SFD

Smithfield Foods is the largest US pork producer and processor, and FY2025 was a strong year up and down the income statement. Revenue grew 9.8% to $15.5B, gross profit rose 10.1% to $2.09B and operating income jumped 15.6% to $1.29B, lifting the operating margin to 8.3% — healthy for a meat-packing business that runs on thin commodity spreads. Net income reached $987M (+3.6%) for a 14.5% return on equity, and the recovery from the FY2023 trough of just $17.0M of net income shows how powerfully the hog and pork cycle can swing earnings.

The balance sheet supports the case. Long-term debt is modest at $1.99B (essentially flat) against $6.80B of equity (up 16.6%), cash grew 63.2% to $1.54B, and current assets of $5.17B dwarf current liabilities of $1.74B. Operating cash flow rose 15.6% to $1.06B against just $341M of capex, leaving ample free cash. Management is returning it: dividends grew 37.5% to $396M, a meaningful payout following the company's return to public markets.