[JBS] JBS: Q3 2026 earnings test beef losses, the chicken trough and 3.1x leverage

JBS is the world's largest protein company by revenue, slaughtering and processing beef, chicken and pork in the United States, Brazil, Australia and Europe, and it runs chicken operations in the U.S., the U.K. and Mexico through its roughly 82% stake in Pilgrim's Pride (PPC)[1][2]. The company is scheduled to report results on 2026-11-10 for the third quarter 2026, the three months ended September 30, 2026[3]. The latest disclosed quarter is the second quarter of 2026: net sales rose 14% to $23.90 billion, but IFRS adjusted EBITDA fell to $1.429 billion from $1.754 billion a year earlier, net loss attributable to JBS was $102 million, and adjusted EPS was $0.20 against $0.52 a year earlier[4]. JBS does not issue quarterly earnings guidance, but on its second-quarter call it cut 2026 capital expenditure guidance by $400 million to about $2.0 billion, raised interest expense guidance by $150 million to about $1.3 billion, and said year-end net leverage should stay roughly at the second-quarter level of slightly above 3.1x[5]. The Drillr earnings calendar, as of 2026-11-05, shows third-quarter consensus of $0.231 in adjusted EPS and $22.924 billion in net sales; the same data show that JBS reported adjusted EPS of $0.20 in both the first and second quarters, below consensus of $0.284 and $0.3078 at the time[3].

Three things matter most in this JBS Q3 2026 earnings report. First is whether North American beef losses keep narrowing: the segment's EBITDA margin was −1.0% in the second quarter, better than −3.4% a year earlier, but first-half volume fell 6.7% and Mexican cattle imports only began resuming gradually in late August, so holding the prior-year third-quarter level of about −0.6% decides whether the largest revenue business is still dragging on consolidated profit[6][7][8]. Second is whether chicken profits bottomed in the third quarter: PPC has already reported third-quarter adjusted EBITDA of $316.3 million, a 6.8% margin, with U.S. chicken supply up 2.2% year over year, and JBS chose this moment to propose a share-exchange buyout of the remaining roughly 18% of PPC, so the PPC margin under JBS reporting and management's comments on the deal will shape its path[9][10][2]. Third is whether leverage can stop at 3.1x: net debt was $18.962 billion at the end of the second quarter and net debt to trailing 12-month adjusted EBITDA was 3.10x, above the 2-3x long-term target, and whether second-half free cash flow can offset lower EBITDA determines the room for the $1 billion annual dividend and expansion capital spending[11][12].

Company Background and Business Structure

JBS is a multi-region, multi-protein platform whose scale advantage sits in processing capacity. At the end of 2025 it had daily processing capacity of more than 78,000 head of cattle and more than 14 million chickens, both ranked first globally, and its pork capacity ranked second; 2025 net revenue was $86.2 billion, sold to more than 330,000 customers in about 197 countries[1]. The company presents consolidated statements in U.S. dollars while each subsidiary keeps its books in the functional currency of its own economy, so moves in the Brazilian real, Australian dollar, Mexican peso and British pound flow directly into translated revenue and profit[13]. From the second quarter of 2026 JBS began voluntary reporting as a U.S. domestic issuer, and in June it was added to the Russell 1000 and Russell 3000 indexes[14][15].

JBS reports segments by business unit, and their revenue scale and profit sources differ sharply. In 2025 Beef North America had net sales of $28.137 billion but adjusted EBITDA of −$319 million, while Pilgrim's Pride had net sales of $18.485 billion and adjusted EBITDA of $2.804 billion, the largest profit source[16][17]. JBS Brazil had net sales of $15.294 billion and adjusted EBITDA of $955 million, and Seara, focused on chicken and prepared foods, had net sales of $9.171 billion and adjusted EBITDA of $1.553 billion[18]. Besides its U.S. business, the PPC segment includes Moy Park and Tulip in the U.K. and Europe plus its Mexican operations[19]. The beef businesses buy live cattle from outside ranchers and feedlots, so profit depends on the gap between cutout prices and cattle costs; chicken and pork are vertically integrated, with feed as the main cost; prepared and branded foods carry steadier margins and are the main target of expansion capital spending.

JBS revenue depends heavily on U.S. production, but most of its sales stay in the countries where its plants operate. By production geography in 2025, the United States accounted for 50.9% of net revenue, South America 28.8%, Australia 8.3%, Europe 7.5% and Mexico and Canada together 7.3%[20]. By consumption, 74% of net revenue came from domestic sales in plant countries and 26% from exports, with Asia, mainly China, Japan and South Korea, accounting for half of export revenue[21]. Retail is the largest distribution channel, followed by food processors, foodservice and overseas distributors[22]. The Batista family controls the company through LuxCo, and under the dual-class structure the controlling shareholders held 85.68% of voting power as of March 18, 2026[23].

Financial History and Current Position

In fiscal 2025 JBS set a revenue record, but profit and cash flow both weakened. Full-year net sales were $86.184 billion, up from $77.183 billion in 2024; IFRS adjusted EBITDA was $6.831 billion, down from $7.192 billion; net income attributable to JBS was $2.024 billion, or $1.89 per share[24]. In the same year, operating cash flow fell from $5.524 billion to $4.046 billion and purchases of property, plant and equipment rose from $1.480 billion to $2.099 billion, so company-defined free cash flow dropped from $2.332 billion to $400 million[25]. Year-end net debt was $16.320 billion and net debt to adjusted EBITDA rose from 1.89x to 2.39x[25].

Revenue kept growing in the second quarter of 2026, but profit fell clearly. Second-quarter net sales were $23.900 billion against $20.998 billion a year earlier; IFRS adjusted EBITDA was $1.429 billion, down 18%, or $1.257 billion on a U.S. GAAP basis[4]. First-half net sales were $45.508 billion and adjusted EBITDA was $2.563 billion, compared with $3.281 billion a year earlier[4]. Second-quarter net loss attributable to JBS was $102 million while adjusted net income was $218 million; the main adjustments were $172 million in costs tied to tender offers for bonds and Brazilian local debentures (CRA), $133 million in antitrust settlements, and an $81 million bargain purchase gain on the Mantiqueira Alimentos acquisition[15].

Cash flow improved in the second quarter, but the trailing 12-month total was still close to zero. Second-quarter operating cash flow was $1.242 billion versus $773 million a year earlier; after net interest, $613 million of capital spending and lease payments, free cash flow was $130 million against −$55 million a year earlier, and the trailing 12-month total was only $36 million[11]. First-half purchases of property, plant and equipment were $1.179 billion versus $714 million a year earlier, and changes in operating assets and liabilities used $1.919 billion of cash versus $2.722 billion a year earlier[26].

The balance sheet ended the second quarter outside the company's target range. Net debt at the end of June was $18.962 billion versus $16.524 billion a year earlier; net debt to trailing 12-month adjusted EBITDA was 3.10x versus 2.27x, and interest coverage fell from 7.74x to 5.00x[11][4]. Average debt maturity was 15.3 years at an average cost of 5.7%, and in August the company raised its revolving credit capacity from $3.5 billion to $4.2 billion, lifting total liquidity to $7.7 billion[27][28].

Operating Model

JBS revenue equals each business unit's volume times average selling price, less intercompany eliminations, and the price drivers differ by business. Beef prices follow the cutout market, chicken and pork prices depend on industry supply and product mix, and prepared and branded foods are more stable; overseas businesses are also exposed to exchange rates when translated into dollars[13]. In the second quarter of 2026 Beef North America had net sales of $7.770 billion, PPC $4.623 billion, JBS Brazil $4.585 billion and Seara $2.560 billion[6][29]. North American beef revenue growth in the first half came mainly from a 21.0% rise in average selling price, while volume fell 6.7%[7].

Adjusted EBITDA is set by the spread between selling prices and raw material costs, with cattle the key input for beef and feed and live operations for chicken and pork. North American beef profit moves with the per-head spread, and when cattle prices rise faster than cutout values, revenue growth does not turn into profit[7]. On second-quarter segment sales of $7.770 billion, each percentage point of North American beef margin equals roughly $78 million of quarterly EBITDA[6]. IFRS includes fair-value adjustments to biological assets and U.S. GAAP does not, and the gap is large in chicken: PPC's segment margin in the second quarter was 10.9% under IFRS and 7.8% under U.S. GAAP[6].

Free cash flow equals operating cash flow less net interest, capital spending and lease payments, and working capital is the most volatile quarterly item. Inventories move with cattle and feed prices, receivables discounting and export customer prepayments can pull cash forward, and payables to ranchers rise with cattle prices and slaughter volumes[27]. On its first-quarter call the company said second-half free cash flow is seasonally strong and gave a 2026 cash-flow breakeven EBITDA range of $5.7 billion to $6.0 billion[12]. Cash goes first to expansion capital spending, then to the $1 billion annual dividend and debt reduction, and management said the dividend and $1.3 billion of expansion capital spending will be maintained as long as leverage stays within the 2-3x target[30].

Industry and Competitive Position

JBS's competitive advantage comes mainly from scale and from diversification across regions and proteins. It ranks first globally in beef and chicken capacity and second in pork[1]. When U.S. beef loses money at the bottom of the cattle cycle, Brazilian beef, Seara and Australia can partly offset it; but diversification cannot remove pressure in a single market, since the U.S. cattle shortage constrains every packer equally and U.S. chicken oversupply lowers prices for every commodity chicken producer at the same time[31].

On trade policy, JBS's Brazilian business is directly exposed to China's import quota, which is its biggest difference from U.S.-focused peers. JBS Brazil's second-quarter export growth came mainly from filling the Chinese quota before it ran out, and the company said on its call that beef exports to China are suspended through October 2026 and that no single market can fully absorb the roughly 150,000 tons previously shipped to China[32][31]. The disclosures cited here cover only JBS and PPC and provide no segment margins for peers, so this article cannot compare JBS's spread performance with other packers in numbers.

Core Debates

With U.S. cattle supply at its tightest and Mexican cattle imports only starting to resume, will JBS's North American beef losses narrow or deepen?

North American beef is JBS's largest and least profitable business, and changes in its spread are big enough to shift consolidated profit and the pace of deleveraging. In 2025 Beef North America had net sales of $28.137 billion, about a third of consolidated revenue, yet full-year adjusted EBITDA was −$319 million, a −1.1% margin[16]. The company explained that the U.S. cattle cycle pushed cattle prices up faster than cutout values, and that restrictions on Mexican cattle imports from May 2025 further tightened supply[33].

The year-over-year improvement in the second quarter came partly from a low base, and the cattle supply pressure itself has not eased. Segment EBITDA narrowed from −$233 million a year earlier to −$78 million and the margin recovered from −3.4% to −1.0%, but the first-half total of −$345 million was still worse than −$333 million a year earlier[6]. The company closed two plants, in Souderton, Pennsylvania, and Memphis, Tennessee, merged Fed Beef, Regional Beef and Case Ready into Beef USA, and converted a plant originally slated for closure to value-added production[8][14]. In the first quarter management guided that 2026 U.S. beef industry margins would be 1 to 1.5 percentage points worse than in 2025, and in the second quarter it said herd rebuilding was slower than initially expected[12][31].

The financial transmission of this debate is direct: tight cattle supply lowers both slaughter volume and the per-head spread. The bottom of the herd cycle and restricted Mexican imports reduce the cattle available for slaughter, cattle prices rise faster than cutout values, slaughter volume falls and the per-head spread narrows, and the result lands in Beef North America adjusted EBITDA and then consolidated EBITDA[33][7]. On its second-quarter call management said Mexican cattle import volumes would grow through the fourth quarter of 2026, U.S. slaughter would return to normal by the second quarter of 2027, and the herd would take about three years to return gradually to supply balance[5].

Three numbers matter in the third quarter, and together they decide whether losses narrow or deepen. The first is whether the segment EBITDA margin can stay at or above the roughly −0.6% (about −$42 million) the company disclosed for the prior-year quarter, when segment net sales were about $7.248 billion; the second is whether the year-to-date volume decline is smaller than the first half's −6.7%; the third is whether Mexican cattle imports follow the plan of gradual resumption from August 24[8]. A third-quarter margin below −1.6%, or a wider volume decline, would show that cattle pressure is deepening and that plant consolidation has not offset the shortage.

U.S. chicken oversupply has halved Pilgrim's Pride's margin, and JBS chose this moment to bid for the remaining 18%. Will chicken profits bottom out in the third quarter?

PPC is JBS's largest profit source, and its cycle position and the buyout both affect consolidated profit and the profit attributable to JBS shareholders. In 2025 the PPC segment produced IFRS adjusted EBITDA of $2.804 billion at a 15.2% margin, about 41% of consolidated EBITDA[17][24]. PPC reported its third quarter first, on October 28: net sales of $4.7 billion and U.S. GAAP adjusted EBITDA of $316.3 million, a 6.8% margin, including 6.9% in the U.S., 7.4% in Europe and 4.9% in Mexico; PPC's prior-year quarter was $633.1 million, or 13.3%[9].

Current evidence shows that the pressure is concentrated in commodity chicken, while value-added and branded products are still growing. PPC said U.S. chicken supply rose 2.2% year over year in the third quarter, outpacing demand and pushing commodity cutout values lower, while U.S. Prepared Foods volume rose more than 15% and Just Bare retail sales grew more than 25%[10][9]. On its second-quarter call JBS explained that U.S. oversupply is concentrated in commodity big birds, about 25% of PPC's business, and that demand for value-added retail chicken remains strong[34]. Under JBS's consolidated reporting, PPC's second-quarter IFRS margin was 10.9% against 17.2% a year earlier, and first-half segment EBITDA fell 35.5% because of higher live operation costs, unfavorable currency moves in Europe and Mexico, and higher legal settlements[6][35].

The buyout proposal adds a capital-structure layer to this debate. On August 18 JBS made a non-binding proposal to PPC's board to acquire all shares it does not own at a fixed ratio of 2.086 JBS Class A common shares per PPC share[2]. The proposal letter says the deal requires special committee approval and is expected to be conditioned on a majority of votes cast by unaffiliated shareholders; PPC announced the formation of the special committee on October 9[36][37]. In financial terms, industry supply growing faster than demand lowers commodity chicken prices and PPC's U.S. fresh margin, which prepared foods and key customer contracts can only partly offset; if the buyout closes, profit attributable to PPC minority holders would shift to JBS shareholders at the cost of issuing new JBS shares[38].

Two things remain unresolved: whether chicken profits have bottomed, and whether the buyout can close at the current ratio. In the third quarter, watch whether the PPC segment IFRS margin reported by JBS falls between 9% and 11% (the company disclosed about 16.2%, or $770 million, for the prior-year quarter), whether PPC's margin returns above 6.8% in the fourth quarter, and how the special committee responds to the 2.086 exchange ratio[9][37]. A further decline in PPC's fourth-quarter margin would show the chicken trough is not over, and a rejection by the special committee would leave PPC's minority interest outside JBS.

With China's beef quota used up and Brazilian exports to China suspended, can JBS hold its Brazilian beef margins?

JBS Brazil is the largest beef business outside the United States, and the third quarter is the first full quarter after China's quota ran out. In 2025 the segment had net sales of $15.294 billion and adjusted EBITDA of $955 million, a 6.2% margin, down from 7.7% in 2024[18]. China imposed a quota on imported beef in 2026, and the company concentrated first-half exports on filling it; on the second-quarter call it said exports to China are suspended through October 2026 and that no single market can fully absorb the roughly 150,000 tons[32][31].

Second-quarter figures set records, but the margin was already below the prior year. JBS Brazil's second-quarter net sales rose 28.0% to $4.585 billion and adjusted EBITDA rose 17.8% to $269 million, but the margin fell from 6.4% to 5.9%[29]. The average live cattle price in the quarter was about R$353 per arroba, up 12% year over year, and first-half selling prices rose 17.2%[32][39]. Management said Brazilian beef keeps a balance between exports to China, other export markets and the domestic market, and that cattle availability has improved[14].

The alternative reading is that second-quarter revenue was lifted by exports rushed in before the quota ran out, and that the third quarter will show the reverse effect. The transmission chain runs from China's safeguard quota to concentrated first-half exports; once exports to China stop in the third quarter, about 150,000 tons must move to other markets or the domestic market, pressuring export and domestic prices while cattle prices stay high, which compresses JBS Brazil's adjusted EBITDA[32][31]. According to the company's prior-year disclosure, the segment's third-quarter 2025 margin was about 7.4% (about $307 million) on net sales of about $4.160 billion, the base for the year-over-year comparison.

This debate turns on three indicators: margin, revenue growth and cattle cost. Whether the third-quarter margin stays at or above the second quarter's 5.9%, whether net sales growth stays above 10%, and whether cattle price inflation eases from the second quarter's 12% will together show whether redirected exports absorbed the China volume[29][32]. A third-quarter margin below 5.4% would show that redirected exports did not absorb the China volume, and a tighter Chinese quota in 2027 would carry the pressure into next year.

With leverage at 3.1x, above its 2-3x target, can JBS's second-half cash flow stop it from rising further?

The direction of leverage sets JBS's room for capital allocation, including the dividend, expansion capital spending and how the PPC buyout is paid for. Net debt was $18.962 billion at the end of the second quarter and leverage was 3.10x, above the 2-3x long-term target and above the 2.5x to 3x year-end level management anticipated in the first quarter[11][12]. The company said it will maintain the $1 billion annual dividend and $1.3 billion of expansion capital spending as long as leverage stays within the target range, so whether leverage falls bears directly on both commitments[30].

The second-quarter cash flow improvement came mainly from working-capital arrangements rather than profit growth. Free cash flow was $130 million, $185 million better than a year earlier, driven by about $600 million from more receivables discounting and larger prepayments from Chinese customers and by a $390 million increase in payables from higher cattle prices and slaughter volumes; these were partly offset by a $324 million drop in EBITDA, $129 million more net interest and $163 million more capital spending[27]. The company then cut 2026 capital spending guidance to about $2.0 billion, raised interest expense guidance to about $1.3 billion, and guided 2026 working capital to −$350 million, a $500 million improvement on 2025[5].

The alternative reading is that working-capital arrangements have limited room, and leverage will keep rising if EBITDA stays below the prior year. On the first-quarter call the company said re-expanding receivables discounting could bring roughly $500 million to $1 billion of cash, with more supplier finance as another lever[30]. The transmission chain runs from business-unit EBITDA, less about $2.0 billion of capital spending, about $1.3 billion of net interest and taxes, plus or minus receivables discounting, customer prepayments and cattle payables, to free cash flow, which sets net debt; falling trailing 12-month EBITDA pushes leverage up and squeezes room for the dividend and expansion spending[5][26]. In the transaction with DIM, an investment arm of Indonesia's sovereign fund Danantara, DIM will subscribe for 25% of JBS's Australia and New Zealand business for $2.5 billion in total, investing $800 million at completion and the rest within three years; the documents are signed but customary closing conditions remain[40].

Four checkpoints matter in the third quarter, and together they decide whether leverage stops rising. The first is whether quarter-end leverage is at or below 3.10x; the second is whether third-quarter free cash flow is at or above the roughly $383 million the company disclosed for the prior-year quarter; the third is whether year-to-date capital spending stays within $1.6 billion, after $1.179 billion in the first half; the fourth is whether DIM's first $800 million arrives[26][40]. Third-quarter leverage above 3.3x would show that second-half cash flow cannot offset lower EBITDA, and a change to the dividend policy would signal a shift in capital allocation priorities.

Risks and Falsifiers

Controlling-shareholder and legal risk can reach minority holders through non-recurring charges and related-party deal terms. The Batista family holds 85.68% of voting power, the company keeps paying antitrust settlements, second-quarter adjustments included $133 million of antitrust settlements, and DOJ and antitrust payments in operating cash flow were $146 million[23][15][26]. The exposure lies in net income attributable to JBS, operating cash flow and minority holders' bargaining power in related-party deals such as the PPC buyout; if later quarters show no large new settlements and the PPC deal wins approval from a majority of unaffiliated holders, the concern would ease[36].

Slower-than-expected U.S. herd rebuilding is the main variable for how long North American beef losses last. In the first quarter management guided that 2026 U.S. beef industry margins would be 1 to 1.5 percentage points worse than in 2025, and in the second quarter it said herd rebuilding was slower than initially expected[12][31]. This risk hits Beef North America EBITDA (−$319 million in 2025) and consolidated EBITDA directly, because persistent cattle shortage squeezes slaughter volume and the per-head spread at the same time[16]. If third- and fourth-quarter segment margins are no worse than the prior year and the volume decline narrows, the risk has not materialized.

A downturn in the chicken cycle combined with deal uncertainty would hit both PPC's profit and JBS's share count. Industry supply growth lowers commodity chicken prices, and the share-exchange offer could face demands for a higher ratio or fail outright[10][36]. The exposed lines are PPC segment EBITDA ($2.804 billion in 2025), the roughly 18% minority interest deducted from net income attributable to JBS, and the number of new JBS shares the deal would require[17][2]. A rebound in PPC's fourth-quarter margin and a definitive agreement between the special committee and JBS would ease this risk[37].

Trade-access risk is concentrated in Brazil, where China's beef quota can limit JBS's access to higher-priced markets. About 150,000 tons previously sold to China must be reallocated, an exposure that sits in JBS Brazil EBITDA ($955 million in 2025)[31][18]. If the third-quarter segment margin is at or above 5.9% and the company reports rising export volumes to replacement markets, the risk is falsified[29].

Leverage above target constrains capital allocation because rising interest and falling EBITDA arrive together, while the cash-flow improvement relies on receivables discounting and supplier finance. The exposed items are $18.962 billion of net debt at the end of the second quarter, about $1.3 billion of 2026 interest expense, the $1 billion annual dividend and $1.3 billion of expansion capital spending[11][5][30]. If leverage is at or below 3.10x in both the third and fourth quarters and free cash flow is positive, the risk has not materialized[27].

What to Watch Next

• North American beef: whether the third-quarter Beef North America EBITDA margin holds at or above about −0.6% (second quarter −1.0%); a reading below −1.6% would show deepening cattle pressure.
• North American beef: whether the year-to-date volume decline narrows from the first half's −6.7%, and whether Mexican cattle imports keep growing after the gradual reopening from August 24.
• Chicken trough and buyout: whether the PPC segment IFRS margin reported by JBS lands between 9% and 11% (10.9% in the second quarter; PPC's own third-quarter figure was 6.8%), and whether the special committee signs a definitive agreement on the 2.086 ratio.
• Brazilian beef: whether the JBS Brazil margin holds at or above 5.9% with sales growth above 10%; a margin below 5.4% would show redirected exports did not absorb the China volume.
• Cash and leverage: whether quarter-end leverage stays at or below 3.10x and free cash flow reaches at least about $383 million; leverage above 3.3x would show cash flow cannot offset lower EBITDA.
• Cash and leverage: whether year-to-date capital spending stays within $1.6 billion (first half $1.179 billion) and whether DIM's first $800 million arrives; a dividend policy change would signal shifting priorities.

Conclusion

JBS's profit depends on three independent spreads: the U.S. beef cutout-to-cattle spread, the U.S. chicken price-to-feed spread, and Brazilian beef pricing between export and domestic markets. Revenue set a record in 2025, but adjusted EBITDA fell from $7.192 billion to $6.831 billion and free cash flow was only $400 million[24][25]. By the second quarter of 2026 North American beef was still losing money, PPC's margin had dropped from its peak and leverage had risen to 3.10x[6][11]. The central unresolved relationship is whether seasonal second-half cash flow and working-capital arrangements can stop falling trailing 12-month EBITDA from pushing leverage higher while beef and chicken sit at cyclical lows together.

Since the second-quarter report, outside commentary with named authors and independent reasoning has centered on JBS's bid for the PPC minority, and the views diverge clearly. As reported by Meatingplace, BMO Capital Markets analyst Andrew Strelzik estimated the new offer at about $28.50 per share, the same as the 2021 offer PPC did not accept, with no premium and well below his estimate of mid-cycle value, so he did not expect PPC to accept; Stephens analyst Pooran Sharma argued PPC's operations have improved since the last offer and the proposal could again face resistance from minority holders[41]. As reported by The Poultry Site, JPMorgan analyst Lucas Ferreira instead viewed the deal favorably on relative pricing between the two companies, arguing that paying in JBS shares rather than cash does not pressure the balance sheet[42]. The first two views map to the chicken debate: exchanging shares at current prices while PPC profit is at a trough does not favor minority holders; the latter maps to the leverage debate: with leverage already above target, a share exchange brings minority profit into JBS without adding net debt. These are outside interpretations, not facts, and they do not form a majority view; public commentary on U.S. beef and leverage has mostly restated prices and reported results, so coverage there remains a gap.

The combination that would materially strengthen the current understanding is a third-quarter North American beef margin no worse than the prior year with a narrower volume decline, a PPC margin under JBS reporting between 9% and 11% followed by a return above 6.8% in the fourth quarter, a JBS Brazil margin that holds 5.9%, and third-quarter leverage at or below 3.10x with free cash flow no lower than the prior year. Conversely, a North American beef margin below −1.6%, a Brazil margin below 5.4%, leverage above 3.3x, or a special committee rejection of the share-exchange offer would show that cattle, quota and chicken-cycle pressures are still compounding and that cash-flow arrangements are not enough to stop leverage from rising.

Sources

[1] JBS 20-F filed 2026-03-25 · business overview and scale · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[2] JBS 8-K filed 2026-08-19 · non-binding proposal to acquire PPC minority · 2026-08-19 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026091373/ea0302563-8k425_jbs.htm

[3] JBS earnings calendar updated 2026-11-05 · 2026-11-05 · Drillr 财报日历一致预期 · https://gateway.drillr.ai/mcp/private

[4] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · 2Q26 consolidated results · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[5] JBS Q2 2026 earnings call 2026-08-11 · 2026 guidance update · 2026-08-11 · earnings-call · https://gateway.drillr.ai/mcp/private

[6] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · 2Q26 segment results (Beef North America and PPC) · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[7] JBS 10-Q filed 2026-08-10 (Q2 2026) · Beef North America H1 price and volume · 2026-08-10 · 10-Q · https://www.sec.gov/Archives/edgar/data/1791942/000179194226000004/jbsay-20260630.htm

[8] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · Beef North America spread, Mexico imports and plant closures · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[9] PPC 8-K filed 2026-10-29 (Q3 2026 earnings release) · Q3 2026 results · 2026-10-29 · 8-K · https://www.sec.gov/Archives/edgar/data/802481/000080248126000077/a2026_q3ppcex991earnings.htm

[10] PPC 8-K filed 2026-10-29 (Q3 2026 earnings release) · US chicken supply and Prepared Foods · 2026-10-29 · 8-K · https://www.sec.gov/Archives/edgar/data/802481/000080248126000077/a2026_q3ppcex991earnings.htm

[11] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · net debt and free cash flow reconciliation · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[12] JBS Q1 2026 earnings call 2026-05-13 · 2026 beef margin, breakeven EBITDA and dividend guidance · 2026-05-13 · earnings-call · https://gateway.drillr.ai/mcp/private

[13] JBS 20-F filed 2026-03-25 · US dollar presentation currency · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[14] JBS Q2 2026 earnings call 2026-08-11 · Indonesia partnership and US beef integration · 2026-08-11 · earnings-call · https://gateway.drillr.ai/mcp/private

[15] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · CEO commentary and non-recurring items · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[16] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · Beef North America FY2025 · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[17] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · Pilgrim's Pride FY2025 · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[18] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · JBS Brazil and Seara FY2025 · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[19] JBS 10-Q filed 2026-08-10 (Q2 2026) · reportable segments description · 2026-08-10 · 10-Q · https://www.sec.gov/Archives/edgar/data/1791942/000179194226000004/jbsay-20260630.htm

[20] JBS 20-F filed 2026-03-25 · net revenue by production geography · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[21] JBS 20-F filed 2026-03-25 · domestic versus export sales · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[22] JBS 20-F filed 2026-03-25 · retail as largest distribution channel · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[23] JBS 20-F filed 2026-03-25 · controlling shareholders voting power · 2026-03-25 · 20-F · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

[24] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · FY2025 consolidated results · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[25] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · FY2025 net debt and free cash flow · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[26] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · 2Q26 and H1 cash flow statement · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[27] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · free cash flow and leverage · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[28] JBS 6-K filed 2026-08-05 · amended US$2.65 billion revolving credit facility · 2026-08-05 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026085774/ea030082601ex99-1.htm

[29] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · 2Q26 segment results (JBS Brazil and Seara) · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[30] JBS Q1 2026 earnings call 2026-05-13 · leverage levers Q&A · 2026-05-13 · earnings-call · https://gateway.drillr.ai/mcp/private

[31] JBS Q2 2026 earnings call 2026-08-11 · risks: China beef suspension and chicken oversupply · 2026-08-11 · earnings-call · https://gateway.drillr.ai/mcp/private

[32] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · JBS Brazil exports, China quota and cattle cost · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[33] JBS 6-K filed 2026-03-26 (4Q25 and FY2025 USD release) · Beef North America cattle cycle and Mexico import restriction · 2026-03-26 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026034244/ea028344501ex99-2.htm

[34] JBS Q2 2026 earnings call 2026-08-11 · Q&A on commodity big bird and Seara · 2026-08-11 · earnings-call · https://gateway.drillr.ai/mcp/private

[35] JBS 10-Q filed 2026-08-10 (Q2 2026) · Pilgrim's Pride H1 drivers · 2026-08-10 · 10-Q · https://www.sec.gov/Archives/edgar/data/1791942/000179194226000004/jbsay-20260630.htm

[36] PPC 8-K filed 2026-08-20 · JBS proposal letter terms · 2026-08-20 · 8-K · https://www.sec.gov/Archives/edgar/data/802481/000080248126000056/ex991jbsproposaltoboard.htm

[37] PPC 8-K filed 2026-10-09 · special committee formed · 2026-10-09 · 8-K · https://www.sec.gov/Archives/edgar/data/802481/000080248126000070/ppc-20261009.htm

[38] JBS 8-K filed 2026-08-11 (2Q26 earnings release) · Pilgrim's Pride commentary · 2026-08-11 · 8-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026087444/ea030137401ex99-1.htm

[39] JBS 10-Q filed 2026-08-10 (Q2 2026) · Brazil and Seara H1 price and volume · 2026-08-10 · 10-Q · https://www.sec.gov/Archives/edgar/data/1791942/000179194226000004/jbsay-20260630.htm

[40] JBS 6-K filed 2026-08-07 · Danantara joint venture for Australia and New Zealand · 2026-08-07 · 6-K · https://www.sec.gov/Archives/edgar/data/1791942/000121390026086392/ea030103701ex99-1.htm

[41] Meatingplace 2026-08-19 BMO and Stephens on JBS bid for PPC minority · 2026-08-19 · Meatingplace(转述 BMO Capital Markets 与 Stephens 研报) · https://meatingplace.com/last-bite-jbs-launches-bid-for-last-18-of-pilgrims-pride-shares/

[42] The Poultry Site 2026-08-19 JPMorgan on JBS bid for PPC · 2026-08-19 · The Poultry Site(转述 JPMorgan 研报) · https://www.thepoultrysite.com/news/2026/08/jbs-bids-to-take-full-control-of-pilgrims-pride