is in on leading the business and ensuring a smooth transition. We have been planning this so carefully from a position of strength, and nothing change in our strategy, our priorities, or the way we operate.

This decision reflects the strength of the company we have built. Over the past several years, we have transformed JBS in many ways, building a more diversified, more global, and more resilient business.

Our dual listing was a defining milestone in that journey, positioning the company for its next phase on value creation. With a strategy clear and a strong leadership team in place, I believe this is the right moment for JBS to begin in the next chapter of under Wesley leadership.

Turning to our results, the second quarter once again demonstrated the resilience of our global operating model in an environment that remained complex and volatile. Supply and demand dynamics vary across geographies and proteins, while currency movements, trade disruption, and geopolitical events under form more complexity.

Against this backdrop, our priorities are clear: improving efficiency, protecting margin, and strengthening commercial performance, allocating production to the markets where we create the most value. Adjusted net income was $218 million US dollar.

Adjusted EBITDA totaled $1.4 $1.43 billion US dollar under IFRS, with a margin a 6%, and $1.3 billion US dollar under US GAAP, with a 5.3% margin. Compared to the first quarter, profitability already show an improvement in the majority of our business units.

Net income was significantly affected by non-recurring items. While important to understand, this item do not change how we assess the business.

Our focus is on operating performance, cash generation, and balance sheet discipline. Performance improved across several business during the quarter, although important part of our portfolio still operate in a challenge environment.

While US beef continues to operate in a challenging environment, we have reorganizing our operating structure and are very confident at the results of those changes. I will leave the discussion to the business to Wesley, who will be provide more details on the quarter and our outlook for beef and pork in North America.

In Australia, results improved further, supported by robust global demand for beef and attractive export opportunities. Before moving on, I'd like to comment briefly on the strategic partnership we announced last Friday with Danantara Investment Management.

The transaction includes a $2.5 billion US dollar equity investment by Danantara in exchange for a 25% stake in our Australia and New Zealand operations. Together, the additional funding capacity expected through the joint venture, this gives us access to up $5 billion US dollar to fund acquisition, greenfield project, and other growth opportunities across Indonesia and Southeast Asia.

This create a well-capitalized platform to accelerate our expansion in one of the fastest growing protein consumption region in the world, while preserving the strength of JBS balance sheet and reinforcing Australia as a strategic hub within our global operations. Importantly, does not change how we manage the business.

Our Australia, New Zealand operations remain fully consolidated under the same leadership and operating model. With that, let's turn to our operating performance.

Global beef fundamental remain constructive, although conditions vary considerably across markets. Supply is limited in several regions, demand remains resilience, and our global footprint allow us to direct products to the market where returns are strongest.

JBS Brasil delivered a strong quarter, driven by export demand and disciplined commercial execution. Under IFRS, adjusted EBITDA totaled $269 million US dollar, with a margin of 5.9%.

Even with elevated cattle price, JBS reported its highest EBITDA for a second quarter. Cattle availability has improved in Brazil.

Our focus has been on maximize the value of every animal through our integrated commercial network. China remains an important destination, and recent shift in trade flow reinforce the importance of maintaining balanced exposure across export and domestic market.

By balancing volumes across China, other markets, export markets, and the domestic market, we protect margins and maximize value per animal. Our domestic business is another important competitive advantage.

Through the Friboi brand and a long-standing customer relationship, we work alongside retailers and categories partners helping them to grow value across the beef category. During the quarter, our barbecue portfolio performance particularly well.

We have expanded commercial initiatives with major retailers across Brazil. In chicken, both Pilgrim's Pride and Seara delivered a solid results, although market dynamics involved differently across regions.

At PPC, demand remained healthy across retail and foodservice, although industry supply expanded faster than demand. Even so, result improved from the first quarter as operating condition normalized, plant upgrades were completed, and expanding assets continued to mature.

At Seara, margins remained strong despite a tougher year-over-year comparison, a less favorable currency environment, and changing export market dynamics. The business grew volumes, reflecting improvements in operating, quality, and commercial execution.

We see further opportunities to improve mix, distribution, and execution in domestic market, while converting volume growth into a sustainable profitability. Our priority for the second half are clear: execution and cash generation.

We expect leverage increased during the quarter, and reducing it remain a priority. We are focused on strong cash generation, disciplined working capital management, and a prudent capital allocation.

The environment remains dynamics, but our priorities are unchanged. We are focused on execution, cash generation, and disciplined capital allocation.

With a diversified portfolio, strong market position, and experienced team around the world, we believe we are well-positioned to create value through the cycle. Thank you, and I will turn now the call over to Wesley.

Tomazoni, thank you for everything you've done for JBS over the past 15 years, and congratulations on the leadership you have shown. You have lived our values everyday, challenged our teams to keep raising the bar, and helped us deliver stronger results.

We've worked together for more than a decade, and I've learned a lot from working alongside you, and I'm very grateful for the trust and partnership we've built over the past years, which will help ensure a smooth transition and continuity in our strategy and priorities. I'm incredibly proud and excited to have the opportunity to lead JBS, starting in January 2027.

This is a company where I've spent my entire professional life, and it means a great deal to me. We're fortunate to have an exceptionally strong leadership team and an extraordinary group of 280,000 team members around the world.

I'm very excited about what we can accomplish together. As we look forward, my focus remains the same: operational excellence, disciplined capital allocation, customer service, and creating long-term value across our diversified global platform.

We'll continue to live our values, strengthen our culture, and build on the tremendous work you've done over the past eight years. We'll keep evolving, growing, and making JBS an even stronger company for the future.

With that, let me turn to our US operations. The second quarter reflected resilient protein consumption in the United States, despite a challenging environment for the beef industry, where tight cattle supplies and historically high cattle costs continue to pressure margins.

Even so, US beef delivered a quarter of solid improvement. Our EBITDA margin improved from a -3.9% in the second quarter of last year to a -1.3% this year, reflecting an important step forward despite the ongoing challenges of the cattle cycle.

Over the past several quarters, we have improved plant performance, optimized our operating footprints, strengthened our commercial capabilities, and increased productivity across our plants. Many of the operational initiatives we've been working on are already translating into better results, and the announced capacity optimization will continue contribute progressively as they are fully implemented.

At the same time, we're beginning to see early signs that the industry fundamentals are moving in the right direction. The gradual reopening of the Mexican border and the first indications of herd rebuilding reinforce our confidence that supply and demand are heading towards a healthier balance over time.

The reopening of the Mexican border is particularly important. The expected reopening of the three ports of entry should restore most of the historical flow of cattle from Mexico into the United States.

Cattle from Mexico have represented about 4% 5% of US slaughter, restoring that flow is very meaningful for the industry. We also expect many of the first cattle crossing the border to be heavier than what they used to be prior to the border closure.

That should allow them to reach slaughter weight much sooner than normal. Assuming the ports reopen as expected, we believe we'll continue to see an increase in cattle available for slaughter during the first quarter of 2027, with slaughter volumes returning to a more normal level by the second quarter.

Turning to pork, market fundamentals proved more challenging during this quarter. Even so, our pork business delivered another quarter of solid performance.

EBITDA margin reached 8.9% compared to 6.5% a year ago. Our pork business once again demonstrated its ability to compete at the highest level.

We'll continue focusing on operational excellence, customer service, disciplined capital allocation, and continuous improvement. Those are the levers we control, and they position us to create greater value over the long term as cattle supplies recover.

I'll now turn the call over to Guilherme.

Thank you, Tomazoni and Wesley. Before we move on to the quarter's operating results, I would like to highlight that starting in the second quarter, we voluntarily began reporting results as a US domestic company and therefore reporting forms 10-Q and 10-K in IFRS for the time being.

We believe this initiative represents a significant step in our strategy of alignment with the US capital markets and may expand our eligibility for inclusion in a more ample group of stock indexes. In this regard, I would like to highlight JBS's inclusion in the Russell 1000 and Russell 3000 indexes in June.

This inclusion, as well as the potential for inclusion in additional indexes going forward, is key to expanding our investor base, increasing liquidity, enhancing global visibility, and unlocking value to shareholder. Let's now move on to the operational and financial highlights of the second quarter 2026.

Net sales reached a record of $24 billion for the second quarter. Adjusted EBITDA in IFRS totaled $1.4 billion, which represents a margin of 6% for the quarter.

Adjusted EBITDA in US GAAP totaled $1.3 billion, which represents a margin of 5.3% for the quarter. Adjusted operating income was $780 million with a margin of 3.3% in IFRS and $866 million in US GAAP with a margin of 3.6%.

The quarter's net loss was $102 million with a negative EPS of 10 cents. In addition to the year-over-year decline in operating results, we also reported $380 million increase in net financial expenses.

The main drivers were $172 million in premiums, interest, and costs related to the tender offer for the bond and the CRA, Brazilian local debenture, of which $147 million had a cash impact. It's worth remembering that this reflects the liability management we carried out in the first quarter, in which we issued $2.5 billion in bonds at a more attractive rates and longer tenors; mark-to-market of derivatives net of exchange rate variation of $53 million; monetary restatements and higher interest expenses related to increase in debt, which together amounted of approximately $120 million.

Additionally, the net loss was also impacted by the final calculation of the bargain price gain of the acquisition of Mantiqueira Alimentos with no cash impact, totaling $81 million, and antitrust settlements totaling $133 million. Excluding the non-recurring items, adjusted net income was $218 million and the earnings per share were 20 cents for the quarter.

Free cash flow. Free cash flow in the second quarter of 2026 improved by $185 million year-over-year, reaching a positive of $130 million compared to a cash consumption of $55 million in the second quarter 2025.

This improvement was mainly driven by working capital, particularly the accounts receivable line, reflecting higher receivables discounts and larger advance payments from Chinese customers related to JBS Brasil's exports. The accounts payable line also increased, mainly driven by higher cattle prices and increased slaughter volumes, particularly in Brazil.

This improvement was partially offset by a decline in adjusted EBITDA of $334 million, higher net cash interest expenses of $129 million due to a higher concentration in the second quarter of interest related to the bonds issued in 2025, real appreciation that increased interest expenses in US dollars of the Brazilian local debentures, and increasing total debt. Moreover, total capital expenditures increased by $163 million, of which $159 million was expansion CAPEX.

Finally, we had lower tax payments year-over-year of $135 million. Not considering guidance, but simply updating the cash flow break-even EBITDA exercise for this year, we expect $5.1 billion in 2026, driven by capital expenditure of $2 billion in 2026, $400 million reduction versus the initial estimate; working capital expectation of -$350 million of working capital in 2026, a $500 million improvement versus last year, driven by higher receivables discounts and as mentioned previously; legal settlements of $100 million already realized in 2026; biological assets of $850 million, flat versus 2025; interest expenses of $1.3 billion, an increase of $150 million versus the initial estimates due to higher net debt; leasing expenses flat at $500 million in 2026; and effective tax rate estimated at 25%.

We continue to strengthen our liquidity position. In August, we announced an increase in our revolving credit line from $3.5 billion to $4.2 billion, while reducing the all-in cost of this line.

Our cash liquidity combined with the revolving credit facility totaled approximately $7.7 billion. Our average debt term reached 15.3 years and an average cost of 5.7%.

As we anticipated in our last conference call, due to the $1 billion dividend payment in June and the typical cash consumption of the first half of the year, our net leverage ended up the quarter at 3.1 times, slightly above our long-term target of keeping net debt-to-EBITDA between two and three times. It's important to highlight that we have no significant debt maturities for the next five years until 2031, and up to 2032 all the coupons are below the current treasury rates, and 35% of our gross debt is beyond 2050.

With that in mind, I would like to open up for the question-and-answer session.

Yes, hi, thank you. Good morning, everyone.

Good morning, Tomazoni.

Thank you, Wesley. I can't start this call other than say parabéns to Tomazoni on what has been a remarkable job, not just in JBS, but also on the animal protein industry, and also wishing you, Wesley, continued success on your extended responsibilities in a chair that I think is sensitive not only to your investors, but also for the country, right?

We'll be looking forward to keeping up with the conversation. My question

goes

on how you're seeing, Wesley, the state of the US demand, right? Throughout your press release, I see comments of sticky demand on beef and poultry, but then, on the other hand, I also see you mentioned that inflation is weighing down on pork, you had negative chicken sales growth on foodservice and retail, and some of your peers like Tyson, Smithfield, and even Gruma are cutting their guidance, right?

When I look for the beef cutout, it seems it has reached somehow of a ceiling, not necessarily following the seasonality, and this is the reason for my question, right? What gives you comfort that demand remains healthy, and why should we think that spreads can't erode more prominently going forward?

This is the question, thank you.

Thiago, good morning. We still think that demand is very strong.

What we have seen and we can tell this by everything we look on protein trends in general, there's plenty of data in the market about that, and we can see that when we talk to our customers and what we see in the marketplace. We used to think that proteins had more of a substitution effect depending on prices, and that was a big surprise that of the inelasticity of protein demand when it comes to demand for beef, demand for pork, and demand for chicken not being so substituted to each other, and we see that in demand a little bit.

We see pork demand a little bit weaker than chicken and beef. Beef demand is very strong, and actually think that, again, I keep on saying, a few years ago, a cutout about $300, I would have thought we would have a tough time achieving that, and we've reached way above that, almost into the $400s.

Look, I think demand is still pretty strong. What we are seeing is where the consumer is consuming that protein changing, and going more into retail, more eating at home than away from home and foodservice.

That's something we've seen. Again, for the time being, as we see the marketplace right now, we think the protein demand will continue to be strong.

That's helpful, Wesley. Thanks very much.

Thanks.

Hello everybody, Tomazoni, Guilherme, Wesley. Congrats to both of you, Tomazoni on the great tenure for sure, and Wesley on the CEO appointment.

Looking forward to continue the interaction. This is great news for everybody.

I have another one on the US, but specifically on the beef side. I think the question that we asked the last time, the spreads indicated a much tougher second quarter versus the first quarter, but your numbers obviously showed actually a pretty significant improvement.

I wanted to explore more of that. I remember, Wesley, during the JBS Day, you spent quite some time talking about the in-house initiatives that you guys were looking at to improve the beef margin.

I'm just wondering if there are more details that you can provide there, some of the initiatives that may have already kicked in and helped the quarter, and if you can, specifically say what you're doing differently that would be helpful, or even if, there were a couple of issues in the first quarter that were not present, if we were able to quantify that, that would be helpful just so that we have a better base now to model the US beef going forward. It does seem like there has been a significant de-risking of a division that some people were overly concerned about.

Thank you very much.

Ricardo, good morning. First, when we look at the comp, obviously last year the same quarter we are comparing last year was a quarter where we had some extraordinaries.

It wasn't a It was a a tough quarter and had some some some other impacts, like hedging, that that that kind of mixed the number a little bit, and that's The second quarter of 2026 does not have any anything that's very material material. There is only minor things, and so nothing related to to to hedging or anything like that.

The comparison is is something to keep in mind. When we even you just when you just compare the second quarter to the first quarter and and and in just the business in general, it it was relatively solid performance compared to performance given the the market conditions.

Look, we used to run our business in two different business units, and the reason for that is when we acquired Swift Swift and afterwards the PackerLand acquisition. PackerLand focused on a completely different type of cattle, different types of size of plants, different kind of cattle procurement, and so we used to run those two business units very separate.

The market has changed then, has changed quite a lot, and actually that separation didn't make sense anymore. We went ahead and and and and put those two business units together and and run nowadays the business unit as one.

Look, there is on both sides of the business, there are there is strength that that strength that one had and the other one didn't have, and we we think that there is going to be a lot of synergies there, and and a lot of them are, on the sales side. We've done a lot of work over the past three, four years in in terms of yields.

There is always a little bit more, but most of the plan that I presented in New York was not related to yields. Was related to being able to sell more ground beef, sell more value-added ground beef, sell more value-added items.

You might have seen that we actually had announced the plant closure of Souderton, but now we have reversed and decided to run that as a as a value-added facility. Just shows the size of the the demand that we have actually for for value-added items and that we can continue to to supply.

A lot of that that that's going to be on on in terms of of of of sales that we're going to get most of that difference. I actually had the breakdown there on the presentation that that talked about that.

We're seeing that and we're very confident. Actually, after we've done this this integration, we're even more confident.

The last thing I'd say is most of the of the that capture has not been seen yet, and we are just beginning. We we've performed this, this this result that we have here, but this is without the the, we are just getting started on that 3% improvement plan that we we think we have.

That's very clear. Thanks, Wesley.

good morning, everyone. Thanks for taking my question.

Tomazoni, congrats for your move and also for you, Wesley. I'll be enjoying discussing US beef with you a lot.

Sticking with that point, Wesley, just to understand it better, it's expected to the first few cattle to arrive by the end of the month, right? It's just one port open.

I wanted to hear from you both from the volume that is expected, the pace of this volume growing. You said already that you're expecting even heavier cattle to come from Mexico.

If we talk about the space of imports and connect that information with capacity utilization, would you say this opening is already relevant for any changes in strategies? Would you say talking about the historical level of 1.5, 2 million heads per year, would you expect that number to happen by the end of this year, only in 2027, or at least the volume will be enough for us to expect a higher capacity utilization?

Just to understand how you're seeing the pace of impact from the Mexican border opening that just happened, or if it's more like since it opened, there's a ceiling for the cattle prices and that is already helping margins, but then no real impact yet? Just to get your ideas on that.

Thank you.

Leonardo, good morning. Obviously we are forecasting the market and there's a lot of things that we don't know, but what we know is the first port is going to open is here on the 24th, that's the port of Douglas, Arizona.

That port by itself could probably handle 300, 400,000 head. That's just an estimate.

It's difficult to predict. Something around 300, 400 is.

So, 1/3 of what the usual amount they used to come from Mexico can come from that port. Then, in the announcement that the USDA made is, they're going to analyze how that port opening in Douglas looks like and open two more ports in New Mexico, Santa Teresa and Columbus.

With those three ports open, they have right around one point over a million head capacity of flow capacity. Those three ports should be able to handle a big part, if not 100% of the normalization of the border.

Again, these are all estimates that we have, right? We're looking at historical numbers and looking at numbers provided for the public.

I think it's going to be possible within those three ports, if those three ports opening, to have a big part of what Mexico used to trade flow to the US. Only two Mexican states got approval to export to the US, Chihuahua and Sonora.

Those two states are the biggest states. Both of them are over 2/3 of the Mexican flow of cattle to the US.

The other thing that I would mention is, yes, we have information from the market that obviously that cattle used to come very young to the US and get backgrounded in the US. Once the border shut, and especially after two years of the border shut down, that cattle had to be backgrounded somewhere else, and it was backgrounded in Mexico.

There is cattle that's in the process of being backgrounded or cattle that's backgrounded and just waiting to go to feedlot and to get finished in Mexico. Obviously there will be a part of feedlots in the US actually buying that cattle and actually having that flow happen, but we don't see any reason why that wouldn't happen.

We also think that there is, because the 1.2 million head of cattle that came was just the calf crop that was destined to the US. On top of that, there is the cattle that's being fed.

We think that the cattle that's available is bigger than the traditional 1.2. On one hand, you only have two states, about 2/3 of the cattle being able to come to the US.

On the other hand, you probably have a little bit of a bigger number of cattle in further phases of the cattle feeding and cattle raising process. Bottom line is we think that because there is a lot of cattle that's already in further stages of cattle production and are heavier, that we're going to start seeing flows, obviously, end of this month and into the end of the year, and expecting that the two next ports of New Mexico open, we think beginning, somewhere in the first quarter, we should start seeing cattle ready for slaughter that were born in Mexico.

If all goes according to plan, we should go back to a much more normalized, if not all, most of the volume or a big part of the volume that we had coming from Mexico and into ready for slaughter in the second quarter.

This is great information. Thank you, Wesley.

Hey, good morning. Thanks for the question.

Tomazoni, congrats on a successful tenure here, and Wesley, congrats to you on the new role, and really looking forward to continuing to work together here. I really wanted to get your thoughts on US beef, and I know everybody's asking about Mexican border flow, maybe I'll ask just updated thoughts on heifer retention, and can you maybe give us your thoughts, any updated thoughts on the timeline for fed cattle supplies to be rebuilt?

What you saw in the report, was that a surprise just given all the commentary with drought concerns regarding heifer retention in the US?

Pooran, good morning. We we we obviously think that heifer retention and and US cattle, herd rebuild is more timid than than than we expected and then then then obviously we wished for to get back to a more balanced stage in in this of of of situation in in cattle supply.

At the end of the day, what really matters is, number one, it seems like it has for now, it has stopped dropping, and that's a big deal. I think we're going to start seeing we we see signals that we might going to start going up.

One thing that I would just mention, and not to keep on going back to Mexico, and, but it's I think it's again I think it's super relevant, is that, for us to wait for cattle a cattle herd rebuild that takes a little bit longer with another one, million head, million point five head, whatever that, ends up coming from Mexico, is a much more different situation than without that. It gives us a lot more, a lot more balance and a lot more, structure for us to see and wait this cattle rebuild without the the margins that we have seen in in in 2025, 2000 2026.

I think it probably brings us more to a little bit if all goes according to plan, right, and all the ports open, we should go back to an equilibrium more like what we saw in 2024, maybe 2023, depending on the amount of cattle that comes. I think it brings us a lot more, and it it gives us more patience to see what what's going to happen.

Weather is a big deal. Weather is a big deal for sure, and and we we'll have to see what what comes out of that.

One part of the number that doesn't get shown, Pooran, that I think it's relevant and it's and we have anecdotally heard it, it's it seems pretty pretty promising, is the heifer retention and and just cattle rebuild that we're seeing in Canada. We don't see obvi- obviously in that in that in those reports, but it's very relevant because it's an open, it's a market that, US cattle goes Canada can Canadian cattle goes to the US, so that's a big deal.

Look, I I think we should see, over the the next years, couple of years, three years, starting to see much stronger rebuild. Again, it's a very different situation having the Mexican cattle and and waiting for a more longer-term herd rebuild in the US.

The other thing that I would just mention, not to to take this too long here, but when you look at, there is two things that you need to look at, right: heifer retention, but also the amount of cows that get processed to slaughter, right? That that number has been going down very fast as well.

If you look at comp the number compared to 2026 or 2022, we have we we're processing half of the beef cows that we were processing in 2022. It's I think that's relevant as well.

Great. Thank you for the color.

Hello, everyone. Thank you for taking my questions.

Tomazoni, Wesley, congratulations on the transition, and wishing you both all the best. My question is on Seara.

We see another strong quarter, right, but margins weakening relative to Q1. Just like to hear a little more if you could qualify where the sequential margin drop came from, if we're mostly talking about export markets or the domestic market, and what are the main trends you are seeing for both of these going into the second half of the year?

Thank you very much.

Thank you, Ricardo, for your question, and thank you for your words. Seara would say you still if you compare this quarter, a bit below, but it's still a healthy margin, 14%, 15% is really a healthy margin for this business is what we look for this business.

When you compare quarter to quarter, there is some difference the main difference is a pork. Pork price in domestic market was below.

Some of the market chicken it was below, the other will be higher. Look, in reality was many change across the one category to the other category, but if I make an summary, was weaker in the domestic market.

Thank you very much, Tomazoni.

Good morning, and I'll just follow suit with those wishes to you, Tomazoni and Wesley. Look forward working more with you together.

Just coming back to the US and we haven't talked much about the pork business. If you could maybe explain us a little bit more what you're seeing within the pork.

You've highlighted that you expected it to kind of gain a little bit of these replacement dynamics, but it hasn't turned out to be the case. The demand picture for pork.

Maybe just talk a little bit what you're seeing, what are the differences across the different cutouts, and what's been a little bit of a headwind, if you want to call it this way, not major, just a little bit obviously, in terms of profitability in pork as we look into where it stands right now, slightly below what usually the target is for you guys closer to the very high end of the high single digit. Thank you.

Ben, good morning. Pork has had a weaker demand than chicken and beef, for sure.

Look, I think that the biggest thing is, first of all, if you look at just the volume processed by the industry is kind of stable, and the cutout is lower. That just tells you that demand seems weaker, because the same amount of supply and lower price.

We think that part of that comes from a little bit of a weakness in our prepared, not necessarily our prepared foods, but just in general the market of prepared foods, just the demand that we're seeing from customers and internal as well being a little bit more pressured, and consumers deciding to cut back maybe a little bit on those options. It's a quarter, I wouldn't say that that's a long-term trend that we should expect for the coming quarters and years, but that's something just to keep in mind that we've seen a little bit more weakness coming from processors that we sell to and just in our prepared foods business in general, a little bit weaker demand than usual.

All right. Thank you very much.

Hi, good morning everybody. Congrats Tomazoni on the tenure, and Wesley for the new position.

Very well deserved. My question is on the US poultry industry, which clearly is suffering from lower spreads, especially on the commodity part of the business, on the big bird.

My question to you guys is where you guys think we are in this cycle, if you already see some sort of a capacity reduction and volume production cuts in the industry, or when do you guys think we should see that happening, especially on, like I said, on the most commoditized part of the business in especially in the big bird? That's my question.

Thank you very much.

Thank you, Lucas. In Q2, chicken supply grew 4.5% in US was above expectation, above expectation of the industry, because the grow was driven by the higher egg sets and chicken placement, but the most significant was the better bird survival rates compared with the last year.

When respiratory disease and low-path avian influenza increased the mortality, means that the industry took historical rates of the survival rates, and based on that, placed the chickens for this year. As the rate was better, we had more chicken.

What we expect from, we expect that the industry will be adjust in the coming months. If you look for the historical, the industry is very disciplined in terms of to manage the supply-demand in this business.

Thanks, Tomazoni.

Hello guys. Good morning, everybody.

Tomazoni, Wesley, same from me. Congrats on the transition and good luck to you both.

I'll stick to the chicken business, but in a different way. It's interesting to see how Pilgrim's has been suffering from this higher supply of chicken and translating into lower chicken prices and hence into lower margins, and while Seara doesn't seem to be suffering from the same phenomenon, and you guys mentioned in the press release strong export markets and the Middle Eastern market in particular sustaining good profitability and the chicken exports out of Brazil.

My question to you is how you see those two moving parts unfolding in the coming months and quarters, whether do you see this chicken price pressure at some point spilling over into Seara's export business, or you expect the other way, you expect Pilgrim's margins to eventually improve before any erosion on the Seara business? How you expect this global chicken price environment to unfold into the two subsidiaries?

That would be my question. Thank you.

Thiago, thank you for the question. I think is you mentioned that as compared Pilgrim's and Seara, they are really different.

Even both of them export, but they export different type of products. They compete in very few markets, mainly in Africa, with the quarters, otherwise there is no competition on that.

For Seara, export are very important. Pilgrim's is less important.

That show this come from this a little bit the explanation about what's the difference. In US, Pilgrim's has a diversified portfolio.

I think you had opportunity to hear from Fabio. What is suffering in the US is the category of big bird.

This is a commodity, the product that we sell for processors. We increase too much the volume, and the demand is not enough to match the supply.

Because of this, Pilgrim's has a part 25% of the business around 25% of the business is commodity, and this part of the business suffered. Even we transformed two factories from big bird to case-ready, because case-ready demand is strong.

As Wesley mentioned when he talked about the US market for beef, consumers eat more at home, and then because of that, the demand in retail for chicken increased. Of course, as we have a balanced portfolio, we suffer with the commodity.

We see that this, I mentioned in the question that I answered before, if you look for the historical, normally the industry, they have a very disciplined in terms of supply and demand in US for this last, I think it's many years. This we are expect for the future, because the additional supply we have in the market, it was because mainly because of historic, we planted before, the survival rates for chicken lower than was in the fact in the quarter.

Because of that, is oversupply. When you go to Brazil, we see now that the last numbers of the Brazilian Association that the production grow 6.

6.5%, 6%. I think this, but export increased 20%.

Means that because of that, the availability in domestic market was 3.1. In export market, demand remain healthy even at price below previous level.

We believe that when you look ahead, I can be difficult to predict or forecast what will be happen. I take just the number of the association, means that they forecast for 2000 to 2027 the production will grow 2.8%, and the availability will be 2.7%.

If that numbers is the normal numbers that the market could be asset because it's normal growth of the market. Means that thing, we see that today, we have the level of placement of chicken is higher, but we see that the demand for export in Brazil is high, and I believe that it will be possible to compensate one, not all of them, but industry should be normally if you look for it as again historical, you see that industry normally rebalance when we have this disbalance in the market.

We see this quarter, the coming quarter, will be I think we are confident in terms of what we will be able to do with Seara. See, it's something that we are not managed, something that we not control.

We focus in what we control. We control the mix, we control the price, we control the diversification of chains, and what we are doing.

Thank you so much, Tomazoni. Ladies

Thank you. Good morning, everyone.

Echoing my colleagues, congratulations, Tomazoni. It's been a pleasure interacting with you in the last years.

Wesley, congratulations as well. We wish you all the best in the years ahead.

My question is on Australia, right? I think we saw a very important growth in top line, right, which you mentioned about JBS Brasil how China quota impacted exports.

I wanted to understand if we can assume this is the same reason why Australia's top line has been so strong this quarter, and on top of that, how can we think performance ahead, not only in terms of revenues, but in terms of maybe the impact on the profitability of this division? Thank you.

Isabella, we see that we are very excited with the business in Australia. We are in the middle of the cycle.

We see 2, 3 years very positive for our Australia business, and all of the business in Australia is performs well. When you look for the Australia results will be below the comparison of the same period last year, mainly because of the currency, and because of the climate, we had a very we dry a lot in Australia, where and we are not able to bring the cattle to the plants, and because of that, a little bit the volume.

We are able to produce more, and this is what we are seeing in the next quarter. As you saw that with this joint venture we have done with the Danantara, we create a platform for grow in Australia, in the Indonesia, and Asia.

Australia is very well-positioned and is close to these markets, and we have a strong team, and so look, we are bullish in Australia.

Thank you, Tomazoni.

Hello, everyone. Thanks for taking my question, and congrats, Wesley, on your new position at the company, and best of luck to you both and Tomazoni in your and your role starting next year.

My question actually relates to free cash flow going forward, and a couple of months ago, in the JBS Day presentation, it was mentioned that CAPEX for 2026 should be slightly lower than previously stated in other conference calls, reaching something close to $2 billion. My question is on what to expect for 2027, and if you understand that the current cycle conditions at this point, especially with the Mexican border reopening, enables a re-acceleration of the expansion CAPEX agenda for next year, and if the JV in Australia changes your appetites towards accelerating the consolidated investment level going forward since this new variable was added into the equation last week?

Thank you very much.

Thank you, Gustavo. Beginning with the joint venture, that's a way for us to continue with the agenda of growth and accelerate this agenda in that region of the world without putting more pressure on the balance sheet.

Bear in mind that Danantara is to put $800 million in first place, and then adding up to $2.5 billion in equity, and then after that we start to raise debt. Basically, there will be no pressure in terms of free cash flow from the investments in that region given this capital structure that was designed.

Now, coming back to JBS consolidated free cash flow, remember that last year we had a working capital consumption of $850 million, mainly due to increasing prices, which continue to happen this year. We see that this second quarter we had record revenues of $24 billion, increasing prices, increasing revenues drags working capital.

However, we had receivables discounts. With that that's why we are forecasting that this year the working capital consumption will be $500 million better.

For next year, again, we should because of the US beef and if we don't have an inflationary pressure, we should be a good year for in terms of releasing working capital. Of course, that all depends on grain prices, cattle prices, and cut-out prices.

With all the other lines are adding line, I think just interest expenses also in line what we've been presenting, it all depends now on each one estimates of EBITDA to plug into this equation.

Thanks, that was clear.

Good morning. Thank you for the questions, and my congratulations to Tomazoni and Wesley, as well.

My question is for Wesley on US beef. In '24, Douglas represented about 15% of imports from Mexico, just wondering if there's been some expansion there that would allow for greater flow through that port, and if Mexico cattle flows return to levels approximately 2/3 of where they were prior to the closing, is that factor alone enough to return JBS's US beef EBITDA levels to break-even?

Thank you.

Heather, good morning. For sure.

It wasn't as much as what I'm predicting, but obviously there were many options, right? There were options all over Texas.

All of the options were open. Obviously if you have just Douglas opening, it's going to be more than if you have Douglas and plus five more ports or I don't know how many there were back then.

We expect obviously as for especially for a while, it's going to be the only port. That's going to be more than usual.

The way that we're looking at the volume, it's pretty simple. We look at the volume how we estimate.

We're basically looking at what was a high-volume day back then before, what was a very high day for Douglas, how much could Douglas handle, and we're just multiplying that and trying to estimate how much that means in a year. That's how we're getting that number.

Look, obviously we're dealing with a lot of assumptions here and things that we're going to know pretty soon if they're going to turn out to be as expected or not, and we're going to know pretty soon, actually, how this all is going to look like. We think that with another let's say just another million head of cattle in the balance here, if we're right now at around one, one and a, between 2% and 1% negative, we should be closer to a break-even.

I don't know if it's going to be enough for us to be at a break-even or above break-even. I'm pretty sure that a million head makes a big difference.

It's the size of a two-shift plant, right? It's a big deal.

We think that it's going to be much better. How much if it's going to be above or right below the break-even, I'm not quite sure yet.

It's going to be much better than what we are right now. That's what I think.

Wonderful. Thank you so much.

Thank you.

Hi, morning. Thank you for the time, and also wish both Tomazoni and Wesley success in the new positions.

On my question, I know you touched a bit on this for Seara, but wanted to get a sense of the demand landscape in Brazil. Retailers are quite negative on the outlook for the second half of '26 and early 2027.

My question is how you're seeing that, if you're already seeing some impact on demand weakness throughout the operations there, some shift from beef to pork to chicken to eggs, and what's your perception around that and the risk on margins if we do see the consumer sort of downgrading their protein consumption? That's it.

Thank you.

Thank you for the question, Matheus. I think is we are not seeing so far a weak demand for our products.

We see strong demand and for all of the proteins. Price of pork is a little bit depressed, because the supply is higher than demand.

For chicken and the value-added and our value-added business, the demand are strong. It's I would say it's normally, we are not seeing depression.

We don't see that people be downgrade in terms of one product to the other. We see that protein now is on top of the priority for all of the population.

Many reasons, that protein become very strong globally in Brazil even with this GLP-1. In Brazil, it is spend a lot now with new brands come to the marketing of this GLP-1.

I believe the accessibility of them will be higher, and see we are so positive on that. Of course, we see that we have today when you look for the market, as I mentioned I answer Thiago before, there's a higher production of volume of chicken, and I think the industry should rebalance that.

Even the export of chicken is very high, and the global demand is high for chicken. I think will be revealed the level of the chicken placement in Brazil.

About the margins, look, it's we not given forecast of that, but okay can say that we have a strong gain of efficiency inside of the company, innovations, and the new mix, and we are confident that Seara will be keep continuous deliver good margins.

Pretty clear, thank you.

Thanks for taking my question. Good morning, everyone.

Congratulations to Wesley for the appointment. Wish you every success in the role.

Tomazoni, congratulations on the extraordinary run as a global CEO. My question is I'm going to shift to Brazil beef.

The company had a strong quarter with record second quarter in EBITDA growth, and exports were clearly an important part of that performance, particularly because of the purchase of China. Now we have July export data for the industry that gives first indication of post-quota environment.

My question for you is if you could help us to understand whether what you have seen so far in terms of exports volumes for the company and pricing is broadly in line with your expectations for this environment, and looking through the reminder of the year, the second half, how should we think about China demand and the ability to redirect the volumes to other markets?

Thank you, Renata. I give you an overview about the beef in Brazil because it's very complex environment now with the China quotas.

Because based on the current expectation, Brazil should presume production for China in October with shipment restarting in November. Given the normal transit times, that commercial impact of those shipment will be reflected primarily in 2027.

As always, we continue to manage our commercial strategy dynamic optimization, production allocation across export market, domestic market, in order to maximize the value. There isn't market that can accommodate the volume of 150,000 tons that China was export in this period that will be restart China, and now we have this volume.

The harvest of the animal has fallen 20% in the first month. The price of the live animal did not fall, and should be fall because the animal is in the field.

I believe that the farmers have prepared for the end of the quota. In the cattle, I mentioned before, are there, and the price should fall and then we recalibrate the cutout and the margin in this business because, of course, Brazil will be with this without quota of China, and probably with an European quota European restriction that we have, I believe that we need to reduce the number of cattle harvest in Brazil for this period we don't have the quota of China.

When the quota of China restart again October, that will be different. Far with till October, we see that the price of cattle should be fall because the number of cattle will be fall, harvest will be fall.

I think it's Friboi as a unique conditions because we have brand, we have category management with the retails. That provide I think is when you combine this category manage and the brand that we have provide for us a very competitive advantage in the sector.

Look, we see tough now the market for this period of the time, but we believe that market will be back on a healthy situation very soon in the coming months.

That's helpful context, Tomazoni. Thank you so much.

Good morning, Wesley, Tomazoni, Guilherme. Thank you for taking my question.

Again, as everyone mentioned, congrats on the move, Wesley, and Tomazoni, you'll be truly missed as one of the key executives on the protein space, and not only for JBS, but for the entire sector as a great voice defending the sector globally. Wesley, I know that you have not taken office already, but you have been with JBS in part of the organization I think now, right?

You have been all over the place in many divisions. You get a company now that it's a company listed in the US, a global player, which in the last couple of years changed a bit the strategy from M&A and the integration as it was in the past towards more of an organic growth, value added.

I want to take your thoughts having experience in all divisions so far, seeing every operation, what do you think lies ahead for the organization, what is the agenda that you will try to pursue, what will be the JBS of Wesley Filho from now on?

Guilherme, thanks for the question. The good thing about a transition that's internal like what we're doing is that there is a lot of continuity, right?

When you get a new CEO that comes from the market, or that's not on the day-to-day of the operations, and the guy's new, and they have to come up with something completely new and something completely different sometimes, right? Just to maybe mark kind of what direction that they think is relevant.

That's exactly not the case, all right? Tomazoni and I have been working together for the past 10 years.

A lot of what has been done within JBS for the past decade here in a lot of ways I've had the privilege to be part of that team that was doing that, and I was alongside Tomazoni all the time here doing that. You should not at all see JBS have a big change in the strategy, in the way we do things, again, because we are just one team, and we've been working together for all of that time.

There is a lot of alignment in terms of leadership and in this transition here. The other thing too, I would not at all consider a JBS of Wesley.

JBS has 280,000 team members and a very, very strong leadership team that's I think it's, maybe I'm biased, but I think it's the best in the industry. I think that that's something else that I would just mention.

Now, in terms of where we're going to go, Guilherme, for sure we have a lot of new avenues of growth that have been opened in the last few years that need to continue to mature, need to continue to evolve. We just announced, really just last week about this whole Danantara deal, and all of the potential that we have in Southeast Asia.

That's a market population of 700. If you consider the ASEAN block, plus Oceania, Australia and New Zealand, right, or New Zealand as well, you're talking about 750 million people.

It's a huge market that we trade a little bit, but not very, very much, that opens a whole new avenue of growth for us. Australia is a huge platform for us to get started in that, huge competitive advantages for us to grow in that area of the world.

We have the project in Oman that continues to grow our business in the Middle East. Obviously I'm talking about new geographies, but even in our traditional geographies, like the US and continue to evolve our agenda on brands like what we're doing with Just BARE, in Brazil a lot of the growth that we've done in Seara has been matured, but there's still some to go, and there's a lot for us to get done there.

Our business in the UK is a business that gets talked relatively little about, but it's a great business, about $5 billion business within Pilgrims that, $5 billion that we don't talk quite as often. Anyway, we're going to continue to grow on the avenues that we have been growing, and you'll see a lot of continuity and alignment going forward.

Thank you for your question, Guilherme.

Thank you, Wesley.

Hi, good morning, everyone. I'd like to join the crowd here on the compliments.

Tomazoni, congrats on a job well done. Thank you for the interactions during these years.

It's been a pleasure, and hope to keep in touch. Wesley, congrats on the new role, a truly well-deserved step, and wish you all the best on the new position.

My question is on Australia. I'd like to continue this conversation, Wesley, about the potential of Australia as a production platform.

Obviously, you are relevant there, but in terms of JBS's global platform, it's not that relevant. In the scope of the partnership with Danantara, and when you look at the country's potential there in terms of grain production, land availability, and so on, how big an opportunity Australia could be, especially for the production of chicken in the future, logistics-wise it seems to be very competitive, right, to have Australia as a production platform in chicken.

How do you think about this, and how's this being considered in the scope of the deal with Danantara? Thank you.

Thank you, Ricardo, for the question. I think is to discuss a bit what is the long-term strategy of this partnership is to expand our investment capacity in Southeast Asia, and when we preserving our operating model, and give us a financial discipline, and full operate control.

The priority this first two years is to investing in the regions for Indonesia. Indonesia is the focus, and is the main focus of us with this partnership is this first two years in Indonesia.

Then, after that, we can invest in Australia or the other place in Southeast Asia. You mentioned that in Australia, we are very diversified platform, just we missed a chicken.

Of course, chicken is something that we have all the times considered the opportunity to enter this sector. We didn't find the right conditions that we believe that is accretive for us to go in.

It's still open as an opportunity. We don't have a pipeline of investment or acquisition to announce, but in reality, we are looking for opportunity that could be M&A or greenfield, and with a focus in Indonesia now.

Why we are so confident? Because of the size of the market.

We're talking about 640 million population in this area, and we cannot go along in this. It's something that is safe.

The way that we have organized this deal with the create an conditions that we're not stressed our balance sheet. I think we have access additional capital.

It's not changed our investment discipline. At the same time, you can catch the opportunity this grow market, and then grow consumption of protein.

We have a strong team there. We didn't change the business, and JBS remained full responsibility for manage the platform, and we will retain full operational control.

I think this was a perfect movement in a strategic area for the increase the consumption of protein. It's

great, Tomazoni. Thank you very much.

Hi, good morning. This is Teresa on for Priya.

Thank you for taking our questions. Congrats, Tomazoni and Wesley, on the transition to your new roles.

We're really looking forward to work with you and wish you both the best. Our question is, will we continue to expect that net leverage will end the year at or below three times?

In support of this, how should we think about the potential for any debt repayment over the rest of the year? Thank you.

Hi, thanks, Teresa. Bear in mind that on a last 12-month trail, we are replacing a very strong, especially from the chicken US, EBITDAs of last year to a more normalized margins for chicken US this year.

This statistical effect tends to pressure the leverage. However, second half of the year is where we generate the bulk of our free cash flow.

One things probably tend to balance the other. We thinking that we'll be finishing the year in the levels more or less the sames as we got in the second quarter, slightly above three times.

As we generate free cash flow and given we have no debt maturities in the short term, and because all of the coupons up to 2032 are below treasury, the efficient debt to be repurchased, I would say, probably is the '34s, which have a 6.75 coupon, which we have still $300 million outstanding there, and some '33s or '35s. Let's see how the second half behaves, and then we can make a decision of repaying or not those more expensive debt.

Great, that's helpful. Thank you.

Before we close, I want just to thank all of you for your kind words and congratulations today for me and on behalf of Wesley. Also thank you for the attention, respect, and support you have showed me over this past eight years.

Our interaction have always been very productive. Your question, your perspective, even your challenge have helped us improve the way we communicate, sharpen our focus, and become a better company.

I have learned a great deal from all of you. Of course, I want to thank our entire team around the world.

Everything we have accomplished over these years has been a team effort, and I'm very proud what we have built together. We still have a few important months ahead of us, and my focus remained fully on leading JBS continue to deliver strong results, and working closely with Wesley to ensure a smooth transition, successful transition.

Thank you again for your trust, for your engagement, and your partnership over all these years. Thank you.