JBS misses Q3 profit estimates, revenue falls short

JBS (JBS) reported third-quarter adjusted earnings of 16 cents per share, below the 26-cent consensus estimate. Revenue of $22.74 billion was below the $23.05 billion estimate.

Shares fell 1.6% at 11:18 a.m. ET, from a $13.12 close. Net sales rose 1% from a year earlier. IFRS adjusted EBITDA fell 36%.

Here's how the company did:

• Adjusted EPS: 16 cents vs. 54 cents a year earlier, 26 cents expected
• Revenue: $22.74 billion vs. $22.60 billion a year earlier, $23.05 billion expected
• IFRS adjusted EBITDA: $1.18 billion vs. $1.83 billion a year earlier

Global CEO Gilberto Tomazoni said, “In 3Q26, JBS faced a more challenging operating environment across several of its business units.”

Business units

JBS Beef North America returned to positive adjusted EBITDA under US GAAP. Monthly margins moved from negative 2.9% in July to breakeven in August and positive 3.9% in September.

Seara's September reached record export volumes, though pork exports remained pressured by ample global pork supply.

JBS USA Pork net sales fell on lower volumes and average selling prices.

JBS Australia's profitability was pressured by a more challenging beef business. Export performance was affected by the completion of quotas in key markets, including China and South Korea.

JBS Brazil reported lower net sales, mainly reflecting lower export volumes to China after the 2026 Chinese quota was completed. Chinese demand strengthened at the beginning of the fourth quarter.

Cash and debt

Free cash flow was negative $167 million, down $551 million from a year earlier, on a $653 million decline in adjusted EBITDA and higher working capital consumption in Brazil.

Average debt term reached 14.4 years at an average cost of 5.7%, with more than 95% at fixed rates. Net leverage ended the quarter at 3.54x.

The revolving credit facility rose from $3.5 billion to $4.2 billion, lifting total liquidity to $8.2 billion.