Tyson Foods Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.84%.
Did TSN Beat Earnings? Q3 2025 Results
Tyson Foods posted a stronger-than-expected third fiscal quarter, with adjusted earnings per share of $0.91 beating the $0.78 consensus estimate by 16.18% and revenue of $13.88 billion topping expectations by 2.42% as sales grew 4.0% year over year. The headline performance was anchored by a fifth consecutive quarter of year-over-year gains in sales, adjusted operating income, and adjusted EPS, with Chicken leading the way at $345 million in adjusted operating income and an 8.2% margin. The results masked significant turbulence beneath the surface, however, as a $343 million goodwill impairment in the struggling Beef segment pushed GAAP EPS down to $0.17 from $0.54 a year ago. On an adjusted basis, operating income still grew 3% to $505 million. Looking ahead, management projects total adjusted operating income of $2.10 billion to $2.30 billion for fiscal 2025, with revenue growth of 2-3%, and the company reinforced its shareholder return commitment by expanding its share repurchase authorization to approximately 50 million shares.
- Multi-protein, multi-channel portfolio strength
- Operational excellence and relentless focus on efficiency
- Higher average pricing in Beef (10.0% increase) and Prepared Foods (5.7% increase)
- Chicken segment delivered 8.2% adjusted operating margin
- Prepared Foods achieved 9.8% adjusted operating margin
- Gross profit margin expanded to 8.2% from 6.6% year-over-year
- Reduced total debt by $722 million
“Our third quarter results demonstrate the strength of our multi-protein, multi-channel portfolio and our relentless focus on operational excellence. Delivering our fifth consecutive quarter of year-over-year growth across sales, adjusted operating income and adjusted earnings per share underscores the resilience of our business model. Looking ahead, we are confident in our ability to meet consumer needs, capitalize on protein demand and deliver long-term value to our shareholders.”
Tyson Foods CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2025, Tyson expects total company adjusted operating income of $2.1 billion to $2.3 billion. By segment: Chicken adjusted operating income of $1.3–$1.4 billion; Prepared Foods adjusted operating income of $925 million–$1.0 billion; Pork adjusted operating income of $175–$200 million; Beef adjusted operating loss of $(475)–$(375) million; and improved results from International/Other. Revenue is expected to grow 2–3% year-over-year. Capital expenditures are projected at or below $1.0 billion. Net interest expense is expected to approximate $375 million. Free cash flow is expected between $1.0–$1.3 billion. Liquidity is expected to remain above the $1.0 billion minimum target. Adjusted effective tax rate is expected to approximate 25%. USDA projects domestic protein production will be relatively flat compared to fiscal 2024.
TSN YoY Financials
TSN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.