Tyson sales up 2.3% in 2025 Q1 resultsTyson sales up 2.3% in 2025 Q1 results

Company credits multi-channel, multi-protein portfolio for best quarterly results in over two years.

Kristin Bakker, Digital Content Specialist

February 3, 2025

5 Min Read
Tyson Foods logo
Tyson Foods

Tyson Foods Inc., one of the world’s largest food companies and a recognized leader in protein, reported results for its fiscal 2025 first quarter ended Dec. 28, 2024. Sales were up 2.3% from the prior year to $13.623 billion. Operating income was up 60% to $659 million, and earnings per share (EPS) rose 65% to $1.14, on an adjusted basis, versus the previous year.

“Fiscal year 2025 is off to a strong start, as we delivered our third consecutive quarter of year-over-year growth in sales, operating income and EPS,” said Donnie King, president and chief executive officer of Tyson Foods. “Our best quarterly performance in more than two years reflects improved execution across the business, including exceptional results in chicken. Consumers remain focused on adding protein to their diets, and our diversified multi-channel, multi-protein portfolio ensures we are well positioned to meet this demand while reinforcing our leadership as a world-class food company.”

During the company’s conference call on the first-quarter results, King noted, “Our first-quarter performance sets the tone for what we anticipate will be another year of growth for Tyson. This marks our third consecutive quarter of year-over-year increases across key metrics, including sales, adjusted operating income and adjusted earnings per share.”

Related:Pilgrim’s benefits from robust chicken demand in 2024 and Q4

Segment results summary

King shared segment highlights on the conference call, stating, “Our results this quarter were driven by another robust performance in Chicken, highlighted by the best first-quarter adjusted operating income in the segment. We delivered better-than-expected results in Beef, and significant improvement in profitability in International & Other, while Prepared Foods continued to generate solid profits and margins.”

In its Beef segment, Tyson said results were better than expected, with the ongoing tight cattle supply expected to continue for 2025. The company reported 2025 first-quarter sales for the Beef segment of $5.335 billion, up from $5.023 billion in the fiscal 2024 first quarter, and an adjusted operating loss of $32 million, versus a loss of $117 billion in the first quarter of 2024.

Tyson’s Pork segment reported 2025 first-quarter sales of $1.617 billion on adjusted operating income of $59 million, compared to sales of $1.517 billion and operating income of $68 million in the 2024 first quarter. It said the results were in line with company expectations.

The company’s Chicken segment showed a slight increase in first-quarter sales at $4.065 billion on adjusted operating income of $368 million in 2025 – its best quarterly operating performance over the past eight years – compared to sales of $4.033 billion and operating income of $192 million in the 2024 first quarter. Tyson said it expects the segment to return to volume growth this year. “Year-over-year growth in adjusted operating income was driven in part by ongoing improvement in live and plant operations, along with lower grain costs,” King said on the call.

Related:POET and Tallgrass to collaborate on carbon capture project

Prepared Foods sales were lower at $2.473 billion on adjusted operating income of $234 million in the 2025 first quarter, compared to sales of $2.543 billion and operating income of $264 million in the 2024 first quarter. “We grew share quarter over quarter in our core nine categories, driven by bacon, snacking and smoked sausage,” King explained. Tyson said the segment made good progress on operational excellence initiatives and remains on track for the full fiscal year.

First-quarter sales for the International/Other segment were reported as a loss of $451 million on adjusted operating income of $30 million, versus a loss of $379 million on operating income of $4 million in the 2024 first quarter.

Outlook

During the conference call, King said, “The strong results in the first quarter increase our confidence in the year ahead, enabling us to raise our full-year guidance.”

Related:BioZyme names new director of marketing

For fiscal 2025, the U.S. Department of Agriculture indicates that domestic protein production – beef, pork, chicken and turkey – will increase approximately 1% compared to fiscal 2024 levels, Tyson reported.

Protein remains a staple in the American diet, Tyson noted, with 71% of people looking to increase their protein intake, according to International Food Information Council data.

The company, which has leading protein brands such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, provided a summary of the updated outlook for each of its business segments as well as for revenue, capital expenditures, net interest expense, liquidity, free cash flow and tax rate for fiscal 2025:

Beef: USDA projects domestic production will decrease approximately 1% in fiscal 2025 compared to fiscal 2024. Tyson anticipates an adjusted operating loss between $400 million and $200 million in fiscal 2025.

Pork: USDA projects domestic production will increase approximately 2% in fiscal 2025 versus 2024, leading Tyson to anticipate adjusted operating income of $100 million to $200 million in fiscal 2025.

Chicken: USDA projects chicken production to increase approximately 2% in fiscal 2025 compared to 2024. The company forecasts adjusted operating income of $1.0 billion to $1.3 billion for fiscal 2025.

Prepared Foods: Adjusted operating income of $900 million to $1.1 billion is anticipated in fiscal 2025.

International/Other: The company is projecting improved results from foreign operations in fiscal 2025 on an adjusted basis.

Total company: Tyson anticipates total company adjusted operating income of $1.9 billion to $2.3 billion for fiscal 2025.

Sales are expected to be flat to up 1% in fiscal 2025 compared to fiscal 2024. They company expects capital expenditures – including investments in profit improvement projects as well as projects for maintenance and repair – of between $1.0 billion and $1.2 billion for fiscal 2025. Net interest expense is projected to be approximately $375 million for fiscal 2025.

Tyson expects total liquidity, which was $4.5 billion as of Dec. 28, 2024, to remain above the minimum liquidity target of $1.0 billion. It expects free cash flow to be between $1.0 billion and $1.6 billion and an adjusted effective tax rate of approximately 25% for fiscal 2025.

The company noted that it is raising its fiscal 2025 guidance in reflection of double-digit bottom-line growth and improving financial strength.

Tyson Foods, headquartered in Springdale, Ark., and founded in 1935 by John W. Tyson, has a broad portfolio of iconic products and brands.

About the Author

Kristin Bakker

Digital Content Specialist, Farm Progress Livestock Group

Subscribe to Our Newsletters
Feedstuffs is the news source for animal agriculture

You May Also Like