JBS posts 56% drop in Q1 net profit amid challenges in North American operations

Brazil’s ‌JBS , the world’s largest meatpacker, posted a 56% decline in its first-quarter net profit on Tuesday (12), missing market estimates as the firm grappled with challenges across its beef and poultry operations in North America.

The company, whose products include beef, poultry and ​pork, reported a net profit of $221 million in the January-March period, compared to a forecast ​of $236 million from analysts polled by LSEG.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) ⁠fell 26% year-on-year to $1.13 billion in the quarter, below analysts’ estimate of $1.27 billion.

NORTH AMERICAN MARGINS STILL PRESSURED

JBS ​attributed the results to operational challenges in North America, which includes JBS Beef North America and poultry subsidiary ​Pilgrim’s Pride, offsetting a positive performance in the Brazilian market.

High livestock prices amid a low cattle availability in the United States kept margins pressured during the quarter, while weather-related challenges and temporary plant stoppages affected poultry output, JBS said in an ​earnings report.

“In the U.S. cycle, business remains tough, and the first quarter is always a challenging period,” Chief ​Executive Gilberto Tomazoni told Reuters in an interview. “This quarter was worse than last year due to cyclical conditions.”

North American beef ‌operations, ⁠which represent a third of JBS’ net sales, posted a negative adjusted EBITDA of $267 million, even though revenue rose about 12% year-on-year to $7.17 billion.

In addition, a three-week strike in March disrupted its operations at a massive beef processing plant in Greeley, Colorado, as workers pressed for higher wages and a halt to charges for replacing ​protective equipment.

JBS’ net sales stood ​at $21.61 billion, an 11% ⁠increase from a year earlier. Analysts had forecast the figure at $21.29 billion.

BEEF LEADS STRONG QUARTER IN BRAZIL

While there were hurdles in North America, JBS’s Brazil operations ​had a strong showing in the first quarter, led by a 28% increase ​year-on-year in beef ⁠operations’ adjusted EBITDA to $168 million, despite a 21% rise in operational costs.

The company said the performance was driven by higher export prices and volumes, supported by robust global demand. Sales at the unit hit a record for ⁠a first ​quarter at $3.79 billion, up 19.5% from the same period of ​2025.

The following chart tracks the monthly performance of Brazilian beef exports bound for the U.S. over the last three years. This data is sourced from Datamar:

Beef Exports to the U.S. | Jan 2023 – Mar 2026 | TEUs

Source: DataLiner (click here to request a demo)

“The performance of operations in Brazil and the strength of other business units helped offset the challenges faced due to the North American ​cattle cycle,” the company said.

Souce: Reuters

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