Pilgrim's Pride Corporation

Q2 2026 net revenues were $4.63 billion versus $4.76 billion a year ago. Adjusted EBITDA was $360.0 million versus $686.9 million last year, and adjusted EBITDA margin was 7.8% versus 14.4% in Q2 last year. By segment, U.S. adjusted EBITDA was $231.5 million versus $482.7 million, Europe was $105.8 million versus $111.8 million, and Mexico was $22.6 million versus $92.3 million. U.S. margins declined year over year primarily due to the 27% decrease in jumbo cutout value, while Europe margins were 7.6% versus 8.2% and Mexico margins were 3.9% versus 16.3%. Management reiterated full-year CapEx of approximately $900 million, full-year net interest expense of approximately $115 million to $120 million excluding early extinguishment effects, and an expected full-year effective tax rate of approximately 25%.

Fabio Sandri said chicken demand remained firm across all regions and that affordability continued to resonate with consumers. He emphasized that the company is using growth projects and portfolio diversification to strengthen sales and margins, with prepared foods, branded offerings, and operational improvements helping offset commodity volatility. His tone was constructive but cautious: demand is healthy, but supply growth has pressured commodity pricing, so the focus remains on mix, efficiency, and disciplined execution.

Matt Galvanoni highlighted that Q2 adjusted EBITDA was $360.0 million and margins were 7.8%, down from $686.9 million and 14.4% last year. He said U.S. margins improved sequentially despite the 27% decline in jumbo cutout value, while Europe benefited from poultry and meals and Mexico was hit by bird-growing conditions and lower-priced competing proteins. He also noted $136 million of legal settlement expense, a $26 million impairment charge tied to Chattanooga, $230 million of CapEx in the quarter, net debt of less than $2.5 billion, leverage of 1.43x, and nearly $1.6 billion of total cash and available credit.

Analysts focused on second-half supply and pricing in U.S. chicken, especially whether industry production would normalize seasonally and how cutout values would flow into third- and fourth-quarter profits. Management said Q2 supply was unexpectedly strong because livability improved significantly, but expects second-half supply growth to moderate to around 2.5% and said the industry typically makes seasonal cuts starting in late August and September. Questions on Mexico centered on margin recovery, and Fabio said Q3 comparisons should improve year over year but that Mexico remains volatile quarter to quarter; on Europe, he pointed to pork oversupply in the U.K. and said recovery would likely depend more on herd reductions than near-term export changes to China.