JBS (JBS) Q4 FY25 earnings call: guidance and Q&A

Update on Pilgrim's Pride plant renovations and market balance, and US beef recovery, capacity rationalization, and Greeley strike.

Pilgrim's Pride completed 3 plant transformations, focusing on case-ready and prepared foods, capturing margin. Chicken demand is strong, with USDA forecasting 2% supply growth. US beef market is volatile, with Q1 2026 being very tough, but March showing improvement. The Greeley strike resolution is uncertain, but a national deal with other unions was historic.

“Probably the most challenge we've seen in this industry in a very long time. I don't know if there is any other time that we had such a -- actually a negative spread for January and February ever.”

asked by Lucas Ferreira · answered by Wesley Mendonça Filho

Outlook for chicken supply/demand in Brazil for Q2 2026 and potential profitability compression. Also, if current US beef cattle availability implies further capacity adjustments from players.

Brazil chicken market is balanced with strong international demand, but increased chick placement could lead to oversupply; industry has tools to manage this. JBS focuses on export leadership and value-add mix for Seara. US beef has excess capacity (33M heads 4 years ago vs ~27M now), but difficult to comment on competitors' adjustments.

“It's clear that there is more capacity in the U.S. than there is kind of available in the U.S., not too many years ago, 4 years ago, had a process to 33 million ahead, and now we're going to be below 27%.”

asked by Gustavo Troyano · answered by Gilberto Tomazoni

How export quotas to China might impact Brazil/Australia beef volumes in H2, and details on derivative lines and working capital expectations for 2026.

Australia is not challenged by China quotas due to diversified strong demand in other Asian markets, US, and Europe. Brazil beef confident in 2026 results due to high global protein demand, new international markets, and expectation of lower cattle prices in H2. Derivative lines reflect currency/commodity volatility. Q1 2026 working capital consumption slightly lower than Q1 2025.

“Global demand for protein is high, special for beef. China's good, if you talk about -- we are expecting to end by the midyear. And in reality, we don't know how China will manage this volume restriction.”

asked by Lucas Mussi · answered by Gilberto Tomazoni

Justification for strong US beef Q4 margin despite seasonality and industry cut-out spread. Also, if Seara's good margin was driven by chicken exports vs. domestic prepared food.

US beef Q4 performance could be due to market positioning in a volatile environment, but longer-term view is better. Management is satisfied with operational improvements. Seara's international chicken margin was higher than domestic prepared food margin in Q4, but prepared food margins are continuously improving through price management and brand value.

“If you take just in consideration, the margin, yes, the margin of international chicken was higher than the margin of preferred in domestic market.”

asked by Thiago Duarte · answered by Wesley Mendonça Filho

Details on other capacity expansion projects beyond Seara, and JBS's M&A appetite given increased activity in the food sector.

CapEx includes Pilgrim's Pride prepared food expansion, rendering facilities, Iowa pork sausage plant, Oman project, Paraguay plant, and Cactus Texas beef plant. JBS is always looking for M&A opportunities but currently sees few, hence the focus on organic growth and returning capital to shareholders.

“We're always looking at opportunities through our plan everywhere in the world, but there's nothing that we are looking very keen at the moment, and that's the reason that we increased our organic growth because we are not seeing many opportunities on the acquisition front.”

asked by Benjamin Theurer · answered by Guilherme Cavalcanti

Expectations for disease impacts in US hog producers and potential margin effects in FY26. Also, update on index inclusions and further benefits from NYSE listing.

Disease impacts in US pork could lead to shorter supply and potentially higher margins, though not desired. NYSE listing has already led to multiple expansion, but still trades at a discount. Russell index inclusion (June) could bring 14M shares demand. S&P 400 eligibility targeted for next year, S&P 500 when market cap reaches $22.7 billion.

“Saying that according to what we released on our financial statements in terms of information of revenues and assets breakdown. We should be included in the Russell, which is next June, and it could bring around 14 million shares demand from passive funds.”

asked by Unknown Analyst · answered by Guilherme Cavalcanti