Skip to content
Optionomics Free · No account needed

Earnings analysis · 10-Q

JBS earnings analysis

Filed August 10, 2026 · Our reading of the company's report

The latest report

JBS delivered 12.3% six-month revenue growth to US$45,508.2 million, but sharply higher cattle and other input costs, weaker segment profitability and a 77.8% increase in net finance expense reduced net income 87.4% to…

Read full summary

JBS delivered 12.3% six-month revenue growth to US$45,508.2 million, but sharply higher cattle and other input costs, weaker segment profitability and a 77.8% increase in net finance expense reduced net income 87.4% to US$145.4 million. Adjusted EBITDA fell 21.9% to US$2,562.7 million, with the largest declines in Pilgrim’s Pride, Seara, Pork USA and Australia, while Beef North America remained loss-making. Liquidity is supported by US$3,686.6 million of cash and investments and US$3.4 billion of revolving capacity, but debt increased to US$22,650.7 million and disclosure controls remain ineffective due to a material weakness.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $90 Operating expenses $8 Left as operating profit $2

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Beef North America 32.3% Pilgrim’s Pride 19.8% Brazil 18.1% Seara 10.7% Australia 10.2% Other segments 8.9%

Shares of the segments disclosed in this filing, largest first.

What stood out

  • Revenue growth remained strong

    Six-month net revenue increased 12.3% to US$45,508.2 million from US$40,524.2 million, driven by a 10.4% increase in average sales prices and a 1.7% increase in sales volumes.

  • Brazil delivered strong growth

    Brazil revenue rose 24.0% to US$8,373.4 million and Adjusted EBITDA increased 21.5% to US$436.9 million, supported primarily by a 17.2% increase in sales prices.

  • Operating cash flow turned positive

    Operating cash flow improved to US$62.8 million from cash usage of US$43.1 million in the prior-year period, helped by US$683.6 million of cash generation from trade accounts receivable.

  • Liquidity remains substantial

    Management reported US$3,686.6 million of cash, margin cash and long-term investments plus US$3.4 billion of permitted revolving-credit capacity as of June 30, 2026.

  • Debt profile is long dated

    Debt maturities are weighted toward the long term: US$18,928.0 million, or 83.6% of total indebtedness, is due after 2031.

  • Capacity investment accelerated

    Capital spending increased to US$1,178.9 million from US$714.1 million, with 66% directed to capacity expansion and 44% to facilities.

What to watch

  • Profitability deteriorated sharply

    Net income fell 87.4% to US$145.4 million from US$1,150.6 million, while net margin declined to 0.3% from 2.8%. Gross margin also compressed to approximately 10.8% from approximately 13.5% as cost of sales rose 15.8%, faster than revenue growth of 12.3%.

  • Higher financing costs pressured earnings

    Net finance expense increased 77.8% to US$1,009.8 million, including US$998.5 million of interest expense and a US$152.5 million loss on early extinguishment of debt.

  • Debt and near-term maturities increased

    Total indebtedness rose to US$22,650.7 million from US$21,090.6 million at December 31, 2025, while current debt increased to US$1,334.9 million from US$833.1 million.

  • North American beef losses widened

    Beef North America generated an Adjusted EBITDA loss of US$345.0 million, compared with a loss of US$333.5 million, as cattle prices increased and sales volume fell 6.7%.

  • Poultry profitability weakened

    Pilgrim’s Pride Adjusted EBITDA declined 35.5% to US$952.6 million from US$1,477.9 million, driven by higher live-operation costs, unfavorable currency effects and increased legal settlements.

  • Material internal-control weakness

    Disclosure controls were deemed ineffective as of June 30, 2026 because of a material weakness in internal control over financial reporting; the filing nevertheless stated that the interim financial statements fairly present the company’s results.

Management's outlook

No explicit quantitative revenue or EPS guidance was provided. Management stated that cash on hand, operating cash flow and remaining credit-line availability should be sufficient for ongoing requirements, debt service and capital expenditures for the next 12 months.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.