Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

JBS 1Q26: Softer Quarter, Sharper Bond Selection

JBS 4Q25: Diversification Supports Better Than Expected Results

JBS 3Q25: Solid Top-Line Growth as Pricing Strength Offsets Mixed Margins

EM Spreads

Credit

<ul>
<li>We move JBS to Neutral from Overweight as intermediate bonds rerated while leverage weakened, with company-defined net leverage at 3.10x, above management’s 2.0x–3.0x target.</li>
<li>2Q26 revenues rose 13.8% YoY to $23.9bn, but adjusted EBITDA fell 18.5%; sequential recovery and positive $130mn free cash flow partially offset weaker trailing credit metrics.</li>
<li>Liquidity remains a key support, with roughly $7.7bn available, 15.3-year average debt maturity and limited near-term refinancing pressure, giving JBS time for earnings normalization.</li>
</ul>


We move JBS to Neutral from Overweight as intermediate bonds rerated while leverage weakened, with company-defined net leverage at 3.10x, above management’s 2.0x–3.0x target.
2Q26 revenues rose 13.8% YoY to $23.9bn, but adjusted EBITDA fell 18.5%; sequential recovery and positive $130mn free cash flow partially offset weaker trailing credit metrics.
Liquidity remains a key support, with roughly $7.7bn available, 15.3-year average debt maturity and limited near-term refinancing pressure, giving JBS time for earnings normalization.


JBS 2Q26: Cash Generation Returns, Deleveraging Does Not