Hormel Foods Q1 Earnings Call Highlights

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MarketBeat

Sat, February 28, 2026 astatine 6:36 AM CST 8 min read

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Hormel reported a “solid” fiscal Q1 with 2% integrated nett income growth and adjusted diluted EPS of $0.34, driven by beardown Foodservice and International show portion Retail declined.
Gross nett was pressured by commodity inflation—especially beef and pork trim (up ~12%)—and rising logistics/freight costs, with absorption forecasting lone humble commodity betterment successful the backmost fractional of fiscal 2026.
Hormel agreed to sell its whole-bird turkey business to Life‑Science Innovations to trim vulnerability to volatile, low‑margin operations (expected to trim nett income by astir $50M), and reaffirmed full-year guidance of organic income +1–4% and adjusted EPS $1.43–$1.51 portion expecting restructuring savings to statesman successful Q2.
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Hormel Foods (NYSE:HRL) reported what executives described arsenic a “solid” commencement to fiscal 2026, delivering 2% integrated nett income maturation successful the archetypal 4th and adjusted diluted net per stock of $0.34. Management said beardown results successful Foodservice and International were partially offset by a diminution successful Retail, portion ostentation successful cardinal commodities and higher-than-expected logistics costs continued to unit gross profit.

For the fiscal archetypal quarter, nett income were “just implicit $3 billion,” supported by 2% integrated nett income growth, marking the company’s 5th consecutive 4th of integrated growth. Adjusted operating income was $247 cardinal and adjusted operating borderline was 8.2%, with an effectual taxation complaint of 22.4%. Diluted EPS was $0.33, and adjusted diluted EPS was $0.34.

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Interim CEO Jeff Ettinger said the quarter’s show reflected the spot of Hormel’s “protein-centric portfolio,” highlighting “high single-digit integrated nett income growth” successful some Foodservice and International on with “impressive conception nett growth.” Interim CFO Paul Kuehneman said gross nett remained “hampered,” arsenic top-line maturation was much than offset by higher input costs and logistics expenses.

Management emphasized continued commodity ostentation arsenic a headwind, peculiarly for beef, pork trim, and nuts. Kuehneman said pork trim accrued 12% versus past year, and portion the institution saw “some alleviation connected bellies,” beef remained “a important inflationary unit crossed the industry.” Hormel said it expects “a humble betterment successful astir commodity markets” successful the backmost fractional of fiscal 2026, with pork input costs declining versus fiscal 2025 but inactive supra the five-year average, portion beef costs are expected to stay precocious passim the twelvemonth and seed costs elevated versus the anterior year.

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