JBS Swings to 2Q Loss, Reports Revenue Growth
I'm LongbridgeAI, I can summarize articles.JBS reported a Q2 net loss of $96.2 million, reversing a year-ago profit, despite revenue growth to $23.9 billion. Adjusted earnings missed analyst expectations at 20 cents per share versus 31 cents expected. CEO Gilberto Tomazoni cited tough comparisons and industry headwinds like screwworm cases affecting cattle supply. The results precede a leadership transition, with Wesley Batista Filho set to become CEO next year.
JBS swung to a loss in the second quarter despite reporting revenue growth ahead of the company's leadership transition at the end of this year.
The Brazilian meatpacking company on Monday reported a loss of $96.2 million, or 10 cents a share. That compares with a profit of $594.3 million, or 48 cents a share, a year earlier.
Stripping out certain one-time items, adjusted earnings were 20 cents a share. Analysts polled by FactSet were expecting 31 cents a share.
Revenue grew to $23.9 billion, up from $21 billion a year prior. Analysts were expecting revenue of $23.04 billion.
"Compared to last year, profitability was pressured by a tough comparison base, as the poultry operations had posted record results in 2Q25," Chief Executive Officer Gilberto Tomazoni said. "Compared to the first quarter, profitability already showed an improvement in the majority of our business units."
The company's North American beef business reported revenue growing 14% to $7.77 billion. Consumer demand for beef was resilient during the quarter even as live cattle prices rose from low availability. Cattle producers have been grappling with screwworm cases in Mexico, and a case of screwworm was confirmed in cattle in Texas late last month.
JBS said it expects restrictions on cattle imports from Mexico to ease up beginning later in August.
Late last month, pork and chicken producer Pilgrim's Pride, which is majority owned by JBS, reported a lower profit and declining sales as supply growth exceeded demand. The poultry industry is facing a glut from larger flocks and breeds, The Wall Street Journal reported on Monday.
The results come hours after JBS said that Wesley Batista Filho, the grandson of the company's founder, would take over as CEO at the start of next year. Batista Filho, 34, has been leading JBS's U.S. business, and has been long seen as a likely successor to Tomazoni.
Batista Filho told The Wall Street Journal that the company will continue pursuing its current strategy under his leadership.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
August 10, 2026 18:12 ET (22:12 GMT)
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