Hormel Cuts 2025 Profit Outlook as Commodity Costs Bite

Hormel Foods reported weaker-than-expected fiscal third-quarter earnings, hurt by higher commodity costs that squeezed margins across its refrigerated and grocery businesses. Adjusted earnings slipped to $0.35 a share, below the $0.40 analysts had projected, even as net sales rose 1% from a year earlier to $3.03 billion and modestly topped estimates. The maker of Spam and Skippy peanut butter cut its full-year profit guidance for the second time this year. Hormel now expects adjusted earnings of $1.43 to $1.45 a share, down from the $1.58 to $1.68 range issued in May, and GAAP earnings of $1.33 to $1.35 a share, versus $1.49 to $1.59 previously. Management cited persistent commodity inflation and continued pressure on operating margins. To counter rising input costs, executives said the company will implement additional price increases across key product lines and pursue further cost-savings initiatives. Investors reacted sharply; Hormel shares fell roughly 10% in early New York trading.