JBS expects stronger US beef results in 2027 after missing profit estimates
JBS•JBS said it expects a better year for its US beef business in 2027 after third-quarter adjusted EBITDA fell 36% to $1.18 billion, below the $1.32 billion estimate. Revenue rose less than 1% to $22.74 billion, net profit fell more than 70% to $164 million, and JBS agreed to buy Flora in a $542 million deal including debt.
1. US beef outlook
JBS expects its US beef business to have a much better year in 2027 than in 2026, as Mexican cattle imports recover and processing overcapacity eases. Wesley Batista Filho, who heads JBS's US operations and is due to become global CEO in January, said imports are expected to recover to around 1 million head a year, close to historical levels.
2. Quarterly results
Adjusted EBITDA fell 36% year over year to $1.18 billion in the July-September quarter, below the $1.32 billion analyst estimate. Revenue rose less than 1% to $22.74 billion, below the $22.82 billion estimate, while net profit fell more than 70% to $164 million, short of the $256 million consensus forecast.
3. Margins and acquisition
JBS said its North American beef division returned to a positive EBITDA margin of 0.3% under US GAAP, helped by resumed Mexican cattle imports and industry-wide processing capacity cuts. The company also agreed to buy personal care products maker Flora from controlling shareholder J&F for $542 million including debt; JBS said the deal should be neutral for its leverage ratio. Net debt to adjusted EBITDA rose to 3.54 times.
