HRL HORMEL FOODS CORP /DE/

Overview and Growth

HORMEL FOODS CORP /DE/ generated $12.11B of revenue in fiscal 2025, with net income of $478.20M and an operating cash inflow of $845.25M. The $12.11B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 1.6% from $11.92B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $0.87, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 40.8% decrease from fiscal 2024 diluted EPS of $1.47. Asset turnover was 0.9x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $1.89B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 15.6% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $718.60M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 5.9% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $478.20M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 4.0% margin after operating costs and the remaining recognized items. Pretax income was $663.45M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 5.5%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $185.68M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 28.0%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $13.39B asset base was financed through $5.48B of liabilities and $7.92B of equity. The near-term balance sheet paired $3.41B of current assets with $1.38B of current liabilities at the reporting date. Current assets covered current liabilities by 2.47x, leaving a positive buffer for near-term obligations. The company held $670.68M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 48.6%, excluding receivables and other current assets. The company carried $2.86B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.36x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 21.3%, showing how much of the asset base was matched by borrowing. Liabilities represented 40.9% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 5.0% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $845.25M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.77x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $310.90M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 36.8%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $534.35M, leaving a positive amount after capital expenditures. Free cash flow represented 4.4% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 4.0% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Oct 26, 2025. Analysis generated Oct 21, 2026.