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    JBS
    Earnings call· Sep 2025(Q3 FY25)

    JBS N.V. JBS

    Nov 14, 2025 Source

    Executive summary

    JBS Q3 FY25 — Record Sales and Resilient Performance Amidst Challenging Cycles

    JBS delivered record net sales in Q3 FY25, showcasing the resilience of its global multi-protein platform and disciplined execution amidst challenging market cycles, particularly in US beef. The company maintained strong profitability and capital allocation, including significant shareholder returns, while strategically investing in organic expansion and managing working capital pressures from rising input costs.

    Highlights

    5

    • Achieved record net sales of $22.6 billion with growth across all business units.

    • Reported net income of $581 million, with adjusted net income at $602 million and adjusted EPS of $0.54.

    • Delivered a return on equity of 23.7% over the last 12 months and a return on invested capital of 17%.

    • Australia was a clear highlight, with strong profitability supported by improved cattle availability and healthy global demand.

    • Completed a $600 million share buyback program and paid $1.2 billion in dividends, while expecting to end the year with leverage below 2.5x.

    Concerns

    4

    • Navigating a challenging cattle cycle in the United States, marked by historically high prices and tight supply, impacting JBS Beef North America margins.

    • Adjusted EBITDA decreased by $319 million, driven by the US beef cycle, Avian flu in Seara, and higher cattle costs in JBS Brazil.

    • Working capital increased by $258 million in Q3 FY25, mainly due to higher revenues, costs, and increasing livestock prices.

    • Incurred a $250 million loss in Q2 FY25 due to hedging, though Q4 is seeing some cash release from derivatives.

    Guidance & targets

    18
    CategoryTargetConfidence
    Cash flow breakeven EBITDA
    $6B
    medium materiality
    Medium
    Cash flow breakeven EBITDA
    $5B
    medium materiality
    Medium
    Capital expenditures
    $2B
    medium materiality
    Medium
    Working capital increase
    $1.3B
    medium materiality
    Medium
    Working capital increase
    $700M
    medium materiality
    Medium
    Vigor settlements
    $400M
    low materiality
    High
    Biological assets investment
    $650M
    low materiality
    High
    Biological assets investment
    $650M
    low materiality
    High
    Interest expenses
    $1.15B
    medium materiality
    High
    Interest expenses
    $1.15B
    medium materiality
    High
    Leasing expenses
    $500M
    low materiality
    High
    Leasing expenses
    $500M
    low materiality
    High
    Leverage ratio
    below 2.5x
    high materiality
    High
    Shareholder returns
    $1B per year
    high materiality
    High
    US Beef supply outlook
    challenging
    high materiality
    High
    US Beef margin outlook
    similar to 2025
    high materiality
    Medium
    Bond ticker update
    restructuring in place
    low materiality
    Medium
    Brazilian cattle availability
    down 3%-5%
    high materiality
    Medium

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    JBS Beef North America
    Delivered record revenue, supported by resilient domestic demand, despite navigating a challenging cattle cycle with historically high prices and tight supply. Carcass values remained elevated but not sufficient to offset higher corn costs. Margins have been tighter in Q4 so far than Q3.
    		record———
    Australia
    Clear highlight with strong profitability, supported by improved cattle availability and healthy global demand. Export focus (75% of production) with strong demand. Salmon (Huon) business performing with >20% margin, and pork business improving productivity. Expects a strong year for Australia.
    Beef export share: 75%Huon (salmon) margin: >20%
    		———Profitability is staying strong
    Seara
    Posted another quarter of consistent results, maintaining healthy margins driven by disciplined commercial strategy, effective mix management, and continuous innovation. Impacted by prior export restrictions to Europe and China, which have recently been lifted, expected to significantly improve profitability and average prices. Domestic processed foods volume grew 70% YoY with 5.5% price increase.
    Domestic volume growth (processed foods): 70% YoYDomestic price increase (processed foods): 5.5%
    		———healthy margins
    Pork (US)
    Remained resilient with lower grain costs and steady demand creating a positive environment, though supply constraints limit overall growth. Strong sequential improvement attributed to modern, well-invested plants, integrated operations, and growth in value-added prepared foods. Expects continued optimism for Q4. Approximately 25% of hogs processed are raised by the company.
    Hogs processed from own production: ~25%
    		————
    Prepared Foods (US)
    Stood out with sales raising more than 25% in the US. Operations in Europe and Mexico also outperformed their markets. Expansion in Iowa plants for sausage and ready-to-eat bacon/sausage expected to add $500M-$750M in revenue with high double-digit margins from 2027.
    		—more than 25%——

    Operational metrics

    30
    Adjusted EBITDA
    $1.8B
    Q3 FY25

    IFRS basis

    Adjusted EBITDA
    $1.6B
    Q3 FY25

    US GAAP comparable basis

    Adjusted operating income
    $1.3B
    Q3 FY25

    IFRS basis

    Adjusted operating income
    $1.3B
    Q3 FY25

    US GAAP comparable basis

    Adjusted net income
    $602M
    Q3 FY25

    Excluding nonrecurring items

    Earnings per share (adjusted)
    $0.54
    Q3 FY25

    Excluding nonrecurring items

    Return on equity
    23.7%24% in Q3 FY25
    LTM
    Return on invested capital
    17%
    Q3 FY25
    Adjusted EBITDA decrease
    $319MYoY decrease
    Q3 FY25

    Driven by US beef cycle, Avian flu in Seara, and higher cattle costs in JBS Brazil.

    Adjusted EBITDA decrease (ex-noncash)
    $230MYoY decrease
    Q3 FY25

    Excluding noncash items

    Capital expenditures increase
    $226MYoY increase
    Q3 FY25
    Working capital increase
    $258MYoY increase
    Q3 FY25

    Mainly reflecting higher revenues and costs from increasing livestock prices.

    Debt issuance (Brazilian capital markets)
    $570M
    Q3 FY25

    Longest ever completed in Brazilian capital markets. Average debt maturity reached 15.4 years.

    Leverage ratio
    2.39xincreased vs Q2 FY25
    Q3 FY25

    Primarily due to $319M decline in LTM EBITDA and $362M in share buybacks. IFRS EBITDA basis.

    Share buyback program completed
    $600M
    Q3 FY25
    Dividends paid
    $1.2B
    Q3 FY25
    Revolving credit lines
    $3.4B
    Q3 FY25
    Available cash
    $4B
    Q3 FY25
    JBS Brazil volume growth
    3%
    Q3 FY25
    Seara volume growth
    8%
    Q3 FY25

    Driven by investments in organic expansion.

    Price increase (some business units)
    16%-24%
    Q3 FY25

    Main variable driving working capital consumption.

    US Beef processed volume
    545,000vs 973,000 in Q3 2022
    Q3 FY25
    Debt in Brazilian Reals
    10%
    Q3 FY25

    Of total debt, compared to 12% of total revenues generated in BRL.

    Shareholder returns run rate
    EUR 1.5B-EUR 2B
    YTD FY25

    Excluding dividends related to listing.

    Seara domestic volume growth (processed foods)
    70%YoY
    Q3 FY25
    Seara domestic price increase (processed foods)
    5.5%
    Q3 FY25
    Australia beef export share
    75%
    Q3 FY25
    Huon (salmon) margin
    >20%
    Q3 FY25
    Brazilian cattle availability outlook
    3%-5%decrease
    FY26

    Still at a high level compared to previous years.

    Hogs processed from own production
    25%
    Q3 FY25

    Approximately 25% of hogs processed are raised by the company.

    Industry KPIs

    4
    MetricValueDetails
    Brand platform growthIncreased
    Adjusted EPS operating income$0.54USD
    Retailer trade negotiation statusStrong demand
    Elasticity consumer response commentaryResilient

    Product announcements

    2
    ProductTypeDetails
    High protein ready mealslaunch
    Dedicated air freight portfoliolaunch

    Deals & partnerships

    1
    NetflixBrand partnership to bring Seara closer to consumers

    Partnership with Netflix to connect the Seara brand with consumers.

    Capital programs

    1
    US Pork Prepared Foods Expansion (Iowa)underway
    Start: Q3 FY25

    Benefit: Expected $500M-$750M in additional revenue and high double-digit margins

    Two plants in Iowa: one for sausage production (very plant) and another in Ankeny for ready-to-eat bacon and sausage. Complementary to existing operations, quick ramp-up expected from 2027.

    Risks & headwinds

    6
    Challenging cattle cycle in the United Statesongoing

    historical high price and tight supply

    Mitigation: JBS Beef North America delivered record revenue supported by resilient domestic demand; proactive management of global multi-protein platform to mitigate impact.

    Avian flu impact on SearaQ3 FY25

    contributed to $319M decrease in adjusted EBITDA

    Mitigation: Restrictions to export to Europe and China have recently been lifted, expected to improve profitability.

    Higher cattle costs in JBS BrazilQ3 FY25

    contributed to $319M decrease in adjusted EBITDA

    Mitigation: Friboi delivered consistent quarter with solid performance in export and domestic sales; strong demand from Australia and Brazil more than compensates for increased livestock prices.

    Volatility in US beef futuresQ4 FY25

    creates instability in results

    Mitigation: Hedging positions are in place, but can still be challenged. Margins are historically tighter in Q4.

    Hedging lossesQ2 FY25

    $250M loss

    Mitigation: Offset by physical purchase; Q4 seeing cash release from derivatives.

    Working capital increaseFY25, FY26

    $258M increase in Q3 FY25; expected $1.3B in FY25 and $700M in FY26

    Mitigation: Mainly due to higher prices, sales volumes, and livestock costs; 2026 depends on variables like grain and livestock prices.

    What to watch in Q4 FY25

    5

    US Pork Prepared Foods Expansion Ramp-up

    Next year (2026)
    CurrentBreaking ground on 2 plants in Iowa
    TargetProgress on construction and equipment installation

    Why it matters

    These plants are expected to add $500M-$750M in revenue with high double-digit margins from 2027, critical for future growth and profitability.

    Next year, you're not going to see any impact because there are going to still be under construction, finalizing and we're just breaking ground right now in 1 of those plants and the other 1 where it's going to be more putting equipment and lead time for equipment. So you're not going to see anything for next year. 2027 is when you're going to start seeing a ramp up and start for us to start doing -- starting to see the revenue and the extra margin that's going to come from those businesses in our pork division.

    Q&A highlights

    5

    Details on revenue/volume expansion from Iowa pork plants and Q4/2026 profitability outlook for US chicken, considering price drops and genetic line changes.

    Wesley Batista Filho detailed that the Iowa pork plants (sausage and ready-to-eat bacon/sausage) are complementary, targeting $500M-$750M in revenue with high double-digit margins, but impact will be seen from 2027. Gilberto Tomazoni noted chicken price drops are in big bird segment, but PPC's balanced portfolio helps. He expressed confidence in the 2026 chicken market due to strong export demand and infrastructure/genetic limits to supply growth.

    “Those 2 businesses, you could expect something around 50 -- $500 -- between $500 million and $750 million revenues as we ramp it up. So something like that. And we see the margin for this extra business in the higher double-digit margins for that.”

    asked by Lucas Muse · answered by Wesley Mendonça Filho

    2 min read5 chapters

    Detailed Narrative

    01

    Global Multi-Protein Platform Resilience

    JBS demonstrated strong execution and resilience across its global multi-protein platform, achieving record net sales despite navigating challenging market cycles, particularly in the US beef segment. The company's diversified portfolio and proactive management allowed it to mitigate local market impact🌐s and maintain solid performance, reinforcing its ability to operate with discipline, agility, and resilience.

    02

    US Beef and Pork Dynamics

    The US beef business continues to face a challenging cattle cycle with historically high prices and tight supply, though domestic demand remains resilient. In contrast, the US pork business delivered strong sequential improvement, attributed to modern, well-invested plants, integrated operations, and a growing value-added prepared foods segment. Management expects 2026 to remain challenging for US beef supply, with gradual improvement from 2027.

    03

    Brazil and Australia Performance

    Australia was a clear highlight, with strong profitability driven by improved cattle availability and robust global demand for beef exports. In Brazil, Friboi delivered consistent results in both export and domestic sales, while Seara maintained healthy margins despite prior export restrictions to Europe and China, which have recently been lifted, signaling a strong recovery for its export markets and overall profitability.

    04

    Strategic Investments and Innovation

    JBS continues to invest in innovation and value-added products, strengthening brands and expanding higher-margin categories. This includes the expansion of prepared foods capacity in the US pork division, with two new plants in Iowa expected to add $500M-$750M in revenue with high double-digit margins from 2027. Seara also launched high-protein ready meals and a dedicated air freight portfolio, illustrating its commitment to innovation.

    05

    Capital Allocation and Financial Health

    The company ended the period with leverage at 2.39x, fully aligned with its long-term targets. It completed a $600 million share buyback program and paid $1.2 billion in dividends, demonstrating efficient capital allocation. JBS maintains strong liquidity with $3.4 billion in revolving credit lines and $4 billion in available cash, providing flexibility for expansion and value creation projects while maintaining a robust balance sheet.

    AI-generated summary of the company’s earnings call. Not investment advice.