v3.26.1
REPORTABLE SEGMENTS
 6 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
Our reportable segments are determined on the basis of our organizational structure and information that is regularly reviewed by our Chief Operating Decision Maker (“CODM”) for the purpose of assessing the performance of the operating segments of our business and making operating and resource allocation decisions. Our CODM is our Chief Executive Officer. Our CODM reviews assets at a consolidated level; not by reportable segment. Therefore, we do not disclose assets by reportable segment. Additionally, while segments are managed separately, our manufacturing and distribution activities are often integrated to optimize cost efficiencies, resulting in jointly utilized assets, including fixed assets, that are not tracked at the segment level. Depreciation and amortization associated with these shared assets are generally allocated to reportable segments.
The measure of segment profit reviewed by our CODM is operating profit. Our CODM uses operating profit to assess segment performance, compensate employees and allocate capital, personnel and other resources to each segment.
We conduct our operations through three reportable segments: Packaged Meats, Fresh Pork and Hog Production. We also conduct operations through our Mexico and Bioscience operating segments, which are aggregated and reported as “Other.”
Packaged Meats
The Packaged Meats segment consists of our U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa salami), ham products, ready-to-eat products and prepared foods (such as bacon, sausage and pre-cooked
entrées). Approximately 80% of the Packaged Meats segment’s raw materials are sourced from our Fresh Pork segment. We market our domestic packaged meats products under a strategic set of core brands, which include: Smithfield, Eckrich, Nathan’s Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook’s, Gwaltney, Carando, Margherita, Curly’s and Smithfield Culinary. We also sell a sizeable portion of our packaged meats products as private label products. The majority of the Packaged Meats segment’s products are sold to retail and foodservice customers in the U.S.
Fresh Pork
The Fresh Pork segment consists of our U.S. 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. The Fresh Pork segment sources approximately 40% of its raw materials from our Hog Production segment, with the remainder from 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, Mexico, China, Japan, South Korea and Canada.
Hog Production
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 contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells livestock feed and grains and provides transportation and other ancillary services to external customers.
The following tables provide certain financial information by reportable segment with a reconciliation to the consolidated totals.
Three Months Ended
June 28, 2026
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales$2,023 $2,008 $772 $154 $— $— $(1,257)$3,700 
Cost of sales1,666 1,953 697 149 — 12 (1,257)3,221 
Selling, general and administrative expenses92 40 10 6 27 15 — 191 
Operating gains— — — — — (3)— (3)
Operating profit (loss)265 14 64 (2)(27)(24)— 290 
Interest expense, net8 8 
Non-operating gains(17)(17)
Income before income taxes$299 
Other segment data:
Depreciation and amortization$33 $28 $13 $7 $— $3 $— $85 
Capital expenditures33 25 11 2 6 — — 77 
Three Months Ended
June 29, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
Intersegment Consolidated
(in millions)
Sales $2,079 $2,080 $840 $120 $— $— $(1,334)$3,786 
Cost of sales1,690 2,005 808 107 — 11 (1,334)3,288 
Selling, general and administrative expenses87 40 10 6 26 98 — 268 
Operating gains— — — — — (30)— (30)
Operating profit (loss)301 35 22 7 (26)(80)— 260 
Interest expense, net11 11 
Non-operating gains(4)(4)
Income before income taxes$254 
Other segment data:
Depreciation and amortization $33 $28 $14 $7 $— $1 $— $82 
Capital expenditures 38 23 13 2 2 — — 78 
________________
(1)Consists of our Mexico and Bioscience operations. Our Mexico operations raise hogs and produce pork products that are sold primarily to customers in Mexico. Our Bioscience operations use raw materials from hogs that we harvest to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots.
(2)Represents general corporate expenses for management and administration of the business.
(3)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.
Six Months Ended
June 28, 2026
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
IntersegmentConsolidated
(in millions)
Sales$4,172 $4,020 $1,541 $327 $— $— $(2,559)$7,500 
Cost of sales3,447 3,848 1,453 305 — 17 (2,559)6,510 
Selling, general and administrative expenses184 79 20 13 53 22 — 371 
Operating gains— — — — — (4)— (4)
Operating profit (loss)540 92 68 10 (53)(35)— 623 
Interest expense, net16 16 
Non-operating gains(16)(16)
Income before income taxes$623 
Other segment data:
Depreciation and amortization$67 $55 $27 $14 $1 $5 $— $169 
Capital expenditures78 58 19 3 7 — — 165 
Six Months Ended
June 29, 2025
Packaged MeatsFresh PorkHog Production
Other (1)
Corporate (2)
Unallocated (3)
IntersegmentConsolidated
(in millions)
Sales$4,103 $4,114 $1,772 $224 $— $— $(2,656)$7,558 
Cost of sales3,356 3,911 1,727 191 — 20 (2,656)6,549 
Selling, general and administrative expenses180 86 22 12 55 111 — 465 
Operating gains— — — — — (39)— (39)
Operating profit (loss)567 117 23 22 (55)(92)— 582 
Interest expense, net22 22 
Non-operating losses2 2 
Income before income taxes$558 
Other segment data:
Depreciation and amortization$66 $55 $28 $13 $1 $3 $— $165 
Capital expenditures78 47 24 4 5 — — 158 
________________
(1)Consists of our Mexico and Bioscience operations. Our Mexico operations raise hogs and produce pork products that are sold primarily to customers in Mexico. Our Bioscience operations use raw materials from hogs that we harvest to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots.
(2)Represents general corporate expenses for management and administration of the business.
(3)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.
The following tables disaggregate our sales to customers by reportable segment and by major distribution channel.
Three Months Ended
June 28, 2026
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$1,224 $668 $13 $102 $15 $2,023 $— $2,023 
Fresh Pork530 80 377 275 1 1,263 745 2,008 
Hog Production— — — — 260 260 512 772 
Other (7)
— — — — 153 153 — 154 
Intersegment— — — — — — (1,257)(1,257)
Total$1,754 $748 $390 $377 $430 $3,700 $— $3,700 
Three Months Ended
June 29, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$1,278 $677 $12 $105 $7 $2,079 $— $2,079 
Fresh Pork534 72 397 266 1 1,270 810 2,080 
Hog Production— — — — 317 317 524 840 
Other (7)
— — — — 120 120 — 120 
Intersegment— — — — — — (1,334)(1,334)
Total$1,812 $749 $409 $371 $445 $3,786 $— $3,786 
________________
(1)Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores.
(2)Includes foodservice distributors, fast food and other restaurant operators, hotel chains and other institutional customers in the U.S.
(3)Includes exports from the U.S. to international retailers and wholesale distributors primarily in North America, Asia, Latin America and other emerging markets.
(4)Includes sales to industrial customers who use our raw materials in their finished goods production, including prepared meals, pharmaceutical production and pet food.
(5)Includes sales of grain, oilseeds, feed, breeding stock and market hogs, among others, in addition to external sales from our Mexico and Bioscience operations.
(6)Includes external sales from our Mexico operations of $151 million and $114 million for the second quarters of 2026 and 2025, respectively. All other external sales are sourced from our U.S. operations.
(7)Consists of our Mexico and Bioscience operations.
Six Months Ended
June 28, 2026
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
Intersegment
Consolidated
(in millions)
Packaged Meats$2,615 $1,286 $44 $213 $14 $4,172 $— $4,172 
Fresh Pork1,028 155 776 530 1 2,491 1,529 4,020 
Hog Production— — — — 510 510 1,030 1,541 
Other (7)
— — — — 327 327 — 327 
Intersegment— — — — — — (2,559)(2,559)
Total$3,643 $1,442 $820 $743 $853 $7,500 $— $7,500 
Six Months Ended
June 29, 2025
Retail (1)
Foodservice (2)
Exports (3)
Industrial (4)
Other / Unallocated (5)
Total External Sales (6)
IntersegmentConsolidated
(in millions)
Packaged Meats$2,562 $1,275 $43 $215 $9 $4,103 $— $4,103 
Fresh Pork1,017 131 832 532 4 2,517 1,597 4,114 
Hog Production— — — — 714 714 1,059 1,772 
Other (7)
— — — — 224 224 — 224 
Intersegment— — — — — — (2,656)(2,656)
Total$3,579 $1,406 $875 $747 $950 $7,558 $— $7,558 
________________
(1)Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores.
(2)Includes foodservice distributors, fast food and other restaurant operators, hotel chains and other institutional customers in the U.S.
(3)Includes exports from the U.S. to international retailers and wholesale distributors primarily in North America, Asia, Latin America and other emerging markets.
(4)Includes sales to industrial customers who use our raw materials in their finished goods production, including prepared meals, pharmaceutical production and pet food.
(5)Includes sales of grain, oilseeds, feed, breeding stock and market hogs, among others, in addition to external sales from our Mexico and Bioscience operations.
(6)Includes external sales from our Mexico operations of $320 million and $212 million for the first halves of 2026 and 2025, respectively. All other external sales are sourced from our U.S. operations.
(7)Consists of our Mexico and Bioscience operations.