Smithfield Foods lowers Q3 profit outlook on pork margins

Smithfield Foods Inc. has reduced its third-quarter profit forecast due to declining pork margins and falling hog prices. The company anticipates a Fresh Pork adjusted operating loss of $70 million to $90 million in Q3, primarily caused by the narrowing industry spread. Hog Production profits are now projected at $25 million to $45 million, down from earlier estimates, as market hog prices have decreased.

Packaged Meats, Smithfield's most profitable segment, is performing well, maintaining its fiscal 2026 adjusted operating income outlook between $1.075 billion and $1.15 billion. The overall third-quarter adjusted operating profit for the entire company is expected to fall within the range of $115 million to $175 million. Shane Smith, Smithfield's President and CEO, stated that the revised outlook is influenced by external market conditions within the pork value chain.

The company will issue updated full-year Fresh Pork, Hog Production, and total company adjusted operating profit guidance after reporting Q3 results. Smithfield Foods is an American food company with operations in packaged meats and fresh pork products.