JBS Q4 Earnings Call Highlights
by Danessa Lincoln · The Markets DailyJBS (NYSE:JBS) executives highlighted record sales and positive consolidated results in the company’s fourth-quarter and full-year 2025 earnings call, while pointing to continued volatility in U.S. beef markets and ongoing investments aimed at expanding value-added products across regions.
Record revenue, earnings growth, and dividend announcement
Global CEO Gilberto Tomazoni said JBS closed 2025 with “consistent performance” and progress toward becoming “a stronger, more efficient company.” The company reported fourth-quarter revenue of $23 billion and said it posted full-year revenue of $86 billion, which management described as a company record. Tomazoni reported net income of $450 million for the quarter and $2 billion for the year, representing 15% year-over-year growth, with earnings per share of $1.89 for 2025.
Global CFO Guilherme Cavalcanti provided additional detail, stating net sales reached $23 billion in the quarter and $86 billion for 2025. He reported adjusted EBITDA of $1.7 billion under IFRS (7.4% margin) for the quarter and $6.8 billion (7.9% margin) for the year. Under U.S. GAAP, adjusted EBITDA was $1.5 billion (6.5% margin) for the quarter and $5.8 billion (6.7% margin) for the year. Net income was $415 million in the quarter, with EPS of $0.39; excluding non-recurring items, adjusted net income would have been $500 million and EPS $0.47 for the quarter, according to Cavalcanti.
JBS also announced a dividend of $1 per share to be paid June 17. Management said it intends to pay about $1 billion per year in dividends as long as leverage allows, and said share repurchases would depend on cash generation in coming quarters.
Cash flow, leverage, and capital spending framework
The company reported free cash flow of $990 million in the fourth quarter and $400 million for the full year. Cavalcanti said fourth-quarter cash flow benefited from deferred livestock payments—particularly in the U.S.—and inventory dynamics tied to strong revenue growth. He noted working capital consumed $850 million in 2025, while the cash conversion cycle remained in line with prior-year levels.
JBS ended the year with a leverage ratio of 2.39x, which management said aligns with its long-term target of 2–3x net debt to EBITDA. Cavalcanti said the company extended its debt maturity profile to an average term of about 15 years and an average cost of around 5.7%, with no significant maturities until 2031. He added that about 90% of debt is fixed-rate, and highlighted $3.5 billion in revolving credit lines and $4.8 billion of available cash.
Looking to 2026, Cavalcanti laid out assumptions for an EBITDA cash flow break-even exercise, including capital expenditures of $2.4 billion ($1.3 billion expansion and $1.1 billion maintenance), interest expense of $1.15 billion, leasing expense of $500 million, and a 25% consolidated effective tax rate. He emphasized it was “too early” to estimate working capital and biological asset changes due to variables such as grain and livestock prices.
Operating trends: U.S. beef volatility; chicken demand and plant investments
Management repeatedly pointed to challenging conditions in U.S. beef due to the cattle cycle, tight supply, and high costs. JBS USA CEO Wesley Batista Filho described early first-quarter conditions as “really tough” and said January and February spreads were negative, with March data showing improvement. He attributed unusual quarter-to-quarter swings in performance partly to heightened market volatility and positioning in forward sales and procurement, and said there was no significant impact from hedging or derivatives in that context.
Batista Filho also addressed labor negotiations at the company’s Greeley facility, describing a “very good deal” in front of the local union and referencing a national agreement with other union locals that includes a variable pension plan. He said the company hopes the situation is resolved quickly, while cautioning that strike outcomes are difficult to forecast.
On cattle supply, Batista Filho said Mexico cattle imports remain an important variable, calling the closed trade “probably the most important short term change” that could affect the U.S. beef supply-demand equation. He said the volume is meaningful—about 1.2 to 1.5 million head per year—but he could not forecast when imports might resume.
In U.S. poultry, Tomazoni said demand remains high and described investments at Pilgrim’s Pride to support retail and prepared foods growth. He said three plant projects were completed, including one conversion from big bird production to case-ready, and two equipment upgrades designed to supply raw material directly to prepared foods operations rather than selling to and buying from third parties. He also cited USDA forecasts for chicken supply growth and noted that chicken breast prices increased even as placements grew, which he presented as evidence of balanced supply and demand.
Brazil and Australia: exports, Seara mix, and feed-cost outlook
JBS executives described Australia as a 2025 highlight, citing strong EBITDA growth, margin expansion, and fourth-quarter top-line growth of 30% year over year. Tomazoni said the Australian business benefited from a global beef supply-demand imbalance and said he was not concerned about Australia managing volumes even if China quotas become a constraint, pointing to demand across Japan, Korea, other Asian markets, the U.S., and Europe.
In Brazil, Tomazoni said the beef business operated within its historical margin range, supported by strong exports and steady domestic demand, and noted a particularly strong fourth quarter with sales up 26% year over year. He also referenced improved livestock productivity and said Brazil recorded its highest beef processing volume in history at roughly 42 million head. He said Friboi increased volumes in markets including Mexico, Europe, and the United States, while also expanding domestic initiatives such as the Friboi Mais/Plus program, which management said supports retail partners’ sales performance.
On Seara, Tomazoni said the company continues to focus on brand strength and expanding higher value-added products. In Q&A, he agreed that, in the quarter, margins on international chicken sales were higher than margins on prepared foods sold domestically, while also saying the company has been working to improve domestic pricing and margin management as brand perception strengthens. He also said shipments to China following a reopening helped profitability, especially for products such as chicken feet and wings, and indicated the first quarter would capture a fuller benefit than the partial contribution seen in the fourth quarter.
Tomazoni provided a feed-cost outlook, saying the company expects higher corn costs in 2026 due to lower global stocks and solid demand, among other factors. For soybean meal, he said the company sees price stability and described its outlook as “bearish,” while noting factors to monitor such as U.S. acreage and biofuel policy.
NYSE listing, index inclusion goals, and limited near-term M&A appetite
Executives said the company’s dual listing and NYSE presence improved market visibility and liquidity. Tomazoni said trading volume has increased about three times versus pre-listing levels and that the investor base has become more global, with U.S.-based investors representing nearly 70% of free float.
Cavalcanti said the company’s valuation multiple has expanded since listing but remains at a discount to global peers, and discussed potential index inclusion milestones. He said a research note suggested the company could be included in the Russell index as early as June, though he stressed that is outside the company’s control. He also said the company expects to transition to filing 10-Ks and 10-Qs to be eligible for the S&P index family, describing Russell inclusion as a nearer-term goal and S&P eligibility as a longer-term pathway.
On M&A, management said it is always looking for opportunities but is not currently focused on any specific transactions, pointing instead to a greater emphasis on organic expansion. The company also reiterated its interest in building value-added capabilities through greenfield projects when acquisitions are not attractive.
About JBS (NYSE:JBS)
JBS SA is a global leader in the production and processing of meat products, with a focus on beef, pork and poultry. Headquartered in São Paulo, Brazil, the company operates through an extensive network of owned facilities and partnerships that span the Americas, Europe and the Asia-Pacific region. JBS supplies fresh, frozen and value-added protein solutions for retail, foodservice and industrial customers, and is active across the entire supply chain—from livestock procurement and feed production to slaughtering, processing, packaging and distribution.
Founded in 1953 by José Batista Sobrinho in Anápolis, Goiás, JBS began as a small slaughterhouse and expanded rapidly through strategic acquisitions and organic growth.