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Financial Results For The Second Quarter EndedJune 28th2026 Pilgrim’s Pride Corporation(NASDAQ: PPC)
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Cautionary Notes and Forward-Looking StatementsStatements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any suchstatement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable lawActual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must caution investors and others that other factors may in the future prove to be important and affecting our business or results of operationsThis presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our method of computation may or may not be comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated statements of income and consolidated statements of cash flows included in our financial statements. 2
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Second Quarter 2026 Financial Review 3 Q2 2025Q2 2026Main Indicators ($MM)4,757.44,626.2Net Revenue 715.3339.8Gross Profit 199.5265.1SG&A512.366.0Operating Income 31.546.1Net Interest356.013.2Net Income1.490.06Earnings Per Share(EPS)686.9360.0Adjusted EBITDA*14.4%7.8%Adjusted EBITDA Margin** This is a non-GAAP measurement considered by management to be useful in understanding our results. Please see the appendix and most recent SEC financial filings for definition of this measurement and reconciliation to US GAAP. U.S.: Year-over-Year (YoY) decrease in commodity market pricing negatively impacting the business unit, partially offset by strong growth in Prepared Foods volumes; however, sequential quarter-over-quarter improvement in margins with completion of significant CapEx projects at the beginning of the second quarter and improved live operations; Europe: YoY profit decline primarily due to lower priced European supply of Pork; Mexico: profitability declined primarily due to counter-seasonal growing conditions driving significant supply increases in the live bird market, along with the impact of lower-priced competing proteins. SG&A is higher primarily due to an increase in legal settlements and defense costs Net interest increased due to a higher YoY loss on early extinguishment of debt of $16 millionMXEUU.S.In $MM587.31,389.62,649.2Net Revenue16.569.3150.2Adjusted OperatingIncome*2.8%5.0%5.7%Adjusted OperatingIncome Margin*Source: PPC
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Pullet Placements Rose 4.4% Y/Y in Q2-2026, Reflecting Strong Quarterly Growth 4 - 2,000 4,000 6,000 8,000 10,000 12,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousand Head Intended Pullet Placements, Domestic Use 2024202520265 Yr. Avg.Source: USDA
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Broiler Layer Flock Increased Y/Y in Q2-26; Eggs/100 Slightly Up Y/Y in Q2-26 5Broiler layer flock +0.9% YoY in Q2-26Eggs/100 +0.1% YoY in Q2-2650,00052,00054,00056,00058,00060,00062,00064,000Head (000) Broiler Type Hatching Layers 2024202520265 Yr. Avg. 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2,000EggsEggs/100 2024202520265 Yr. Avg. Source: USDA
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Eggs Set Increased 1.9% YoY in Q2-26; Hatchability +0.2 pp Compared to Q2-26 Levels 6 215,000 220,000 225,000 230,000 235,000 240,000 245,000 250,000 255,000147101316192225283134374043464952 Eggs (000)Chicken Eggs Set by Week - USDA 5-yr Range5-yr Avg202320242025 230,000 235,000 240,000 245,000 250,000 255,000 260,000147101316192225283134374043464952 Eggs (000) Chicken Eggs Set by Week - USDA 5-yr Range5-yr Avg20242025202678%79%79%80%80%81%81%82%147101316192225283134374043464952 Hatchability (%) Hatchability by Week - USDA 5-yr Range5-yr Avg202420252026 Source: USDA
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Broiler Placements Increased 2.5% Above Year-Ago Levels in Q2-26 7 175,000 180,000 185,000 190,000 195,000 200,000 205,00013579111315171921232527293133353739414345474951 Heads (000) Chicks Placements by Week - USDA 5-yr Range5-yr Avg202420252026Source: USDA
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Increased Head Counts in Mid-Weight Segments in Q2-26 822.7%21.8%20.9%19.7%17.3%16.6%16.7%15.2%15.0%30.2%28.7%27.4%26.2%27.6%29.4%28.5%28.3%29.0%25.4%26.2%27.6%28.4%29.7%27.6%27.4%27.6%28.4%21.7%23.3%24.1%25.7%25.4%26.4%27.3%28.9%27.6% 2018 2019 2020 2021 2022 2023 2024 2025 2026 Head Processed by Size <4.254.26-6.256.26-7.75>7.75Source: USDA
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Industry Cold Storage Supplies in Q2-26 Above YA, but Below 5-Year Average Total Inventories ended Q2 up 0.5% Y/Y and 1.1% below 5-year average.Breast meat inventories decreased 0.4% Y/Y.Wing inventories decreased 1.6% compared to year ago.Dark Meat inventories decreased 10.1% Y/Y.Paws and feet inventory decreased 27.0% Y/Y.9 500 550 600 650 700 750 800 850 900 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecLBS (MM) Total Chicken Inventories 2024202520265 Yr. Avg. Cold Storage Jun-25 May-26 Jun-26 M/M Y/YBreast226,911 217,304 225,908 4.0% -0.4%Leg Quarters53,456 46,484 44,994 -3.2% -15.8%Wings52,349 56,613 51,490 -9.0% -1.6%Drumsticks25,266 23,561 24,150 2.5% -4.4%BS Thighs16,573 15,450 15,959 3.3% -3.7%Whole Bird8,596 11,025 11,900 7.9% 38.4%Hens5,194 12,191 11,962 -1.9% 130.3%Legs13,163 11,481 10,624 -7.5% -19.3%Thighs6,991 8,701 8,096 -7.0% 15.8%Paws31,772 23,028 23,186 0.7% -27.0%Other321,000 329,797 336,527 2.0% 4.8%Total 761,271 755,635 764,796 1.2% 0.5%Source: USDA
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Jumbo Cutout Pricing Remained Below Year Ago and 5-year Average in Q2-26 10507090110130150 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51Cents/Lb Jumbo Cutout 5 Year Range5 Yr. Avg.202420252026Source: PPC, EMI
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BSB, Tenders, and Wings Trailed Below YA and 5-yr average; LQ Above YA and 5-yr average 11 75.00125.00175.00225.00275.00325.00375.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52Cents/LbUSDA Boneless/Skinless Breast 75.00125.00175.00225.00275.00325.00375.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52Cents/LbUSDA Tenders 10203040506070 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52Cents/LbUSDA Leg Quarters 10.0060.00110.00160.00210.00260.00310.00360.00 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52Cents/LbUSDA Whole Wings Source: USDA
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WOG Pricing Below YA and 5-year Average in Q2-26 1260.070.080.090.0100.0110.0120.0130.0140.0150.0160.013579111315171921232527293133353739414345474951 Cents/Lb. EMI WOG 2.5-4.0 LBS 5 Year Range5 Yr. Avg.202420252026Source: PPC, EMI
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Corn Dynamics 13Source: PPC US stocks contract with smaller planted acreage, yield down from record last yearRecord South American corn production drives lower US corn exports in 26/27 crop yearWorld ending stocks lower with continued strong demand 137713601763155120201790050010001500200025003000 21/22 22/23 23/24 24/25 25/26p 26/27e US Corn Ending Stocks (MBUs)311304315296299281260270280290300310320 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 World Corn Endings Stocks (MMT)
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Soybean Dynamics 14Source: PPC USDA expects smaller ending stocks in 26/27 with new record high soybean crush & improved soybean exportsSouth America hits new record high soybean productionWorld ending stocks essentially flat; strong soy crushing demand offsets increases in supply 99101115126125125 020406080100120140 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 World Soy End Stocks (MMT)274264342317330310 050100150200250300350400 21/22 22/23 23/24 24/25 25/26p 26/27e US Soybean Ending Stocks (MBU)
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Fiscal Year 2026 Capital Spending 15 Capex (US$M) Continued investment in strategic projects will support Key Customers’ growth and emphasize our focus on further diversification of our portfolio and operational improvementsSource: PPC 272 340 348 348 355 382 487 559 461 711 235230 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026
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APPENDIX 16
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Appendix: Reconciliation of Adjusted EBITDA 17 “EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated byadding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative ofour ongoing operating performance consisting of: (1) foreign currency transaction losses (gains), (2) costs related to litigationsettlements, (3) restructuring activities losses, (4) asset impairment, and (5) net income (loss) attributable to noncontrolling interest.EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors andother interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted inthe U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDAbecause this is how our management analyzes EBITDA applicable to continuing operations. The Company also believes that AdjustedEBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors withadditional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of itsperformance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP.EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for ananalysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measuresdifferently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should notbe considered as an alternative to net income as indicators of our operating performance or any other measures of performancederived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP resultsand using EBITDA and Adjusted EBITDA only on a supplemental basis. Source: PPC
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Appendix: Reconciliation of Adjusted EBITDA 18 PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)$ 652,352$ 114,670$ 356,009$ 13,220Net incomeAdd:48,23677,08731,45146,110Interest expense, net(a) 213,67238,942119,5738,572Income tax expense218,022241,787113,504123,306Depreciation and amortization1,132,282472,486620,537191,208EBITDAAdd:2,839(416)4,892(1,338)Foreign currency transaction loss (gain)(b)65,714158,90558,464135,711Litigation settlements(c) 20,11111,4643,4998,699Restructuring activities losses(d) —25,558—25,558Asset impairment(e)Minus:799(130)489(157)Net income (loss) attributable to noncontrolling interest$ 1,220,147$ 668,127$ 686,903$ 359,995Adjusted EBITDA Source: PPC a. Interest expense, net, consists of interest expense less interest income.b. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the CondensedConsolidated Statements of Income.c. This represents expenses recognized in anticipation of probable settlements in ongoing litigation.d. Restructuring activities losses are related to costs incurred, such as severance.e. Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
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Appendix: Reconciliation of LTM Adjusted EBITDA 19 The summary unaudited consolidated income statement data for the 12 months ended June 28, 2026 (the LTM Period) have been calculated bysubtracting the applicable unaudited consolidated income statement data for the six months ended June 28, 2026 from the sum of (1) the applicableaudited consolidated income statement data for the year ended December 28, 2025 and (2) the applicable unaudited consolidated income statementdata for the six months ended June 28, 2026.PILGRIM'S PRIDE CORPORATIONReconciliation of LTM Adjusted EBITDA(Unaudited)LTM Ended June 28, 2026Three Months EndedJune 28, 2026March 29, 2026December 28, 2025September 28, 2025(In thousands)$ 545,662$ 13,220$ 101,450$ 87,931$ 343,061Net incomeAdd:139,12146,11030,97733,04428,990Interest expense, net244,0648,57230,37086,803118,319Income tax expense479,922123,306118,481121,709116,426Depreciation and amortization1,408,769191,208281,278329,487606,796EBITDAAdd:3,522(1,338)922(1,231)5,169Foreign currency transaction losses (gains)255,850135,71123,19477,36319,582Litigation settlements22,7078,6992,7659,4641,779Restructuring activities losses25,55825,558———Asset impairmentMinus:56(157)27(62)248Net income (loss) attributable to noncontrolling interest$ 1,716,350$ 359,995$ 308,132$ 415,145$ 633,078Adjusted EBITDASource: PPC
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Appendix: Reconciliation of EBITDA Margin 20 EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA marginsare presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as asupplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.PILGRIM'S PRIDE CORPORATIONReconciliation of EBITDA Margin(Unaudited)Six Months EndedThree Months EndedSix Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026June 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)7.08 %1.25 %7.48 %0.29 %$ 652,352$ 114,670$ 356,009$ 13,220Net incomeAdd:0.52 %0.84 %0.66 %0.99 %48,23677,08731,45146,110Interest expense, net2.32 %0.43 %2.51 %0.19 %213,67238,942119,5738,572Income tax expense2.36 %2.64 %2.38 %2.66 %218,022241,787113,504123,306Depreciation and amortization12.28 %5.16 %13.03 %4.13 %1,132,282472,486620,537191,208EBITDAAdd:0.03 %— %0.10 %(0.03) %2,839(416)4,892(1,338)Foreign currency transaction losses (gains)0.71 %1.72 %1.23 %2.94 %65,714158,90558,464135,711Litigation settlements0.22 %0.13 %0.07 %0.19 %20,11111,4643,4998,699Restructuring activities losses— %0.28 %— %0.55 %—25,558—25,558Asset impairment Minus:0.01 %— %0.01 %— %799(130)489(157)Net income (loss) attributable to noncontrolling interest13.23 %7.29 %14.42 %7.78 %$ 1,220,147$ 668,127$ 686,903$ 359,995Adjusted EBITDA$ 9,220,374$ 9,158,863$ 4,757,365$ 4,626,230Net salesSource: PPC
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Appendix: Reconciliation of Adjusted EBITDA by Segment 21 PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited)Three Months EndedThree Months EndedJune 29, 2025June 28, 2026TotalMexicoEuropeU.S.TotalMexicoEuropeU.S.(In thousands)(In thousands)$ 356,009$ 61,867$ 54,880$ 239,262$ 13,220$ 10,296$ 46,969$ (44,045)Net incomeAdd:31,451(4,026)(174)35,65146,110(343)(1,510)47,963Interest expense, net(a) 119,57325,36816,00178,2048,5726,93815,244(13,610)Income tax expense (benefit)113,5045,42636,92971,149123,3066,73636,59879,972Depreciation and amortization620,53788,635107,636424,266191,20823,62797,30170,280EBITDAAdd:4,8924,2036854(1,338)(1,168)(169)(1)Foreign currency transaction losses (gains)(b) 58,464——58,464135,711——135,711Litigation settlements(c) 3,499—3,499—8,699—8,699—Restructuring activities losses(d) ————25,558——25,558Asset impairment(e)Minus:489489——(157)(157)——Net income (loss) attributable to noncontrolling interest$ 686,903$ 92,349$ 111,820$ 482,734$ 359,995$ 22,616$ 105,831$ 231,548Adjusted EBITDA Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securitiesanalysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare theperformance of companies. Source: PPCa. Interest expense, net, consists of interest expense less interest income.b. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed ConsolidatedStatements of Income.c. This represents expenses recognized in anticipation of probable settlements in ongoing litigation.d. Restructuring activities losses are related to costs incurred, such as severance.e. Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
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Appendix: Reconciliation of Adjusted EBITDA by Segment 22 PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted EBITDA(Unaudited)Six Months EndedSix Months EndedJune 29, 2025June 28, 2026TotalMexicoEuropeU.S.TotalMexicoEuropeU.S.(In thousands)(In thousands)$ 652,352$ 93,764$ 97,030$ 461,558$ 114,670$ 16,627$ 100,254$ (2,211)Net incomeAdd:48,236(10,904)(2,078)61,21877,087(1,120)(3,619)81,826Interest expense, net(a) 213,67238,53325,923149,21638,9429,86430,573(1,495)Income tax expense (benefit)218,02210,42170,066137,535241,78713,19074,120154,477Depreciation and amortization1,132,282131,814190,941809,527472,48638,561201,328232,597EBITDAAdd:2,8392,5233133(416)724(1,139)(1)Foreign currency transaction losses (gains)(b) 65,714——65,714158,905——158,905Litigation settlements(c) 20,111—20,111—11,464—11,464—Restructuring activities losses(d) ————25,558——25,558Asset impairment(e)Minus:799799——(130)(130)——Net income (loss) attributable to noncontrolling interest$1,220,147$ 133,538$ 211,365$ 875,244$ 668,127$ 39,415$ 211,653$ 417,059Adjusted EBITDA Adjusted EBITDA by segment figures are presented because they are used by management and we believe they are frequently used by securitiesanalysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare theperformance of companies. Source: PPCa. Interest expense, net, consists of interest expense less interest income.b. Transactional functional currency gains/losses are included in the line item Foreign currency transaction losses (gains) in the Condensed ConsolidatedStatements of Income.c. This represents expenses recognized in anticipation of probable settlements in ongoing litigation.d. Restructuring activities losses are related to costs incurred, such as severance.e. Primarily due to the closure announcement of the Chattanooga, TN harvest plant.
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Appendix: Reconciliation of Adjusted Operating Income 23 Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believesthat presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance betweenperiods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted Operating Income(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)$ 673,793$ 75,797$ 354,987$ (11,112)GAAP operating income, U.S. operations65,714158,90558,464135,711Litigation settlements—25,558—25,558Asset impairment$ 739,507$ 260,260$ 413,451$ 150,157Adjusted operating income, U.S. operations13.3 %4.9 %14.7 %5.7 %Adjusted operating income margin, U.S. operationsSix Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)$ 119,490$ 125,306$ 70,419$ 60,551GAAP operating income, Europe operations20,11111,4643,4998,699Restructuring activities losses$ 139,601$ 136,770$ 73,918$ 69,250Adjusted operating income, Europe operations5.4 %5.0 %5.4 %5.0 %Adjusted operating income margin, Europe operationsSix Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)$ 123,538$ 27,403$ 86,933$ 16,511GAAP operating income, Mexico operations————No adjustments$ 123,538$ 27,403$ 86,933$ 16,511Adjusted operating income, Mexico operations11.7 %2.4 %15.4 %2.8 %Adjusted operating income margin, Mexico operationsSource: PPC
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Appendix: Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin 24 Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation ofAdjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods becausecertain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjustedoperating income margin for each of our reportable segments is as follows:PILGRIM'S PRIDE CORPORATIONReconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In percent)12.1 %1.4 %12.6 %(0.4) %GAAP operating income margin, U.S. operations1.2 %3.0 %2.1 %5.1 %Litigation settlements— %0.5 %— %1.0 %Asset impairment13.3 %4.9 %14.7 %5.7 %Adjusted operating income margin, U.S. operationsSix Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In percent)4.6 %4.6 %5.1 %4.4 %GAAP operating income margin, Europe operations0.8 %0.4 %0.3 %0.6 %Restructuring activities losses5.4 %5.0 %5.4 %5.0 %Adjusted operating income margin, Europe operationsSix Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In percent)11.7 %2.4 %15.4 %2.8 %GAAP operating income margin, Mexico operations— %— %— %— %No adjustments11.7 %2.4 %15.4 %2.8 %Adjusted operating income margin, Mexico operationsSource: PPC
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Appendix: Reconciliation of Adjusted Net Income 25 Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income attributable to Pilgrim's certain items of expense and deducting fromNet income attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share ispresented because it is used by management, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of resultsprepared in conformity with U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with ourfinancial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’sPride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performanceunder U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP.Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enablescomparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss)attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:PILGRIM'S PRIDE CORPORATIONReconciliation of Adjusted Net Income(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands, except per share data)$ 651,553$ 114,800$ 355,520$ 13,377Net income attributable to Pilgrim's Pride CorporationAdd:2,839(416)4,892(1,338)Foreign currency transaction losses (gains)65,714158,90558,464135,711Litigation settlements20,11111,4643,4998,699Restructuring activities—25,558—25,558Asset impairment—17,569—17,569Loss on early extinguishment of debt recognizedas a component of interest expense(a) 740,217327,880422,375199,576Adjusted net income attributable to Pilgrim's before tax impact(21,456)(52,305)(16,178)(45,706)Net tax impact of adjustments(b) 718,761275,575406,197153,870Adjusted net income attributable to Pilgrim's238,354238,701238,427238,843Weighted average diluted shares of common stock outstanding$ 3.02$ 1.15$ 1.70$ 0.64Adjusted net income attributable to Pilgrim's per common diluted sharea. The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in thesecond quarter of 2026.b. Net tax impact of adjustments represents the tax impact of all adjustments shown above.Source: PPC
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Appendix: Reconciliation of GAAP EPS to Adjusted EPS 26 Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes thatAdjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shownbelow are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:PILGRIM'S PRIDE CORPORATIONReconciliation of GAAP EPS to Adjusted EPS(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands, except per share data)$ 2.73$ 0.48$ 1.49$ 0.06U.S. GAAP EPSAdd:0.01—0.02—Foreign currency transaction losses (gains)0.280.660.250.55Litigation settlements0.080.050.010.04Restructuring activities losses—0.11—0.11Asset impairment—0.07—0.07Loss on early extinguishment of debt recognizedas a component of interest expense(a) 3.101.371.770.83Adjusted EPS before tax impact(0.08)(0.22)(0.07)(0.19)Net tax impact of adjustments(b) $ 3.02$ 1.15$ 1.70$ 0.64Adjusted EPS238,354238,701238,427238,843Weighted average diluted shares of common stock outstandinga. The loss on early extinguishment of debt recognized as a component of interest expense was due to the repurchase of the Senior Notes due 2032 in thesecond quarter of 2026.b. Net tax impact of adjustments represents the tax impact of all adjustments shown above.Source: PPC
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Appendix: Supplementary Selected Segment and Geographic Data 27 PILGRIM'S PRIDE CORPORATIONSupplementary Selected Segment and Geographic Data(Unaudited)Six Months EndedThree Months EndedJune 29, 2025June 28, 2026June 29, 2025June 28, 2026(In thousands)Sources of net sales by geographic region of origin:$ 5,563,574$ 5,284,640$ 2,820,385$ 2,649,242U.S.2,602,7992,741,3911,371,2701,389,647Europe1,054,0011,132,832565,710587,341Mexico$ 9,220,374$ 9,158,863$ 4,757,365$ 4,626,230Total net salesSources of cost of sales by geographic region of origin:$ 4,686,710$ 4,891,126$ 2,331,143$ 2,452,286U.S.2,362,3622,510,1151,247,1371,278,722Europe901,1341,072,380463,790555,470Mexico$ 7,950,206$ 8,473,621$ 4,042,070$ 4,286,478Total cost of salesSources of gross profit by geographic region of origin:$ 876,864$ 393,514$ 489,242$ 196,956U.S.240,437231,276124,133110,925Europe152,86760,452101,92031,871Mexico$ 1,270,168$ 685,242$ 715,295$ 339,752Total gross profitSources of operating income by geographic region of origin:$ 673,793$ 75,797$ 354,987$ (11,112)U.S.119,490125,30670,41960,551Europe123,53827,40386,93316,511Mexico$ 916,821$ 228,506$ 512,339$ 65,950Total operating incomeSource: PPC