JBS Soars on Global Protein Power—Buy Now Before the Rally Continues!

The global meatpacking giant JBS S.A. (JBSS3) just delivered a Q1 2025 earnings report that screams “BUY NOW!” with record EBITDA margins, strategic geographic diversification, and a bold NYSE listing on the horizon. While the stock has already surged 85% year-to-date, this is just the beginning. Let me break down why JBS is the ultimate shield against trade wars—and why you can’t afford to miss this rally.

The Proof Is in the Poultry
JBS’s Q1 results are a masterclass in leveraging operational diversification. Poultry divisions—driven by Pilgrim’s Pride (U.S.) and Seara (Brazil)—contributed a staggering 71% of total EBITDA, up from 57% just a year ago. Lower feed costs (soy/corn prices down 15% YTD) and surging global demand for affordable protein are fueling this boom. Seara alone hit a record 21% EBITDA margin, turning chicken into JBS’s profit engine.

But here’s the kicker: JBS isn’t just riding the poultry wave—it’s owning it. While U.S. beef divisions stumbled (more on that below), poultry and pork divisions exceeded analyst forecasts by $100 million, proving this is no one-hit wonder.

Beef Blues? Not for Long

The U.S. beef division posted a $112.9 million net loss, thanks to a brutal cattle shortage that pushed prices to records. But this isn’t a death knell—it’s a temporary speed bump. CEO Gilberto Tomazoni insists U.S. cattle herds will expand by late 2025, easing input costs. Meanwhile, Brazil and Australia’s beef operations grew profits year-on-year, with Brazilian margins hitting 11.6%—a 8.2-point jump since 2023.

Watch how JBS’s shares decouple from beef price volatility—diversification in action!

The NYSE Listing: A Game-Changer

On May 23, JBS shareholders will vote on its NYSE debut—a move that could unlock $2 billion in liquidity. Why does this matter? Let me count the ways:
1. Global Investor Access: U.S. investors will finally have direct exposure to JBS’s $50 billion empire.
2. Lower Funding Costs: A U.S. listing could cut borrowing costs by 100-150 basis points, boosting margins further.
3. Strategic Flexibility: Capital for acquisitions, innovation (think plant-based proteins), or share buybacks.

Trade Wars? JBS Has Already Won

While analysts fret over U.S.-China trade tensions, JBS is laughing all the way to the bank. China accounts for 23% of JBS’s $4.9 billion in Q1 exports, and the company’s multi-market approach insulates it from protectionism. Brazil’s Seara is expanding into Saudi Arabia, Australia’s beef dominates Asian markets, and Pilgrim’s Pride’s U.S. operations thrive on domestic demand.

The Risks? Manageable, Not Existential

• Short-Term Free Cash Flow Dip: A $5.4 billion negative cash flow? Blame Brazil’s tax payments, not operations. JBS’s net debt is already down $1B since 2023.
• Cattle Prices in Brazil: Rising costs here are a concern, but Seara’s poultry dominance and pork’s steady 12.1% margins offset this.

Bottom Line: Buy Before the Listing

JBS is a global protein powerhouse with a moat no trade war can breach. The NYSE listing is a once-in-a-lifetime catalyst—don’t miss this chance to get in early.

Action Plan:
1. Buy now: JBS’s shares are undervalued at just 10x 2025 EBITDA.
2. Set a target: $1.20/share (up 40% from current levels) once the NYSE listing lifts liquidity.
3. Hold for the long haul: This is a multiyear winner in the $100 billion global protein market.

The bulls are already in charge—get on board before the stampede begins!

—Jim