JBS · JBS N.V.

JBS N.V. delivered strong top-line growth in Q1 2026 with net revenue up 10.7% to $21.6 billion, fueled by a 10.5% rise in average sales prices and slight volume gains across segments, reflecting resilient demand in a multi-protein, multi-geography platform. However, profitability faced headwinds as cost of sales surged 14.1% to $19.3 billion, primarily from record cattle prices impacting Beef North America (Adjusted EBITDA loss widened to -$267 million) and higher grain costs pressuring Seara and Pilgrim’s Pride. Gross margin contracted 11.4% to 10.8%, while Adjusted EBITDA fell 25.8% to $1.1 billion (5.2% margin vs. 7.8% YoY), with Brazil and USA Pork showing resilience—Brazil up 27.9% on export strength, Pork up 10.8% on value-added sales. Net income halved to $242 million due to elevated net finance expenses (+64%) from lower interest income and higher debt costs. Balance sheet remains solid with $21.4 billion debt (leverage 2.8x, in target range) and $3.5 billion liquidity. Seasonal cash burn intensified to -$789 million operating cash flow, driven by working capital (notably supplier payments), higher capex ($566 million, 56% growth-focused), yielding negative free cash flow. Management highlights strategic execution amid cattle cycle challenges, weather disruptions, and FX headwinds, maintaining focus on efficiencies, branded growth, and geographic diversification. No forward guidance issued, but commentary signals confidence in long-term targets amid ongoing raw material volatility.