São Paulo | Reuters JBS reported this Monday (9) net profit of US$ 164 million (R$ 902 million) for the third quarter, a drop of 72% compared to the same period last year, as it faced challenges in several business units, although the United States beef division showed signs of improvement after recording a series of quarters with negative margins.
Adjusted profit before Ebitda (interest, taxes, depreciation and amortization) totaled US$ 1.181 billion (R$ 6.5 billion), a drop of 35.6% in the same comparison, with the company suffering from a greater supply of pork and chicken, while operations in Australia and Brazil were affected by the end of the Chinese quota with a more favorable tariff.
The adjusted Ebitda result was below expectations of US$1.32 billion (R$7.26 billion), according to an LSEG survey of analysts. The worsening in adjusted Ebitda performance was reversed in an increase in leverage to 3.54 times in the period from July to September, compared to 2.39 times in the third quarter of 2025.
But JBS executives stated that the scenario is favorable for 2027, with a focus on improving the supply of cattle in the United States, which should benefit the company's division that accounts for just over 30% of the company's revenue. Furthermore, the company is expected to benefit from sales towards the new 2027 China quota.
"The United States should have a much better year in 2027 than in 2026. Obviously we still have to understand how much this difference will be, but we are very excited about next year", said the CEO of JBS USA, Wesley Batista Filho, who will take over global command of the company next year.
According to him, 2026 was the "most difficult" year for the company in the US beef segment, as the sector dealt with the country's biggest cattle shortage in 75 years.
But the reopening of the United States border to import cattle from Mexico, with heavier animals, and the increased demand for beef are already showing signs of a turnaround in business.
After several quarters, the company returned to recording a positive margin in the US beef unit, albeit at 0.3% (USGAAP basis). The division's sales in the third quarter totaled US$7.56 billion (R$41.58 billion), an increase of 4.3% year-on-year.
"Next year will be much more positive, mainly because of this business of importing cattle from Mexico to the United States, which should stabilize at around one million heads per year... very close to what it used to be," he said.
The US border for cattle from Mexico was closed due to measures to control a parasite, which accentuated a low supply of animals for slaughter in the country.
In the third quarter, the company also saw positive margins in other units, but they fell, including JBS Brasil, to 3.4%; Seara, at 13.2%; Pilgrim's Pride, at 9.9%; Australia, 7.9%; and JBS Pork, 2%.
"A very difficult quarter... pork had a lot of supply, chicken also had supply in the quarter... but all of our businesses have a positive margin", said the Global CEO of JBS, Gilberto Tomazoni.
Despite the end of the 2026 quota to export beef to China at a lower tariff, JBS Brasil showed "healthy margins", even though beef prices have risen, he said.
Seara, the processed meat and chicken and pork division, was boosted by exports, which broke record volumes for the company in September. Brazilian pork exports, on the other hand, remained under pressure due to the ample global supply of the product, which also affected market dynamics in Brazil, according to JBS.
DEBT AND CASH FLOW
Free cash flow performance was negative at US$167 million (R$918.5 million) in the third quarter, reflecting the increase in inventories, including beef production in Brazil destined for shipments to China to fill the 2027 Chinese quota.
The formation of Seara's inventories in Europe, in addition to extraordinary tax payments related to results from previous years, also affected cash flow.
In the case of chicken meat exported from Brazil to Europe, the company accelerated sales, considering that from the beginning of September there was a ban related to the European antimicrobial policy.
Net debt totaled US$19.3 billion (R$106.15 billion), while total available liquidity, including cash, financial investments and revolving credit lines, reached US$8.2 billion (R$45.1 billion), stated the company, citing that it maintains a long-term debt profile, with an average term of approximately 14.4 years, average cost of 5.8%.
