BRF (BRFS3) Q2 2025 earnings summary

Executive summary

• Achieved record first-half EBITDA of R$5.3 billion and net income of R$1.9 billion, reflecting operational excellence and financial discipline, despite export restrictions.

• Announced merger with Marfrig to form MBRF, creating a global food leader with R$152 billion in net revenue and 38% of sales from high value-added products.

• Sequential volume growth in Brazil, especially in processed products, supported by an expanding client base and market share gains.

• International diversification and new product launches mitigated export restrictions and supported market expansion.

• BRF+ efficiency program delivered R$208 million in additional savings in 2Q25.

Financial highlights

• Net revenue for Q2 2025 reached R$15.4 billion, up 2.9% year-over-year, with 1H25 revenue at R$30.9 billion.

• Adjusted EBITDA for Q2 2025 was R$2.5 billion (16.3% margin), and 1H25 EBITDA was R$5.3 billion.

• Net income for Q2 2025 was R$735 million, a 32.8% decrease year-over-year; 1H25 net income was R$1.9 billion.

• Free cash flow in Q2 2025 was R$842 million, or R$1.3 billion excluding M&A and FX effects.

• Net debt reduced to R$4.7 billion, with leverage at a historic low of 0.43x LTM EBITDA.

Outlook and guidance

• Expectation of cost reduction in animal feed by 2% in the second half of 2025, benefiting from lower grain prices.

• Focus on synergy capture and efficiency post-merger, with continued investment in brands and market expansion.

• Anticipate gradual margin improvement in Brazil due to lower CPV and potential for further price adjustments.

• Inventory normalization expected as export markets, particularly China and Europe, reopen.

• Ongoing international market diversification and product innovation to offset export restrictions.