TSN

Tyson Foods generated $54.4B of revenue in FY2025, up 2.1%, but earnings tell the cyclical story: net income fell 40.8% to $474M and diluted EPS dropped to $1.33, leaving net margin at just 0.9% and ROE at 2.6%. The miss is concentrated in the protein cycle — management reports Beef and Pork operating margins of -5.2% and -3.4% respectively, driven by limited market-ready cattle supply and elevated cattle/hog costs, while Chicken (+8.5%) and Prepared Foods (+9.0%) margins remain healthy. Reported operating income of $1.10B was further depressed by $738M of legal contingency accruals plus $343M of goodwill/intangible impairments, so underlying profitability is somewhat better than the headline.

The balance sheet remains solid for the sector: $18.1B of equity, $18.6B of retained earnings, and $2.15B of operating cash flow comfortably cover $978M of capex and $697M of dividends. The notable yellow flag is the current portion of debt jumping to $909M (up over 1,100% YoY) and current liabilities rising 33.5%, which warrants monitoring of near-term refinancing, though total leverage looks manageable against the asset base and cash generation.