JBS Weathers US Beef Crisis on Strength of Global Portfolio

GREELEY, Colo. – May 12, 2026 – Global food giant JBS S.A. today reported a net income of US$221 million for the first quarter of 2026, a result that demonstrates the profound resilience of its diversified business model amid severe market turbulence. While net revenue climbed 11% year-over-year to US$21.6 billion, the company's profitability was a tale of two vastly different stories: a historic crisis in its North American beef operations was successfully offset by record-breaking performances in Brazil and a robust showing from its pork division.

The results underscore the effectiveness of the company’s long-standing multi-protein, multi-geography strategy, which provided a critical shield against a staggering US$230 million EBITDA loss in its JBS Beef North America unit.

A Perfect Storm in US Beef

The first quarter of 2026 saw JBS’s U.S. beef operation caught in what the company described as a “perfect storm.” The division posted a negative EBITDA of US$230 million on revenue of US$7.167 billion, resulting in a negative margin of -3.2%. This stark downturn was driven by one of the most acute phases of the North American cattle cycle in recent memory.

A shrinking national cattle inventory has led to intense competition for a dwindling supply of livestock, causing procurement costs to skyrocket for processors. This structural market challenge, rather than a lack of consumer demand, squeezed margins to unsustainable levels for the segment. In response, JBS has initiated organizational and operational adjustments across its U.S. beef platform to simplify structures and improve efficiency in the face of the prolonged adverse environment.

“In the first quarter of 2026, we remained firmly focused on operational excellence,” said Gilberto Tomazoni, JBS Global CEO, in a statement. “We understand the environment in which we operate and the natural cycles of each protein, and we manage the business with discipline and responsibility.”

The Global Engines: Brazil and Pork Power Through

While the U.S. beef division struggled, JBS’s operations in its home country of Brazil and its U.S. pork division fired on all cylinders, validating the company's diversification strategy.

JBS Brazil was a standout performer, delivering a record first-quarter net revenue of US$3.78 billion with a 4.4% EBITDA margin. The performance was fueled by strong global demand and a broad, geographically diverse export portfolio. This success comes as Brazil is projected to achieve record meat production of over 32 million tons in 2026, with exports also forecast to hit new highs. Despite potential headwinds from new tariffs in markets like China, Brazil's enhanced sanitary status is opening new export opportunities, a trend JBS is well-positioned to capitalize on.

Equally impressive was the JBS USA Pork division, which posted record first-quarter net revenue of US$2.032 billion and a remarkable EBITDA margin of 13.5%. The results reflect strong domestic demand for affordable proteins and a successful push into branded, value-added products. The division's performance aligns with that of competitors like Smithfield Foods, which also reported strong profitability in its pork segments, indicating a favorable market for the protein.

Seara, the company’s major prepared foods and poultry brand, also delivered a powerful performance with an EBITDA margin of 15.5% on US$2.379 billion in revenue, driven by sustained growth in both domestic and export sales.

Disciplined Strategy and Future-Focused Investment

Facing volatility, JBS leadership emphasized a commitment to fiscal prudence and strategic investment. Tomazoni highlighted an “austerity approach to reinforce cash generation,” a necessary measure given the pressures in the U.S. market.

Financially, the company has been proactive in shoring up its balance sheet. According to Global CFO Guilherme Cavalcanti, a disciplined liability management strategy has extended the average maturity of the company's debt to an impressive 15.6 years, with no significant maturities expected until 2031. This provides crucial stability and liquidity. The company's dollar-denominated leverage closed the quarter at a balanced 2.77x, well within its long-term target range.

Despite the austerity focus, JBS is not pulling back on growth. The company reported a 20% increase in capital expenditures compared to 2025, with a plan to invest US$2.4 billion this year. This significant outlay is aimed at extracting maximum value from its assets and funding expansion projects, signaling confidence in its long-term strategy beyond the current commodity cycle.

Mixed Results Elsewhere in the Portfolio

The performance of other business units painted a more nuanced picture. Pilgrim's Pride, JBS's majority-owned poultry subsidiary, reported net revenue of US$4.529 billion. However, its profitability saw a significant decline compared to the previous year, with adjusted EBITDA falling over 40%. The company attributed the squeeze to lower U.S. commodity pricing, extreme winter weather events, and planned plant downtime for modernization.

Meanwhile, JBS Australia maintained strong execution, posting net revenue of US$2.145 billion and a solid EBITDA margin of 6.2%. The Australian unit successfully navigated a nearly 30% increase in cattle costs over the past year, leveraging higher volumes and productivity gains in its salmon and pork segments to maintain profitability.

The first quarter results for JBS serve as a compelling case study for the power of a globally diversified portfolio. As the challenging U.S. cattle cycle is expected to persist, the ability of the company's other segments to continue their strong performance will remain critical to navigating the turbulent market ahead.