JBS shares dropped 8.4% following earnings as investors grappled with margin compression and significant losses in its U.S. beef segment, overshadowing top-line growth and operational cost controls.

• Net sales rose 11% to a record $21 billion, reflecting solid demand across several geographies.
• EBITDA was approximately $1.1 billion, translating into a compressed margin of 5.2%, weighed down by the U.S. beef business.
• The U.S. beef segment recorded a negative EBITDA of $230 million and a razor-thin 2.3% margin amid supply challenges and higher costs.
• Free cash flow was negative $1.5 billion, worse than the prior year, driven by weaker earnings and increased capital expenditures.
• Margin resilience in other segments like Seara (15.5% EBITDA margin) and Australia (7.1% margin) was insufficient to offset losses in North America.