Q3 2026 Pilgrims Pride Corp Earnings Call

October 29, 2026

Operator: Good morning, and welcome to the Q3 2026 Pilgrim's Pride earnings conference call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. At the company's request, this call is being recorded. Please note that the slides referenced during today's call are available for download from the Investors section of the company's website at www.pilgrims.com. I would now like to turn the conference over to Andrew Rojeski, Head of Strategy, Investor Relations, and Sustainability for Pilgrim's Pride.

Speaker #2: Good morning, and welcome to the third quarter of 2026 Pilgrims PRIDE earnings conference call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker #2: the company's request, this call is At being recorded. Please note that the slides referenced during today's call are available for download from the investor section of the company's website at www.pilgrims.com.

Speaker #2: I would now like to turn the conference over to Andrew Rojeski, Head of Strategy Investor Relations and Sustainability for Pilgrims PRIDE.

Andrew Rojeski: Good morning, and thank you for joining us today as we review our operating and financial results for the Q3 ended on 27 September 2026. Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter, including a reconciliation of any non-GAAP measures we may discuss. A copy of the release is available on our website at ir.pilgrims.com, along with slides for reference. These items have also been filed as Forms 8-Ks and are available online at sec.gov. Fabio Sandri, President and Chief Executive Officer, and Matt Galvanoni, Chief Financial Officer, will present on today's call. Before we begin our prepared remarks, I would like to remind everyone of our safe harbor disclaimer. Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the day of the release.

Speaker #3: Good morning, and thank you for joining us today. As we review our operating and financial results for the third quarter ended on September 27, 2026.

Speaker #3: Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter, including a reconciliation of any non-gap measures we may discuss.

Speaker #3: A copy of the release is available on our website at ir dot pilgrims dot com, along with slides for reference. These items have also been filed as Forms 8Ks and are available online at sec.gov.

Speaker #3: Fabio Sandri, President and Chief Executive Officer, and Matt Galvanoni, Chief Financial Officer, will present on today's call. Before we begin our prepared remarks, I would like to remind everyone of our safe harbor disclaimer.

Speaker #3: Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the day of the release. Other additional factors not anticipated by management may cause actual results to differ materially from those projected in these forward-looking statements.

Andrew Rojeski: Other additional factors not anticipated by management may cause actual results to differ materially from those projected in these forward-looking statements. Further information concerning these factors has been provided in yesterday's press release, our Form 10-K, and our regular filings with the SEC. I would now like to turn the call over to Fabio Sandri.

Speaker #3: Further information concerning these factors has been provided in yesterday's press release. Our Form 10-K and our regular filings with the SEC. I would now like to turn the call over to Fabio Sandri.

Fabio Sandri: Thank you, Andy. Good morning, everyone, and thank you for joining us today. For Q3 of 2026, we reported net revenues of $4.7 billion with adjusted EBITDA of $316 million. Our adjusted EBITDA margin was 6.8%. Throughout the quarter, volume remained steady compared to last year as the affordability of chicken continued to resonate among consumers throughout all regions. In US, volume was consistent with last year, even after two consecutive years of near records and impacts of our plant mix and efficiency investments. Our diversified portfolio mitigated the impact of uneven market fundamentals as supply rose faster than demand across retail and foodservice. We continue to drive investments to foster a more resilient business and align with market needs. To that end, we completed our expansion at our plant in Ellijay, Georgia, further supporting key customer growth in the higher-value, fastest-growing small boneless chicken category.

Speaker #4: Thank you, Wendy. Good morning, everyone, and thank you for joining us today. For the third quarter of 2026, we reported net revenues of $4.7 billion, with adjusted EBITDA of $316 million.

Speaker #4: Our adjusted EBITDA margin was 6.8%. Throughout the quarter, volume remained steady, compared to last year, as the affordability of chicken continued to resonate among consumers throughout all regions.

Speaker #4: In the US, volume was consistent with last year, even after two consecutive years of near records, and the impacts of our plant mix and efficiency investments.

Speaker #4: Our diversified portfolio mitigated the impact of uneven market fundamentals, as supply rose faster than demand across retail and food service. We continue to drive investments to foster a more resilient business and align with market needs.

Speaker #4: To that end, we completed our expansion at our plant in El Jay, Georgia, further supporting key customer growth in the higher value fastest-growing small boneless chicken category.

Fabio Sandri: Operational excellence also strengthened as both live production and yield efficiencies improved compared to the previous quarter. Diversification efforts through Prepared Foods continue its momentum as volumes rose double digits and the construction of our new plant continued to progress as planned. In Europe, volume remained stable as consumers saw value benefiting the chicken and meals offerings within our diversified portfolio. Our innovation efforts are becoming increasingly recognized through additional distribution among leading retailers and supplier awards. Operational excellence initiatives continue to exceed targets. Mexico sales rose, given continued momentum on fresh branded offerings within retail. Despite continually improved growing conditions, supply and demand fundamentals in the live commodity market improved, enhancing margins compared to the previous quarter. Expansion projects to grow and diversify our portfolio also continued to progress as planned.

Speaker #4: Operational excellence also strengthened, as both live production and yield efficiencies improved compared to previous quarter. Diversification efforts through prepared foods continue its momentum, as volumes rose double digits, and the construction of our new plant continued to progress as planned.

Speaker #4: In Europe, volume remained stable, as consumers saw value, benefiting the chicken and meals offerings within our diversified portfolio. Our innovation efforts are becoming increasingly recognized through additional distribution among leading retailers and supplier awards.

Speaker #4: Operational excellence initiatives continue to exceed targets. Mexico's sales rose given continued momentum on fresh branded offerings within retail. Despite continued improved growing conditions, supply and demand fundamentals in the live commodity market improved, enhancing margins compared to previous quarter.

Speaker #4: Expansion projects to grow and diversify our portfolio also continue to progress as planned. Turning to supply in the US, the USDA reported ready-to-cook production rose 2.2% compared to the same period last year.

Fabio Sandri: Turning to supply in the US, the USDA reported ready-to-cook production rose 2.2% compared to the same period last year. Production peaked with a 4.7% growth in July and subsequently reduced its pace throughout the quarter. The increase was primarily driven by higher egg sets as hatchability, livability, and weights were at the same levels similar to last year. The market continues to absorb additional supply as total freezer inventories fell 5% compared to last year. Boneless breasts fell nearly 8%. Availability of beef rose during the quarter, whereas pork continued to be relatively stable. When combined with chicken and turkey production, overall protein availability increased by 1.5% compared to Q3 of last year. The USDA anticipates chicken production to increase 3.3% for the full year versus 2025. As for other proteins, beef is expected to decline by 0.3%, while pork is estimated to rise by 0.1%.

Speaker #4: Production peaked with a 4.7% growth in July, and subsequently reduced its pace throughout the quarter. The increase was primarily driven by higher excess, as hatchability livability and weights were at the same level similar to last year.

Speaker #4: The market continues to absorb additional supply as total freezer inventories fell 5% compared to last year, boneless breasts fell nearly 8%. Availability of beef rose during the quarter, whereas pork continued to be relatively stable.

Speaker #4: When combined with chicken and turkey production, overall protein availability increased by 1.5% compared to Q3 of last year. The USDA anticipates chicken production to increase 3.3% for the full year versus 2025.

Speaker #4: As for other proteins, beef is expected to decline by 0.3%, while pork is estimated to rise by 0.1%. Taken together, the USDA forecasts that overall net meat availability is expected to grow by 1.8% in 2026 versus last year.

Fabio Sandri: Taken together, the USDA forecasts that overall net meat availability is expected to grow by 1.8% in 2026 versus last year. For 2027, USDA anticipates chicken growth to decelerate as production is projected to increase only 1.2% for the year. Beef availability is expected to decline 1%, while pork is projected to increase 0.8%. As a result, the USDA estimates growth of net meat availability of only 0.6% for 2027. As for demand within the US, chicken continued to grow across retail and foodservice, even with near record volumes over the past two years. Within retail, the meat and deli departments continued to be the most resilient as volumes rose compared to last year, whereas the total edibles fell. Chicken retail volumes, including fresh and frozen, grew by 1.4% from last year.

Speaker #4: For 2027, USDA anticipates chicken growth to decelerate, as production is projected to increase only 1.2% for the year. Beef availability is expected to decline 1%, while pork is projected to result—the USDA estimates growth of net meat availability of only 0.6% for 2027.

Speaker #4: As for demand within the US, chicken continued to grow across retail and food service, even with near records volumes over the past two years.

Speaker #4: Within retail, the meat and dairy departments continued to be the most resilient as volumes rose compared to last year, whereas the total edibles fell.

Speaker #4: Chicken retail volumes, including fresh and frozen, grew by 1.4% from last year. While the overall fresh category at retail grew only 0.2%, boneless breasts grew more than 2% year over year, and boneless dark meat grew by close to 10%, compensating lower volumes of bone-in products. retailers passed through lower wholesale pricing of chicken and started increasing promotions, overall sales dollars fell.

Fabio Sandri: While the overall fresh category at retail grew only 0.2%, boneless breasts grew more than 2% year over year, and boneless dark meat grew by close to 10%, compensating lower volumes of bone-in products. As retailers passed through lower wholesale pricing of chicken and started increasing promotions, overall sales dollars fell. In deli, demand continues to be strong across ready-to-eat chicken offerings as all major formats grew, increasing volumes 1.6% year over year. Rotisserie WOGs and cut-up portion volumes also rose compared to last year. Appetizers, including popcorn chicken and wings, led all categories in growth. Frozen prepared chicken also grew consistently with the overall category as volumes rose 1.4% compared to last year as convenient meal options continued to resonate among consumers. In foodservice, chicken volumes increased 0.8% despite mixed industry traffic trends.

Speaker #4: In Rotisserie woks and cut-up portion volumes also rose compared to last year. Appetizers, including popcorn chicken and wings, led all categories in growth. Frozen prepared chicken also grew consistently with the overall category, as volumes rose 1.4% compared to last year, as convenient meal options continued to resonate among consumers.

Speaker #4: In food service, chicken volumes increased 0.8% despite mixed industry traffic trends. Higher income consumers supported restaurant spending. Whereas low-income consumers became increasingly focused on value amid ongoing budget pressures.

Fabio Sandri: Higher-income consumers supported restaurant spending, whereas low-income consumers became increasingly focused on value amid ongoing budget pressures. Given this environment, chicken growth was concentrated in QSRs and convenience channels, including C stores, where a combination of affordability and expanded prepared food offerings drove traffic and demand. We anticipate promotional activity for bone-in products, especially wings, to invigorate sales volumes. In exports, global demand for chicken remains strong, resulting in three consecutive months of year-over-year growth. Equally important, our volumes growth outpaced the channel from our increased presence in several key markets. While the Middle East remains volatile, trade to Gulf Coast countries continues to flow through alternative ocean ports, along with more complex intermodal routes. Trade within this region in recent months have surpassed pre-conflict levels and now only marginally lower year over year.

Speaker #4: Given this environment, chicken growth was concentrated in QSRs and convenience channels, including sea stores where a combination of affordability and expensive prepared food offerings drove traffic and demand.

Speaker #4: We anticipate promotional activity for bone-in products, especially wings, during vigorous sales volumes. In exports, global demand for chicken remains strong, resulting in three consecutive months of year-over-year growth.

Speaker #4: Equally important, our volumes growth outpaced the channel from our increased presence in several key markets. While the Middle East remained volatile, trade to Gulf cost countries continues to flow, through alternative ocean ports along with more complex intermodal routes.

Speaker #4: Trade within this region in recent months has surpassed pre-conflict levels and now only marginally lower year over year. In Asia, recent meetings between government officials from the US and China continue to progress, as China has released more states from its avian influenza ban unlocking further growth opportunities for US raw frozen chicken versus last year.

Fabio Sandri: In Asia, recent meetings between government officials from the US and China continue to progress as China has released more states from its avian influenza ban, unlocking further growth opportunities for US raw frozen chicken versus last year. Industry inventories remain relatively lower compared to historical levels, supporting further growth and supportive values. Turning to feed inputs, significant volatility occurred throughout the quarter. In corn, futures initially moved higher in the quarter given concerns regarding US corn yields, continued disruptions in grain shipments from the Black Sea, and a potential return by China to the global market. However, futures retreated from mid-September highs as previous year-ending stocks were higher than anticipated, crop yields exceeded prior estimates, and exports lagged earlier expectations.

Speaker #4: Industry inventories remain relatively lower compared to historical levels, supporting further growth and supportive values. Turning to feed inputs, significant volatility occurred throughout the quarter.

Speaker #4: In corn, futures initially moved higher in the quarter, given concerns regarding US corn yields continued disruptions in grain shipments from the Black Sea and a potential return by China to the global market.

Speaker #4: However, futures retreated from mid-September highs, as previous year-ending stocks were higher than anticipated, crop yields exceeded prior estimates, and exports lagged earlier expectations. The USDA's most recent corn forecasts indicate comfortable inventory levels, as the stock-to-use ratio is estimated at 11.3% for the upcoming crop year, limiting upside risk in the near term.

Fabio Sandri: The USDA's most recent corn forecasts indicate comfortable inventory levels as the stock-to-use ratio is estimated at 11.3% for the upcoming crop year, limiting upside risk in the near term. In soy, meal futures temporarily rallied late in the quarter, given strong US exports and interruptions in crush operations from delay in soybean harvest. The USDA currently expects record use in the US to offset record crush demand and improve export shipments, leaving stocks unchanged compared to prior year. Moving forward, soybean meal pricing will be sensitive to size and pace of US export sales, especially to China. In addition, the ability of the US to secure a large share of the global soybean meal export market and weather in South America will also play a significant role. In wheat, the market is managing the balance between record highs of initial stocks against export challenges from the Black Sea.

Speaker #4: In soy, meal futures temporarily rallied late in the quarter, giving strong US exports and interruptions in crush operations from delay in soybean harvest. The USDA currently expects record deals in US to offset record crush demand and improve export shipments, leaving stocks unchanged compared to prior year.

Speaker #4: Moving forward, soybean meal pricing will be sensitive to size and pace of US export sales, especially to China. In addition, the ability of the US to secure a large share of the global soybean meal export market and whether in South America will also play a significant role.

Speaker #4: In wheat, the market is managing the balance between record highs of initial stocks against export challenges from the Black Sea, to date better than expected crops in Canada, Australia, and Argentina, along with improved local production in major wheat importing countries have mitigated supply chain disruptions.

Fabio Sandri: To date, better-than-expected crops in Canada, Australia, and Argentina, along with improved local production in major wheat-importing countries, have mitigated supply chain disruptions. In the UK, the wheat crop finished at a lower-than-expected level, and yet is still virtually flat compared to last year. Planting has already begun for next season's wheat crop under generally favorable conditions, improving prospects for the harvest in the summer of 2027. In the US fresh business, volumes remained steady compared to the previous quarter from increased distribution and key customer promotional support. We made progress in operational efficiencies from recent plant upgrades, improving live operations, and enhanced mix given our recent Russellville conversion. When combined, these efforts partially compensated for the declines in commodity cut-out values and planned downtime for the investments in Ellijay. Case Ready maintained a solid presence in value-conscious environments throughout retail.

Speaker #4: In the UK, the wheat crop finished at a lower-than-expected level, and yet is still virtually flat compared to last year. Plenty has already begun for next season's wheat crop under generally favorable conditions, improving prospects for the harvest in the summer of 2027.

Speaker #4: In the US, fresh business volumes remain steady compared to previous quarter, from increased distribution and key customer promotional support. We made progress in operational efficiencies, from recent plant upgrades improving live operations and enhancing mix, giving our recent Russellville conversion.

Speaker #4: When combined, these efforts partially compensated for the declines in commodity cut-out values and plant downtime for the investments in LOJ. Case-ready maintained a solid presence in a value-conscious environment throughout retail.

Fabio Sandri: To that end, we work closely with our key customers to drive promotional activity and unlock additional value for consumers. As a result, we reinvigorated growth throughout the quarter and enhanced momentum in October. We also secured incremental distribution, further strengthening our sales pipeline for the remainder of the year. Small bird demand continued firm, given continued support in the boneless category among key customer QSR. In big bird, we continue to enhance our mix through increased supply of higher attribute portioning offerings to Prepared Foods from our recent plant upgrades, further reducing our reliance on external supplier and unlocking additional margin for our business. We also increased the deboning of dark meat, supporting this growing market in the US. In Prepared Foods, growth continues to accelerate as volume rose over 15% compared to last year. Our retail-branded offerings led growth throughout the portfolio as volumes increased by over 20%.

Speaker #4: To that end, we work closely with our key customers to drive promotional activity and unlock additional value for consumers. As a result, we reinvigorated growth throughout the quarter, and enhanced momentum in October.

Speaker #4: We also secured incremental distribution further strengthening our sales pipeline for the remainder of the year. Small bird demand continued firm, giving continued support in the boneless category among key customer QSR.

Speaker #4: In big bird, we continue to enhance our mix through increased supply of higher attribute portioning offerings to prepared foods, from our recent plant upgrades.

Speaker #4: Further reducing our reliance on external supplier, and unlocking additional margin for our business. We also increased the deboning of dark meat, supporting this growing market in US.

Speaker #4: In prepared foods, growth continues to accelerate, as volume rose over 15% compared to last year. Our retail branded offerings led growth throughout the portfolio, as volumes increased by over 20%, just bear continues to outpace all other brands in the frozen fully cooked category, as retail dollars share grew by over 300 basis points compared to the same period last year.

Fabio Sandri: Just BARE continues to outpace all other brands in the frozen fully cooked category as retail dollar share grew by over 300 basis points compared to the same period last year. In Pilgrim's, we continue to drive innovation and bring excitement through new product developments and collaboration with industry leaders. To that end, Pilgrim's recently launched its Flamin' Hot Chicken offering in select locations throughout retail and food service. To date, marketplace acceptance has been remarkably strong across consumers and customers alike. As a result, we secured incremental commitments across all channels to drive additional growth for the remainder of the year and beyond. Our food service business has achieved similar success as sales outpaced the overall channel. The branded portfolio drove most of the growth as sales increased by over 12% compared to prior year.

Speaker #4: In pilgrims, we continue to drive innovation and bring excitement through new project developments and collaboration with industry leaders. To that end, pilgrims recently launched its Flaming Hot Chicken offering, in select locations throughout retail and food service.

Speaker #4: To date, marketplace acceptance has been remarkably strong, across consumers and customers alike. As a result, we secured incremental commitments across all channels to drive additional growth for the remaining of the year and beyond.

Speaker #4: Our food service business has achieved similar success, as sales outpaced the overall channel. The branded portfolio drove most of the growth, as sales increased by over 12% compared to prior year, moving forward we'll continue to expand our presence through innovation, key customer partnerships, and promotional activity.

Fabio Sandri: Moving forward, we will continue to expand our presence through innovation, key customer partnerships, and promotional activity. Construction of our new facility in Ellijay, Georgia, continues to progress as planned, with commissioning expected early in H2 2027. In Europe, our portfolio continued to address affordability concerns of inflationary-wary consumers. Poultry resonated among the value conscious, making it the fastest-growing category throughout retail. Moving forward, additional growth opportunity exists given our leading market position, attractive category dynamics, and marketplace momentum. Based on the existing regulatory environment and our current supply chain capabilities, investments in additional broiler farms will be needed. Within meals, our lineup exceeded category average as sales and volume both grew double digits through targeted promotions investments with key customers. In our branded portfolio, volumes of Fridge Raiders and Rollover continue to grow.

Speaker #4: Construction of our new facility in Walker County, Georgia, continues to progress as planned, with commissioning expected early in the second half of 2027. In Europe, our portfolio continued to address affordability concerns of inflationary wary consumers.

Speaker #4: Poultry resonated among the value-conscious, making it the fastest-growing category throughout retail. Moving forward, additional growth opportunity exists giving our leading market position, attractive category dynamics, and marketplace momentum.

Speaker #4: Based on the existing regulatory environment and our current supply chain capabilities, investments in additional broiler farms will be needed. Within meals, our lineup exceeded category average, as sales and volume both grew, double digits.

Speaker #4: Through targeted promotions, investments with key customers. In our branded portfolio, volumes of fridge raiders and rollover continue to grow, additional growth opportunities exist for each throughout the remainder of the year, from recently launched innovation and increased distribution.

Fabio Sandri: Additional growth opportunities exist for each throughout the remainder of the year from recently launched innovation and increased distribution. Within sausage, intense promotional activity of premium private label offerings emerged given depressed raw material prices from imported meat. As a result, growth of our Richmond brand was challenged during the quarter. Nonetheless, we will continue to reinvigorate our offerings through continued investment in innovation, quality, and brand building as we expand to different eating occasions. Food service continued to encounter tepid demand as visits declined across all major QSRs. To alleviate this challenge, we will continue to collaborate with leading providers to develop new offerings for value-conscious consumers. Sustained escalation of production costs, along with continued competition from imported pork, impacted margins compared to last quarter. Moving forward, continued reduction of the herd in UK should alleviate some of these pressures.

Speaker #4: Within sausage, intense promotional activity of premium private label offerings emerge, giving the press raw material prices from imported meat. As a result, growth of our rich mold brand was challenged during the quarter.

Speaker #4: Nonetheless, we will continue to reinvigorate our offerings through continued investment in innovation, quality, and brand building, as we expand to different eating occasions. Food service continued to encounter tap demand, as visits decline across all major QSRs.

Speaker #4: To alleviate this challenge, we'll continue to collaborate with leading providers to develop new offerings for value-conscious consumers. Sustained escalation of production costs, along with continual competition from imported pork, impacted margins compared to last quarter.

Speaker #4: Moving forward, continued reduction of the herd in UK should alleviate some of these pressures. In addition, pricing arrangements in selected aspects of our portfolio should partially mitigate the impact of rising costs.

Fabio Sandri: In addition, pricing arrangements in selected aspects of our portfolio should partially mitigate the impact of rising costs. We are excited for the acquisition of Walker's Deli and Sausage, and currently anticipate completion of the transaction in early 2027. Once completed, we can further integrate our value chain of high welfare pork into the premium sausage segment, strengthening our retail presence and further diversifying our portfolio. Turning to Mexico, from a slow start, we experienced increasing strength during the quarter, especially in September. In the live commodity market, good growing conditions continue with improved livability and enhanced feed performance, but supply adjusted given extended challenges in producer economics, especially for small players. In fresh, our retail-branded offerings led growth across the portfolio as volumes rose over 40% compared to last year through increased distribution and investments in sales execution. Just BARE brand led all brands as volume more than doubled.

Speaker #4: We are excited for the acquisition of Walker's Dahlia Sausage, and currently anticipate completion of the transaction in early 2027. Once completed, we can further integrate our value chain of high welfare pork into the premium sausage segment, strengthening our retail presence and further diversifying our portfolio.

Speaker #4: Turning to Mexico, from a slow start, we experienced increasing strength during the quarter, especially in September. In the live commodity market, good growing conditions continue, with improved livability and enhanced feed performance, but supply adjusted, giving extended challenges in producer economics, especially for small players.

Speaker #4: In Fresh, our retail-branded offerings led growth across the portfolio, as volumes rose over 40% compared to last year through increased distribution and investments in sales execution.

Speaker #4: Just bear brand led all brands, as volume more than double. In prepared foods, overall growth during the quarter was somewhat limited by continued availability of multiple proteins at historically low prices.

Fabio Sandri: In Prepared Foods, overall growth during the quarter was somewhat limited by continued availability of multiple proteins at historically low prices. QSR traffic also fell as consumers increased move to food at home. Nonetheless, volumes of Pilgrim's and Alamesa brands both double digits compared to last year. Moving forward, disruptions from imported meat from Brazil given concern about poultry health may reduce overall meat availability or result in large trade from US. While full resolution of this matter remains uncertain, early performance of exports from US in October has been promising. We continue our investments to drive sales growth, enhance margin, and reduce volatility throughout our portfolio. To that end, we continue to invest in automation projects and growth of our Prepared Foods. Our ramp-up of previously announced investments in the South and Peninsula region also continues to be on track.

Speaker #4: QSR traffic also fell, as consumer increase moved to food at home. Nonetheless, volumes of pilgrims and Alameza brands both double digits compared to last year.

Speaker #4: Moving forward, disruptions from imported meat from Brazil, giving concern about poultry health, may reduce overall meat availability or result in large trade from US.

Speaker #4: While full resolution of this matter remains uncertain, early performance of exports from the U.S. in October has been promising. We continue our investments to drive sales growth, enhance margin, and reduce volatility throughout our portfolio.

Speaker #4: To that end, we continue to invest in automation projects and growth of our prepared foods. Our ramp-up of previously announced investments in the South and Peninsula region also continues to be on track.

Fabio Sandri: Earlier this week, we published our 2025 sustainability report, which highlights our progress on the environmental, social, and governance matter most critical to our business. Throughout the past year, we continued to drive sustainability throughout all aspects of our strategy and business, reinforcing our stewardship on the environment and natural resources, creating a better future for our team members and the communities we serve. We have lowered our Scope 1 and Scope 2 greenhouse emissions intensity at our facilities by over 20% since 2019. We also improved our global safety index by over 60% compared to last year and provided over 5 million hours of training in 2025, enhancing team member well-being. We continue to invest in team member development. To that end, we continue to drive efforts to create the largest free college tuition program in rural America through our Better Futures program.

Speaker #4: Earlier this week, we published our 2025 sustainability report, with highlights of progress on environmental, social, and governance matter, most critical to our business. Throughout the past year, we continue to drive sustainability through all aspects of our strategy and business, reinforcing our stewardship on the environment and natural resources, creating a better future for our team members and the communities we serve.

Speaker #4: We have lowered our Scope 1 and 2 greenhouse emissions intensity at our facilities by over 20% since 2019. We also improved our global safety index by over 60% compared to last year, and provided over 5 million hours of training in 2025, enhancing team member well-being.

Speaker #4: We continue to invest in team member development. To that end, we continue to drive efforts to create the largest free college tuition program in rural America, through our Better Futures program.

Fabio Sandri: Remarkable enthusiasm continues as 220 team members or their dependents have enrolled in tuition-free higher education programs in 2025 alone. Since inception in 2021, over 2,485 have applied to this program. With that, I would like to ask our CFO, Matt Galvanoni, to discuss our financial results.

Speaker #4: We remarkable enthusiasts continues, as 220 team members ordered dependents having role in tuition-free higher education programs in 2025 alone. Since inception in 2021, over 200, 400, 2,485 have applied to this program.

Speaker #4: With that, I would like to ask our CFO, Matt Galvanoni, to discuss our financial results.

Matt Galvanoni: Thank you, Fabio. Good morning, everyone. For the Q3 of 2026, net revenues were $4.65 billion versus $4.76 billion a year ago, with adjusted EBITDA of $316.3 million and a margin of 6.8% compared to $633.1 million and a 13.3% margin in Q3 last year. Relative to net revenues, we experienced a year-over-year decline of 5.5% in the US in the quarter, driven by lower year-over-year commodity market pricing and the impacts of further supporting our US Prepared Foods business with more internal raw material chicken supply, following the investments we completed in the H1 of this year. Mexico's revenues were up 13% year-over-year due to an increase in sales volume, partially offset by decreases in market pricing. In Europe, year-over-year net revenues declined by 1%. Adjusted EBITDA margins in Q3 were 6.9% in the US, compared to 16.9% a year ago.

Speaker #1: Thank you, Fabio. Good morning, everyone. For the third quarter of 2026, net revenues were $4.65 billion versus $4.76 billion a year ago. With adjusted EBITDA of $316.3 million, and a margin of 6.8% compared to $633.1 million in a 13.3% margin in Q3 last year.

Speaker #1: Relative to net revenues, we experienced a year-over-year decline of 5.5% in the US in the quarter, driven by lower year-over-year commodity market pricing and the impacts of further supporting our US prepared foods business with more internal raw material chicken supply, following the investments we completed in the first half of this year.

Speaker #1: Mexico's revenues were up 13% year-over-year due to an increase in sales volume. Partially offset by decreases in market pricing. In Europe, year-over-year net revenues declined by 1%.

Speaker #1: Adjusted EBITDA margins in Q3 were 6.9% in the US compared to 16.9% a year ago, for a European business adjusted EBITDA margins came in at 7.4% for Q3, compared to 7.9% last year.

Matt Galvanoni: For our European business, adjusted EBITDA margins came in at 7.4% for Q3, compared to 7.9% last year. In Mexico, adjusted EBITDA margins in Q3 were 4.9% versus 8.2% a year ago. Moving to the US, our adjusted EBITDA for Q3 came in at $185.2 million compared to $479.1 million a year ago. In our fresh business, improved yields and live operations performance could only partially offset year-over-year declines in US commodity chicken market pricing and higher grain costs. Prepared Foods continued its momentum with year-over-year sales volume growth over 15% and nearly doubling its profitability from Q3 2025. In Europe, adjusted EBITDA in Q3 was EUR 102 million versus EUR 110.4 million last year. The segment benefited from strength in poultry business and in our meals offerings during the quarter.

Speaker #1: In Mexico, adjusted EBITDA margins in Q3 were 4.9% versus 8.2% a year ago. Moving to the US, our adjusted EBITDA for Q3 came in at $185.2 million, compared to $479.1 million a year ago.

Speaker #1: In our fresh business, improved yields and live operations performance could only partially offset year-over-year declines, in US commodity chicken market pricing and higher grain costs.

Speaker #1: Prepared foods continued its momentum with year-over-year sales volume growth over 15% and nearly doubling its profitability from Q3 2025. In Europe, adjusted EBITDA in Q3 was 102 million versus 110.4 million last year.

Speaker #1: The segment benefited from strength in poultry business and in our meals offerings, during the quarter. These improvements helped compensate for pressured pork margins due to higher European imports in the UK, increased costs driven by the Middle East conflict, and decreases in food service traffic.

Matt Galvanoni: These improvements helped compensate for pressured pork margins due to higher European imports in the UK, increased costs driven by the Middle East conflict, and decreases in foodservice traffic. Mexico generated $29.1 million in adjusted EBITDA in Q3, compared to $43.7 million last year. As Fabio mentioned earlier, we saw improvements in the Mexico supply-demand fundamentals in the second half of the third quarter. However, the business's comparable year-over-year results for the quarter were impacted by bird growing conditions, increasing supply in the live markets, and widely available competing proteins. Relative to our SG&A costs, we incurred lower year-over-year legal settlement related and incentive compensation costs, partially offset by higher external legal defense expenses. Our effective tax rate for the quarter was 27.4%, with our year-to-date rate at 26.4%. Based on the geographical mix of our pre-tax earnings, we now expect our full-year rate to approximate 26%.

Speaker #1: Mexico generated 29.1 million dollars in adjusted EBITDA in Q3, compared to 43.7 million dollars last year. As Fabio mentioned earlier, we saw improvements in the Mexico supply-demand fundamentals in the second half of the third quarter, however, the businesses comparable year-over-year results for the quarter were impacted by bird growing conditions, increasing supply, and live markets in widely available competing proteins.

Speaker #1: Relative to our SG&A costs, we incurred lower year-over-year legal settlement-related and incentive compensation costs, partially offset by higher external legal defense expenses. Our effective tax rate for the quarter was 27.4%, with our year-to-date rate at 26.4%.

Speaker #1: Based on the geographical mix of our pre-tax earnings, we now expect our full-year rate to approximate 26%. Following the completion of our 500 million euro bond offering in September, we had over 2.1 billion dollars in total cash and available credit at the end of the quarter.

Matt Galvanoni: Following the completion of our 500 million euro bond offering in September, we had over $2.1 billion in total cash and available credit at the end of the quarter. We have no short-term immediate cash requirements, with our bonds maturing between 2031 and 2034, and our US credit facility not expiring until 2028. Our liquidity position provides us flexibility during times of volatility in the US commodity markets and allows us to pursue our growth strategy, including organic growth to meet our customers' needs. We have a strong balance sheet, and we continue to emphasize cash flows from operating activities, management of working capital, and disciplined investment in high return projects. Even with challenging market conditions, our net debt totaled less than $2.5 billion, with a leverage ratio of 1.76 times our last 12 months adjusted EBITDA, below our target of 2 to 3 times.

Speaker #1: We have no short-term immediate cash requirements with our bonds maturing between 2031 and 2034, and our US credit facility not expiring until 2028. Our liquidity position provides us flexibility during times of volatility in the US commodity markets, and allows us to pursue our growth strategy, including organic growth to meet our customers' ' needs.

Speaker #1: We have strong we have a strong balance sheet, and we continue to emphasize cash flows from operating activities, management of working capital, and disciplined investment in high-return projects.

Speaker #1: Even with challenging market conditions, our net debt totals less than $2.5 billion, with a leverage ratio of 1.76 times over the last 12 months, adjusted to 2 to 3 times.

Matt Galvanoni: Net interest expense for the quarter totaled $30.2 million, which includes a $1.2 million gain on the early extinguishment of debt. When excluding the year-to-date $16.3 million loss on early extinguishment of debt, we anticipate our full-year net interest expense to be approximately $130 million. We spent $217 million in CapEx this quarter, an increase of $35 million over the Q3 2025. The CapEx spending this quarter included progress on our new Prepared Foods plant in Walker County, Georgia, and the investment in Ellijay, Georgia, to enhance our mix in support of key customers in the foodservice space. We estimate our full-year CapEx spend to approximate $875 million. These and other growth projects align to our overall strategies of portfolio diversification, focus on key customers, operational excellence, and our commitment to team member health and safety.

Speaker #1: Net interest expense for the quarter totaled 30.2 million dollars, which includes a 1.2 million dollar gain on the early extinguishment of debt, when excluding the year-to-date 16.3 million dollar loss on early extinguishment of debt, we anticipate our full-year net interest expense to be approximately 130 million.

Speaker #1: We spent 217 million dollars in CapEx this quarter, an increase of 35 million over the third quarter 2025. The CapEx spending this quarter included progress on our new prepared foods plant in Walker County, Georgia, and the investment in LOJ, Georgia, to enhance our mix in support of key customers in the food service space.

Speaker #1: We estimate our full-year CapEx spend to approximate 875 million dollars. These and other growth projects align to our overall strategies of portfolio diversification, focus on key customers, operational excellence, and our commitment to team member health and safety.

Matt Galvanoni: I will now turn the call back over to Fabio for closing remarks.

Speaker #1: I will now turn the call back over to Fabio for closing remarks.

Fabio Sandri: Thank you everyone for attending today's call. Throughout the quarter, the affordability of chicken continued to resonate among value-conscious consumers across all regions. Given this environment, we continue to work closely with key customers to cultivate demand through promotional support, invest in consumer-led innovation, and improve production efficiency throughout operational excellence. We continue to make progress in our investments to foster a more resilient portfolio as we completed the transition at Ellijay, and the construction of Walker County remains on schedule. Moving forward, we will maintain our focus on having the best team with an unwavering commitment to quality, service, and sustainability. Based on these efforts, we can further nurture our legacy and achieve our vision to be the best and most respected company in our industry, creating the opportunity of a Better Futures for our team members.

Speaker #2: Thank you, everyone, for attending today's call. Throughout the quarter, the affordability of chicken continued to resonate among value-conscious consumers across all regions. Given this environment, we continue to work closely with key customers to cultivate demand through promotional, support, invest in consumer-led innovation, and improve production efficiency throughout operational excellence.

Speaker #2: We continue to make progress in our investments to foster a more resilient portfolio, as we completed the transition of at LOJ and the construction of Walker County remains on schedule.

Speaker #2: Moving forward, we'll maintain our focus on having the best team, with an unwavering commitment to quality, service, and sustainability. Based on these efforts, we can further nurture our legacy and achieve our vision to be the best and most respected company in our industry, creating the opportunity of a better future for our team members.

Operator: Thank you. As the company will not be taking questions today, the conference is now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

Speaker #1: Thank you. As the company will not be taking questions today, the conference is now concluded. We thank you for attending today's presentation. You may now disconnect your lines.