Tyson Foods reported a Q3 FY2025 revenue of $13.884 billion, up 2.35% year-over-year and 6.20% quarter-over-quarter, with a gross profit of $1.141 billion and a gross margin of 8.22%. Operating income totaled $260 million and EBITDA was $635 million, yielding an operating margin of 1.87% and an EBITDA margin of 4.57%. Net income stood at $61 million, translating to an EPS of $0.18, marking a sharp year-over-year decline of 82.9% but a solid sequential rebound of 771% versus the immediately preceding quarter. The dispersion between revenue strength and profitability reflects ongoing margin headwinds from input costs and mix, even as the company sustains cash generation.
From a cash-flow perspective, Tyson delivered robust operating cash flow of $774 million and free cash flow of $547 million, supported by capital expenditures of $227 million. Free cash flow per share was $1.57, underscoring meaningful cash generation that funds dividends and deleveraging. The balance sheet remains sizable and liquid: cash and cash equivalents of $1.545 billion, total debt of $9.065 billion, and net debt around $7.52 billion. Liquidity metrics show a current ratio of 1.733x and an interest-coverage ratio of 2.3x, while the debt-to-capitalization ratio sits at about 0.331, suggesting a manageable but elevated leverage profile for a large, diversified consumer defensive company.
Overall, the QQ3 2025 print demonstrates Tyson’s resilience in revenue amid persistent cost pressures, supported by strong FCF generation and a recoverable sequential performance in profitability. The key questions for investors center on margin expansion, the pace of efficiency gains, and how commodity cycles (feed costs and live cattle prices) and demand dynamics in beef, pork, chicken, and prepared foods influence longer-term cash flow and capital allocation. The absence of formal forward guidance in the provided data adds some uncertainty, placing greater emphasis on management’s ongoing cost-control initiatives and strategic portfolio management.