Smithfield Foods Inc. said on Tuesday it is lowering its third‑quarter profit outlook due to tighter margins in the fresh pork segment. The company projects an adjusted operating loss of $70 million to $90 million for fresh pork, while hog production is expected to generate an adjusted operating profit between $25 million and $45 million, down from prior estimates.
Overall, Smithfield forecasts total adjusted operating income for the quarter of $115 million to $175 million. The outlook revision follows a decline in USDA pork cutout prices and broader spread compression that have eroded processing margins since the company's August 11 guidance.
The packaged meats division, which accounts for the bulk of Smithfield's earnings, remains resilient. Adjusted operating income for the fiscal 2026 packaged meats segment is reaffirmed at $1.075 billion to $1.15 billion, reflecting continued brand share gains and expanded distribution despite cautious consumer spending.
President and CEO Shane Smith emphasized that the packaged meats business is performing well, adding that the revised outlook is driven by external market conditions affecting portions of the pork value chain. Smithfield will discuss the outlook further during a fireside chat at the Barclays Global Consumer Conference on Thursday at noon Eastern Time.
The company did not provide additional guidance for the remainder of the year, but the revised Q3 figures underscore the impact of falling hog prices and processing margin pressure on its fresh pork operations.
