JBS (JBS) Q1 2026 earnings summary

Executive summary

• Net sales reached a record $22 billion in Q1 2026, up 11% year-over-year, driven by strong global demand and diversified operations.

• Adjusted EBITDA (IFRS) was $1.13 billion (5.2%–6.7% margin), with net income reported between $221 million and $500 million, reflecting margin pressure in North America beef and Pilgrim's Pride, but strong results in Seara and JBS Brazil.

• Diversified platform, operational adjustments, and global expansion—including new facilities and acquisitions—helped offset headwinds.

• Dual NYSE listing completed, enhancing capital access and flexibility.

• Investments in automation, AI, and value-added product capacity continued across business units.

Financial highlights

• Net sales grew 10.7%–11% year-over-year to $21.6–$22 billion in Q1 2026.

• Adjusted EBITDA (IFRS) was $1.13 billion (5.2%–6.7% margin); USGAAP EBITDA ranged from $916 million to $960 million (4.2% margin).

• Net income ranged from $221 million to $500 million; EPS between $0.21 and $0.47.

• Free cash flow was negative, ranging from -$1.5 billion to -$285 million, impacted by higher CapEx and working capital needs.

• CapEx totaled up to $917 million, with a focus on both maintenance and expansion.

Outlook and guidance

• Management expects continued strong global protein demand, with beef supply constrained and poultry demand solid.

• Cash flow is expected to normalize over the year if livestock deferral trends continue.

• Second half of the year anticipated to generate stronger free cash flow, aiming for net leverage between 2x and 3x by year-end.

• CapEx for 2026 targeted at $2.4 billion, with $1.3 billion for expansion, monitored based on leverage.

• Focus on global diversification, value-added product expansion, and innovation to drive future growth.