JBS Reports 56% Q1 Net Profit Decline, Increased Leverage, and Negative Free Cash Flow

summarizeSummary

JBS N.V. reported a 56.6% drop in Q1 net income to $241.6 million, alongside a 25.8% decline in Adjusted EBITDA and increased negative free cash flow, driven by higher raw material costs and operational challenges in key segments.

check_boxKey Events

• Significant Net Income Decline

  Net income decreased by 56.6% to $241.6 million in Q1 2026, compared to $556.3 million in Q1 2025, missing analyst expectations.

• Adjusted EBITDA Falls

  Adjusted EBITDA (IFRS) dropped by 25.8% to $1.13 billion in Q1 2026 from $1.53 billion in the prior year period.

• Increased Negative Free Cash Flow

  Free cash flow worsened to negative $1.5 billion in Q1 2026, compared to negative $917.5 million in Q1 2025, indicating higher cash consumption.

• Leverage Ratio Increases

  Net leverage (Net Debt / Adjusted EBITDA LTM) increased to 2.77x in Q1 2026 from 1.99x in Q1 2025.

auto_awesomeAnalysis

JBS N.V. reported a significant 56.6% decline in net income for Q1 2026, falling to $241.6 million from $556.3 million in the prior year, missing analyst estimates. Adjusted EBITDA also decreased by 25.8% to $1.13 billion. The company experienced increased cash burn, with free cash flow worsening to negative $1.5 billion from negative $917.5 million. Net leverage rose to 2.77x from 1.99x. Profitability was significantly impacted by higher cattle prices, particularly in the Beef North America segment, which saw its loss widen to $266.8 million. Pilgrim's Pride also faced reduced profitability due to higher live operation costs, plant downtime, and unfavorable currency movements. Despite overall sales growth, these pressures led to a substantial deterioration in key financial metrics. The company also announced a $1.00 per share dividend and completed tender offers for $1.45 billion in senior notes, demonstrating ongoing capital management activities amidst challenging operational results.