Jbs N.V.

JBS reported record net sales of $24 billion in Q2 2026. Adjusted EBITDA was $1.4 billion under IFRS with a 6% margin, and $1.3 billion under U.S. GAAP with a 5.3% margin. Adjusted operating income was $790 million under IFRS and $866 million under U.S. GAAP. Reported net loss was $102 million, or negative EPS of $0.10; excluding nonrecurring items, adjusted net income was $218 million and adjusted EPS was $0.20. Free cash flow was positive $130 million, improving by $125 million year over year from a $55 million cash outflow. Net leverage ended the quarter at 3.1x, slightly above the long-term target range of 2x-3x. For 2026 cash flow modeling, management cited about $2 billion of CapEx, negative $350 million of working capital, $100 million of legal settlements already realized, $850 million of biological assets, $1.3 billion of interest expense, $500 million of leasing expense, and a 25% effective tax rate. Management said second-half free cash flow should help offset leverage pressure and indicated year-end net leverage would likely finish around slightly above 3x.

Gilberto Tomazoni framed the quarter as evidence of JBS’s resilient global model in a volatile environment, emphasizing efficiency, margin protection, and disciplined capital allocation. He highlighted improving profitability in most business units versus Q1, strong beef performance in Brazil, and a strategic Australia-NZ partnership that adds growth capacity for Southeast Asia while keeping the balance sheet protected. His tone was confident and steady, with repeated emphasis on execution, cash generation, and continuity through the leadership transition.

Guilherme Cavalcanti focused on the reported financial bridge and liquidity. He said the net loss was driven in part by $319 million of higher net financial expenses, including $172 million tied to tender-offer premiums, $53 million from mark-to-market and FX effects, about $120 million from monetary restatements and higher interest, $81 million from a bargain-purchase accounting adjustment, and $133 million of antitrust settlements. He also noted the company’s liquidity rose to about $7.7 billion including the revolver, the revolver was increased from $3.5 billion to $4.2 billion, average debt tenor reached 15.3 years, and average cost was 5.7%. He said leverage at 3.1x was above target mainly because of the $1 billion dividend in June and normal first-half cash use, but management expects second-half cash generation to support the ratio.

Analysts focused heavily on U.S. beef, asking whether demand was still strong, how the Mexican border reopening changes the outlook, and whether the division can get back to breakeven. Management said protein demand remains resilient, that consumer behavior is shifting more toward retail and eating at home, and that Mexican cattle flows should start improving from late 2026 into Q1-Q2 2027 as ports reopen. Questions also dug into the beef margin improvement; management said the business was reorganized from two units into one, with synergies coming mainly from sales and value-added products, and said the current result is before the full benefit of a roughly 3% improvement plan. Analysts also asked about chicken oversupply, Seara margins, Australia growth, and leverage; management said U.S. big-bird chicken is soft because supply rose faster than demand, Seara’s sequential margin pressure was mainly domestic, and year-end leverage should stay around slightly above 3x.