São Paulo, August 11, 2026 – JBS (NYSE: JBS) reported a net loss of $102.1 million for the second quarter of 2026, a sharp miss against analyst expectations of a $379 million profit. The company also announced a leadership transition, naming Wesley Batista Filho as its incoming global chief executive officer.
The loss, which contrasts with a $528.1 million profit in the same period last year, came despite record quarterly revenue of $23.90 billion, up 13.8% year-over-year. However, rising costs and a near-doubling of finance expenses eroded profitability. Adjusted EBITDA fell to $1.429 billion from $1.754 billion a year ago, with the margin contracting to 6.0% from 8.4%.
Wesley Batista Filho, 34, will assume the role of global CEO in January 2027, succeeding Gilberto Tomazoni, who has led the company for eight years. Batista Filho, who has spent 15 years at JBS and has headed its U.S. operations since 2023, described the transition as one of continuity. "This is a transition defined by continuity," he told Reuters.
The earnings miss was driven by several factors. Gross margin declined by 2.7 percentage points to 10.8%, while operating margin fell to 2.5% from 5.3%. Finance expenses soared 86.4% to $831.2 million, exceeding operating profit by $234.1 million. Additionally, JBS reported a $123.6 million loss from equity-accounted investees, a sharp reversal from a $7.8 million gain a year earlier.
Segment performance was mixed. JBS Brazil posted a 17.8% increase in adjusted EBITDA to $269.2 million, and Beef North America reduced its loss to $78.3 million from $233.0 million. However, adjusted EBITDA declined in four other major divisions: Seara fell 2.9% to $380.4 million, Pork USA dropped 54.0% to $116.7 million, Pilgrim's Pride (NASDAQ: PPC) decreased 38.5% to $502.9 million, and Australia saw a 20.5% decline to $230.7 million.
Investors reacted negatively to the results. JBS shares fell 5.8% on Monday and slipped another 2% in after-hours trading.
The new CEO will face the challenge of restoring margins even as revenue growth remains strong. Batista Filho expects U.S. cattle supply to recover by the first quarter of 2027, aligning with his promotion. Elevated interest costs and volatile feed prices in poultry and pork operations remain key risks.
Tomazoni, 67, will transition to the roles of vice chair and senior adviser after a five-month handover period. The company stated there was no disagreement related to his departure.
