Tyson Foods reported a strong start to fiscal year 2025, with first-quarter adjusted earnings of $1.14 per share, significantly beating analyst estimates of $0.79. Revenue for the quarter reached $13.62 billion, a 2.28% increase year-over-year, also surpassing expectations of $13.44 billion.
The company's adjusted operating income surged by 60% year-over-year to $659 million, and adjusted EPS grew by 65%. The Chicken segment delivered a record Q1 adjusted operating income of $368 million, an increase of $176 million from the prior year, demonstrating exceptional performance and a 9.1% margin.
Despite the Beef segment reporting an adjusted operating loss of $(32) million, this represented an $85 million improvement year-over-year. Sales in Beef were up 6.2%, driven by a 5.6% increase in volumes and a 0.6% rise in prices, indicating resilient demand even with tight supplies.
Tyson Foods raised its full-year fiscal 2025 sales forecast to be flat to up 1%, an improvement from its previous outlook of flat to down 1%. The company also increased its adjusted operating income forecast to a range of $1.9 billion to $2.3 billion, up from $1.8 billion to $2.2 billion, reflecting confidence in continued operational improvements.
The updated guidance anticipates adjusted operating income for Chicken between $1.0 billion and $1.3 billion, and for Prepared Foods between $0.9 billion and $1.1 billion. While the Beef segment is still projected to incur an adjusted operating loss of $(0.4) billion to $(0.2) billion, the overall outlook points to sustained growth and financial strength, with net leverage reduced to 2.3x.
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