JBS is restructuring parts of its U.S. beef operation as tight cattle availability continues to pressure the industry, including the closure of two facilities and the combination of three previously separate businesses under a single Beef USA structure.
The company announced the closure of a processing plant in Souderton, Pennsylvania, and a case-ready facility in Memphis, Tennessee. JBS said production from the two facilities will be absorbed by other U.S. plants, resulting in what it expects to be minimal impact on sales.
At the same time, JBS merged its Fed Beef, Regional Beef and Case Ready business units into a single organization called Beef USA. The company said the consolidation is designed to simplify operations and improve efficiency.
The restructuring comes as U.S. cattle supplies remain constrained. JBS Beef North America reported record second-quarter sales, but rising live cattle prices outpaced increases in cutout values. Imports of live cattle from Mexico also remained restricted during the quarter, adding pressure to available supply.
JBS generated $23.9 billion in second-quarter net sales, up 14% year over year. Adjusted EBITDA under IFRS totaled $1.43 billion, down 18%. The company also paid approximately $1 billion in dividends during the quarter and joined the Russell 1000 and Russell 3000 indices.
Elsewhere in the portfolio, JBS Brazil posted record second-quarter sales, while Seara increased sales 18% and delivered an adjusted EBITDA margin of 14.9%. Free cash flow improved by approximately $185 million year over year to $130 million.
KEY QUOTES:
“In 2Q26, JBS once again reported a record revenue, reflecting the strength of the Company’s multi-geography and multi-protein platform. Compared to last year, profitability was pressured by a tough comparison base, as the poultry operations had posted record results in 2Q25.”
“We also joined the Russell 1000 and Russell 3000 indices, an important milestone that contributes to stock liquidity, expands our shareholder base, and enhances our global visibility. During the quarter, we returned value to our shareholders through a $1 billion dividend payment.”
Gilberto Tomazoni, Global CEO of JBS
