JBS Profitability Falls Sharply as Beef North America Turns Positive

The Tip Desk · November 12, 2026 · 4 min read

IFRS adjusted EBITDA was $1,181 million, down 36% from a year earlier, as net sales of $22.74 billion rose only 1%.

JBS N.V. (JBS) reported IFRS adjusted EBITDA of $1,181 million for the third quarter of 2026, down 36% from a year earlier, after an 18% year-over-year decline in the second quarter. USGAAP adjusted EBITDA was $1,001 million, down 38%. Net sales were $22.74 billion, up 1% from the year-earlier quarter, after a 14% year-over-year increase in the prior quarter.

Net income attributable to JBS was $164 million, or $0.15 a share, versus a $102 million loss, or -$0.10 a share, in the second quarter. IFRS adjusted operating income was $521 million, down 58% from the year-earlier quarter.

Global CEO Gilberto Tomazoni said the company faced a more challenging operating environment across several business units and that the weaker performance lifted net leverage to 3.54x from 3.10x at the end of the second quarter. Interest coverage on a trailing-twelve-month basis was 4.34x.

JBS Beef North America net sales were $7.56 billion, up 4.3% from the year-earlier quarter. IFRS adjusted EBITDA was a $2 million loss, 95.4% better than a $42 million loss a year earlier; USGAAP adjusted EBITDA turned positive at $21 million from a $46 million loss. The company said industry processing-capacity adjustments, the reopening of key U.S.-Mexico cattle crossings, and beef demand supported the recovery, and that integrating fed beef, regional beef and case-ready operations under one management structure improved coordination. Margins moved from negative 2.9% in July to breakeven in August and positive 3.9% in September.

Pilgrim’s Pride net sales were $4.65 billion, down 2.2%. IFRS adjusted EBITDA was $462 million, down 40%, with margin at 9.9% versus 16.2%; USGAAP adjusted EBITDA was $316 million, down 50%, with margin at 6.8% versus 13.3%. The company said U.S. chicken demand continued to grow across retail and foodservice, that U.S. production peaked with 4.7% growth in July and then slowed, and that prepared foods inside PPC drove profitable growth as sales and margins increased versus last year. Just Bare market share in volume rose over 300 basis points year over year. In Europe, profitability remained pressured by pork conditions and higher input costs. In Mexico, profitability improved sequentially.

JBS Brazil net sales were $4.09 billion, down 1.6%. IFRS adjusted EBITDA was $141 million, down 54%, with margin at 3.4% versus 7.4%. The company said lower exports to China after completion of the 2026 quota and higher cattle prices weighed on results. At the start of the fourth quarter, Chinese demand strengthened as customers began securing volumes for the 2027 quota.

Seara net sales were $2.51 billion, up 6.4%. IFRS adjusted EBITDA was $331 million, up 2.5%, with margin at 13.2% versus 13.7%. September reached record export volumes. Pork exports remained pressured by ample global supply.

JBS Australia net sales were $2.49 billion, up 13.7%. IFRS adjusted EBITDA was $198 million, down 21%, with margin at 7.9% versus 11.4%. The company said beef exports were hit by quota completion in China and South Korea and lower U.S. shipments, and that higher cattle and lamb costs weighed on results. Huon delivered a strong performance on increased harvest and higher fish weights.

JBS USA Pork net sales were $1.88 billion, down 15.3%. IFRS adjusted EBITDA was $37 million, down 83%, with margin at 2.0% versus 9.8%. The company said domestic demand softened as inflation pressured the American consumer and that increased global pork supply weighed on exports.

Free cash flow was negative $167 million, a $551 million decrease year-over-year, explained by a $653 million decline in adjusted EBITDA and higher working-capital consumption in Brazil, including grain inventories at Seara, chicken inventories at Seara in Europe, and beef products held for the 2027 China quota. Average debt term was 14.4 years at an average cost of 5.7%, with more than 95% at fixed rates. The company increased its revolving credit facility from $3.5 billion to $4.2 billion and grew total liquidity to $8.2 billion.