JBS Reports 56% Q1 Net Profit Decline, Increased Leverage, and Negative Free Cash Flow
JBS sits 23% above its 52-week low of $12.37 on elevated volume (2.1× avg).
Summary
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.
Key Events · Earnings and Guidance · JBS
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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.
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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.
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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.
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Leverage Ratio Increases
Net leverage (Net Debt / Adjusted EBITDA LTM) increased to 2.77x in Q1 2026 from 1.99x in Q1 2025.
Analysis · JBS · Manufacturing
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.
At the time of this filing, JBS was trading at $15.24 on NYSE in the Manufacturing sector, with a market capitalization of approximately $16.3B. The 52-week trading range was $12.37 to $18.65. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.