JBS S.A. — Cyborg Score 6/10

Solid
Meat and Poultry Processing

Strategic Profile

The company invests in related businesses such as leather, biodiesel, collagen, fertilizers, natural casings, solid waste management solutions, recycling, and transportation, with a focus on the circular economy. JBS ended 2025 with leverage at 2.39x, consistent with its long-term target, a comfortable amortization schedule with no significant maturities until 2031, and a highly competitive cost of debt with coupons through 2032 positioned below U.S. Treasury rates.

Cyborg Score Rationale

JBS achieved record revenue of US$86 billion in 2025 with 13% net income growth to US$2 billion, demonstrating strong operational execution. However, Q1 2026 saw significant profit headwinds with operating profit down 45% and adjusted EBITDA declining from US$1.53 billion to US$1.13 billion, indicating margin compression despite higher volumes. The geographic and multiprotein diversification provides resilience against commodity cycles.

Top Insights

  • (March 2025) Record full-year 2025 revenue of US$86 billion (+12% vs 2024) and net income of US$2 billion (+13% vs 2024), demonstrating execution excellence
  • (May 2026) Q1 2026 revenue of US$21.6 billion (+11% YoY) but operating profit collapsed 45% and net income halved to US$241.6 million due to U.S. beef market challenges
  • (May 2026) U.S. beef operation recorded negative EBITDA of US$267 million (-3.7% margin) amid severe cattle cycle headwinds and supply constraints
  • (May 2026) JBS Brazil and Australian operations delivered strong results, cushioning North American volatility; company deployed US$150 million for 80% stake in Oman multi-protein JV for geographic expansion

Named Competitors

  • Tyson Foods — Integrated beef, pork, and poultry processing
  • Perdue Farms — Poultry and agricultural products
  • Pilgrim's Pride — Poultry processing and value-added products (JBS subsidiary)
  • BRF S.A. — Diversified meat and food products processor

Recent Developments

  • (March 2026) FY2025 results: US$86 billion revenue (+12% YoY), US$2 billion net income (+13% YoY), US$6.8 billion adjusted EBITDA with 7.9% margin
  • (May 2026) Q1 2026: US$21.6 billion revenue (+11% YoY), but operating profit declined 45% to US$484.5 million; net income US$221 million
  • (May 2026) Invested US$150 million for 80% stake in multi-protein joint venture in Oman; sold 50% of Meat Snack Partners for US$42.8 million
  • (May 2026) Declared dividend of US$1.00 per share payable June 2026; extended debt maturity to 15.6 years average

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