Hormel Foods delivered a challenging QQ4 2025, capping a year marked by elevated commodity input costs and select operational disruptions. Q4 revenue reached $3.19B with a gross margin of 13.96%, but the quarter produced a net loss of $56.1M and a diluted EPS of -$0.10, reflecting margin pressures from pork, beef, and nut inflation, plus two non-operational events (a chicken recall and a Little Rock facility fire) that together shaved approximately 3 cents of EPS. For the full year, Hormel posted net sales above $12B with 2% organic growth, generating an adjusted operating income of just over $1B and an adjusted diluted EPS of $1.37, while GAAP operating income was $719M and GAAP diluted EPS was $0.87. The company closed 2025 with $805M of cash flow from operations, capex of $311M, and a year-end inventory position of $1.7B. Hormel also returned a record $633M to shareholders in dividends and raised the quarterly dividend by 1% to an implied annual rate of $1.17 per share for 2026, maintaining its dividend aristocrat pedigree. Management framed 2026 guidance around a balanced protein-centric portfolio, expecting 1-4% organic net sales growth and 4-10% adjusted operating income growth, with adjusted EPS guidance of $1.43-$1.51. They highlighted ongoing benefits from the Transform & Modernize initiative, continued portfolio reshaping (including Justin’s strategic partnership and noncore exits), and a sharpened emphasis on marketing efficiency and real-time commodity risk management. Risks remain tied to commodity cost volatility, turkey supply constraints, beef/nut cost headwinds, and macro consumer weakness. Overall, the investment thesis rests on a resilient, protein-focused brand ecosystem, improving margins via mix, pricing discipline, and ongoing productivity programs, alongside meaningful cash flow generation and a durable dividend yield.