JBS posts US$415M Q4 profit as U.S. beef costs pressure margins
The North American beef division faces supply constraints and a labor strike in Colorado.
BRAZIL – Brazilian meat processing giant JBS posted a fourth-quarter net profit of US$415 million for October through December, up 0.5% from the same period last year but slightly below the US$428 million analysts had projected.
The company said rising livestock costs in the United States limited profit growth, squeezing margins in its largest revenue segment, the North American beef division.
Chief Executive Gilberto Tomazoni noted that U.S. cattle supplies would remain tight throughout 2026 due to the current downturn in the livestock cycle, with a labour strike at a Colorado plant adding operational challenges.
Tomazoni added that strong customer demand could partially offset margin pressure in the U.S. market.
JPMorgan analysts said that despite margin compression, the North American beef division performed better than expected, supported by resilient demand and disciplined cost management.
Santander analysts noted that gains from derivatives contracts helped offset high cattle prices and that consumer beef demand remained steady despite rising costs.
Shares of JBS saw little change in after-hours trading after the earnings release, while the company declared a dividend of US$1 per share in a separate statement.
The company reported total adjusted EBITDA of US$1.72 billion, down 7% year-on-year but above analysts’ estimate of US$1.56 billion, with the adjusted EBITDA margin falling 1.8 percentage points to 7.4%.
Net revenue reached a record US$23.06 billion, a 15% increase from the previous year and surpassing the forecast of US$22.38 billion, led by strong sales in both North American and Brazilian beef operations.
The results show that while revenue growth remains robust, U.S. cost pressures continue to challenge JBS’s profitability amid a tight livestock market and operational disruptions.
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