HRLHIGH SIGNALFINANCIAL10-K

Hormel Foods experienced a substantial decline in profitability with net income falling meaningfully and operating performance deteriorating across key metrics.

The significant drop in earnings and operating income suggests Hormel is facing substantial operational headwinds, whether from input cost inflation, competitive pressures, or operational inefficiencies. The concurrent decline in operating cash flow indicates these profit pressures are translating into real cash impact, which could affect the company's ability to maintain its dividend aristocrat status and fund growth investments.

Comparing 2025-12-05 vs 2024-12-05View on EDGAR →
FINANCIAL ANALYSIS

Hormel's financial performance deteriorated notably with net income declining substantially and operating income falling meaningfully year-over-year. Operating cash flow also declined significantly while capital expenditures increased modestly, creating pressure on free cash flow generation. The modest inventory build suggests either demand softness or supply chain adjustments, but the overall picture reflects a company under considerable profitability pressure despite maintaining its large revenue base.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-40.6%
$805.0M$478.2M

Net income declined 40.6% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
-33.3%
$1.3B$845.3M

Operating cash flow fell 33.3% — earnings quality concerns; investigate working capital changes and non-cash items.

Operating Income
P&L
-32.7%
$1.1B$718.6M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Capital Expenditure
Cash Flow
+21.2%
$256.4M$310.9M

Capex increased 21.2% — ongoing investment in capacity or infrastructure for future growth.

Inventory
Balance Sheet
+10.8%
$1.6B$1.7B

Inventory built 10.8% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2025-12-05
PRIOR — 2024-12-05
ADDED
BUSINESS General Development of Business Hormel Foods Corporation, a Delaware corporation, was founded by George A.
The Company originated as a processor of meat and food products and continues in this line of business today.
The Company has expanded its product portfolio through organic growth and acquisitions to become a global branded food company with more than $12 billion in annual revenue.
The Company is built on a foundation of innovation and integrity and a commitment to delivering high-quality, trusted food products across a diverse portfolio of brands and product solutions including Planters , SPAM , Jennie-O , Skippy , Applegate , Wholly , Hormel Black Label , Fontanini , Bacon1 , Hormel pepperoni, and more than 30 other beloved brands.
The Company is a member of the S P 500 Index and the S P 500 Dividend Aristocrats.
When used in this report, the terms "we," "our," "us," and the "Company" mean Hormel Foods Corporation and its subsidiaries, collectively, unless the context otherwise requires or indicates.
Retail The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels, including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the United States (U.S.).
Foodservice The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S.
International The International segment processes, markets, and sells the Company's products through retail and foodservice channels internationally.
This segment also includes the results from the Company s international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil.
REMOVED
BUSINESS General Development of Business Hormel Foods Corporation, a Delaware corporation (collectively, the "Company", "we," "us," and "our"), was founded by George A.
The Company started as a processor of meat and food products and continues in this line of business with emphasis on the manufacturing and distribution of branded, value-added consumer items.
The Company builds on its founder s legacy of innovation, quality, and integrity with focus on its purpose statement Inspired People.
The Company has continually expanded its product portfolio through organic growth and acquisitions.
Today, the Company is a global branded food company bringing some of the most trusted and iconic brands to tables across the globe with approximately $12 billion in annual revenue generated from more than 80 countries.
Retail The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the retail market in the United States.
Foodservice The Foodservice segment consists primarily of the processing, marketing, and sale of food products for foodservice, convenience store, and commercial customers located in the United States.
International The International segment processes, markets, and sells Company products internationally.
This segment also includes the results from the Company s international joint ventures, international equity method investments, and international royalty arrangements.
Net sales to unaffiliated customers, segment profit, and certain other financial information by segment are reported in Note P - Segment Reporting of the Notes to the Consolidated Financial Statements and in Management s Discussion and Analysis of Financial Condition and Results of Operations.
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