JBS (JBS) Q2 2026 earnings summary

Executive summary

• Net sales reached a record $23.9 billion in 2Q26, up 14% year-over-year, with adjusted EBITDA at $1.43 billion (6.0% margin), but profitability declined due to high cattle prices, non-recurring costs, and tough prior-year comparisons, resulting in a net loss of $102 million and adjusted net income of $218 million.

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

• Sequential margin improvements were seen in most business units, despite margin compression year-over-year.

• $1 billion was paid in dividends, and the company joined the Russell 1000 and 3000 indices, enhancing visibility.

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

Financial highlights

• Adjusted EBITDA margin (IFRS) was 6.0%, down from 8.4% in 2Q25; adjusted operating income (IFRS) was $790 million, down 34% year-over-year.

• Net loss was $102 million, compared to net income of $528 million in 2Q25.

• Free cash flow improved by $185 million year-over-year, reaching $130 million.

• 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%.

Outlook and guidance

• Profitability is expected to improve sequentially, supported by operational efficiency, investments in branded and value-added products, and geographic diversification.

• U.S. beef supply is expected to improve as live cattle imports from Mexico resume post-August 24.

• Working capital consumption for 2026 is expected to improve by $500 million versus last year, and CapEx for 2026 is forecast at $2 billion, $400 million lower than initial estimates.