By Brazil Stock Guide — JBS (NYSE: JBS; B3: JBSS32), one of the world’s largest meat producers, reported a 72% drop in third-quarter 2026 net income attributable to shareholders to $164 million, from $581 million a year earlier, as weaker profitability across several business units weighed on earnings, according to results released on Monday (November 9).
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), calculated under International Financial Reporting Standards (IFRS), fell 35.6% to $1.18 billion from $1.83 billion a year earlier. The adjusted EBITDA margin narrowed to 5.2% from 8.1%, while net revenue edged up 0.6% to $22.74 billion.
The deterioration in profitability pushed the company’s net leverage ratio, measured as net debt divided by adjusted EBITDA over the trailing 12 months, to 3.54 times, up from 2.39 times a year earlier. Free cash flow turned negative at $167 million, compared with positive cash generation of $384 million in the third quarter of 2025.
JBS Global CEO Gilberto Tomazoni said the company faced a more challenging operating environment across several business units, but highlighted improving conditions in the North American and Brazilian beef markets at the beginning of the fourth quarter.
In its North American beef business, adjusted EBITDA under IFRS was negative $2 million, compared with a loss of $42 million a year earlier. Under U.S. Generally Accepted Accounting Principles (U.S. GAAP), adjusted EBITDA turned positive at $21 million, reversing a $46 million loss in the third quarter of 2025.
According to JBS, the business’s monthly operating margin improved throughout the quarter, moving from negative 2.9% in July to positive 3.9% in September. The recovery was supported by industry capacity adjustments, improved cattle availability and resilient demand for beef.
In Brazil, adjusted EBITDA at the JBS Brazil division plunged 54% to $141 million, with its margin narrowing to 3.4% from 7.4% a year earlier. The company attributed the weaker performance to reduced exports to China following the exhaustion of its 2026 export quota, as well as higher cattle prices.
Pilgrim’s Pride, JBS’s U.S.-listed poultry subsidiary, recorded a 39.9% decline in IFRS adjusted EBITDA to $462 million. Meanwhile, the company’s U.S. pork business saw adjusted EBITDA plunge 83% to $37 million, reflecting weaker domestic demand, increased global supply and pressure on selling prices.
Seara, JBS’s Brazilian poultry and processed foods business, proved more resilient, reporting adjusted EBITDA of $331 million, up 2.5% from a year earlier. Revenue rose 6.4% to $2.51 billion, supported by poultry exports and continued expansion of its value-added product portfolio.
JBS ended September with approximately $19.3 billion in net debt and total liquidity of $8.2 billion. The company said its average debt maturity had reached 14.4 years, at an average borrowing cost of 5.8%, with no material debt maturities over the next five years.
Looking ahead to the fourth quarter, JBS pointed to a more favorable outlook for its beef operations, supported by renewed Chinese demand as buyers secure shipments under the 2027 import quota and seasonally stronger domestic beef consumption in Brazil.
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