JBS Reports $164 Million Net Profit as Adjusted EBITDA Falls 36%
Key Facts
On November 9, JBS reported net income attributable to the company of $164 million in the third quarter of 2026, compared with $581 million in the same period last year, according to results filed with the U.S. Securities and Exchange Commission. Net sales were $22.738 billion, versus $22.597 billion, while adjusted EBITDA under IFRS fell to $1.181 billion from $1.835 billion. The company said operating conditions had become more challenging in several of its units, weighing on earnings despite sales growth. Earnings per share also fell to $0.15 from $0.52, and adjusted earnings per share declined to $0.16 from $0.54. The company’s shares fell 7% in after-hours trading on Monday, according to a Reuters report published by Investing.com, which said adjusted earnings per share came in below analysts’ consensus of $0.32.
The results were mixed across the group’s units. North American beef returned to profitability under U.S. GAAP, posting adjusted EBITDA of $21 million after a loss of $46 million a year earlier. JBS attributed the turnaround to improved market conditions, continued operational integration, and better commercial execution and industrial efficiency. By contrast, Pilgrim’s Pride, the group’s largest poultry unit, reported adjusted EBITDA under IFRS of $462 million, down from $770 million a year earlier, a decline of 39.9%. Under U.S. GAAP, the unit’s earnings were $316 million, compared with $633 million, a drop of 50%. The contrast highlights that the improvement in the U.S. beef unit was not enough to offset weaker earnings at other units.
In Brazil, JBS said lower beef exports, particularly to China, after the 2026 Chinese quota was exhausted, affected quarterly sales, alongside higher cattle prices. Adjusted EBITDA under IFRS at JBS Brazil fell to $141 million from $307 million in the year-earlier period, a decline of 54%. The company said Chinese demand strengthened at the start of the fourth quarter, as customers began securing volumes for the 2027 quota. Fresh poultry unit Seara benefited from higher prices and export volumes, and September set a company record for export volumes. JBS said North American beef had returned to positive adjusted EBITDA and linked the early improvement in Chinese demand to preparations for the next quota.
Earnings weakness also extended to cash flow: free cash flow was a deficit of $167 million in the third quarter, down $551 million year over year. The company attributed this to a $653 million decline in adjusted EBITDA, alongside greater use of working capital in Brazil, particularly for inventories. Net debt to last-12-month adjusted EBITDA rose to 3.54 times, compared with 2.39 times a year earlier, and JBS said weaker operating performance had increased leverage. In contrast, the company increased its revolving credit facilities from $3.5 billion to $4.2 billion. Reported total liquidity was $8.2 billion, providing a counterpoint to the rise in leverage during the quarter.
For the nine months ended September 30, 2026, net sales rose to $68.246 billion from $63.121 billion in the corresponding period of 2025. But adjusted EBITDA under IFRS fell over the period to $3.744 billion from $5.116 billion. The figures are consistent with the third-quarter trend: revenue growth accompanied by a clear decline in earnings. The company also said quarterly adjusted EBITDA under IFRS fell 36% year over year, while adjusted operating income declined 58%. In a Reuters report published by Investing.com, quarterly revenue was $22.74 billion, below analysts’ estimate of $23.63 billion, alongside the gap between actual adjusted earnings per share and analysts’ consensus.
In the U.S. cattle market, a U.S. Department of Agriculture report said the slow pace of slaughter was expected to continue through 2027, and beef production forecasts for 2026 and 2027 were trimmed slightly from the previous month’s estimates. This comes after North American beef improved, returning to positive adjusted EBITDA under U.S. GAAP. But results at other units, including lower earnings at Pilgrim’s Pride and the Brazil unit, contributed to pressure on the group’s overall performance. The nine-month results show that higher sales did not prevent a year-over-year decline in adjusted EBITDA. Company officials are scheduled to discuss the results on a conference call and webcast on November 10, 2026, at 9:00 a.m. U.S. Eastern time.
In two separate announcements on November 9, JBS said it had agreed to acquire all of Flora in a deal valued at $542 million, including the assumption of the company’s debt. The consideration paid in shares is $367 million, to be paid in Class A treasury shares and/or Brazilian depositary receipts. It also announced the acquisition of Canal Rural in a deal valued at $11 million. Both transactions are expected to close in December 2026, subject to customary closing conditions. The deals come as quarterly results showed declines in earnings and cash flow, while the company said total liquidity was $8.2 billion.