JBS posts US$221 million first quarter profit as North American beef business weighs on earnings

BRAZIL – JBS recorded weaker earnings during the first quarter of 2026 as rising cattle prices, limited livestock supply and operational disruptions weighed on its North American business, despite higher overall revenue and stronger performance in Brazil.

For the January to March period, the meat processor posted net income of US$221 million, compared with analyst expectations of US$236 million, while adjusted EBITDA declined by 26% year on year to US$1.13 billion.

The company said its North American division, which includes beef operations and poultry subsidiary Pilgrim’s Pride, faced difficult market conditions linked to elevated cattle prices in the United States and reduced livestock availability.

At the same time, poultry production volumes were affected by adverse weather and temporary processing facility interruptions, adding pressure to operating margins during the quarter.

The North American beef segment, which contributes close to one-third of JBS’s total revenue, reported negative EBITDA of US$267 million even as sales in the division increased by 12% to US$7.17 billion.

In addition, a three-week labour strike at one of the company’s beef processing plants in Colorado further disrupted operations during the reporting period.

Despite the weaker profitability, JBS reported total quarterly revenue of US$21.61 billion, representing an 11% increase from the same period last year and exceeding market forecasts.

Brazil operations offset weaker US performance

Meanwhile, the company’s Brazilian beef business delivered improved results during the quarter as export demand and higher international prices supported sales growth.

EBITDA from the Brazilian beef division rose by 28% to US$168 million, while revenue in the segment reached a record US$3.79 billion for the first quarter.

Separately, JBS-owned Seara recently launched a premium chilled-chicken packaging range in Brazil, aimed at repositioning poultry products that are commonly treated as standard supermarket commodities.

The new packaging line uses transparent trays combined with Modified Atmosphere Technology to extend freshness by replacing oxygen with controlled gas mixtures, while a dual absorption system was introduced to reduce excess liquid inside the packs.

According to Seara, the packaging concept was developed after consultations with consumers and 35 supermarket chains, as well as market comparisons involving retailers in the United Kingdom and the United States.

In April, JBS USA also resumed operations at its bacon processing facility in Moberly after a temporary production halt linked to a review by the Food Safety and Inspection Service under the US Department of Agriculture.

The company said the interruption affected a single production line and clarified that the issue was unrelated to Listeria contamination and did not result in any product recalls, adding that normal operations resumed after corrective measures and regulatory requirements were completed.

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