By Brazil Stock Guide – JBS (JBSS3; JBSAY), the world’s largest meat processor, reported net income of $415 million in the fourth quarter of 2025, broadly flat year-on-year, even as revenue rose 15% to $23.1 billion. The result reflects strong volume and pricing growth, but weaker conversion into profitability amid rising global costs.
For the full year, net income reached $2.0 billion, up 15%, with record revenue of $86.2 billion. Earnings per share came in at $1.89, while return on equity exceeded 25%. Annual EBITDA totaled $6.8 billion, with a margin of 7.9%.
“Closing 2025 with 15% revenue growth — the highest in our history — demonstrates the strength and resilience of our diversified platform across proteins and geographies”, said Gilberto Tomazoni, JBS Global CEO. “At the same time, the 15% increase in profit reinforces the consistency of our execution and our ability to continue generating growth and value for shareholders.”
The results highlight a company in transition. JBS continues to expand globally, but faces concentrated operational pressure in specific segments, particularly the North American cattle cycle, where supply constraints and rising input costs are reshaping margins.
JBS operates in more than 20 countries and serves roughly 180 markets, with a portfolio spanning beef, poultry, pork and prepared foods. Brands such as Friboi, Seara, Swift and Pilgrim’s Pride underpin its global footprint and diversification strategy.
Revenue increased across nearly all business units in the quarter. Still, adjusted EBITDA fell 7% to $1.7 billion, with margins narrowing to 7.4%, reflecting cost pressures, especially in beef operations.
Beef Cycle Pressure
JBS Beef North America was the main drag on profitability. Revenue rose nearly 20% to $7.7 billion in the quarter, but EBITDA dropped sharply to $56 million, with a margin of just 0.7%. For the full year, the division posted negative EBITDA of $319 million, reversing profitability from the prior year.
The downturn reflects an adverse cattle cycle in the U.S. Herd levels are at their lowest in more than 70 years, while restrictions on cattle imports from Mexico further tightened supply throughout 2025. At the same time, cattle costs rose significantly, outpacing beef price increases.
This mismatch compresses industry spreads and limits profit generation, even with resilient demand. While still a major revenue contributor, the division has become a key pressure point for consolidated earnings.
The operation is also facing short-term disruptions. A labor strike at a JBS facility in Colorado is adding operational strain and may temporarily affect volumes and efficiency.
Poultry Offsets Weakness
In contrast, poultry and prepared foods remain key profit drivers. Pilgrim’s Pride posted quarterly revenue of $4.5 billion and EBITDA of $557 million, with a margin of 12.3%. For the year, EBITDA reached $2.8 billion, with margins of 15.2%.
The shift toward value-added products continues to support performance. Branded and prepared foods are growing faster than commodity segments, helping stabilize margins.
Seara also delivered consistent results. The division reported quarterly revenue of $2.5 billion and EBITDA of $413 million, with a margin of 16.6%. For the full year, margins remained close to 17%, supported by exports and product innovation.
Even with temporary sanitary restrictions in markets such as China and Europe, Seara expanded volumes and maintained profitability, reinforcing its strategic role within the group.
Brazil Gains Scale
JBS Brazil recorded strong revenue growth, reaching $4.4 billion in the quarter, up 26%, and $15.3 billion for the year, an increase of more than 20%.
Quarterly EBITDA totaled $288 million, with a margin of 6.6%, stable year-on-year. However, full-year margins declined to 6.2%, reflecting higher cattle costs.
Growth was driven by exports and higher slaughter volumes, which reached record levels. The business also benefits from strong brand positioning and commercial execution in the domestic market.
Australia and Pork
JBS Australia was a standout performer. Revenue reached $2.3 billion in the quarter, up nearly 30%, while EBITDA rose more than 50% to $217 million, with margin expansion.
The performance reflects higher prices, improved productivity and operational efficiency, along with a better product mix.
Meanwhile, JBS USA Pork delivered stable results. Quarterly revenue reached $2.1 billion, with EBITDA of $180 million and margins of 8.4%. Full-year performance remained consistent.
Cash and Leverage
Free cash flow totaled $990 million in the quarter and $400 million for the year, reflecting higher working capital consumption compared to 2024.
For Guilherme Cavalcanti, JBS Global CFO, the results highlight financial discipline. “Our strategy allowed us to maintain leverage between 2x and 3x, with a highly extended debt maturity profile. This provides the financial strength and liquidity needed to navigate cycle volatility and continue delivering solid returns to investors.”
Leverage ended the period at 2.4x EBITDA, up from 1.9x a year earlier but still within the company’s target range. The debt profile remains long-term and cost-efficient.