JBS faces rising costs in Brazil and pressured margins in the US

JBS is beginning to face a more challenging scenario, with rising cattle costs in Brazil and a weakened beef business in the US. Herd rebuilding —with retention of females— is already pushing prices in Brazil, marking a cycle change after several years of lower costs for the industry.

Global CEO Gilberto Tomazoni said that this new context is not yet reflected in fourth-quarter results, but anticipates a more demanding scenario ahead. Even so, he highlighted that greater use of feedlots and improvements in animal nutrition could cushion part of the increase in costs in Brazil.

In contrast, the situation in the US remains the main pressure factor. The drop in the herd keeps supply tight, deteriorates industry margins, and sustains record consumer prices.

JBS reported net profit of US$ 2.024 billion in 2025, up 15% from 2024. In the fourth quarter, profit was US$ 415 million, with a slight year-on-year increase. The company also showed a strong advance in revenues, which reached US$ 86.1 billion in the year, implying growth of 12%. The performance reflects a general improvement in the group’s operation, in a context of markets with uneven dynamics between regions.

In the fourth quarter, JBS’ EBITDA fell 7% to US$ 1.7 billion, while in beef in North America the result fell nearly 50% year-on-year, to US$ 56 million.

Despite this scenario, the company is optimistic because of firm global beef demand and expects to offset part of the impact with other markets and higher value-added products. In addition, it trusts it will be able to mitigate possible disruptions —such as logistical conflicts in the Middle East or quotas in China— thanks to the geographic diversification of its operations.

Source: Bloomberg