Cal-Maine Foods Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.26%.
Did CALM Beat Earnings? Q3 2025 Results
Cal-Maine Foods delivered a blowout fiscal third quarter, posting earnings of $10.38 per share on revenue of $1.42 billion as a devastating avian flu crisis reshaped the U.S. egg market in the company's favor. The dominant force behind the results was a historic collapse in industry supply, with the U.S. table-egg layer flock falling to its lowest level since September 2015 after more than 73 million commercial hens and pullets were depopulated since the start of 2024, driving Cal-Maine's average net selling price per dozen up 80.7% year-over-year to $4.06. Net income more than tripled to $508.53 million, even as record dozens sold of 331.4 million rose 10.2%, reflecting the company's aggressive biosecurity investments that kept its flocks largely intact. Looking ahead, Cal-Maine is actively expanding capacity and announced a $258 million acquisition of breakfast foods maker Echo Lake Foods, expected to be at least mid-single-digit accretive to earnings in fiscal 2026, though a DOJ antitrust inquiry into egg pricing adds a layer of uncertainty to the outlook.
- Net average selling price per dozen surged to $4.060 from $2.247 in prior-year quarter due to HPAI-driven supply shortages
- Record total dozens sold of 331.4 million, a 10.2% increase year-over-year
- 14% increase in average number of layer hens during the quarter compared to prior year
- Feed costs per dozen declined 9.6% year-over-year due to more favorable commodity pricing
- Strong consumer demand during peak seasonal period, amplified by severe weather events and GLP-1 medication-related egg consumption recommendations
- Farm production costs per dozen were 5.7% lower than the prior-year period
“Dynamic market conditions and HPAI-related supply shortages persisted this quarter. However, the entire Cal-Maine Foods team did an outstanding job in maximizing production through a period of high demand, while operating safely and maintaining diligence on biosecurity measures. We were fortunate to have the ability to utilize our existing operational scale and to benefit from recent acquisitions, which helped increase our production capacity in this challenging supply environment. Above all, we stayed focused on meeting the needs of our valued customers, while honoring our long-standing pricing frameworks.”
Cal-Maine Foods CEO, on the earnings call
Forward Guidance & Outlook
Cal-Maine expects HPAI-related supply challenges to persist but is proactively expanding production capacity through organic investments and acquisitions. Approximately $60 million in ongoing expansion projects are expected to complete in calendar 2025, adding approximately 1.1 million cage-free layer hens and 250,000 pullets. A new facility in Dexter, Missouri is projected to add 1.2 million free-range hens by calendar year end. The company is encouraged by the USDA's announcement of up to $1.0 billion in industry investments to address HPAI, including biosecurity measures, regulatory relief, and vaccine research, though these measures will require further study and time to implement. The pending Echo Lake Foods acquisition is expected to close by the end of fiscal 2025 and be at least mid-single-digit accretive to earnings starting in fiscal 2026. Management emphasized that the shell egg business will remain the core of Cal-Maine but sees diversification into value-added products as reducing financial volatility.
CALM YoY Financials
CALM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.