JBS faces severe profitability pressure despite record revenue, with leverage above target and heavy one-time charges. Monitor upcoming conference call for guidance on margin recovery and debt paydown plans; the stock is likely under pressure given the magnitude of the earnings miss.
Price Chart
Executive Summary
JBS reported Q2 2026 net sales of $23.9B (+14% YoY), a record, but profitability collapsed: GAAP EPS of -$0.10 (vs $0.48 YoY) missed consensus of $1.71 by 105.3%, driven by $172M in bond tender costs, $133M in antitrust settlements, and lower poultry margins. Adjusted EPS of $0.20 was down 62% YoY as Pilgrim's Pride EBITDA fell 39% and leverage rose to 3.1x, above the long-term target.
Key Financial Metrics
Key Facts
- Net sales $23.9B, +14% YoY, a record
- GAAP EPS -$0.10 vs consensus $1.71, miss of -105.3%
- Adjusted EPS $0.20 vs $0.52 YoY, down 62%
- IFRS Adjusted EBITDA $1.43B, -18% YoY
- Net loss attributable to JBS $102M vs profit $528M YoY
- Pilgrim's Pride EBITDA $503M, -39% YoY; margin 10.9% vs 17.2%
- Leverage 3.1x (net debt/EBITDA LTM), above long-term target vs 2.27x prior year
- Free cash flow $130M, improved from -$55M YoY
- Dividend payment of $1B in the quarter
- Bond tender and CRA premiums of $172M, antitrust settlements of $133M
Financial Impact
GAAP EPS of -$0.10 was a $1.81 miss vs $1.71 consensus, a -105.3% surprise; adjusted EPS down $0.32 or 62% YoY
Risk Factors
- Continued margin compression from high cattle and feed costs
- Poultry margins may remain subdued as commodity chicken prices stay low
- Leverage above target constrains financial flexibility; potential credit rating risk
- Antitrust and legal overhang from ongoing settlements
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3342372 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 5d ago | EFFECT | $12.42 | awaiting T+20 | — | $12.02 (−3.22%) |
Sep 15, 2026 6w ago | 8-K | $12.22 $13.02 | ▲ +6.55% | ▲ +4.48% | $12.02 (−1.64%) |
Aug 18, 2026 10w ago | 425 / 8-K | $13.75 $12.06 | ▼ −12.29% | ▼ −10.34% | $12.02 (−12.58%) |
Aug 10, 2026 11w ago | 8-K | $13.02 $12.58 | ▲ +3.38% | ▲ +2.32% | $12.02 (+7.68%) |
Aug 10, 2026 11w ago | Press Release | $13.02 $12.58 | ▲ +3.38% | ▲ +2.32% | $12.02 (+7.68%) |
Aug 7, 2026 11w ago | 6-K | $14.23 $13.03 | ▼ −8.43% | ▼ −8.04% | $12.02 (−15.53%) |
Aug 5, 2026 11w ago | 6-K | $13.69 $13.14 | ▼ −4.02% | ▼ −4.62% | $12.02 (−12.20%) |
Jul 31, 2026 12w ago | 6-K | $13.76 $13.44 | ▼ −2.33% | ▼ −3.56% | $12.02 (−12.65%) |
Jun 15, 2026 19w ago | 6-K | $12.19 $11.80 | ▼ −3.20% | ▼ −2.45% | $12.02 (−1.39%) |
May 14, 2026 23w ago | 6-K | $12.94 $12.54 | ▼ −3.11% | ▼ −2.25% | $12.02 (−7.13%) |
US Market Status
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