JBS (JBS) Q1 2025 earnings summary

Executive summary

• Net sales reached $19.5 billion in 1Q25, with year-over-year growth between 8.5% and 13.4%, and net profit rose 50.5% to $500 million, supported by a diversified global platform.

• Adjusted EBITDA increased to $1.5 billion (7.8% margin), with record first-quarter margins in Seara and Pilgrim's Pride.

• Advanced dual listing process for shares in Brazil and the US, aiming to enhance international visibility and attract new investors.

• Expanded global protein platform with acquisition of 50% of Mantiqueira Brasil, the largest egg producer in South America.

• Strong performance in poultry, pork, and Australia offset margin pressure in North American beef.

Financial highlights

• Net sales: $19.5 billion; adjusted EBITDA: $1.5 billion (7.8% margin); net profit: $500 million; adjusted net income excluding non-recurring items: $572 million.

• Operating cash flow was negative $285 million; free cash flow ranged from negative $970 million to positive $265 million, mainly due to higher tax payments, working capital, and antitrust settlements.

• Net debt at quarter-end was $14.8 billion, down $1.1 billion year-over-year.

• Leverage ratio improved to 1.99x EBITDA from 3.66x a year ago.

• Shareholders approved $789 million in dividends ($0.30/share), with an additional $0.17/share pending dual listing approval.

Outlook and guidance

• 2025 expected to be more challenging for US beef margins due to cattle cycle and tariffs, but diversification expected to support stable overall margins.

• Confident in maintaining leverage within 2–3x range by year-end, with ongoing liability management and comfortable amortization schedule.

• $2 billion CapEx guidance for the year remains unchanged, with 70% focused on maintenance and 30% on expansion.

• Dual listing on NYSE and B3 expected to broaden investor base, reduce cost of capital, and enhance growth flexibility.

• Strategic focus on geographic and protein diversification to maintain stable results and lower volatility.