JBS S.A.

JBS reported first-quarter 2025 net revenues of $19.5 billion, adjusted EBITDA of $1.5 billion, and adjusted EBITDA margin of 7.8%. Net profit was $500 million, or $572 million excluding non-recurring items. Management said net sales rose 8.5% in U.S. dollars and net profit increased 50.5% year over year. Operating cash flow was negative $285 million and free cash flow was negative $970 million. Net debt ended at $14.8 billion, down $1.1 billion year over year, and leverage fell to 1.99x EBITDA from 3.66x. Forward, management did not give formal quarterly or full-year profit guidance; it reaffirmed a $2 billion CapEx budget and said leverage should remain within its long-term 2x-3x target range, with liability management continuing through the year. They also noted the tentative dual-listing timeline: general assembly on May 23, last day of trading of JBS S.A. on June 6, first day of BDRs on June 9, and final step on June 12, subject to approvals.

Gilberto Tomazoni framed Q1 as one of the strongest first quarters in JBS history and credited the company’s diversified global platform, innovation, and value-added strategy. He highlighted record margins at Seara and Pilgrim’s, strong performance in poultry, pork, Brazil beef, and Australia, and said the dual listing could improve visibility and attract new investors if approved. His tone was confident and constructive, while still acknowledging that beef North America remains pressured.

Guilherme Cavalcanti walked through the quarter’s financials: $19.5 billion of net revenue, $1.5 billion of adjusted EBITDA, 7.8% margin, and $500 million of net profit. He explained that operating cash flow and free cash flow were negative because of higher tax payments, working-capital rebuild in inventories at higher raw-material prices, increased margin deposits on hedges, and $140 million in antitrust-related settlements. He also said net debt was $14.8 billion, average debt maturity is about 12 years with an average cost of 5.4%, and the company paid/announced dividends of $789 million, or $0.30 per share, with another $0.17 pending only if the dual listing is approved.

Analysts focused on the upcoming dual-listing vote, U.S. beef margin pressure, tariffs/trade disruption, free-cash-flow concerns, and whether the company can keep reducing debt. Management said it does not know how votes will land and is encouraging shareholders to participate, while also noting the dual listing timetable is tentative and subject to approvals. On the operating side, Wesley Batista Filho said U.S. beef is facing a very difficult 2025, with tariff-related disruption taking about 1 to 1.5 percentage points of margin in Q2, mostly from hides and some pork exposure, but he expects diversification to cushion the impact and said reaction time normalizes quickly once tariffs ease.