JBS (JBS) Q2 2026 earnings summary

Executive summary

• Net sales reached a record $23.9 billion in 2Q26, a 14% year-over-year increase, but profitability declined with a net loss of $102 million and adjusted net income of $218 million, mainly due to non-recurring items and high cattle prices.

• Adjusted EBITDA (IFRS) was $1.43 billion (6.0% margin), down 18% year-over-year, and adjusted operating income was $790 million (3.3% margin).

• Adjusted EPS was $0.20, compared to $0.52 in 2Q25; reported EPS was -$0.10.

• Significant non-recurring items included $172 million in bond/CRA costs, $133 million in antitrust settlements, and an $81 million gain from an acquisition.

• $1 billion was returned to shareholders via dividends, and the company joined the Russell 1000 and 3000 indices, enhancing global visibility.

Financial highlights

• Gross profit for 2Q26 was $2.59 billion, down from $2.83 billion in 2Q25.

• Free cash flow improved to $130 million from a negative $55 million in 2Q25, driven by working capital improvements.

• Net leverage ended at 3.1x, above the long-term target; interest coverage was 5.0x.

• ROE LTM was 13.4%, down from 25.7% a year earlier; ROIC LTM was 13.4%.

• Average debt term extended to 15.3 years at a 5.7% average cost; total liquidity at $7.7 billion.

Outlook and guidance

• Profitability is expected to improve sequentially, supported by operational efficiency, investments in branded and value-added products, and resumption of live cattle imports from Mexico.

• Ongoing investments in geographic diversification and prepared foods are expected to support future margins.

• Management expects continued volatility in commodity and energy markets due to geopolitical tensions and inflationary pressures.

• The company believes it can meet all debt obligations through mid-2033 with current liquidity and cash flow.