Q2 2026 Hormel Foods Corp Earnings Call Transcript
Key Points
- Hormel Foods Corp (HRL) achieved its sixth consecutive quarter of organic net sales growth, demonstrating strong top-line momentum.
- The company reported impressive double-digit adjusted earnings growth, driven by margin expansion and improved manufacturing performance.
- All three segments—food service, international, and retail—contributed to net sales growth, with notable strength in food service and international markets.
- Hormel Foods Corp (HRL) successfully executed pricing actions and productivity gains, which are expected to drive growth throughout fiscal 2026.
- The company reaffirmed its full-year guidance, indicating confidence in achieving its organic net sales and adjusted earnings per share expectations.
- Hormel Foods Corp (HRL) faces near-term cost pressures, including higher logistics expenses and certain commodity inputs, which are expected to impact third-quarter earnings.
- The company is experiencing structural pressure in certain retail brands, requiring targeted actions to improve competitiveness.
- Logistics costs, particularly due to increased fuel prices, remain a year-over-year headwind.
- The divestiture of the whole bird turkey business resulted in a loss, impacting SG&A expenses.
- Hormel Foods Corp (HRL) anticipates some near-term cost pressure due to lower plant utilization as it rebalances certain inventory levels.
Good morning, ladies and gentlemen, and welcome to the Hormel Foods Corporation second quarter earnings conference call. (Operator Instructions)
This call is being recorded on Thursday, May 28, 2026. I would now like to turn the conference over to Jeff Lomberg, Director of Investor Relations. Please go ahead.
Good morning. Welcome to the Hormel Foods conference call for the second quarter of fiscal 2026. We released results this morning before the market opened. If you did not receive a copy of the release, you can find it on our website, hormelfoods.com, under the Investor section, along with supplemental slide materials.
On our call today is [Jeff Ettinger, Interim Chief Executive Officer; John Gingo, President; and Paul Keeneman, Interim Chief Financial Officer and Controller.] Jeff, John and Paul will review the company's fiscal 2026 second quarter results and provide a perspective on the remainder of the year. We will conclude with the Q&A portion of the call.
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