Cal-Maine Foods (CALM -0.91%), the largest producer and distributor of shell eggs in the United States, released its fourth-quarter results for fiscal 2025 on July 22, 2025. The company reported sharply higher GAAP revenue and profits than expected, with revenue (GAAP) at $1.10 billion versus estimates of $783.95 million, and earnings per share (EPS, GAAP) at $7.04 compared to $1.78 projected by analysts. The main drivers were a surge in egg prices due to widespread avian influenza-related supply shortages and expanded production capacity. The quarter reflects a period of exceptional performance, well above recent trends for both revenue and EPS (GAAP).
| Metric | Q4 2025 | Q4 2025 Estimate | Q4 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $7.04 | $1.78 | $2.32 | 203.4% |
| Revenue | $1.10 billion | $783.95 million | $640.8 million | 71.9% |
| Net Income | $342.5 million | $113.2 million | 202.7% | |
| Gross Profit | $531.5 million | $186.4 million | 185.1% | |
| Dozen Eggs Sold (000) | 311,393 | 285,555 | 9.1% |
Source: Cal-Maine Foods. Note: Analyst estimates for the quarter provided by FactSet.
Overview of Cal-Maine Foods’ Business
Cal-Maine Foods is the leading shell egg producer and distributor in the United States, supplying a vast network of retailers, wholesalers, and foodservice customers. It handles a diverse product portfolio, including both conventional shell eggs and specialty eggs such as cage-free, organic, and nutritionally enhanced varieties.
The company has focused heavily on expanding its specialty egg business, responding to increased consumer demand and new regulations. It invests in production capacity, acquisition-led growth, and building a nationwide distribution network. The key to its ongoing success is balancing scale, operational efficiency, and adaptability in a highly volatile commodity environment.
Quarter in Detail: Highlights and Drivers
The latest quarter saw a dramatic rise in net sales and profits (GAAP), primarily driven by a surge in the price of shell eggs. The net average selling price per dozen climbed to $3.305, up 55% year over year, as the industry grappled with ongoing disruptions related to avian influenza, an infectious disease that affects bird populations. At the same time, the number of eggs sold rose 9.0% to 311.4 million dozen, benefiting from organic growth and the integration of recent acquisitions.
The impact of avian influenza on the U.S. flock proved significant. Disease outbreaks led to the loss of over 79 million hens and pullets industry-wide between CY2024 and the first half of CY2025. This constrained supply and sent egg prices higher, fueling Cal-Maine Foods’ surge in profitability. Net income (GAAP) increased to $342.5 million, while gross profit (GAAP) climbed strongly to $531.5 million, as the company managed to hold per-dozen farm production costs roughly steady at $0.49 despite significant market stress.
Specialty eggs—covering cage-free, organic, and other premium products—remained a growth area. The company sold a record 121.8 million specialty dozens, up 16% from the prior year quarter. The mix of specialty eggs as a percentage of total dozens sold increased by 2.3 percentage points to 39.1%, and the net average selling price for specialty eggs rose 13.5% to $2.559 per dozen. However, the share of total dollar sales from specialty eggs declined compared to the prior year, as conventional egg prices rose more rapidly amidst the market disruption. Specialty eggs are a core strategic focus, supporting the company’s regulatory compliance and ability to meet changing consumer preferences.
Cal-Maine Foods also completed two notable acquisitions. The addition of ISE America, Inc. early in Q1 FY2025 expanded specialty production capacity and volume. After quarter-end, the completion of the Echo Lake Foods acquisition brought the company into the prepared foods market, further diversifying its offerings. Other operational advances included a significant expansion in laying hen numbers and breeder flocks.
Lower feed costs helped support higher margins, with feed expense per dozen dropping to $0.49 from $0.50 in the prior year. However, the company reported increased costs for purchasing eggs from external sources, driven by sky-high market prices. Operating income margin improved to 39.5%, up from 22.2% in the prior year period. These high margins were enabled by exceptional price conditions unlikely to be sustained if industry supplies recover and commodity prices normalize.
The balance sheet remained strong. Cash and short-term investments almost doubled from June 1, 2024, to May 31, 2025, and the company declared dividends totaling $2.35 per share. Dividends paid in the period reached $114.2 million, following the company’s variable payout policy that targets one-third of quarterly net income. For the first time, the company conducted share repurchases, buying back 551,876 shares for $50 million, with $450 million remaining authorized under a new buyback program.
Looking Ahead and Management Outlook
Leadership did not provide specific financial forecasts for the coming quarter or fiscal year. However, its commentary highlighted continued focus on expanding shell egg production capacity, integrating recent acquisitions, and growing the specialty and prepared food categories. The company expects ongoing investment in specialty eggs to align with consumer trends and state mandates for cage-free products.
Management did signal caution about future results. They specifically cited the unpredictable nature of avian influenza outbreaks and related supply and price volatility as persistent risks. No quantitative guidance was offered, reflecting the uncertain backdrop for egg prices and disease-related disruptions. The quarterly dividend policy continues to set payouts at one-third of net income, so future dividends may fluctuate in response to earnings swings.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
