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JBS Earnings: Record Revenue, Strong Segment Performance, and Strategic U.S. Expansion

  • Writer: Hardik Shah
    Hardik Shah
  • 11 minutes ago
  • 3 min read
JBS - A leading Global Food Company
Source: JBS Investor Day Presentation

TLDR


  • Revenue Strength: Net sales hit a record $21B, up 8.9% year-over-year, with strong gains in Pilgrim’s Pride, Seara, and JBS Australia.

  • Margin Trends: Consolidated adjusted EBITDA margin dipped to 8.4% (-1.4 p.p. YoY) on U.S. beef and pork headwinds, offset by poultry and prepared foods strength.

  • Forward Outlook: Management sees long-term growth from diversification, value-added products, and U.S. capacity expansions.

Business Overview


JBS N.V. (NYSE: JBS; B3: JBSS3) is one of the world’s largest food companies, with a diversified protein portfolio spanning beef, poultry, pork, lamb, aquaculture, plant-based, and prepared foods. The company operates 250+ production facilities and serves customers in over 180 countries. In 2Q25, 75% of sales came from domestic markets and 25% from exports.


JBS Earnings Q2'25


  • Net Revenue: $21.0B, up 8.9% YoY, driven by JBS Beef North America (+13.6%), JBS Brazil (+20.2%), and JBS Australia (+19.4%).

  • Adjusted EBITDA (IFRS): $1.75B, -7.4% YoY; margin of 8.4%.

  • Adjusted Operating Income: $1.19B, down 11.8% YoY; margin of 5.7%.

  • Net Income: $528M, up 60.6% YoY; EPS $0.48.

  • Return on Equity (ROE): 25.7% (+15.7 p.p. YoY).

  • Leverage: 2.27x net debt to EBITDA.


Segment EBITDA Highlights:

  • Pilgrim’s Pride: $818M (+4.5% YoY) | Margin 17.2%.

  • Seara: $392M (+1.2% YoY) | Margin 18.1% despite avian flu challenges.

  • JBS Australia: $290M (+28.5% YoY) | Margin 14.7%.

  • JBS Beef North America: -$233M, pressured by cattle cycle.


Forward Guidance


JBS expects continued growth in prepared foods, poultry, and export-driven beef, supported by U.S. capacity expansions. Challenges remain in U.S. beef due to tight cattle supply and in pork from recent trade restrictions.Risks & Opportunities: FX volatility, commodity costs, disease outbreaks, and geopolitical trade policies could impact results; conversely, efficiency gains and brand innovation provide upside.


Operational Performance


  • U.S. Beef: Margin pressure from high livestock costs and narrow beef spreads.

  • Pork: Temporary trade restrictions, expected to normalize in coming quarters.

  • Poultry: Pilgrim’s Pride posted record EBITDA, aided by lower grain costs and resilient U.S. demand.

  • Brazil (Seara): Maintained high margins through disciplined pricing, innovation, and robust biosecurity amid isolated avian flu cases.

  • Australia: Benefited from favorable livestock cycle and operational gains.


Market Insights


  • Prepared Foods Growth: JBS is targeting growing consumer demand for convenience and premium protein products in the U.S., Brazil, and MENA.

  • Global Diversification: Operations in multiple geographies reduce cyclical volatility.

  • Private Label Competition: Retailer price pressure continues, but branded products with high consumer trust remain resilient.


Consumer Behavior & Sentiment


Consumers are favoring value-added, ready-to-eat, and premium protein segments, driving JBS to invest heavily in U.S. prepared foods capacity. Premiumization and brand strength—such as Pilgrim’s Pride, Seara, and Primo—are key levers for loyalty.


Strategic Initiatives


  • U.S. Expansion:

    • Iowa Fresh Sausage Plant: $135M investment, operational mid-2026.

    • Beef Plant Upgrades: $200M in Texas and Colorado.

    • Georgia Prepared Foods Facility: $400M investment for Pilgrim’s Pride.

    • Ankeny, Iowa RTE Plant Acquisition: $100M to create largest ready-to-eat bacon and sausage facility in JBS U.S. operations.

  • Innovation & Value-Added Portfolio: Expanding premium prepared foods, charcuterie, plant-based, and international branded offerings.


Capital Allocation


  • Dividends: $1.2B paid in Q2.

  • Buybacks: $400M program authorized in August.

  • Debt Management: Issued $3.5B in senior notes (including a 40-year tranche); repurchased $2.2B of senior notes. Ended Q2 with $3B in cash and $3.4B in undrawn credit lines.


The Bottom Line


JBS delivered record top-line performance in Q2 2025, showcasing the strength of its diversified protein platform. While margin pressures persist in U.S. beef and pork, gains in poultry, prepared foods, and international beef operations demonstrate resilience. Strategic U.S. investments in value-added capacity and the dual NYSE-B3 listing position JBS for broader investor reach and long-term growth.

CEO Gilberto Tomazoni summed up the quarter: “We see a clear path to long-term value creation, anchored in operational excellence, diversification, innovation, value-added products, and strong brands”.


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