PPC

Executive Summary Overview Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $114.8 million, or $0.48 per diluted common share, and income before tax totaling $153.6 million, for the six months ended June 28, 2026. These operating results included net sales of $9.2 billion, gross profit of $685.2 million and $471.8 million of cash provided by operating activities. We generated a consolidated operating margin of 2.5%. For the six months ended June 28, 2026, we generated EBITDA and Adjusted EBITDA of $472.5 million and $668.1 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below. Global Economic Conditions Our business continues to be subject to global inflationary trends as seen during the second quarter of 2026. U.S. inflation increased through May, primarily driven by higher energy costs associated with geopolitical tensions in the Middle East, before moderating in June as energy prices declined. Food inflation remained elevated but relatively contained compared to energy-related price movements. While inflationary pressures eased toward the end of the quarter, ongoing geopolitical developments continue to present risks to the inflation outlook. In the E.U. region, inflation remained above the European Central Bank’s target during the second quarter, largely due to elevated energy prices and their indirect impact on goods and services. Inflation increased during the early part of the quarter and then eased modestly in June as energy price pressures began to moderate. The ECB responded to these inflationary pressures by increasing interest rates in June 2026 while continuing to monitor the effects of higher energy costs on economic growth and consumer prices. In Mexico, inflation generally trended lower during the second quarter following elevated levels in the first quarter, although services inflation remained persistent and economic growth weakened amid reduced domestic demand and continued uncertainty surrounding trade and investment conditions. The Mexican peso appreciated during much of the quarter, supported by monetary policy and a weaker U.S. dollar, but future exchange rate and inflation trends remain subject to uncertainties related to trade policy, economic conditions in the U.S., and global geopolitical developments. Since its inception the armed conflict involving Iran and the Gulf led, and may continue to lead, to, among other things, increased volatility and higher prices for commodities, such as energy products and freight on input material costs, increased inflation in various countries, disruptions to global trade and supply chains, including key energy transit routes. Actual or threatened disruptions to maritime shipping lanes and other escalating security tensions increased various costs. While the supply constraints related to the conflict did not have a material impact on our costs during the current reporting period, continued and prolonged or expanded hostilities could have a more pronounced effect in future periods. Additionally, the Russia-Ukraine war’s impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets. We are monitoring changes in tariffs and trade policies both in the U.S. and throughout other countries where we operate and do business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized with inputs being made in country and our products being sold in country, demonstrated by our export sales from the U.S. accounting for less than 5% of our total net sales. The impact of trade policy changes is uncertain and evolving; however, we do not anticipate material impacts to our results of operations. We will continue to monitor potential impacts and take mitigation actions as necessary. We generally respond to ongoing challenges in global economic conditions through discussions with customers to mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields. Raw Materials and Pricing Our U.S. and Mexico segments use corn and soybean meal as the main ingredients for feed production, while our Europe segment uses wheat, soybean meal and barley as the main ingredients for feed production. The following table reflects the highest and lowest prices reached on nearby futures for one bushel of corn, one ton of soybean meal, and one metric ton of wheat during the current and previous years: 28 Corn(a) Soybean Meal(a) Wheat(a) Highest Price Lowest Price Highest Price Lowest Price Highest Price Lowest Price (In whole dollars) (In whole pounds sterling) 2026 Second Quarter 4.77 4.07 342.7 299.8 195.0 172.3 First Quarter 4.70 4.20 332.5 286.4 173.7 160.1 2025 Fourth Quarter 4.51 4.11 330.8 264.7 166.8 155.2 Third Quarter 4.32 3.72 297.2 260.7 180.0 136.5 Second Quarter 4.90 4.10 299.6 270.9 173.6 138.2 First Quarter 5.02 4.36 315.8 285.9 185.6 165.0 (a)We obtain corn and soybean meal prices from the Chicago Board of Trade, and we obtain wheat prices from the London International Financial Futures and Options Exchange. U.S. commodity market prices for most chicken products during the three months ended June 28, 2026, remained below prior-year levels and the historical five-year average. Boneless breast prices declined through most of the quarter before stabilizing near quarter-end. Supply remained elevated as record egg sets and favorable hatchability during the first quarter supported higher chick placements and increased flock headcounts, particularly in the 6.3 to 7.8 pound weight category. Average liveweights were also modestly higher, contributing to increased production. Per the July 2026 U.S. Department of Agriculture (“USDA”) report on poultry slaughter, estimated industry ready-to-cook production increased approximately 4.5% during the second quarter of 2026 compared to the prior year levels. U.S. chicken demand remained solid across both retail and foodservice channels during the second quarter of 2026. Chicken continued to offer a favorable value proposition relative to competing proteins amid ongoing pressure on consumer spending. Retail volume growth accelerated to 2.8%, with gains across all major product categories, supported by promotional activity and competitive pricing. In foodservice, operators continued to expand chicken offerings as a value-oriented alternative to higher-priced beef products, with growth led by chicken-focused limited-service restaurant chains. Export shipment volumes increased approximately 0.3% compared to the prior year, while export pricing remained below prior-year levels. U.S. chicken cold storage inventories ended the quarter approximately 1.1% above prior-year levels and 1.0% above the historical five-year average, reflecting increased industry production. Breast meat inventories remained below prior-year levels, while dark meat inventories declined, driven by lower leg quarter and drum inventories and supported by favorable pricing and export demand. In contrast, thigh meat inventories increased as prices remained elevated throughout the quarter. Despite solid demand trends, industry supply exceeded expectations during the quarter due to continued productivity improvements, including higher hatchability, increased headcounts, and modestly higher liveweights. As a result, the USDA increased its forecast for second quarter production growth during the quarter, and increased production continued to pressure market prices. Industry production during the first half of 2026 exceeded expectations, although recent trends indicate moderating growth as egg sets and chick placements have declined from peak levels and liveweights have stabilized. Demand is expected to remain supported by chicken's favorable price position relative to competing proteins, constrained beef supplies, and consumer preference for affordable protein options. U.K. poultry market conditions remained relatively stable during the second quarter of 2026. Production increased compared to the first quarter as liveweights normalized and flock placements supported supply growth. Poultry headkill remained generally consistent with prior-year levels, while egg placements continued to exceed prior year levels. Chicken prices were relatively stable compared to the first quarter but remained modestly below prior-year levels due to ample supply. Demand remained steady across retail and foodservice channels. Commodity chicken prices in Mexico remained below prior-year levels during the second quarter of 2026 despite stable consumer demand. Production levels remained elevated as strong bird health and lower mortality rates contributed to increased supply. Lower feed costs, including corn and soybean meal, continued to support production economics, while adequate market supply and low priced competing proteins continued to pressure pricing. U.K. pork prices remained below prior-year levels during the second quarter of 2026, reflecting ample supply and competitive protein market conditions. Production remained above prior-year levels, supported by favorable slaughter volumes 29 and carcass weights. Across Europe, pork prices continued to face pressure from adequate supply and mixed export demand, although market conditions improved modestly toward quarter-end as production growth moderated. Global market prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand, (2) factors such as feed production input costs, further spread of avian influenza, or other bird diseases, both domestically and abroad, (3) uncertainty surrounding the general economy, (4) shifts in trade policy that could influence consumer spending dynamics in price-sensitive market segments, and (5) overall meat protein supply. Reportable Segments We operate in three reportable segments: U.S., Europe, and Mexico. We measure segment profit as operating income. Certain corporate expenses are allocated to the Mexico and Europe reportable segments based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S. For additional information, see “Note 16. Reportable Segments” of our Condensed Consolidated Financial Statements included in this quarterly report. Results of Operations Three Months Ended June 28, 2026 Compared to the Three Months Ended June 29, 2025 Net sales. Net sales generated in the three months ended June 28, 2026 decreased $131.1 million, or 2.8%, from net sales generated in the three months ended June 29, 2025. The following table provides net sales information: Sources of net sales Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Impact on Change from Three Months Ended June 29, 2025 Amount Percent Sales Volume Sales Prices Foreign Currency Translation Impact (In thousands, except percent data) (In percent) U.S. $ 2,649,242 $ (171,143) (6.1) % 0.5 % (6.6) % — % Europe 1,389,647 18,377 1.3 % 0.9 % (0.1) % 0.5 % Mexico 587,341 21,631 3.8 % 17.0 % (24.5) % 11.3 % Total net sales $ 4,626,230 $ (131,135) (2.8) % Factors impacting the year-over-year change in net sales for the three months ended June 28, 2026, by reportable segment are as follows: •U.S. net sales decreased $171.1 million, or 6.1%, driven by the following factors: ◦Decrease in sales price per pound, reducing net sales by $186.2 million, or 6.6% ▪This decrease was driven primarily by unfavorable market pricing conditions with current year market pricing below historical averages ◦Partially offset by an increase in sales volume of $15.1 million, or 0.5% •Europe net sales increased $18.4 million, or 1.3%, driven by the following factors: ◦Increase in sales volume of $11.9 million, or 0.9% ◦Favorable impact of foreign currency translation of $7.7 million, or 0.5% ▪This impact was driven by a strengthening of the British pound against the U.S. dollar ◦Partially offset by decrease in sales price per pound of $1.2 million, or 0.1% •Mexico net sales increased $21.6 million, or 3.8%, driven by the following factors: ◦Favorable impact of foreign currency translation of $63.7 million, or 11.3% ▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar ◦Increase in sales volume of $96.4 million, or 17.0% ▪Volume increase was driven by market demand and a favorable product mix, with growth in live chicken and processed chicken ◦Partially offset by a decrease in sales price per pound of $138.5 million, or 24.5% ▪This decrease was driven by a decrease in commodity chicken pricing due to greatly improved year-over-year growing conditions resulting in lower mortality rates 30 Gross profit and cost of sales. Gross profit decreased by $375.5 million, or 52.5%, from $715.3 million generated in the three months ended June 29, 2025 to $339.8 million generated in the three months ended June 28, 2026. The following tables provide information regarding gross profit and cost of sales information: Components of gross profit Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Percent of Net Sales Three Months Ended Amount Percent June 28, 2026 June 29, 2025 (In thousands, except percent data) Net sales $ 4,626,230 $ (131,135) (2.8) % 100.0 % 100.0 % Cost of sales 4,286,478 244,408 6.0 % 92.7 % 85.0 % Gross profit $ 339,752 $ (375,543) (52.5) % 7.3 % 15.0 % Sources of gross profit Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 196,956 $ (292,286) (59.7) % Europe 110,925 (13,208) (10.6) % Mexico 31,871 (70,049) (68.7) % Total gross profit $ 339,752 $ (375,543) (52.5) % Sources of cost of sales Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 2,452,286 $ 121,143 5.2 % Europe 1,278,722 31,585 2.5 % Mexico 555,470 91,680 19.8 % Total cost of sales $ 4,286,478 $ 244,408 6.0 % Factors impacting the year-over-year change in cost of sales for the three months ended June 28, 2026, by reportable segment are as follows: •U.S. cost of sales increased $121.1 million, or 5.2%, driven by the following factors: ◦Increase in cost per pound sold of $108.7 million, or 4.7% ▪This increase was driven primarily by an increase in live operations costs, grain costs, grower pay, depreciation, utilities, and other operating costs ◦Increase in sales volume of $12.4 million, or 0.5% •Europe cost of sales increased $31.6 million, or 2.5%, driven by the following factors: ◦Increase in cost per pound sold of $13.9 million, or 1.1% ▪This increase was driven by higher input costs, such as labor and utilities ◦Increase in sales volume of $10.9 million, or 0.9% ◦Unfavorable impact of foreign currency translation of $6.8 million, or 0.5% ▪This impact was driven by a strengthening of the British pound against the U.S. dollar •Mexico cost of sales increased $91.7 million, or 19.8%, driven by the following factors: ◦Unfavorable impact of foreign currency translation of $60.3 million, or 13.0% ▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar ◦Increase in sales volume of $79.0 million, or 17.0% ▪This increase was driven by market requirements in mix ◦Partially offset by a decrease in cost per pound sold of $47.6 million, or 10.2% ▪This decrease was primarily driven by lower feed ingredient costs 31 Operating income and SG&A expense. Operating income decreased by $446.4 million, or 87.1%, from income of $512.3 million generated in the three months ended June 29, 2025 to income of $66.0 million generated in the three months ended June 28, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense: Components of operating income Three Months Ended June 28, 2026 Change from Three Months Ended June 30, 2025 Percent of Net Sales Three Months Ended Amount Percent June 28, 2026 June 29, 2025 (In thousands, except percent data) Gross profit $ 339,752 $ (375,543) (52.5) % 7.3 % 15.0 % SG&A expense 265,103 65,646 32.9 % 5.7 % 4.2 % Restructuring activities 8,699 5,200 148.6 % 0.2 % — % Operating income $ 65,950 $ (446,389) (87.1) % 1.4 % 10.8 % Sources of operating income Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ (11,112) $ (366,099) (103.1) % Europe 60,551 (9,868) (14.0) % Mexico 16,511 (70,422) (81.0) % Total operating income $ 65,950 $ (446,389) (87.1) % Sources of SG&A expense Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 208,068 $ 73,813 55.0 % Europe 41,675 (8,540) (17.0) % Mexico 15,360 373 2.5 % Total SG&A expense $ 265,103 $ 65,646 32.9 % Factors impacting SG&A year-over-year changes for the three months ended June 28, 2026 by reportable segment are as follows: •U.S. SG&A increased $73.8 million, or 55.0%, driven by an increase in legal settlement expense and legal defense costs •Europe SG&A decreased $8.5 million, or 17%, driven by decreases in incentive compensation expense and marketing costs, partially offset by an increase from the unfavorable impact of foreign currency translation •Mexico SG&A increased $0.4 million, or 2.5%, driven by the unfavorable impact of foreign currency translation Sources of restructuring activities charges Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) Europe $ 8,699 $ 5,200 148.6 % Factors impacting restructuring activities charges are as follows: •Europe restructuring activities charges of $8.7 million in the three months ended June 28, 2026 were incurred primarily as a result of severance related to back office consolidation activities 32 Three Months Ended June 28, 2026 Change from Three Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) Net interest expense $ 46,110 $ 14,659 46.6 % Factors impacting the year-over-year change in net interest expense are as follows: •Interest expense increased primarily due to the loss on early extinguishment of debt of $17.5 million related to the tender offer on the Senior Notes due 2033, partially offset by a decrease in interest expense on outstanding borrowings due to lower principal amounts outstanding Three Months Ended June 28, 2026 Three Months Ended June 29, 2025 (In thousands, except percent data) Income tax expense $ 8,572 $ 119,573 Effective tax rate 39.4 % 25.1 % Factors impacting the year-over-year change in income tax expense are as follows: •A decrease in profit before income taxes Six Months Ended June 28, 2026 Compared to the Six Months Ended June 29, 2025 Net sales. Net sales generated in the six months ended June 28, 2026 decreased $61.5 million, or 0.7%, from net sales generated in the six months ended June 29, 2025. The following table provides net sales information: Sources of net sales Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Impact on Change from Six Months Ended June 29, 2025 Amount Percent Sales Volume Sales Prices Foreign Currency Translation Impact (In thousands, except percent data) (In percent) U.S. $ 5,284,640 $ (278,934) (5.0) % 0.6 % (5.6) % NA Europe 2,741,391 138,592 5.3 % 0.6 % 0.9 % 3.8 % Mexico 1,132,832 78,831 7.5 % 14.5 % (20.4) % 13.4 % Total net sales $ 9,158,863 $ (61,511) (0.7) % Factors impacting net sales year-over-year changes by reportable segment are as follows: •U.S. net sales decreased $278.9 million, or 5.0%, driven by the following factors: ◦Decrease in sales price per pound of $315.0 million, or 5.6% ▪This decrease was driven primarily by unfavorable market pricing conditions with current year market pricing below historical averages ◦Partially offset by an increase in sales volume of $36.1 million, or 0.6% •Europe net sales increased $138.6 million, or 5.3%, driven by the following factors: ◦Favorable impact of foreign currency translation of $99.8 million, or 3.8% ▪This impact was driven by a strengthening of the British pound against the U.S. dollar ◦Increase in sales price per pound of $23.7 million, or 0.9% ▪This increase was driven by the pass through of higher input costs, such as labor and utilities ◦Increase in sales volume of $15.1 million, or 0.6% •Mexico net sales increased $78.8 million, or 7.5% driven by the following factors: ◦Favorable impact of foreign currency translation of $140.2 million, or 13.3% ▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar ◦Increase in sales volume of $153.2 million, or 14.5% ◦Partially offset by a decrease in sales price per pound of $214.6 million, or 20.3% 33 ▪This decrease was driven by a decrease in commodity chicken pricing Gross profit and cost of sales. Gross profit decreased by $584.9 million from $1.3 billion generated in the six months ended June 29, 2025 to $685.2 million generated in the six months ended June 28, 2026. The following tables provide information regarding gross profit and cost of sales information: Components of gross profit Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Percent of Net Sales Six Months Ended Amount Percent June 28, 2026 June 29, 2025 (In thousands, except percent data) Net sales $ 9,158,863 $ (61,511) (0.7) % 100.0 % 100.0 % Cost of sales 8,473,621 523,415 6.6 % 92.5 % 86.2 % Gross profit $ 685,242 $ (584,926) (46.1) % 7.5 % 13.8 % Sources of gross profit Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 393,514 $ (483,350) (55.1) % Europe 231,276 (9,161) (3.8) % Mexico 60,452 (92,415) (60.5) % Total gross profit $ 685,242 $ (584,926) (46.1) % Sources of cost of sales Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 4,891,126 $ 204,416 4.4 % Europe 2,510,115 147,753 6.3 % Mexico 1,072,380 171,246 19.0 % Total cost of sales $ 8,473,621 $ 523,415 6.6 % Factors impacting cost of sales year-over-year changes by reportable segment are as follows: •U.S. cost of sales increased $204.4 million, or 4.4%, driven by the following factors: ◦Increase in cost per pound sold of $174.1 million, or 3.8% ▪This increase was driven primarily by an increase in live operations costs, grain costs, grower pay, depreciation, utilities, and other operating costs ◦Increase in sales volume of $30.3 million, or 0.6% ▪This increase was driven by consumer demand •Europe cost of sales increased $147.8 million, or 6.3%, driven by the following factors: ◦Unfavorable impact of foreign currency translation of $89.4 million, or 3.8% ▪This impact was driven by a strengthening of the British pound against the U.S. dollar ◦Increase in cost per pound sold of $44.8 million, or 1.9% ▪This increase was driven by higher input costs, such as labor and utilities ◦Increase in sales volume of $13.6 million, or 0.6% •Mexico cost of sales increased $171.2 million, or 19.0% driven by the following factors: ◦Unfavorable impact of foreign currency translation of $132.8 million, or 14.8% ▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar ◦Increase in sales volume of $131.0 million, or 14.5% ▪This increase was driven by market requirements in mix ◦Partially offset by a decrease in cost per pound sold of $92.6 million, or 10.3% ▪This decrease was driven by a decrease in commodity chicken pricing 34 Operating income and SG&A expense. Operating income decreased by $688.3 million, or 75.1%, from $916.8 million generated in the six months ended June 29, 2025 to $228.5 million generated in the six months ended June 28, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense: Components of operating income Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Percent of Net Sales Six Months Ended Amount Percent June 28, 2026 June 29, 2025 (In thousands, except percent data) Gross profit $ 685,242 $ (584,926) (46.1) % 7.5 % 13.8 % SG&A expense 445,272 112,036 33.6 % 4.8 % 3.6 % Restructuring activities 11,464 (8,647) (43.0) % 0.1 % 0.2 % Operating income $ 228,506 $ (688,315) (75.1) % 2.5 % 9.9 % Sources of operating income Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 75,797 $ (597,996) (88.8) % Europe 125,306 5,816 4.9 % Mexico 27,403 (96,135) (77.8) % Total operating income $ 228,506 $ (688,315) (75.1) % Sources of SG&A expense Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) U.S. $ 317,717 $ 114,646 56.5 % Europe 94,506 (6,330) (6.3) % Mexico 33,049 3,720 12.7 % Total SG&A expense $ 445,272 $ 112,036 33.6 % Factors impacting SG&A year-over-year changes by reportable segment are as follows: •U.S. SG&A increased $114.6 million, or 56.5%, driven by an increase in legal settlement expense and legal defense costs •Europe SG&A decreased $6.3 million, or 6.3%, driven by decreases in incentive compensation expense and marketing costs, while also partially offset by the unfavorable impact foreign currency translation •Mexico SG&A increased $3.7 million, or 12.7%, driven by the unfavorable impact of foreign currency translation Sources of restructuring activities charges Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) Europe $ 11,464 $ (8,647) (43.0) % Factors impacting restructuring activities charges are as follows: •Europe restructuring activities charges of $11.4 million for the six months ended June 28, 2026 were incurred primarily as a result of severance related to back office consolidation Six Months Ended June 28, 2026 Change from Six Months Ended June 29, 2025 Amount Percent (In thousands, except percent data) Net interest expense $ 77,087 $ 28,851 59.8 % 35 Factors impacting the year-over-year change in net interest expense are as follows: •Interest expense increased primarily due to the loss on early extinguishment of debt of $17.5 million related to the tender offer on the Senior Notes due 2033, and lower year-over-year interest income due to a decrease in average cash balances Six Months Ended June 28, 2026 Six Months Ended June 29, 2025 (In thousands, except percent data) Income tax expense $ 38,942 $ 213,672 Effective tax rate 25.4 % 24.7 % Factors impacting the year-over-year change in income tax expense are as follows: •A decrease in profit before income taxes Liquidity and Capital Resources The following table presents our available sources of liquidity as of June 28, 2026: Sources of Liquidity Facility Amount Facility Amount (USD) Amount Outstanding (USD) Availability (USD) (In millions) Cash and cash equivalents NA NA NA $ 388.8 Borrowing arrangements: U.S. Credit Facility(a) USD 850.0 million $ 850.0 $ — $ 846.2 Europe Credit Facility GBP 150.0 million 198.0 — 198.0 Mexico BBVA Credit Facility MXN 1.3 billion 72.8 10.6 62.3 Mexico Bajio Credit Facility MXN 1.5 billion 85.7 — 85.7 Total availability under the borrowing arrangements $ 1,192.2 (a)Availability under the U.S. Credit Facility may also reduced by outstanding standby letters of credit. On March 30, 2026, the Company commenced a tender offer pursuant to which it offered to acquire up to $250.0 million aggregate principal amount of its 6.250% Senior Notes due 2033. On April 14, 2026, the early settlement date, the Company exercised the purchase of $250.0 million aggregate principal amount at a price of $1,056.90 per $1,000.00 principal amount and a total cost of $264.2 million. On June 26, 2026, Pilgrim's Europe entered into a new £150.0 million multicurrency revolving credit facility that matures in June 2031. Concurrently, Pilgrim's Europe terminated its previously existing revolving credit facility dated June 24, 2022. The new facility may be used for general corporate purposes, working capital requirements and permitted acquisitions. Borrowings bear interest at applicable reference rates plus a leverage-based margin. We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months. 36 Historical Flow of Funds Cash Flows from Operating Activities Six Months Ended June 28, 2026 June 29, 2025 (In millions) Net income $ 114.7 $ 652.4 Net noncash expenses 293.6 220.7 Changes in operating assets and liabilities: Trade accounts and other receivables 239.4 (75.0) Inventories (7.6) (105.7) Prepaid expenses and other current assets (17.5) (17.4) Accounts payable, accrued expenses and other current liabilities (127.6) (34.6) Income taxes (6.7) 8.0 Long-term pension and other postretirement obligations 1.3 (1.5) Other operating assets and liabilities (17.7) (24.8) Cash provided by operating activities $ 471.8 $ 622.1 Net Noncash Expenses Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $293.6 million for the six months ended June 28, 2026. Net noncash expense items included depreciation and amortization of $241.8 million, asset impairment of $22.3 million, loss on early extinguishment of debt of $17.6 million, stock-based compensation costs of $11.2 million, deferred income tax benefit of $5.7 million, loan cost amortization of $2.7 million, losses on property disposals of $2.6 million, and accretion of discounts related to Senior Notes of $1.1 million. Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $220.7 million for the six months ended June 29, 2025. Net noncash expense items included depreciation and amortization of $218.0 million, deferred income tax benefit of $19.5 million, stock-based compensation costs of $14.2 million, loan cost amortization of $2.5 million, losses on property disposals of $2.0 million, loss on early extinguishment of debt of $1.4 million, accretion of discounts related to Senior Notes of $1.2 million, and asset impairment of $0.8 million. Other net noncash items were immaterial. Changes in Operating Assets and Liabilities The change in trade accounts and other receivables represented a $239.4 million source of cash related to operating activities for the six months ended June 28, 2026. This change primarily resulted from the sale of trade receivables. The change in trade accounts and other receivables represented a $75.0 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted from an increase in trade accounts receivable due to a decrease in discounted accounts receivables and an increase in sales from more favorable market pricing. The change in inventories represented a $7.6 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from increased live inventories due to increased grain costs. The change in inventories represented a $105.7 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the U.K. and in anticipation of higher demand over the summer season. The change in prepaid expenses and other current assets represented a $17.5 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from an increase in derivative assets and prepaid IT expenses and grower housing incentives, partially offset by a decrease in prepaid property insurance. The change in prepaid expenses and other current assets represented a $17.4 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments and prepaid insurance. The change in accounts payable, accrued expenses and other current liabilities represented a $127.6 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from the payment of incentive compensation accrued for in 2025 and decreases in accrued payroll, insurance, and tax expenses, partially offset by an increase in litigation settlement accruals. The change in accounts payable, accrued expenses and other current liabilities represented a $34.6 million use of cash related to operating activities for the six months ended June 29, 2025. This change 37 resulted primarily from the payment of incentive compensation accrued for in 2024 and payments of litigation settlements, partially offset by an increase in the days payables outstanding, and increases in accrued payroll and insurance expenses. The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $6.7 million use and $8.0 million source of cash for the six months ended June 28, 2026 and June 29, 2025, respectively. Cash Flows from Investing Activities Six Months Ended June 28, 2026 June 29, 2025 (In millions) Acquisitions of property, plant and equipment $ (465.2) $ (259.3) Proceeds from property disposals 10.4 2.9 Purchase of acquired business, net of cash acquired (3.1) — Cash used in investing activities $ (457.9) $ (256.4) Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, and to reduce costs for the six months ended June 28, 2026. Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, system enhancement projects, and reduce costs for the six months ended June 29, 2025. Purchase of acquired business during the six months ended June 28, 2026, is from the equity purchase of Hermitage AI Ltd. from Hermitage Group. For more details, refer to "Note 6. Goodwill and Intangible Assets." Cash Flows from Financing Activities Six Months Ended June 28, 2026 June 29, 2025 (In millions) Payments on revolving line of credit, long-term borrowings and finance lease obligations $ (313.3) $ (90.7) Proceeds from revolving line of credit and long-term borrowings 73.7 — Payments on early extinguishment of debt (14.6) (2.1) Payments for dividends — (1,495.5) Cash used in financing activities $ (254.2) $ (1,588.3) Payments on revolving line of credit, long-term borrowings and finance lease obligations during the six months ended June 28, 2026, are primarily related to the repurchase of its 6.250% Senior Notes due 2033 as well as revolving line of credit and finance lease payments. Proceeds from revolving line of credit and long-term borrowings during the six months ended June 28, 2026, are related to revolving line of credit proceeds in the U.S. and Mexico. Payments on early extinguishment of debt during the six months ended June 28, 2026, are related to fees paid during the repurchase of its 6.250% Senior Notes due 2033. Payments for dividend during the six months ended June 29, 2025 are related to the special cash dividend that was declared during March 2025 and paid in April 2025. Payments on revolving line of credit, long-term borrowings and finance lease obligations and payments on early extinguishment of debt during the six months ended June 29, 2025, are primarily related to open market repurchases of outstanding senior notes. Long-Term Debt and Other Borrowing Arrangements Our long-term debt and other borrowing arrangements consist of senior notes, revolving credit facilities and other term loan agreements. For a description, refer to “Note 11. Debt.” 38 Reconciliation of Net Income to EBITDA and Adjusted EBITDA “EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) costs related to litigation settlements, (2) restructuring activities losses, (3) asset impairment, and (4) net loss attributable to noncontrolling interests, and (5) foreign currency transaction gains. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are: •They do not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments; •They do not reflect changes in, or cash requirements for, our working capital needs; •They do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt; •Although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; •They are not adjusted for all noncash income or expense items that are reflected in our statements of cash flows; •EBITDA does not reflect the impact of earnings or charges attributable to noncontrolling interests; •They do not reflect the impact of earnings or charges resulting from matters we consider to not be indicative of our ongoing operations; and •They do not reflect limitations on or costs related to transferring earnings from our subsidiaries to us. In addition, other companies in our industry may calculate these measures differently than we do, limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. You should compensate for these limitations by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis. 39 Six Months Ended June 28, 2026 (In thousands) Net income $ 114,670 Add: Interest expense, net 77,087 Income tax expense 38,942 Depreciation and amortization 241,787 EBITDA 472,486 Add: Litigation settlements 158,905 Restructuring activities losses 11,464 Asset impairment 25,558 Net loss attributable to noncontrolling interest 130 Minus: Foreign currency transaction gains 416 Adjusted EBITDA $ 668,127 40