“AOI of more than $1.8 billion, nearly doubled versus fiscal 2023, while adjusted EPS of $3.10 increased more than 130%.”
— Donnie King
03Detailed Report
TSN
Company TSN
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
Tyson Foods delivered a solid Q4 2024 performance against a challenging beef backdrop, underscored by strong profitability in chicken and prepared foods and meaningful improvements in international operations. For the full-year 2024, Tyson reported an AOI of more than $1.8 billion and adjusted earnings per share (EPS) of $3.10, with free cash flow of roughly $1.5 billion—over twice the dividend and a material step-change versus 2023. The company reinforced a disciplined capital-allocation framework that yielded stronger cash generation, reduced leverage to 2.6x net debt to adjusted EBITDA, and ~4B of liquidity. Management outlined a clear FY25 path: AOI expected to grow ~10% to a range of $1.8–$2.2 billion, with roughly equal contribution from prepared foods and chicken (about 50% of AOI each) and ongoing emphasis on value-added brands and digital-enabled operating improvements. The guidance also contemplates flat-to-down revenue (0% to -1%) as beef/pork volumes offset chicken/prepared foods growth, with CapEx limited to $1.0–$1.2 billion and free cash flow above ~$700 million. Investors should monitor live-animal cost dynamics, cattle cycles, demand for value-added products, and the company’s progress on its five strategic enablers: operational excellence, brand value-up, data/digital, capital allocation, and people development.
Key Performance Indicators
Revenue
Increasing
13.57B
QoQ: 1.59% | YoY: 1.63%
Gross Profit
Increasing
1.06B
7.81% margin
QoQ: 20.73% | YoY: 130.94%
Operating Income
Increasing
525.00M
QoQ: 53.96% | YoY: 213.39%
Net Income
Increasing
357.00M
QoQ: 86.91% | YoY: 179.33%
EPS
Increasing
1.03
QoQ: 87.27% | YoY: 179.84%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of Q4 2024 performance and YoY/QoQ trends with corresponding implications:
- Revenue (Q4): $13.565 billion, up 1.6% YoY; full-year revenue up 0.8% YoY.
- Gross Profit: $1.06 billion in Q4; gross margin ~7.81% for the period; full-year gross margin benefited from mix and lower input costs.
- Adjusted Operating Income (AOI): Q4 AOI $512 million (3.8% margin); full-year AOI >$1.8 billion (nearly double 2023).
- Net Income: Q4 net income $357 million; FY2024 net income growth driven by chicken and prepared foods, offsetting beef pressure; full-year adjusted EPS $3.10 (up >130% YoY).
- EPS (GAAP vs. adjusted): GAAP EPS in Q4 not disclosed in detail here, but adjusted EPS for FY24 was $3.10; diluted EPS in Q4 was $1.00.
- Free Cash Flow (FCF): FY24 FCF ~$1.5 billion, more than 2x the annual dividend; FY24 CFO ~$2.6 billion; CapEx ~$1.1 billion; free cash flow was aided by higher operating cash flow and lower CapEx.
- Balance Sheet and Leverage: Net debt $8.07B; total debt $9.79B; net debt/Adjusted EBITDA ~2.6x; liquidity ~$4.0B; cash at period end $1.717B.
- Cash Flow and Pockets of Value-added Growth: Operating cash flow of $2.6B in 2024, with a strong cash-generation trajectory supported by better working capital management and disciplined capital deployment.
- Guidance (FY25 midpoint): AOI $1.8–$2.2B (≈10% growth); CapEx $1.0–$1.2B; free cash flow >$700M; revenue flat to down 1%; chicken and prepared foods ~50% each of AOI; beef/pork relatively flat or modestly negative at the margins.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.57B
1.63%
1.59%
Gross Profit
1.06B
130.94%
20.73%
Operating Income
525.00M
213.39%
53.96%
Net Income
357.00M
179.33%
86.91%
EPS
1.03
179.84%
87.27%
Key Financial Ratios
Gross Profit Margin
Weak
7.81%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
3.87%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.63%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.96%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.94%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.04
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.53
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
14.46x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.12x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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