Tyson Foods, Inc. - Ordinary Shares - Class A

Strong Q2 operating performance; raising full-year profitability guidance - Q2 sales: $13.7B (+4.4% YoY); Adjusted operating income (AOI): $497M (margin 3.6%). - Q2 Adjusted EPS: $0.87 (-5% YoY) (decline tied to non-segment/corporate items rather than segment execution). - Company is raising full-year AOI guidance: new range $2.2B–$2.4B (up $100M at the midpoint). - Full-year sales outlook reiterated: +2% to +4% YoY (accounting note: FY26 is a 53-week year vs 52-week in FY25, but guidance is framed on a comparative 52-week basis).

Chicken is the key momentum driver; execution-led (not commodity tailwind) - Chicken Q2: $523M segment operating income; 12.2% margin. - Chicken Q2 volume: +1.7% YoY, with retail + foodservice nearly 3x faster than total volume. - Management emphasizes performance is execution/mix/genetics-led, not broad price increases: base pricing slightly lower, but margins improved via product mix + operational controls. - No notable one-time gains cited for Chicken performance; management specifically pushed back on speculation that a competitor fire drove volume: they state 0 volume in Q2 associated with the Koch fire. - Chicken full-year outlook increased by $200M at the midpoint to $1.9B–$2.05B AOI; expectation is 2H to look like 1H and performance better than FY25.

Prepared Foods: share gains + margin expansion despite higher commodity costs - Prepared Foods Q2: $352M segment operating income (+7% YoY); 14% margin. - Sales +4.8%, volume +0.4%; management attributes gains to strong demand, share gains, disciplined execution, and improved promotional efficiency / targeted MAP investments. - Competitive outcomes: gained share in volume, dollars, and units (with wins cited across bacon, lunchmeat, dinner sausage, snacking). - Full-year Prepared Foods outlook maintained: $1.25B–$1.35B segment operating income. - Input cost/packaging challenge acknowledged (resin/packaging inflation) but they’re using value engineering and supplier programs; also indicated commodity costs were elevated (e.g., Prepared Foods commodity costs up $50M in Q2, $150M YTD).