Loading...
01/11 16:29
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary suggests mixed signals: strong performance in Australia and positive outlooks in Brazil and the chicken business, but challenges in U.S. beef margins and unclear management responses on key issues. The Q&A reveals concerns about market volatility and tariffs, yet optimism remains in certain segments. The lack of a new partnership or significant guidance changes maintains a neutral sentiment, with no clear catalysts for strong positive or negative movement.
Net Sales Net sales were record, reaching USD 21 billion, a 9% increase year-over-year. This increase was attributed to the resilience of JBS' diversified global platform despite a challenging macroeconomic environment.
Adjusted EBITDA Adjusted EBITDA was $1.8 billion, with a margin of 8.4%. The difference in EBITDA between Q2 2024 and Q2 2025 was $141 million, influenced by factors such as higher capital expenditures and increased finished goods inventories in the U.S. due to higher prices.
Net Profit Net profit was $528 million in the quarter, with earnings per share of $0.48. Excluding nonrecurring items, adjusted net income was $583 million, and EPS was $0.53.
Free Cash Flow The free cash flow difference reached approximately $1.1 billion year-over-year, driven by higher capital expenditures, increased inventories, livestock hedging impacts, legal settlements, and higher tax payments.
Seara EBITDA Margin Seara achieved an adjusted EBITDA margin of 18.1%, despite temporary headwinds caused by an avian flu outbreak in Brazil. This was driven by a disciplined commercial strategy, product mix management, and a strong focus on innovation.
JBS Brazil Revenue and EBITDA Margin JBS Brazil recorded net revenue 20% higher than Q2 2024, driven by strong demand in both international and domestic markets. The EBITDA margin reached 6.4%, despite a sharp increase in cattle prices.
JBS Beef North America Revenue JBS Beef North America net revenue grew 14% year-over-year, driven by strong demand that drove cutout values to record levels. However, profitability was pressured by a challenging cattle cycle and record-high live cattle prices.
JBS Australia Revenue and EBITDA Margin JBS Australia recorded 20% revenue growth year-over-year, primarily driven by higher volumes of beef exports. The EBITDA margin reached 12.7%, reflecting greater availability of animals for slaughter and operational efficiency gains.
Pilgrim's Pride Revenue and EBITDA Pilgrim's Pride reported a 4% increase in net revenue and delivered record adjusted EBITDA of $687 million. This was supported by a favorable commercial environment, strengthened customer partnerships, expansion of value-added products, innovation, and efficiency gains.
New Fresh Sausage Facility: JBS announced a $135 million investment to build a new fresh sausage facility in Iowa.
Prepared Foods Facility: A $400 million investment in a new prepared foods facility in Georgia by Pilgrim.
Expansion of Iowa Facility: An additional $100 million investment to acquire and expand the Iowa facility, transforming it into the largest ready-to-eat bacon and sausage plant in the U.S.
Beef Plant Upgrades: $200 million allocated to upgrading beef plants in Texas and Colorado.
Dual Listing on NYSE: JBS launched its shares on the New York Stock Exchange, enhancing global visibility and broadening its investor base.
Export Growth in Australia: Higher volumes of beef exports contributed to 20% revenue growth in JBS Australia.
New Export Approvals in Brazil: Friboi achieved strong results driven by new export approvals.
Record Net Sales: Net sales reached $21 billion, a 9% increase year-over-year.
Adjusted EBITDA: Achieved $1.8 billion in adjusted EBITDA with an 8.4% margin.
Poultry Operations: Pilgrim's achieved record EBITDA supported by lower grain costs and resilient U.S. demand.
Seara's Performance: Seara delivered an 18.1% EBITDA margin despite avian influenza challenges in Brazil.
Share Repurchase Program: Announced a $400 million share repurchasing program to return value to shareholders.
Financial Discipline: Maintained net leverage at 2.27x and extended average debt maturity to 15 years.
Macroeconomic Environment: The company is operating in a challenging macroeconomic environment, which could impact its financial performance and operational stability.
Avian Influenza Outbreak: The outbreak of avian influenza in Brazil caused temporary market closures, affecting Seara's commercial performance and chicken inventory.
Cattle Cycle in the U.S.: The unfavorable cattle cycle in the U.S. has led to record-high live cattle prices, narrowing the spread between livestock costs and beef prices, thereby pressuring profitability.
Pork Trade Restrictions: Short-term trade restrictions have negatively impacted the pork business, though recovery is expected in the coming quarters.
Inventory and Hedging Costs: Higher finished goods inventories in the U.S. and negative cash impacts from livestock hedging due to rising cattle and hog prices have strained cash flow.
Legal Settlements and Tax Payments: Increased legal settlements and higher tax payments have contributed to reduced free cash flow.
Avian Flu Export Market Closures: Some key export markets remain temporarily closed due to the avian flu outbreak, affecting international sales.
Global Trade and Animal Health Concerns: Global trade and animal health concerns in Mexico have added headwinds to the U.S. beef business.
Future Investments: JBS plans to invest consistently over the coming years to expand its platform and meet the global demand for protein. Specific investments include $135 million for a new fresh sausage facility in Iowa, $200 million for upgrading beef plants in Texas and Colorado, $400 million for a new prepared foods facility in Georgia, and an additional $100 million to expand the Iowa facility into the largest ready-to-eat bacon and sausage plant in the U.S.
Prepared Foods Portfolio Growth: The company is focusing on expanding its prepared foods portfolio to meet growing consumer demand, supported by the aforementioned investments in production facilities.
Pork Business Recovery: The pork business, currently affected by trade restrictions, is expected to return to normal performance levels over the next few quarters.
Leverage and Financial Position: JBS expects to end 2025 with leverage below 2.5x and maintain interest coverage consistent with 2024 levels at 7.4x. The company has a robust financial position with $3.4 billion in revolving credit lines and $3 billion in available cash.
Share Buyback Program: JBS announced a $400 million share repurchase program, which may be implemented through open market purchases or privately negotiated transactions.
Capital Expenditures: Planned capital expenditures include $2 billion in 2025 and $2 billion in 2026, which already account for maintenance CapEx.
Market Recovery Assumptions: The company expects cash impacts from higher inventories and livestock hedging to return to operating results over the coming quarters as sales are made and physical purchases are settled.
Global Opportunities: JBS is well-prepared for the next phase of global opportunities, supported by a stronger, more balanced, and innovative global platform.
Dividends Paid: $1.2 billion in dividends were paid this quarter.
Share Repurchase Program: A $400 million share repurchasing program was announced.
The earnings call highlights strong financial performance, strategic investments, and optimistic guidance. Positive developments include the reopening of key export markets, increased shareholder returns, and robust financial health. However, concerns about beef market volatility and cautious management responses temper the outlook. The positive sentiment from the call suggests a likely stock price increase of 2% to 8%.
The earnings call summary suggests mixed signals: strong performance in Australia and positive outlooks in Brazil and the chicken business, but challenges in U.S. beef margins and unclear management responses on key issues. The Q&A reveals concerns about market volatility and tariffs, yet optimism remains in certain segments. The lack of a new partnership or significant guidance changes maintains a neutral sentiment, with no clear catalysts for strong positive or negative movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
