (loss) $ 816 $ 155 $ (143) $ 18 $ (92) $ (45) $ 710

Operating profit (loss) margin 14.6 % 3.3 % (6.1) % 5.3 % NM NM 7.7 %

Adjusted operating profit (loss) margin 13.9 % 2.6 % (6.5) % 5.3 % NM NM 7.0 %

Adjusted operating profit $ 339 $ 326

Operating profit margin 8.7 % 8.5 %

Adjusted operating profit margin 8.9 % 8.6 %

________________

(1) Includes our Mexico and Bioscience operations.

(2) Represents general corporate expenses for management and administration of the business.

(3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.

(4) Consists of severance costs associated with a workforce reduction initiative.

(5) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(6) Represents the recognition of employee retention tax credits received under the CARES Act.

(7) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(8) Consists of contract termination costs, loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

(1) Consists of incremental costs from the destruction of property in connection with a fire at a sow farm in Laverne, Oklahoma.

(2) Consists of severance and restructuring costs associated with workforce reduction and administrative process optimization initiatives.

(3) Consists of a gain recognized in connection with the settlement of an insurance claim associated with property damage.

Critical Accounting Estimates

27 unchanged sentences

• our ability to defend litigation brought against us successfully and the sufficiency of our accruals for related contingent losses;

• compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations, that currently apply or may become applicable to our business both in the United States and Mexico and our expectations regarding various laws and restrictions that relate to our business;

• compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations, that currently apply or may become applicable to our business both in the U.S.

and Mexico and our expectations regarding various laws and restrictions that relate to our business;

• risks arising from the Company’s global operations, including geopolitical risk, exchange rate risk, legal, tax, and regulatory risk, and risks associated with trade policies, export and import controls, and tariffs;

• our ability to execute on acquisitions, joint ventures and divestitures;

• our ability to execute on acquisitions, joint ventures and divestitures, including our pending acquisition of Nathan’s Famous, which remains subject to regulatory approval and other customary closing conditions;

• legal, regulatory, or market measures to address climate change and our ability to achieve our climate-related goals and strategies;

12 unchanged sentences

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made.

We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.

We undertake no obligation to update any forward-looking statements made in this

Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis