SMITHFIELD FOODS INC 10-Q

Financial Statements (unaudited)

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except share data and per share data, and unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Sales $ 3,700 $ 3,786 $ 7,500 $ 7,558 Cost of sales 3,221 3,288 6,510 6,549 Gross profit 478 499 990 1,008 Selling, general and administrative expenses 191 268 371 465 Operating gains ( 3 ) ( 30 ) ( 4 ) ( 39 ) Operating profit 290 260 623 582 Interest expense, net 8 11 16 22 Non-operating (gains) losses ( 17 ) ( 4 ) ( 16 ) 2 Income before income taxes 299 254 623 558 Income tax expense 64 62 135 134 (Income) loss from equity method investments ( 4 ) 3 ( 2 ) 8 Net income 239 188 489 415 Net income attributable to noncontrolling interests 1 — 5 4 Net income attributable to Smithfield $ 238 $ 188 $ 484 $ 412 Net income per common share attributable to Smithfield: Basic $ 0.61 $ 0.48 $ 1.23 $ 1.05 Diluted 0.60 0.48 1.23 1.05 Weighted-average shares outstanding: Basic 393,549,023 393,112,711 393,417,410 390,962,687 Diluted 395,772,571 393,751,294 395,284,096 391,410,859 See Notes to Condensed Consolidated Financial Statements 3 SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions and unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Net income $ 239 $ 188 $ 489 $ 415 Other comprehensive income (loss), net of tax: Foreign currency translation 23 47 15 45 Pension accounting 4 4 7 7 Hedge accounting 1 ( 58 ) ( 8 ) ( 17 ) Total other comprehensive income (loss) 28 ( 8 ) 14 35 Comprehensive income 268 181 503 451 Comprehensive income attributable to noncontrolling interests 9 16 10 19 Comprehensive income attributable to Smithfield $ 259 $ 165 $ 494 $ 432 See Notes to Condensed Consolidated Financial Statements 4 SMITHFIELD FOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data, and unaudited) June 28, 2026 December 28, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,350 $ 1,539 Accounts receivable, net 1,010 1,023 Inventories, net 2,380 2,328 Prepaid expenses and other current assets 267 276 Total current assets 5,006 5,166 Property, plant and equipment, net 3,211 3,226 Goodwill 1,625 1,623 Intangible assets, net 1,