Tyson Foods reported a subdued QQ2 2025 with meaningful margin compression and negative cash flow from operations, despite a large revenue base of approximately $13.07 billion. Revenue declined 2.1% year-over-year and 4.0% quarter-over-quarter to $13.074 billion, while gross profit of $600 million produced a margin of 4.59%, signaling intensified cost pressure across the beef, pork, chicken, and prepared foods mix. Operating income was $100 million (0.76% margin) and net income totaled $7 million, yielding a diluted earnings per share of $0.0197. The quarter reflected ongoing commodity cost headwinds, pricing dynamics, and a heavier working capital footprint that contributed to negative free cash flow of $-378 million and cash flow from operations of $-185 million.
Key Performance Indicators
Revenue
Decreasing
13.07B
QoQ: -4.03% | YoY: -2.09%
Gross Profit
Decreasing
600.00M
4.59% margin
QoQ: -45.21% | YoY: -31.66%
Operating Income
Decreasing
100.00M
QoQ: -82.76% | YoY: -70.67%
Net Income
Decreasing
7.00M
QoQ: -98.05% | YoY: -96.34%
EPS
Decreasing
0.02
QoQ: -98.09% | YoY: -96.35%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $13.074B; YoY -2.09%, QoQ -4.03%. Gross Profit: $0.60B; Gross Margin 4.59%; YoY -31.66%, QoQ -45.21%. Operating Income: $0.10B; Operating Margin 0.76%; YoY -70.67%, QoQ -82.76%. Net Income: $7M; Net Margin 0.053%; YoY -96.34%, QoQ -98.05%. EPS: $0.0197; YoY -96.35%, QoQ -98.09%. EBITDA: $0.492B; EBITDA Margin 3.76%. Free Cash Flow: $(0.378)B; CFO: $(0.185)B; Capex: $(0.193)B. Balance Sheet: Total Assets $36.28B; Total Liabilities $17.75B; Total Equity $18.40B. Liquidity/Leverage: Current Ratio 1.67, Quick Ratio 0.69, Cash Ratio 0.18; Debt $9.07B, Net Debt $8.08B; Interest Coverage 0.91x (operating income to interest). Key multiples: P/B 1.20, P/S 1.69, Dividend Yield 0.79%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.07B
-2.09%
-4.03%
Gross Profit
600.00M
-31.66%
-45.21%
Operating Income
100.00M
-70.67%
-82.76%
Net Income
7.00M
-96.34%
-98.05%
EPS
0.02
-96.35%
-98.09%
Key Financial Ratios
Gross Profit Margin
Weak
4.59%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
0.77%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.05%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.04%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.67
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.49
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
High Growth
790.76x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.20x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.