# HORMEL FOODS CORP /DE/ (HRL)

Informational only - not investment advice.

CIK: 0000048465
SIC: 2011 Meat Packing Plants
SIC breadcrumb: [Manufacturing](/division/D/) > [Food And Kindred Products](/major-group/20/) > [SIC 2011 Meat Packing Plants](/industry/2011/)
Latest 10-K filed: 2025-12-05
SEC page: https://www.sec.gov/edgar/browse/?CIK=48465
Filing source: https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

## At a glance

FY2025 · period end 2025-10-26 · filed 2025-12-05 · accession 0000048465-25-000059 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000048465.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 12,106,160,000 USD | 2025 | verified |
| Net income | 478,197,000 USD | 2025 | verified |
| Assets | 13,393,119,000 USD | 2025 | verified |
| Free cash flow | 534,349,000 USD | 2025 | computed |
| Net margin | 3.95% | 2025 | computed |
| Operating margin | 5.94% | 2025 | computed |
| Revenue YoY | +1.55% | 2025 | computed |
| ROE | 6.05% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | HRL | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.0% | 5.3% | 40 | 51 |
| Operating margin | 5.9% | 7.6% | 42 | 49 |
| Revenue growth | 1.6% | 3.0% | 32 | 51 |
| FCF margin | 4.4% | 7.6% | 29 | 50 |
| ROE | 6.1% | 9.1% | 38 | 49 |
| ROA | 3.6% | 4.0% | 44 | 51 |
| Liabilities / equity | 0.70 | 1.19 | 31 | 49 |
| Current ratio | 2.47 | 1.65 | 72 | 51 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 20 Food And Kindred Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 12106160000 | USD | 2025 | 2025-12-05 |
| Net income | 478197000 | USD | 2025 | 2025-12-05 |
| Assets | 13393119000 | USD | 2025 | 2025-12-05 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-12-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000048465.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 9,523,224,000 | 9,167,519,000 | 9,545,700,000 | 9,497,317,000 | 9,608,462,000 | 11,386,189,000 | 12,458,806,000 | 12,110,010,000 | 11,920,797,000 | 12,106,160,000 |
| Net income | 890,052,000 | 846,735,000 | 1,012,140,000 | 978,806,000 | 908,082,000 | 908,839,000 | 999,987,000 | 793,572,000 | 805,038,000 | 478,197,000 |
| Operating income | 1,323,895,000 | 1,276,742,000 | 1,179,961,000 | 1,196,265,000 | 1,100,220,000 | 1,122,599,000 | 1,312,607,000 | 1,072,046,000 | 1,067,932,000 | 718,603,000 |
| Gross profit | 2,158,175,000 | 1,996,636,000 | 1,979,473,000 | 1,884,648,000 | 1,825,963,000 | 1,927,906,000 | 2,164,686,000 | 1,999,841,000 | 2,022,138,000 | 1,891,816,000 |
| Diluted EPS | 1.64 | 1.57 | 1.86 | 1.80 | 1.66 | 1.66 | 1.82 | 1.45 | 1.47 | 0.87 |
| Operating cash flow | 1,040,020,000 | 1,033,885,000 | 1,241,729,000 | 922,996,000 | 1,128,024,000 | 1,001,934,000 | 1,134,977,000 | 1,047,847,000 | 1,266,738,000 | 845,251,000 |
| Capital expenditures | 255,524,000 | 221,286,000 | 389,607,000 | 293,838,000 | 367,501,000 | 232,416,000 | 278,918,000 | 270,211,000 | 256,441,000 | 310,902,000 |
| Dividends paid | 296,493,000 | 346,010,000 | 388,107,000 | 437,053,000 | 487,376,000 | 523,114,000 | 557,839,000 | 592,932,000 | 614,960,000 | 633,192,000 |
| Share buybacks | 87,885,000 | 94,487,000 | 46,898,000 | 174,246,000 | 12,360,000 | 19,958,000 | 0.00 | 12,303,000 | 0.00 | 0.00 |
| Assets | 6,975,908,000 | 6,975,908,000 | 8,142,292,000 | 8,109,004,000 | 9,908,282,000 | 12,696,329,000 | 13,306,919,000 | 13,448,772,000 | 13,434,729,000 | 13,393,119,000 |
| Stockholders' equity | 4,448,006,000 | 4,935,907,000 | 5,600,811,000 | 5,921,458,000 | 6,425,548,000 | 6,972,883,000 | 7,535,284,000 | 7,734,885,000 | 7,993,420,000 | 7,901,171,000 |
| Cash and cash equivalents | 415,143,000 | 444,122,000 | 459,136,000 | 672,901,000 | 1,714,309,000 | 613,530,000 | 982,107,000 | 736,532,000 | 741,881,000 | 670,679,000 |
| Free cash flow | 784,496,000 | 812,599,000 | 852,122,000 | 629,158,000 | 760,523,000 | 769,518,000 | 856,059,000 | 777,636,000 | 1,010,297,000 | 534,349,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 9.35% | 9.24% | 10.60% | 10.31% | 9.45% | 7.98% | 8.03% | 6.55% | 6.75% | 3.95% |
| Operating margin | 13.90% | 13.93% | 12.36% | 12.60% | 11.45% | 9.86% | 10.54% | 8.85% | 8.96% | 5.94% |
| Return on equity | 20.01% | 17.15% | 18.07% | 16.53% | 14.13% | 13.03% | 13.27% | 10.26% | 10.07% | 6.05% |
| Return on assets | 12.76% | 12.14% | 12.43% | 12.07% | 9.16% | 7.16% | 7.51% | 5.90% | 5.99% | 3.57% |
| Liabilities / equity | 0.57 | 0.41 | 0.45 | 0.37 | 0.54 | 0.82 | 0.77 | 0.74 | 0.68 | 0.70 |
| Current ratio | 1.93 | 1.92 | 1.80 | 2.14 | 2.38 | 2.08 | 2.47 | 1.43 | 2.32 | 2.47 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/HRL/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000048465.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-07-31 |  |  | 0.40 | reported discrete quarter |
| 2023-Q1 | 2023-01-29 |  |  | 0.40 | reported discrete quarter |
| 2023-Q2 | 2023-04-30 |  |  | 0.40 | reported discrete quarter |
| 2023-Q3 | 2023-07-30 | 2,963,299,000 | 162,679,000 | 0.30 | reported discrete quarter |
| 2023-Q4 | 2023-10-29 | 3,198,080,000 | 195,935,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-01-28 | 2,996,911,000 | 218,863,000 | 0.40 | reported discrete quarter |
| 2024-Q2 | 2024-04-28 | 2,887,352,000 | 189,278,000 | 0.34 | reported discrete quarter |
| 2024-Q3 | 2024-07-28 | 2,898,443,000 | 176,701,000 | 0.32 | reported discrete quarter |
| 2024-Q4 | 2024-10-27 | 3,138,091,000 | 220,196,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-01-26 | 2,988,813,000 | 170,575,000 | 0.31 | reported discrete quarter |
| 2025-Q2 | 2025-04-27 | 2,898,810,000 | 180,017,000 | 0.33 | reported discrete quarter |
| 2025-Q3 | 2025-07-27 | 3,032,876,000 | 183,742,000 | 0.33 | reported discrete quarter |
| 2025-Q4 | 2025-10-26 | 3,185,661,000 | -56,137,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-01-25 | 3,027,317,000 | 181,801,000 | 0.33 | reported discrete quarter |
| 2026-Q2 | 2026-04-26 | 2,972,600,000 | 157,474,000 | 0.29 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from HRL's latest 10-K: [/company/HRL/business/](/company/HRL/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from HRL's latest 10-K: [/company/HRL/risk-factors/](/company/HRL/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/48465/000004846526000026/hrl-20260426.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-28
Report date: 2026-04-26

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Overview

The Company is a global manufacturer and marketer of branded food products and remains focused on driving long-term growth through a balanced business model, a diverse portfolio, and a commitment to creating value for all stakeholders. The Company’s three reportable segments, Retail, Foodservice, and International, are described in Note Q - Segment Reporting in the Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

The Company discloses certain measures not defined by United States (U.S.) Generally Accepted Accounting Principles (GAAP), including organic volume, organic net sales, adjusted selling, general and administrative (SG&A), adjusted SG&A as a percent of net sales, adjusted earnings before income taxes, and adjusted diluted earnings per share. The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. For additional information and reconciliations to the most closely comparable measures calculated in accordance with GAAP, see the "Non-GAAP Measures" section of this Item.

Diluted earnings per share was $0.29 for the second quarter of fiscal 2026, down 12 percent compared to the same period last year. Adjusted diluted earnings per share for the second quarter of fiscal 2026 was $0.40, up 14 percent compared to the same period last year. Significant factors impacting the quarter are listed below. All comparisons are to the same period of the prior year unless otherwise noted.

•Net sales for the second quarter of fiscal 2026 increased 3 percent. Organic net sales increased 3 percent with growth across the Foodservice, International, and Retail segments.

•Total segment profit for the second quarter of fiscal 2026 increased 13 percent. Segment profit increased in the Retail, Foodservice, and International segments.

◦The increase in Retail segment profit was due to higher net sales, improved performance across the turkey manufacturing network, and lower SG&A. These benefits were partially offset by inflationary pressures in the logistics network.

◦The increase in Foodservice segment profit was driven primarily by net sales performance, which benefited from market-based pricing actions and modest volume growth. Segment profit also benefited from improved performance across the turkey manufacturing network.

◦The increase in International segment profit was primarily due to strong export performance and growth in China.

•Earnings before income taxes for the second quarter of fiscal 2026 decreased 11 percent, which was negatively impacted by the $61 million loss on the sale of the whole-bird turkey business. Adjusted earnings before income taxes increased 14 percent, as higher net sales and improved performance across the turkey manufacturing network were partially offset by higher logistics expenses.

•The pre-tax impact of non-recurring expenses related to the loss on the sale of the whole-bird turkey business and the Company’s Transform and Modernize (T&M) initiative in the second quarter of fiscal 2026 were $77 million, which was primarily recorded in SG&A.

Cash flow from operations was $528 million for the first six months of fiscal 2026, a 44 percent increase primarily due to the impact of an inventory build in the second quarter of fiscal 2025.

Entering the second half of fiscal 2026, the external environment remains dynamic, with continued volatility associated with macroeconomic and geopolitical conditions. The Company is actively working to mitigate the impact of these conditions. However, continued pressure from the external environment, at a level greater than expected, could have an adverse impact on results of operations.

24

Table of Contents

Consolidated Results

Volume, Net Sales, Earnings, and Diluted Earnings Per Share

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands, except per share amounts","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","% Change"],["Volume (lbs.)","987,852","","","999,390","","","(1.2)","","","2,001,616","","","2,054,698","","","(2.6)"],["Organic Volume (lbs.)","987,852","","","995,400","","","(0.8)","","","2,001,616","","","2,049,205","","","(2.3)"],["Net Sales","$","2,972,600","","","$","2,898,810","","","2.5","","","$","5,999,917","","","$","5,887,623","","","1.9"],["Organic Net Sales","2,972,600","","","2,877,957","","","3.3","","","5,999,917","","","5,858,235","","","2.4"],["Net Earnings Attributable to Hormel Foods Corporation","157,474","","","180,017","","","(12.5)","","","339,274","","","350,592","","","(3.2)"],["Diluted Earnings Per Share","0.29","","","0.33","","","(12.1)","","","0.62","","","0.64","","","(3.1)"],["Adjusted Diluted Earnings Per Share","0.40","","","0.35","","","14.3","","","0.74","","","0.70","","","5.7"]]
[[/GREPCENT_TABLE]]

Volume and Net Sales

Net Sales increased and volume decreased for the second quarter and first six months of fiscal 2026 compared to the prior year.

For the second quarter of fiscal 2026, each segment contributed to organic net sales growth. Strong enterprise performance across the turkey portfolio, Foodservice customized solutions business, contract manufacturing, the pepperoni portfolio, and Applegate® products were key drivers of organic net sales growth.

For the second quarter of fiscal 2026, organic volume increased marginally in the International and Foodservice segments and declined in the Retail segment, primarily driven by the strategic exit from select non-core private label snack nut items.

For the first six months of fiscal 2026, net sales growth in the Foodservice and International segments offset declines in the Retail segment. Strong enterprise performance across the turkey portfolio, Foodservice customized solutions business, premium prepared proteins, the pepperoni portfolio, and contract manufacturing were key drivers of organic net sales growth. For the first six months of fiscal 2026, volume grew in the Foodservice and International segments and declined in the Retail segment.

In fiscal 2026, the Company expects net sales growth, which assumes growth across a broad range of categories, increased brand support, and market-based pricing actions. Risks to this outlook include slowing consumer demand and commodity price fluctuations.

Cost of Products Sold

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","%Change"],["Cost of Products Sold","$","2,454,093","","","$","2,414,377","","","1.6","","","$","5,011,835","","","$","4,927,957","","","1.7"]]
[[/GREPCENT_TABLE]]

Cost of products sold increased for the second quarter and first six months of fiscal 2026. Higher commodity input costs and higher logistics expenses were partially offset by improved performance in the turkey manufacturing network.

On a per pound basis, cost of products sold for the second quarter and first six months of fiscal 2026 increased compared to the prior year.

Gross Profit

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","%Change"],["Gross Profit","$","518,507","","","$","484,433","","","7.0","","","$","988,082","","","$","959,666","","","3.0"],["Percent of Net Sales","17.4","%","","16.7","%","","","","16.5","%","","16.3","%"]]
[[/GREPCENT_TABLE]]

For the second quarter and first six months of fiscal 2026, gross profit as a percent of net sales increased. Gross profit as a percent of net sales increased for the Retail, Foodservice, and International segments compared to the prior year.

25

Table of Contents

Selling, General, and Administrative (SG&A)

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","%Change"],["SG&A","$","318,624","","","$","251,432","","","26.7","","","$","560,322","","","$","514,445","","","8.9"],["Percent of Net Sales","10.7","%","","8.7","%","","","","9.3","%","","8.7","%"],["Adjusted SG&A","$","243,416","","","$","237,657","","","2.4","","","$","481,828","","","$","475,138","","","1.4"],["Adjusted Percent of Net Sales","8.2","%","","8.2","%","","","","8.0","%","","8.1","%"]]
[[/GREPCENT_TABLE]]

For the second quarter of fiscal 2026, SG&A and SG&A as a percent of net sales increased, driven primarily by the loss on the sale of the whole-bird turkey business. Adjusted SG&A increased, driven primarily by increased expenses related to legal matters. Adjusted SG&A as a percent of net sales was flat to the prior year.

For the first six months of fiscal 2026, SG&A and SG&A as a percent of net sales increased, due to the loss on the sale of the whole-bird turkey business, partially offset by the gain on the sale of Justin's, LLC and lapping the loss on the sale of a non-core sow operation. Adjusted SG&A increased, driven primarily by increased expenses related to legal matters. Adjusted SG&A as a percent of net sales was comparable to the prior year.

Advertising investments in the second quarter of fiscal 2026 were $34 million, a decrease of 7 percent compared to the prior year. Advertising investments in the first six months of fiscal 2026 were $75 million, down 6 percent compared to the prior year. The declines were partially due to the timing of advertising campaigns. In fiscal 2026, the Company intends to increase advertising expense as it continues to invest in its priority brands.

Equity in Earnings of Affiliates

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","% Change"],["Equity in Earnings of Affiliates","$","17,229","","","$","15,350","","","12.2","","","$","33,049","","","$","31,461","","","5.0"]]
[[/GREPCENT_TABLE]]

Equity in earnings of affiliates for the second quarter and first six months of fiscal 2026 increased driven by the results of MegaMex Foods, LLC.

Interest Income, Interest Expense, and Other Income (Expense), Net

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["In thousands","April 26, 2026","","April 27, 2025","","% Change","","April 26, 2026","","April 27, 2025","","% Change"],["Interest Income","$","6,479","","","$","6,176","","","4.9","","","$","13,007","","","$","13,719","","","(5.2)"],["Interest Expense","19,822","","","19,516","","","1.6","","","39,550","","","38,977","","","1.5"],["Other Income (Expense), Net","2,294","","","(4,523)","","","150.7","","","6,109","","","(2,862)","","","313.5"]]
[[/GREPCENT_TABLE]]

Interest income increased in the second quarter as higher average cash balances more than offset the impact of declining interest rates. For the first six months of fiscal 2026, interest income decreased, as lower interest rates more than offset the benefit of modestly higher cash balances. Other income increased in the second quarter and first six months of fiscal 2026, primarily driven by the investment gains within the rabbi trust.

Effective Tax Rate

[[GREPCENT_TABLE]]
[["","Quarter Ended","","Six Months Ended"],["","April 26, 2026","","April 27, 2025","","April 26, 2026","","April 27, 2025"],["Effective Tax Rate","23.6","%","","22.0","%","","23.0","%","","21.9","%"]]
[[/GREPCENT_TABLE]]

The effective tax rate in the second quarter of fiscal 2026 was 23.6% compared to 22.0% for the prior year, primarily due to the impact of the whole-bird turkey transaction in the second quarter of fiscal 2026. For additional information, refer to Note O - Income Taxes of the Notes to the Consolidated Financial Statements.

26

Table of Contents

The effective tax rate for fiscal 2026 is expected to be between 21.5 and 22.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm
Complete FY 2025 MD&A: /company/HRL/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2025-12-05
Report date: 2025-10-26

Item 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company is a global manufacturer and marketer of branded food products and remains focused on driving long-term growth through a balanced business model, a diverse portfolio, and a commitment to creating value for all stakeholders. The Company reports its results in the following three reportable segments: Retail, Foodservice, and International.

A review of the Company’s fiscal 2025 performance compared to fiscal 2024 appears in the following section. A review of fiscal 2024 performance compared to fiscal 2023 is set forth in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended October 27, 2024, under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations," which is incorporated herein by reference.

17

Table of Contents

The Company discloses certain measures not defined by U.S. Generally Accepted Accounting Principles (GAAP), including organic volume, organic net sales, adjusted selling, general and administrative (SG&A), adjusted SG&A as a percent of net sales, adjusted operating income, adjusted net earnings, adjusted diluted earnings per share, and adjusted segment profit. The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. For additional information and reconciliations to the most closely comparable measures calculated in accordance with GAAP, see the "Non-GAAP Measures" section of this Item. All forward-looking comparisons for fiscal 2026 are comparing fiscal 2025 GAAP figures to projected fiscal 2026 GAAP figures, unless otherwise noted.

Results of Operations

OVERVIEW

Fiscal 2025: The Company believes fiscal 2025 was a challenging year, as strong net sales performance did not translate into net earnings growth. Net sales totaled $12.1 billion, an increase of 2 percent compared to the prior year. Growth was driven by all three segments, and the Company delivered four consecutive quarters of net sales gains.

In fiscal 2025, the Company experienced persistent input cost inflation, primarily related to commodity markets, which significantly pressured earnings. Pork belly, beef, and nut input costs caused the most earnings pressure during the year.

The Company continued to support its strategic programs during fiscal 2025, including its multi-year Transform and Modernize (T&M) initiative. The Company made meaningful progress on the initiative, which is expected to deliver long-term value to the organization. The Company also recognized expenses associated with a corporate restructuring plan designed to reduce administrative expenses, improve efficiencies, and align its workforce to the Company’s future needs, while enabling continued investment in the Company’s growth.

SG&A decreased in fiscal 2025 primarily due to the lapping of antitrust settlements incurred in the prior year, lower advertising spend, and proceeds from a legal settlement. Adjusted SG&A as a percent of net sales was comparable to the prior year.

Operating income decreased 33 percent compared to the prior year, as earnings were significantly impacted by non-cash impairment charges recorded in the International and Retail segments. Adjusted operating income decreased 11 percent.

Net earnings decreased 41 percent compared to the prior year due to the above factors and a higher effective tax rate primarily driven by impairment charges. Adjusted net earnings declined 13 percent. Diluted earnings per share and adjusted diluted earnings per share for fiscal 2025 were $0.87 and $1.37, respectively, compared to $1.47 and $1.58 in the prior year.

Capital expenditures in fiscal 2025 were $311 million, including investments in capacity expansions for Hormel® Fire Braised™ and Applegate® products, data and technology, people and animal safety, and the Jiaxing, China, facility. The Company continues to prioritize investments in growth, innovation, cost savings, automation, and maintenance.

Dividends paid to shareholders were a record $633 million.

Changes in global trade policies, including tariffs and retaliatory tariffs, had a minor impact on the Company’s results of operations during fiscal 2025. The Company continues to monitor and evaluate the impact of proposed and enacted tariffs, including proposed and enacted retaliatory tariffs, and other trade restrictions, as well as its ability to mitigate their impacts.

Fiscal 2026 Outlook: The Company continues to navigate through a dynamic consumer and operating environment. Organic net sales growth of 1 percent to 4 percent is expected in fiscal 2026, which the Company anticipates being driven by growth across a broad range of categories, increased brand support and innovation, market-based pricing actions, and the Company’s current assumptions for raw material costs. From a bottom-line perspective, segment profit growth from all three segments is expected in fiscal 2026. Diluted earnings per share are expected to be $1.29 to $1.39 and adjusted diluted earnings per share are expected to be $1.43 to $1.51. Earnings are expected to decline in the first quarter of the year, followed by growth in each of the remaining three quarters. Major risks to the outlook include incremental inflationary pressures and the impact of deteriorating macroeconomic conditions on the Company’s customers, consumers, and operators.

The Company remains in a strong financial position due to its operating cash flow, liquidity, and solid balance sheet. The Company plans to continue to support the business through increased marketing and advertising investments for its leading brands. Further, continued capital expenditure investments are expected, including investments in data and technology and value-added capacity expansions.

The implied annualized dividend rate for 2026 is $1.17 per share, representing an increase of 1 percent and marking the 60th consecutive year of dividend increases. Returning cash to shareholders in the form of dividends remains a top priority for the Company.

18

Table of Contents

CONSOLIDATED RESULTS

Volume, Net Sales, Net Earnings (Loss) and Diluted Earnings (Loss) Per Share

[[GREPCENT_TABLE]]
[["","","Fourth Quarter Ended","","Fiscal Year Ended"],["In thousands, except per share amounts","","October 26, 2025","","October 27, 2024","","% Change","","October 26, 2025","","October 27, 2024","","% Change"],["Volume (lbs.)","","1,088,430","","","1,108,203","","","(1.8)","","","4,189,719","","","4,288,290","","","(2.3)"],["Organic Volume (lbs.)","","1,088,430","","","1,092,952","","","(0.4)","","","4,189,719","","","4,224,016","","","(0.8)"],["Net Sales","","$","3,185,661","","","$","3,138,091","","","1.5","","","$","12,106,160","","","$","11,920,797","","","1.6"],["Organic Net Sales","","3,185,661","","","3,114,240","","","2.3","","","12,106,160","","","11,813,154","","","2.5"],["Net Earnings (Loss) Attributable to Hormel Foods Corporation","","(56,137)","","","220,196","","","(125.5)","","","478,197","","","805,038","","","(40.6)"],["Diluted Earnings (Loss) Per Share","","(0.10)","","","0.40","","","(125.0)","","","0.87","","","1.47","","","(40.8)"],["Adjusted Diluted Earnings Per Share","","0.32","","","0.42","","","(23.8)","","","1.37","","","1.58","","","(13.3)"]]
[[/GREPCENT_TABLE]]

Net sales increased for the fourth quarter and full year of fiscal 2025 while volume declined over both periods.

For the fourth quarter of fiscal 2025, net sales growth across the Retail and Foodservice segments offset declines in the International segment. Net sales growth across the enterprise was driven primarily by the Jennie-O® turkey portfolio, Foodservice customized solutions business, Planters® snack nuts, Applegate® natural and organic meats, and premium prepared proteins, and the SPAM® family of products.

For the full year fiscal 2025, net sales increased in each segment. Net sales growth for the full year was driven primarily by the Jennie-O® turkey portfolio, the SPAM® family of products, Foodservice customized solutions business, Planters® snack nuts, Applegate® natural and organic meats, the bacon portfolio, and the Mexican foods portfolio.

For the fourth quarter of fiscal 2025, volume in the Retail segment was comparable to the prior year and declined in the International segment. For the fourth quarter of fiscal 2025, organic volume increased in the Foodservice segment. For the full year of fiscal 2025, organic volume in the Foodservice segment increased compared to the prior year. Volume declined in the Retail segment and was comparable to the prior year in the International segment for the full year of fiscal 2025.

In fiscal 2026, the Company expects net sales growth, which assumes growth across a broad range of categories, increased brand support and innovation, and market-based pricing actions. Risks to this outlook include slowing consumer demand and commodity price fluctuations.

Cost of Products Sold

[[GREPCENT_TABLE]]
[["","","Fourth Quarter Ended","","Fiscal Year Ended"],["In thousands","","October 26, 2025","","October 27, 2024","","% Change","","October 26, 2025","","October 27, 2024","","% Change"],["Cost of Products Sold","","$","2,740,820","","","$","2,616,861","","","4.7","","","$","10,214,344","","","$","9,898,659","","","3.2"]]
[[/GREPCENT_TABLE]]

Cost of products sold for the fourth quarter and full year of fiscal 2025 increased due to higher commodity input costs, mainly for pork bellies, beef, and nuts.

In fiscal 2026, the Company expects raw material costs for beef and nuts to remain above historical averages. Pork costs are anticipated to be lower than fiscal 2025 levels; however, they are expected to remain elevated compared to long-term averages. Inflationary pressures on employee-related, packaging, and production expenses are expected to persist at normalized levels. The Company’s T&M initiative is projected to continue delivering cost savings in fiscal 2026, with a focus on procurement of ingredients and supplies, production-related costs, and logistics.

Gross Profit

[[GREPCENT_TABLE]]
[["","","Fourth Quarter Ended","","Fiscal Year Ended"],["In thousands","","October 26, 2025","","October 27, 2024","","% Change","","October 26, 2025","","October 27, 2024","","% Change"],["Gross Profit","","$","444,842","","","$","521,230","","","(14.7)","","","$","1,891,816","","","$","2,022,138","","","(6.4)"],["Percent of Net Sales","","14.0","%","","16.6","%","","","","15.6","%","","17.0","%"]]
[[/GREPCENT_TABLE]]

Gross profit as a percentage of net sales decreased in both the fourth quarter and full year of fiscal 2025 compared to the prior year. Each segment experienced a decline in gross profit as a percentage of net sales versus fiscal 2024. All segments benefited from cost savings generated through the Company’s T&M initiative, which were more than offset by inflationary pressures.

19

Table of Contents

In fiscal 2026, the Company expects gross profit as a percent of net sales to increase compared to the prior year. Incremental cost inflation and unfavorable sales mix pose the largest risks to this outlook.

Selling, General, and Administrative (SG&A)

[[GREPCENT_TABLE]]
[["","","Fourth Quarter Ended","","Fiscal Year Ended"],["In thousands","","October 26, 2025","","October 27, 2024","","% Change","","October 26, 2025","","October 27, 2024","","% Change"],["SG&A","","$","223,466","","","$","238,587","","","(6.3)","","","$","996,624","","","$","1,005,294","","","(0.9)"],["Adjusted SG&A","","220,175","","","226,069","","","(2.6)","","","940,540","","","933,010","","","0.8"],["Percent of Net Sales","","7.0","%","","7.6","%","","","","8.2","%","","8.4","%"],["Adjusted Percent of Net Sales","","6.9","%","","7.2","%","","","","7.8","%","","7.8","%"]]
[[/GREPCENT_TABLE]]

SG&A for the fourth quarter of fiscal 2025 decreased due to proceeds from a legal settlement and lower advertising expe

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/HRL/mda/fy2025/
All MD&A years: /company/HRL/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/HRL/mda/fy2024/): filed 2024-12-05; accession 0000048465-24-000051 (https://www.sec.gov/Archives/edgar/data/48465/000004846524000051/hrl-20241027.htm)
- [FY 2023 MD&A](/company/HRL/mda/fy2023/): filed 2023-12-06; accession 0000048465-23-000083 (https://www.sec.gov/Archives/edgar/data/48465/000004846523000083/hrl-20231029.htm)
- [FY 2022 MD&A](/company/HRL/mda/fy2022/): filed 2022-12-06; accession 0000048465-22-000051 (https://www.sec.gov/Archives/edgar/data/48465/000004846522000051/hrl-20221030.htm)
- [FY 2021 MD&A](/company/HRL/mda/fy2021/): filed 2021-12-10; accession 0000048465-21-000067 (https://www.sec.gov/Archives/edgar/data/48465/000004846521000067/hrl-20211031.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2011 Meat Packing Plants) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/HRL.md · JSON record: /company/HRL.json · verified financials: /company/HRL/financials.json / /company/HRL/financials.csv · machine TOC for the whole site: /llms.txt