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- **Record Results**: Q3 2025 net sales of $22.6 billion, with adjusted EBITDA of $1.8 billion (8.1% margin) and net income of $581 million.
- **Strategic Expansion**: $500-750 million annual revenue from new U.S. pork plants by 2027, targeting higher-margin prepared foods.
- **Resilient Margins**: 24% ROE and 17% ROIC, with leverage at 2.39x, below 2.5x target.
- **Chicken Outlook**: 2026 U.S. market confidence despite Q4 price volatility, driven by constrained supply and new genetics.

**【CEO Summary Section】**
- **Record Performance**: Q3 2025 net sales reached $22.6 billion, with adjusted EBITDA of $1.8 billion (8.1% margin). Net income was $581 million, driven by strong demand across all regions.
- **Regional Highlights**: 
  - **U.S. Beef**: Despite high cattle costs, disciplined execution maintained profitability. Prepared Foods segment sales grew over 25%.
  - **Australia**: Strong margins due to improved cattle availability and global demand.
  - **Brazil**: Consistent performance in export and domestic markets, with Seara launching innovative products like high-protein ready meals.
- **Expansion Plans**: Two new pork plants in Iowa expected to generate $500-750 million in annual revenue by 2027, targeting higher-margin prepared foods.

**【CFO Financial Commentary】**
- **Financial Health**: Return on equity (ROE) of 24%, return on invested capital (ROIC) of 17%, and leverage of 2.39x, within target range.
- **Cash Flow**: Free cash flow of $383 million, driven by EBITDA growth and disciplined capital allocation. Share buyback program completed ($600 million), with $1.2 billion in dividends and CapEx planned for 2025.
- **Debt Management**: Issued $570 million in long-term Brazilian debentures, extending average debt maturity to 15.4 years at 5.6% cost. 2025 leverage expected to stay below 2.5x.

**【Q&A Highlights】**
- **Pork Expansion**: Iowa plants to focus on value-added products, with quick ramp-up due to complementary supply chains. Margins expected in high double digits.
- **Chicken Market**: U.S. prices down in Q4 but stable demand for prepared foods. 2026 outlook positive due to constrained supply and new genetic lines.
- **Working Capital**: $700 million 2026 increase driven by grain and livestock prices. Half from volume growth, half from pricing volatility.
- **M&A Strategy**: No immediate M&A, but flexibility to pursue opportunities if aligned with ratings and capital structure.

JBS N.V.(JBS)-20251114-2025 Q3 Earnings call transcript

- **Record Revenue Growth**: Q2 2025 net sales of $21 billion (+9% YoY), driven by U.S. prepared foods and global diversification.
- **Strategic Investments**: $735 million allocated to U.S. facilities, supporting 25-30% capacity expansion in chicken and pork.
- **Resilient Margins**: Seara Brazil delivered 18.1% EBITDA margin despite avian influenza; Australia beef EBITDA margin 12.7% (+50bps YoY).
- **Share Buyback**: $400 million program announced, reflecting financial strength and shareholder returns focus.
- **Challenges & Recovery**: U.S. beef margins expected to improve sequentially, while pork margins normalize in Q3 post-China trade resolution.

**【Management Opening Remarks】**
- JBS completed its dual listing on the NYSE, enhancing global visibility and investor base.
- Q2 2025 net sales reached $21 billion (9% YoY growth), with adjusted EBITDA of $1.8 billion (8.4% margin).
- Announced a $400 million share buyback program, reflecting confidence in long-term value creation.
- Strategic investments in U.S. prepared foods include a $135 million sausage facility, $200 million beef plant upgrades, and a $400 million prepared foods plant in Georgia.

**【CEO Commentary】**
- Poultry business (Pilgrim's Pride) achieved record EBITDA of $687 million, driven by lower grain costs and U.S. demand.
- Seara Brazil delivered 18.1% EBITDA margin despite avian influenza, showcasing operational resilience.
- Beef business faces challenges from cattle cycle and trade restrictions, but pork margins expected to normalize in Q3.
- Australia's beef exports grew 20% YoY, supported by favorable livestock availability and operational efficiency.

**【CFO Financial Commentary】**
- GAAP net profit: $528 million (EPS $0.48); adjusted net income: $583 million (EPS $0.53).
- Free cash flow breakeven target for 2025: $5.5 billion, driven by $2 billion in capex and working capital management.
- Debt refinanced to extend maturity (15 years avg) with minimal cost increase (5.6% avg coupon).
- Leverage at 2.27x, within target range, with interest coverage stable at 7.7x.

**【Q&A Highlights】**
- **U.S. Beef Margins**: Wesley Batista expects sequential improvement in Q3 but warns of 3-4 quarters of challenging margins due to cattle cycle.
- **China Tariffs Impact**: Gilberto Tomazoni notes Brazil's global platform mitigates U.S. tariff impact, with Friboi Brazil compensating through domestic and alternative export growth.
- **Prepared Foods Growth**: Wesley Batista projects 25-30% capacity expansion in U.S. chicken and pork, targeting high-margin value-added products.
- **Australia Beef Outlook**: Gilberto Tomazoni forecasts 2-digit EBITDA margins for Australia, driven by livestock availability and operational efficiency.
- **Share Buyback**: Guilherme Cavalcanti emphasizes excess cash utilization, with no immediate M&A plans.


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