Jbs N.v Stock Earnings Reports

JBS reported record third-quarter 2025 net sales of $22.6 billion, adjusted EBITDA of $1.8 billion (IFRS) and net income of $581 million (EPS $0.52). Performance was broad-based across the global multi-protein platform: Beef North America posted record net revenue despite a tight U.S. cattle cycle and elevated cattle costs; Australia was a standout with strong profitability; Brazil (Friboi) and Seara delivered consistent results despite temporary export restrictions that have since been lifted. Prepared Foods and Pilgrim’s Pride showed robust growth, with Prepared Foods sales in the U.S. up >25%. Free cash flow was $383 million, negatively impacted versus prior year by lower EBITDA, higher growth CapEx and working capital tied to higher livestock prices. Leverage was 2.39x at quarter-end; management expects year-end leverage below 2.5x and reiterated a long-term target in that range. Management completed a $600 million buyback and issued local debentures (~$570M) that extended pro forma average debt maturity to 15.4 years at a ~5.6% average cost. CapEx guidance remains elevated (approx. $2B in 2025 and $2B in 2026, including maintenance), and working capital needs are expected to rise in 2025 with uncertain drivers (grains, livestock, finished-product prices) making 2026 working capital forecasts more variable (management indicated ~$1.3B for 2025 and ~$700M for 2026 in their breakeven exercise). Key operational commentary: U.S. beef supply constraints likely persist into 2026 (gradual recovery thereafter), Australia and Brazil provide geographic balance and export upside (recent reopening of China/EU markets benefiting Seara), and U.S. Prepared Foods and Pork expansions (two new Iowa plants) should materially ramp in 2027 (estimated incremental revenues $500–$750M at higher double-digit margins). Balance sheet liquidity (≈$3.4B revolver + $4B cash) supports CapEx, buybacks/dividends and optional M&A, with management open to opportunistic deals provided rating agency guidance supports capital structure.