What Drove JBS's (NYSE:JBS) Adjusted EBITDA Decline in Third-Quarter 2026?

Sonal Goyal

10 November 2026 06:56 PM AEDT

What Drove JBS's (NYSE:JBS) Adjusted EBITDA Decline in Third-Quarter 2026?

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Key Highlights

Net sales were $22.7 billion, up 1% from the prior year.
IFRS Adjusted EBITDA was $1,181 million, down 36% from the prior year.
USGAAP Adjusted EBITDA was $1,001 million, down 38%.
Free Cash Flow was negative US$167 million in the third quarter of 2026.

JBS (NYSE:JBS) reported third-quarter 2026 net sales of $22.7 billion, an increase of 1% from the prior year. On an IFRS basis, adjusted EBITDA was $1,181 million, down 36%, while on a USGAAP basis adjusted EBITDA was $1,001 million, down 38%. Free cash flow for the quarter was negative US$167 million, the company reported.

Net Sales and Margins

Net sales reached $22.7 billion, up 1% from the third quarter of 2025. The company reported monthly Margin figures for the quarter. Monthly margins moved from negative 2.9% in July to breakeven in August and to a positive margin in September, according to the company's report.

The company's results include the effect of production trends during the quarter. Production in one area peaked with 4.7% growth in July and subsequently slowed throughout the quarter, the company reported.

Adjusted EBITDA and Operating Income

IFRS adjusted Operating Income was $521 million, down 58% from the prior year. USGAAP adjusted operating income was $597 million, down 53%. Each of these measures is a non-GAAP figure, with the reconciliations provided in later sections of the company's report.

The company's free cash flow decline was $551 million year over year. The company attributed the change to a $653 million decline in adjusted EBITDA and to higher Working Capital consumption during the period.

Free Cash Flow and Balance Sheet

Free cash flow was negative US$167 million for the third quarter of 2026. The figure followed a free cash flow result in the prior-year period that was $551 million higher, according to the company's comparison.

These figures are calculated under the company's reporting framework.

Final Word

JBS reported third-quarter 2026 net sales of $22.7 billion, up 1%, IFRS adjusted EBITDA of $1,181 million, down 36%, USGAAP adjusted EBITDA of $1,001 million, down 38%, and negative free cash flow of US$167 million, a decrease of $551 million year over year.

FAQs

Q: What were JBS's net sales in the third quarter of 2026?

A: Net sales were $22.7 billion, up 1% from the prior year.

Q: How much did IFRS adjusted EBITDA change?

A: IFRS adjusted EBITDA was $1,181 million, down 36% from the prior year.

Q: What was the free cash flow result?

A: Free cash flow was negative US$167 million in the third quarter of 2026.

Q: What drove the change in free cash flow?

A: The company attributed the year-over-year decrease of $551 million to a $653 million decline in adjusted EBITDA and higher working capital consumption.

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