Hormel Foods Corp
NYSE:HRL

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Hormel Foods Corp Logo
Hormel Foods Corp
NYSE:HRL
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Price: 23.74 USD 0.47% Market Closed
Market Cap: 13.1B USD

Hormel Foods Corp
Investor Relations

Nestled in the heart of Austin, Minnesota, Hormel Foods Corp. has carved a distinctive niche in the global food industry since its inception in 1891. Originally founded by George A. Hormel as a fresh meat processing and packing business, it quickly evolved, adapting to shifts in consumer preferences and technological advancements. Today, Hormel stands as a testament to adaptation and longevity, leveraging an extensive portfolio of brands that include household names like Spam, Skippy, and Jennie-O. The company’s business model hinges on processing and selling a wide variety of food products, ranging from pork and turkey to refrigerated and shelf-stable goods, providing convenience for the ever-busy modern consumer.

The magic of Hormel lies in its ability to balance tradition with innovation. Through careful management of its supply chain and strategic acquisitions, such as the purchase of Planters in 2021, Hormel has diversified its offerings, ensuring a steady stream of revenue. While retail sales constitute the backbone of its earnings, Hormel also thrives in the foodservice sector, supplying restaurants and institutions with quality ingredients. Their revenue model is further buoyed by a prudent approach to marketing and branding, which keeps their iconic products relevant and in demand. In essence, Hormel crafts its business narrative through a harmonious blend of trusted brands, strategic expansion, and an unwavering commitment to adapting in the ever-evolving food landscape.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Dec 4, 2025
AI Summary
Q4 2025

Sales Growth: Hormel reported net sales exceeding $12 billion for fiscal 2025, achieving 2% organic growth and four consecutive quarters of year-over-year organic net sales increases.

Earnings Disappointment: Despite sales gains, earnings fell well short of goals due to elevated input costs, commodity inflation, and several discrete setbacks.

Margin Pressures: Profitability and margins were notably pressured by raw material inflation—particularly pork and beef—as well as supply chain disruptions and one-time events.

Cost Actions: The company reduced about 250 corporate and sales positions (9% of that group) and began administrative restructuring to generate savings for reinvestment and margin support.

2026 Guidance: Organic net sales growth is expected at 1–4%, with adjusted operating income forecasted to grow 4–10%, and adjusted EPS guided to $1.43–$1.51.

Pricing & Input Costs: Multiple pricing actions were taken in 2025, with more benefits expected to flow through in 2026 as input costs—especially pork—moderate but beef and nut costs remain elevated.

Strategic Initiatives: Portfolio reshaping, innovation, and AI-driven efficiency are key priorities in 2026, with targeted reinvestment behind focus brands and capabilities.

Dividend Growth: Hormel increased its dividend for the 60th consecutive year, raising the annualized rate to $1.17 per share.

Key Financials
Net Sales
$12B
Operating Income
$719M
Adjusted Operating Income
Just over $1B
Operating Margin
5.9%
Adjusted Operating Margin
8.4%
Diluted EPS
$0.87
Adjusted Diluted EPS
$1.37
Q4 Diluted Loss Per Share
-$0.10
Q4 Adjusted Diluted EPS
$0.32
Cash Flow from Operations
$845M
Inventories
$1.7B
Capital Expenditures
$311M
Dividend
$1.17 per share (annualized for 2026)
Shareholder Returns
$633M returned in dividends
Raw Material Cost Inflation (Q4)
500 bps
Pork Belly Inflation (FY25)
Up 25%
Pork Cutout Inflation (FY25)
Up 10%
Pork Trim Inflation (FY25)
Up 20%
Effective Tax Rate
28%
International Segment Impairment
$164M
Retail Segment Impairment
$71M
Quarterly Dividend Streak
389 consecutive quarters
Dividend Increase Streak
60 consecutive years
Turkey Supply Reduction
250 positions (9% of corporate and sales group)
Planters Consumption (Recent 13 Weeks)
+12% dollar, +6% volume, +13% distribution gain
Tariffs (FY26 expected)
$25M–$35M
Other Earnings Calls

Management

Mr. James P. Snee
Chairman, President & CEO
No Bio Available
Ms. Jacinth C. Smiley CPA
Executive VP & CFO
No Bio Available
Mr. Kevin L. Myers Ph.D.
Senior Vice President of Research & Development and Quality Control
No Bio Available
Mr. Pierre M. Lilly
Senior VP & Chief Compliance Officer
No Bio Available
Ms. Katie Clark
Senior VP & Chief Communications Officer
No Bio Available
Mr. Nathan P. Annis
Vice President of Corporate Development
No Bio Available
Ms. Katherine M. Losness Larson
Senior Vice President of Human Resources
No Bio Available
Mr. D. Scott Aakre
Group VP & Chief Marketing Officer of Hormel Foods Retail Business
No Bio Available
Mr. Swen Neufeldt
Group VP & President of Hormel Foods International
No Bio Available
Ms. Lisa Selk
Senior Vice President of Brand Fuel
No Bio Available

Contacts

Address
MINNESOTA
Austin
1 Hormel Pl
Contacts
+15074375611.0
www.hormelfoods.com