GLOBAL protein producer JBS swung to a US$102 million net loss in its second quarter ended 30 June, despite reporting significant revenue growth.

Second quarter financial results released overnight revealed mixed performance across regions and species, again reinforcing the value of JBS’s global footprint in evening-out performance.

Several segments across the company’s global operations recorded record net sales for the quarter, driven by higher prices and volumes sold. This was offset in some regions by high livestock purchase costs and operating costs.

Adjusted pre-tax earnings across the group last quarter (measured in USGAAP terms) was $1.257b, down 8pc on the prior year. Reflecting the growing price of protein worldwide, group-wide revenue grew to a record US$23.9b, up 14pc from the prior year.

“Compared to last year, profitability was pressured by a tough comparison base, as our poultry operations had posted record results in 2Q25,” chief executive officer Gilberto Tomazoni told the market.

“In comparison with the first quarter, profitability already showed an improvement in the majority of our business units in 2Q,” Mr Tomazoni said.

The main non-recurring items adjusted in net income were US$172 million in premiums, interest, and costs associated with tender offers for the bond and the CRA; and anti-trust settlements of $133 million.

JBS paid a $1/share dividend to shareholders during June, worth a total of $1 billion.

Australian operations

The company’s Australian division continues to perform strongly, driven by higher meat prices and volumes sold, compared with some other JBS protein businesses overseas.

Second quarter net sales in Australia reached $2.56 billion (measured in USGAAP terms), up 30pc on the same quarter last year, while adjusted pre-tax earnings were $218m, down 12.8pc Adjusted operating income of $195m was down 15.8pc on same quarter last year.

Reflecting the net sales result, Australia’s overall beef production volumes were at record levels for the first half of 2026, driven by strong international demand.

The beef segment in JBS’s Australian division delivered strong revenue growth for the quarter, supported by higher prices in both domestic and export markets. Strong commercial dynamics, combined with continued operational efficiency gains, more than offset a 24pc year-on-year increase in cattle costs in 2Q, the company said.

The weaker US$ relative to the A$ continued to weigh on the translation of results into US dollars versus the prior-year period.

High cattle prices blight US beef result

JBS’s North American beef business reported record sales revenue at US$7.77b in the second quarter, up 14pc on last year, reflecting booming wholesale and retail prices, while cutout values remained at historically high levels, supported by resilient US consumer demand.

However adjusted pre-tax earnings at $100m were down 62pc, due to record high cattle prices. US consumer demand for beef was resilient during the quarter, even as live cattle prices rose from low availability, the company said.

US cattle producers have been grappling with screwworm cases in Mexico, and cases of screwworm were confirmed in cattle in Texas last month. JBS said it expected restrictions on cattle imports from Mexico to ease later in August.

“The increase in US live cattle prices outpaced the change in cutout values, reflecting the low cattle availability,” the company said. “As a result, US industry spreads remained pressured.”

As part of this constricted supply scenario, JBS closed two US plants during the second quarter, in Pennsylvania (processing), and Tennessee (case ready). Production will be absorbed by other US plants, minimising impact on sales, the company said.

In its Brazilian beef operations, JBS also reported record sales for a second quarter, again reflecting higher meat prices and volumes in both the export and domestic markets. In exports, strong revenue growth was driven by higher prices and volumes, mainly to fill the China quota.

Robust global demand and the company’s geographic diversification strategy also boosted exports. In the Brazilian domestic market, higher prices and volumes for beef were driven by World Cup-related marketing initiatives and stronger commercial execution, particularly through partnerships with key customers, shareholders were told.

On the cost side of the ledger, the average Brazilian live cattle price during the quarter showed an increase of 12pc compared to the same quarter last year.

Even with elevated cattle prices, JBS Brazil reported its highest-ever pre-tax earnings for a second quarter.

Geopolitical tensions

In providing context for shareholders, JBS discussed geopolitical tensions in the Middle East.

“During the second quarter ended June 30, the escalation of geopolitical tensions in the Middle East increased macroeconomic uncertainty and volatility in energy and commodity markets, affecting the group’s cost structure. This came primarily in relation to supplies, including packaging materials, transportation and freight, as well as higher costs associated with maritime transportation and the use of alternative routes,” it said.

“During the second quarter, the group incurred additional costs related to all these effects. Management continues to monitor developments in this environment, including potential changes in transportation routes and possible trade restrictions, as well as their potential impacts on the group’s operations and cost structure,” it said.