In a release dated July 22^nd, Cal-Maine Foods Inc. (CALM) announced results for the 4^th Quarter and FY 2025 ending May 31^st 2025. This review summarizes data provided in the Company release and the concurrently filed SEC 10-K Report.

Cal-Maine Foods exceeded analysts’ revenue estimates and on EPS by 12 percent.

It is noted that market conditions during Q4 2025 were favorable with an average Cal-Maine unit revenue of $3.31 per dozen for all eggs, compared with Q4 2024 attaining a corresponding price of $2.13 per dozen. Financial results that exceeded Street consensus boosted CALM price by 5 percent in post-release trading to $109 with a further rise of 18 percent to $124 at noon on July 23^rd.

Cal-Maine represents a bellwether for the shell egg sector as the only public-quoted, pure-play egg company in the industry, supplying close to 20 percent of domestic shell egg consumption. The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

Notes: $17.4 million ‘other income,’(excluding interest earned) in Q4 2025 compared to $9.7 million in Q4 FY2024:

             $0.3 million loss on non-controlling interest in Q4 2025 similar to Q4 FY204.

For FY 2025 Cal-Maine Foods posted net income of $1,220 million on sales of $4,262 million with a diluted EPS of $24.95. This compares with FY 2024 during which Cal-Maine Foods posted net income of $278 million on sales of $2,236 million with a diluted EPS of $5.69.

CALM Trailing P/E =5.3

52-Week Range in Share Price:  $63.57 to $126.40   50-day Moving average of $98.85

Market Close, Tuesday, July 22^nd $104.70 pre-release.

Post release, after-hours, 20H00 up 5.0 percent to $109.70.

Market close Wednesday, July 23^rd up 13.8 percent to $119.16

In reviewing the CALM Q4 2025 report and the SEC 10-K submission the following values represent key data for the most recent Quarter (with Q4 FY 2024 and percentage differences in parentheses for comparison):-

• Shell egg sales attained $1,029,153 million in Q4 2025. Shell eggs comprised 93.2 percent of total revenue. ($609,089 million, in Q4 2024, based on 95.1 percent of revenue. Sales value for shell eggs was up 69% reflecting higher average unit value).

• Dozen shell eggs sold (thousands): 311,393 (285,555; +19.6%)
• Average selling price of all shell eggs: $3.305 per dozen; ($2.133 per dozen;             +55.0%).
• Average selling price of specialty eggs (excluding co-pack): $2.559 cents per dozen; ($2.254 per dozen; +13.5%).
• Average selling price of generic eggs: $3.784 cents per dozen; ($2.062 cents per dozen; +83.5%).
• Differential between specialty eggs and generic eggs: -$1.225 cents per dozen;      (+$0.497 per dozen; -140.6%)
• Specialty eggs as a proportion of volume sold: 39.1%; (36.8%; -6.3%)
• Specialty eggs as a proportion of sales value: 30.3%; (38.9%; -22.1 %)
• Proportion of eggs sold that were produced by Cal-Maine and their contract flocks in Q4 2025: 92.5% (85.4%; +8.3%).
• Outside egg purchases at $3.67 per dozen ($2.16; +69.9%)
• Egg products and prepared foods sales in Q4 2025 attained $198.8 million or 4.7% of sales value. For Q4 2024, sales attained $89.0 million representing 3.8 percent of revenue. (+123.3%)

Over FY 2025 production costs for all categories of shell eggs expressed as cents per dozen (rounded) comprised:-

• Feed               49c
• Production.    43c
• Packing      31c
• Delivery.      3c
• Overhead.    5c

Total.       131c

Note: no provision for pullet depreciation, presumably included in ‘production’ expense category

Cal-Maine Foods maintained a flock of 48.3 million hens on May 31^st 2025 reflecting acquisitions and growth, with 11.5 million pullets plus parent breeders representing under two percent of the total flock. 

• Effective May 31^st2025 production capacities comprised:-

• Hens: 51.8 million on 49 farms
• Pullets:14.3 million on 37 farms.
• Packing: 22,490 cph in 50 plants.
• Hatching: 356,300 pullet chicks per week in 2 facilities.
• Parent breeders: 215,000 hens.
• Feed : 1,000 tons per hour in 30 plants.
• Egg products: 72,700 lbs. per hour. 

For FY 2025 conventional eggs represented 66.9 percent of revenue and 63.3 percent of volume. The breakdown of this category expressed as a percentage of total sales comprised 53.8 private label, 6.0 branded and 7.1 ‘other.’ Specialty eggs represented 27.6 percent of revenue and 36.7 percent of volume. The breakdown of this category expressed as a percentage of total sales comprised 14.1 private label, 12.2 branded and 71.3 ‘other’

The top three customers represented 49.2 percent of sales value, with Walmart and Sam’s Club comprising 33.6 percent in FY 2025.

The major distribution channels expressed as a percentage of value in FY 2025 comprised retail, 84.8, foodservice, 14.3 and ‘other’, 0.9

The following observations relate to the comparison of Q4 2025 with the corresponding Q4 2024:-

• Cal-Maine Foods was not affected by the HPAI epornitic during FY 2022 nor in FY 2023. During Late December 2023 (Q3 FY 2024) the Chase, KS. Complex comprising 1.5 million hens and 240,000 pullets, representing 3.3% of the then total flock was depopulated as a result of HPAI. On April 1^st 2024 (Q4 2024)

the Farwell, TX complex was diagnosed with HPAI, requiring depopulation of 1.6 million hens and 0.34 million pullets. Both complexes have resumed production. No further outbreaks occurred in FY 2025

• Q4 2025 represented a more favorable marketing comparison to Q4 2024 based on higher prices for shell eggs, due to depopulation of many U.S. flocks following infection with HPAI. Reduced supply was coupled with higher than normal seasonal consumer demand. Average shell egg price received by Cal-Maine for all shell eggs was 55.0 percent higher than in Q4 2025.
• Comparing Q4 2025 with Q4 2024, gross profit was positively influenced by higher unit revenue for generic eggs but with minimal to negative benefit from specialty eggs. The average 2.2 percent lower feed cost to 49.0 cents per dozen was complemented by a 1.2 percent lower farm production cost of 42.8 cents per dozen,
• In a market characterized by high unit prices for generics, the relative contribution of specialty eggs is less important to net earnings in contrast to a down-market for conventional eggs. Normality in the market should be restored by the end of Q2 FY 2026 with generic eggs at a lower unit price compared to specialty eggs, as flocks are replaced. This presumption is subject to a low incidence rate of HPAI, through early winter months of 2025 and the spring of 2026.

The Q4 press release noted “Significant progress on proactive steps to add production capacity and help mitigate the egg supply shortage across the country, including:

• An 18% increase in the average number of layer hens during the fourth quarter of fiscal 2025, compared to the prior-year quarter, reflecting re-start of prior-year facility outages and both organic and inorganic expansion.
• A 48% increase in the Company’s breeder flocks as of the end of the fourth quarter of fiscal 2025 compared to the end of the prior-year quarter.
• A 56% increase in total chicks hatched during the fourth quarter of fiscal 2025 compared to the prior-year quarter.
• Continued progress on ongoing organic expansion projects that are expected to add approximately 1.1 million cage-free layer hens and 250,000 pullets and contract production of 1.2 million free-range layer hens.
• Added production support through the integration of recently acquired assets”

Commenting on the fourth quarter of fiscal 2025 results, Sherman Miller, president and CEO, stated, “Our results marked a strong finish to a challenging, but successful year of transformation for Cal-Maine Foods. We continued to advance our growth strategy in a dynamic market environment, maintained a strong focus on safely, efficiently and sustainably managing our operations, added production capacity to meet customer demand and stayed disciplined in our investments.

He added “Following the end of the fourth quarter, we closed the acquisition of Echo Lake Foods, which aligns with our strategy to diversify our product portfolio by expanding our prepared foods offerings. We are excited about the new market opportunities that Echo Lake Foods provides for Cal-Maine Foods, our customers and our shareholders, and we look forward to continuing to work together on a successful integration”

Miller opined, “Cal-Maine Foods has continued to be resilient through a period of unprecedented challenges for our industry. We are extremely proud of

our teams across our operations who have remained focused on managing our operations in a responsible manner while navigating the ongoing risks associated with HPAI. Our consistent ability to meet the demands of our customers is a testament to our ability to execute our strategy regardless of market conditions”.

Miller added “As a leader in our industry, we are mindful of our critical role in providing an affordable, high-value protein option to support the nation’s food supply. We believe we have a proven operating model and the operational scale that allows us to continue to expand our shell egg production capacity and product mix, both organically and through strategic acquisitions. With the addition of Echo Lake Foods, we have a significant opportunity to continue to pursue additional growth in our prepared foods portfolio, which we expect will diversify our product offering, leverage our existing distribution channels and expand our reach in retail, quick service restaurants, and other food service customers.

He concluded “Looking ahead to fiscal 2026, we believe Cal-Maine Foods is well-positioned to continue delivering on our growth and returns strategy with our leading production capability, fully integrated operations, expanding product portfolio, broad distribution reach and commitment to financial discipline and an unwavering mission to be the most sustainable producer and reliable supplier of consistent, high

quality fresh shell eggs, egg products and prepared foods in the U.S.”

As of April 14^th Cal-Maine Foods ceased to be a “controlled company” with conversion of Class A shares to common stock. As part of the buy-back program the Company purchased shares to the value of $50 million from entities representing the Founder family. Future additional purchases valued at $450 million have been authorized by the Board.

Recent acquisitions include:-

• Fassio Egg Farms in UT., acquired in Q2 2024
• A Dexter, MO., broiler complex was acquired in Q4 FY 2024 from Tyson Foods and has been converted to cage-free production
• ISE America was purchased in Q1 2025: for $111.5 million comprised 4.7 million hens, (1.2 million cage-free), pullets, housing, packing plants and other facilities on 4,000 acres in MD., NJ., DE. and SC., representing a unit expenditure of $25/hen with established markets.
• Cal-Maine acquired the remaining 9.2 percent equity in Meadow Creek Foods located in MO. during the 2^nd Quarter of FY 2025
• A majority shareholding in Crepini Foods was acquired in Q2 of FY 2025
• Echo Lake Foods was acquired in Q3 of FY 2025.

Cal Maine Foods has expanded by purchase of existing integrated production facilities but has extended acquisitions to value-added products over the past two years.

The 10-K Report documented approved capital investment of $248.3 million for FY 2026. This comprised a feed mill (3.9%); Egg products equipment (7.9%) and cage-free housing (89.9%) and conversions. Of this total $195.2 million (78.6%) has been committed with $53.2 million to be expended.