Good morning, everyone, and thank you for joining us today. The first quarter of 2026 was a challenging period for JBS, shaped by market volatility, seasonality, operational disruption, and changes in global trade flows.

This is consistent with what we have been saying. We understand the nature of our business and the cycles we operate in, and we manage the company with that in mind.

In the environment, we remain focused on what we can control: operational excellence, cost discipline, agility, and long-term value creation. JBS delivered net sales growth of 11%, reaching $21 billion US dollars, and is a record for a first quarter.

Net income was $221 million US dollars, and EBITDA totaled approximately $1.1 billion US dollars with a margin of 5.2%. Leverage increased to 2.77 times, reflecting pressure on earnings and cash generation, while we continued to strengthen our liability profile, extending average debt maturity to approximately 15.6 years.

From an operational perspective, the quarter reflected both the challenge of the cycle and the resilience of our platform. In Beef North America, the environment remained very difficult.

EBITDA was negative $230 million US dollars with margin at 2.3% negative, impacted by constrained cattle supply and higher costs. During the quarter, we advanced organizational and operational adjustment across our US beef platform, focused on rationalizing resources and simplifying our structure in more challenging phase of the cattle cycle.

As business has evolved, several areas were already operating in increasingly integrated way. Building on that, we brought together the three business units, fed beef, regional beef, and case-ready into a more unified structure.

This is a natural step. It reduced duplication, improved coordination, and allow us to leverage our scales and talent more efficiently, while strengthening decision-making and positioned the business to improve its performance over time.

These actions are part of a broader effort driving efficiency across the company. Our focus is to extract more value from existing assets, improve productivity, and enhance execution through technology, automation, and data.

At Friboi and Pilgrim's, we have been developing and piloting artificial intelligence initiatives for over a year to support better decision-making, commercial execution, and operational efficiency. We are now scaling this capability globally.

At Seara, we continue to advance automation and process improvement to increase productivity, improve product quality, and support expansion of higher value-added categories. This reflects our approach to the cycle.

We act early, focus on what we control, and position the business for a stronger performance ahead. This quarter, once again, highlighted the importance of our diversified platform.

Despite the headwinds, our business helped balance consolidated performance. Seara delivered an EBITDA margin of 15.5%, supported by strong export demand, innovation, and growth in value-added products, despite currency pressure and cost inflation.

The outlook for poultry in Brazil remained positive, supported by a balancing supply-demand and including adjustment in breeder replacement and continuous demand growth. JBS Brasil reported EBITDA margin of 4.5%, the second highest first quarter margin in its history, supported by a disciplined commercial execution and favorable demand.

Friboi also delivered strong top-line performance with a solid demand both domestic and in exports. The China safeguard created adjustment in the global trade flow during the quarter, but our team responded quickly, managing volume within the quota structure and developing alternatives markets such as United States, Mexico, Indonesia, preserving value and expanding our commercial footprint.

In Australia, margin reached 7.1%, and operational fundamental remain positive. In Queensland, cattle conditions are the best we have seen in the last 3 years, reinforcing our positive outlook for the business.

In the United States, Pilgrim's has a softer quarter, impacted by seasonality and planned plant adjustment. These actions were necessary to improve efficiency, enhance productivity mix, and better align our footprint with demand.

The adjustments have been completed, and we have already seen improvement trends. US Pork remained stable with the sign of gradual improvement supported by more balanced supply and demand dynamics.

Cash flow in the quarter was also impacted for growth capex with investment focus on efficiency, expansion in value-added products, and strengthening our global footprint, truly aligning with our long-term value creation. Looking ahead, the fundamental of global protein remains strong.

Beef supply continues to be constrained in key markets, poultry demand remains solid, and our brands continue to gain relevance with consumers. Seasonality will play an important role.

The start of barbecue season in the United States typically supports stronger consumption across protein and improved industry conditions through coming quarters. At the same time, we will remain disciplined.

Our priorities are clear: operational excellence, strict control on cash generation. We also remain focused on strengthening the company's long-term position in a global capital market, including creating the condition for further expand our participation in relevant equity indices over time.

We continue to review costs, optimize resources, and improve productivity across the business. We understand the cycle.

We operate with discipline. We are taking the right action to navigate the current environment while strengthening the company for the future.

Thank you. I will now turn the call over to Guilherme, who will be through the financial results in more details.

Guilherme, please.

Thank you, Tomazoni. Let's now move onto the operational and financial highlights of the first quarter 2026.

Net sales reached a record of $22 billion for a first quarter. Adjusted EBITDA in the IFRS totaled $1.1 billion, which represents a margin of 5.2% in the quarter.

Adjusted EBITDA in US GAAP totaled $960 million, which represents a margin of 4.2% in the quarter. Adjusted operating income was $560 million with a margin of 2.4% in IFRS and $444 million in US GAAP with a margin of 2.5%.

Net income was $222 million in the quarter and an earnings per share of 21 cents. Excluding the non-recurring items, adjusted net income would be $241 million and an earnings per share of 23 cents per share in the quarter.

Finally, the return on equity was 22% and return on invested capital was 15%. Free cash flow in the first quarter 2026 was negative at $1.5 billion compared to a cash consumption of $917 million in the first quarter 2025.

In addition to the seasonal cash consumption that typically occurs in the first quarter, the main drivers of a higher cash burning compared to the same period last year were: a decline in adjusted EBITDA of approximately $400 million, reflecting the weaker operating results; an increase in capital expenditures, which more than doubled compared to the first quarter 2025, totaling $566 million, driven primarily by expansion capex of $319 million compared to $79 million in the first quarter 2025; an additional of $252 million working capital impact resulting from the higher livestock suppliers payment deferral, as previous flagged in our last earnings call. It is worth noting that if we execute the same level of livestock deferral in the fourth quarter 2026, this impact will be offset on the free cash flow for the full year.

Notably, working capital consumption was already below the same period last year because, excluding the additional $252 million in deferred livestock payments, working capital would have been approximately 23% better compared to the first quarter 2025. In the first quarter, we also strengthened our balance sheet with the issuance of $2.5 billion in bonds in the market and a tender offer of $1.45 billion.

This allowed us to extend our debt maturity profile, reaching an average debt term of 15.6 years and an average cost of 5.7%. We have no significant debt maturities until 2031.

Our leverage ended the year at 2.77 times, in line with our long-term target of keeping net debt to EBITDA between 2 and 3 times. Our $3.4 billion in revolving credit lines and $3.5 billion in available cash provide us with the flexibility to continue executing our expansion capex, value creation projects, and shareholder returns, while maintaining a healthy and robust balance sheet.

Last night, we also announced that beginning next quarter, we will voluntarily file Forms 10-K, 10-Q, and 8-K with the SEC, prepared under IFRS and supplemented on the earnings release by certain indicators reported under US GAAP. This initiative is expected to broaden our eligibility for key benchmark indexes, such as S&P Composite 1500 family.

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

Thank you. Good morning, Tomazoni, Guilherme, Chris.

Thank you for the time. I have a couple of questions.

First, Guilherme, if I may ask you for that breakeven EBITDA exercise you do every quarter, that's really helpful. If you could just walk through that, we'd really appreciate.

Also to the point of cash, right, and your leverage is pretty close to 3 times, right? I know that's not how rating agencies look at that, but if you look to the EBITDA US GAAP, right, is even higher than that.

I was wondering, you mentioned before, right, a capex of $2.4 billion for this year and 1.3 of expansion, if that continues to be the goal, right, or if you are reviewing that not only for this year, but going forward. What type of levers you have, right, to bring leverage down, assuming you don't have a big jump, right, in your EBITDA for the next 18 to 24 months?

That would be my first point. Then also, about the US beef business, right, I think we have been discussing that for a while now about how the cycle apparently has changed, right, or is being different than the previous downcycles.

There's a matter of really how the cattle herd can be rebuilt at this point as the sector goes through generational transitions and issues. Do you see the business model changing going forward?

Any type of vertical integration that would make sense on the cattle part for you to be supportive of the cattle herd growth over time? That would be my second point.

Thank you.

Hi, Isabella. On the first question, I think it's early.

We're still reviewing our estimates, and again, there's a lot of variables that's not in our control. I would say that for this year, the breakeven EBITDA, the cash flow breakeven EBITDA, would be anything between $5.7 and $6 billion.

That's our better estimation. In terms of cash usage, you're right, the leverage reached 2.77.

Bear in mind that our long-term target is to be between 2 and 3 times. Being in this range, we think we keep investment grade.

Above 3 times, we enter on the attention zone, when we start reviewing things like you mentioned, capital expenditures, dividends, and so on. Our dividend limit is at 3.75, and I think it's worth mentioning that in 2023, our leverage reached 4.84 in the third quarter, and we kept investment grade because of the cyclicality nature of our business.

Because in 2024, the leverage came down without any effort to 1.89. In fact, in 2024, I even unwound discounted receivables.

So 2024, we would be printing a $2.8 billion free cash flow, but I used $500 million to unwind discounted receivables, we printed $2.3 billion free cash flow. That's the kind of the levers that we have to use, because we don't use this levers recurrently.

It's exactly to be able to use whenever we need. For example, I could increase my discounted receivables again for anything from $500 to a billion dollars in discounted receivables that I unwound in 2024 when the cash flow was robust.

I can also increase my supplier vendor finance because we have space for that, but these all have costs. We use only if needed.

That's how we will be managing leverage. Second quarter, we may be closer to our up range limit on the long-term target, but bear in mind that the second semester, there's always a strong free cash flow generation.

We expect to end up the year in our target zone of between 2 and 3 times net debt to EBITDA. As long as we keep inside this range, we've been managing to keep the billion dollar dividends that we already announced and around one more than a billion dollars in growth capex.

If you look at since 2019, we did an average of expansion capex of almost a billion dollars with an almost a billion dollars average dividend as well. I think being in this range, I think we can keep this pace of growth capex and dividends, but we will always be monitoring according to our leverage, which is our main variable for capital allocation decisions.

Isabella, good morning. Obviously, this herd rebuild in the cycle of the US business is taking longer than we all wished for, but for the industry to have any integration especially on the cow-calf side of the business is just not realistic.

For a few reasons: it's very, very specialized and the people that do it have very special knowledge that's very different than what we do. Other than that, especially on the cow-calf side of this supply chain, it's very expensive, right?

Expensive not as in price, it's expensive. You need a lot of land and you need to manage a lot of land to be able to have a significant amount of livestock, and that's not our business.

We're not looking into that.

Super helpful. Thank you.

Hello. Good morning, everyone.

Thank you for taking my questions. I had two also on US beef.

The first is to understand a little bit more the profitability delivered in the quarter. We know it's a seasonally weak evolving into the barbecue season, right?

We continue to see spreads that seem to be pressured as they were—

Henrique, maybe can you repeat the question? We lost half of the question.

Can you repeat, please? Sorry, sure.

The first one is if there was anything extraordinary in Q1 US beef margins, such as hedges or even the impact from the Greeley strike. The second is how you see margins evolving into the barbecue season.

Spreads appear to be pressured back to the levels they were in the beginning of the year. How do you see this favorable seasonality playing out under the current environment?

No, there wasn't anything extraordinary from a hedge perspective or even the whole strike situation didn't have a meaningful impact on our quarterly results. Nothing to do with that.

It was simply margins, especially in January and February, were, for sure, very, very challenging and probably one of the most challenging periods we've ever seen in history. Talking about the next quarters, we expect obviously to be better than what we had in Q1, but for sure, 2026 will be a more challenging year than 2025.

That's clear, Wesley. Thank you very much.

Hey, good morning, Tomazoni, Gui. Just two very quick ones.

First, can we talk a little bit about Australia and some of the cost headwinds, what you're seeing on the Australian cattle cycle maybe and if there was something in particular in the first quarter that drove a little bit of 300 basis points margin contraction? Then second, if you could share a few thoughts as it relates to the cattle pricing in Brazil.

It's been very erratic and volatile. Any background, any interpretation as what we should think about going forward for the Brazilian cattle price, that would be helpful.

Thank you very much.

Hi, Ben. Thank you for your question.

Related to Australia, the operation was very strong. We had a good quarter in terms of volume and sales.

The only impact when you compare to the last quarter last year, the first quarter last year, was FX, was around 15% valuation of the Aussie. This is the only impact of the business.

The business remained strong in Queensland, that where we have 40% of the cattle herds. The environment conditions for pasture is the best we have seen in the last 3 years, and we remained very positive with Australia business.

About the volatility in Brazil, it's normal because, as Brazil is focused to accomplish the quota in a China quota, and all of the players in the market try to produce as much they can in order to able to reach a share of the quota. It is normal.

The price of the cattle increased, but you saw in the last weeks the price start to go down. We see that if the quota will be achieved, we believe that the end of June, the volume should be go down and the price of the cattle should be down as well in a way to accommodate that to where Brazil will be put in an additional 100 100,000 tons per month.

This is normally what we see in the situation that with less cattle will be harvest and the price of the cattle will be down. I think we are seeing it as a normal.

Perfect. Thank you very much.

Hi, Tomazoni, Guilherme, and Wesley. Good morning.

We have two questions here also. The first one is regarding Seara.

Just want to discuss a little bit more about the margin of the company. Margins stayed at quite strong levels, but they declined sequentially.

If you could provide us a bit more information on what drove the sequential decline, if it was more related to the pork business, the chicken, or maybe something else? Any color you can provide us would be very helpful.

If I may just do a quick follow-up also in the US beef. There was some new reports pointing to the postponing of the measure, but there was also the possibility of lower US beef import tariffs.

How are you guys seeing this for the US beef segment and also for JBS Brazil and Australia, that should also benefit kind of from this? Thank you.

Guilherme, related to Seara, Seara increased its sales volume both domestic and export. Demand for all of the products remained very strong.

The only explanation is the FX. If you take the FX that compared to the last quarters, you'll see the impact will be around 10%.

This is more than justify all of this. The business is very strong.

We are very confident with the results of Seara in the coming quarters.

On the US beef, Guilherme, so, if tariffs are lowered, and there is a bigger income of Australian and Brazilian beef and from other geographies as well, I see this as mostly in a big sense, very complementary. The US has really gone into a production system that prioritizes prime and choice and heavier cattle.

Today, just the percentage of select cattle that we see is a lot smaller than what we used to have. It's basically a very, very small minority of cattle nowadays is ungraded or low-graded cattle.

I think that potential increase in imports could complement that production that we're doing a lot less of. I actually think that the byproduct of having this priority of higher marbled, more premium beef that a production system that we have in the US is that we have a lot of fat trim as part of our production.

Actually, you could almost argue it's one of the main products that comes out of cattle is fat trim. The only reason why our fat trim is valued so high and it has such a good value is because we have available lean.

If we don't have that available lean, we actually could see our fed cutout actually reduce and the price of that well-marbled beef actually have to be higher because we don't have the credits for that fat trim. My point is, in some cuts, yes, it would probably be in a way competitive with domestic production, but I would say that the majority of what potentially would come in would actually be pretty complementary and not what we're targeting to produce in the US right now.

Very clear. Thank you.

Hi. This is Isabella on for John.

Thank you for taking our questions. Could you please discuss the next steps that JBS plans to take in terms of increasing its presence in value-added meat?

Is there still more to do on the M&A front to secure assets, and does JBS have the necessary brands and assets right now for the next steps in its growth? In terms of going to market, should we expect a strategy similar with the partnership between Seara and Netflix in Brazil or is there a different approach that you plan to take?

Thank you.

Isabella, in terms of M&A, it's part of our routine to look all the time the opportunities for M&A, for growth. This moment, we are focused on the cash generation and to operational excellence.

This is the focus of the company now.

Thanks.

Hi, good morning. Can you hear me?

Oh, there you go. Good morning, everyone.

Thanks for taking my questions. Actually, I have two from my end.

First, on Seara, the export scenario appears to have become somewhat more challenging in key markets as a result of disruptions in the Middle East, while we also saw the European Union considering banning poultry exports from Brazil. It would be very helpful to understand how Seara adjusted its commercial strategy in response to that environment, both in terms of logistics and also in terms of pricing.

If I may add, you announced you are going to start publishing 10-Q and 10-K filings, which we see as positive in terms of eligibility for US indexes. In this sense, what are your expectations for JBS's next steps towards being included in those indexes?

I was wondering if you could share with us some thoughts on the accounting standards that this broader discussion could potentially bring. That's also from my end.

Thank you.

Laura, I will start to answer the question about Seara that you have made, and Guilherme will be answer you about the 10-Q, 10-K we are published. First, you ask about the Middle East war and how this impact the business.

I will tell you this is the neutral impact because we have input of cost additional because you need to skip some port and you need to use trucks for internal transportation to reach the customers, but demand in terms of volume is remained the same, remained strong as was before, and the extra cost is being by the market. Means that we can say it's neutral, this war in the business so far.

Related to the European that you mentioned, it's very new. I know that Brazil will provide necessary clarification to the European Union regarding to the technical guidance related to the subject.

For our side, we see Brazil is fully compliance with European Union requirements. The other thing is important to clarify, that export have not been suspended.

I think we have a period of clarifications, and this is not impact the business so far. We are very confident Brazil will be reaching agreement with European Union.

For our side, we continue to monitor the matter.

Hi. Regarding indexes, it's worth mentioning that today, only around 40% of our free float is for came is came from comes from passive funds.

With in the sector, generally, this number is 60%, and the reason is that is because we are not on the main indexes yet. However, we already have we think we already have the necessary criteria for the Russell.

We entered last year last September in the FTSE US as a US company. Now May, June, we have rebalancing of Russell.

It's not in our control, but there's chances that we enter in the Russell, creating demand for the shares. Now, having more than 50% of our sales in US, and if we do 10-Ks and 10-Qs, and in June, we'll complete one year of list of having our primary listing in US, this makes us eligible to the S&P family.

That that's the perspectives in terms of the index. In terms of accounting standards, we are Netherlands-incorporated, the IFRS is their accounting standard for that.

In our press release, we put all the relevant information in US GAAP, you can compare, and also the bridge from IFRS to US GAAP. With that, we think we can reach US investors that are used to US GAAP and have the comparability, and reach also European investors and Latin American investors that are used to IFRS.

That's super clear. Thank you, guys.

Morning, Tomazoni, Cavalcanti, Wesley. Thank you for taking my questions.

I would like to discuss a little bit more about US beef. Wesley, you mentioned that the strike in the first quarter wasn't really impactful for the results.

Would you say that without the strikes, the situation would be a little worse for the first quarter, or not, or even if there are any lingering effects for the Q2 from this strike? Another thing that I would like to understand from your side that we've been discussing this for the last few quarters, just to get an update regarding the Mexican border, if you're expecting that to open anytime soon, if you think that would change the supply side in the short term, could be a tailwind for this second quarter, maybe for the second semester.

Two questions for US beef. Just one thing about Seara.

You mentioned, Tomazoni, regarding the exports Middle East, I understand that. Then looking on the domestic side, we've been seeing some erratic performance on prices between in natura or fresh and processed goods.

Looks like in the beginning of the year, we saw some strength from the processed side and now we are seeing some positioning today toward in natura. Just to get an understanding here what you're seeing, if there's a demand is softening or if it's just a short-term hiccup, let's say.

Just to get a better view from Seara on the domestic market as well. Thank you.

Leonardo, just on the Good morning. Just on on on this strike situation, we we were able to to redirect volumes in other plants, we didn't lose, volume because of this because of this strike.

There were maybe, costs here and there that were were extraordinary, but nothing significant enough to to justify, doing any adjustment or anything like that that's relevant to the market. We we decided just just leave it as is with the result because it wasn't significant.

Mexico border opening for for feeder cattle, absolutely no question, is the most important thing that could ever happen in the short term to get, this to get some sort of relief on the supply side on on beef in the US. Obviously, the USDA has, has been super as always very responsible in in in in making sure that that's done whenever they they they feel the situation or they, they have assurance that the situation from the Mexico side is where exactly how they want so that it keeps screwworm outside of the US.

Having said that, whenever that, the US whenever and if that ever happens with the with the US government feeling that, that it's the right time, absolutely would be the most significant thing that could happen to to to normalize supply in this industry in the short term.

Leonardo, related to your question about chicken in Brazil, chicken in Brazil we study here beginning of the year, I think January was a little bit soft thing. This quarter, but then February and March recovering.

I think is the market demand in Brazil very strong, and the demand in the export is strong. We that time in the last quarter, we discussed that the statistics show that Brazil will be grow high volume because of the genetics will be higher.

That moment, I said that we're not seeing the market, but in reality, statistical was some mistake that the association that republished the numbers and correct the information that the market will be grow around 10%, you're talking about 4%. But 4% I think is balanced with the demand.

We have a standard demand in normal growth in domestic market.

Thank you, Wesley. Tomazoni, just to be clear, you said there's improvement, but then it's mostly in natura or processed or both?

No. Processed, the market is we can say stable.

The market is not grow, but we are flat, but we sell more value-added, more premium products than the more commodity products. The demand, if you saw the demand in January was weak, but then recovered.

In March, we made a very good sales that we see confident that it is a combination of our strategy to distribute in domestic market different channels, different category of product, we are able to manage this situation. For chicken, it's very strong the demand.

For processed product is strong in the premium and soft in the more commodity.

That's clear. Thank you.

Hi, are you able to hear me now?

Thank you. My question is on North American beef and just due to a variety of factors, including drought, it just seems like the herd rebuild is getting pushed out and it's likely to be much more slow and meager than expected.

Then you've mentioned the border reopening. It just seems like even if everything goes right from here, we're looking at late '28 before any significant increase in cattle availability.

It would seem additional industry rationalization is required, and so I was just wondering when do you see that happening and wondering if JBS has considered rationalizing some capacity, maybe one of your smaller facilities? Just hoping you could help me how to think through that.

Thank you.

Heather, you're right. Especially with this drought, it's going to delay the herd rebuild.

I don't think we further liquidate, but it's probably going to delay the herd rebuild here. Look, we're not really focused on that right now with talking about plant rationalization and all of that.

We're focused just on making our business better with the things that we can control, given the footprint we have. That's not something that we're looking at the moment.

It's very difficult for me to speculate on anything else, right, because anyway, it wouldn't be appropriate for me to speculate on other players in the market. We're not looking at that right now.

Thanks, everybody. Good morning.

Thanks for the call. One question for Wesley, one for Guilherme.

First on US beef, Wesley, please, as we think about the grilling season, protein inventories are down big time in the US. Red meat is down, chicken is down.

When you look at beef purchases to be delivered in June, July, also down big time, 15% or so. How do you feel about channel inventory today when you're thinking about retailers and food service as we head into the grilling season?

These data points, I think that my point is that these data points would indicate to us that there's a lot of upside to cutout prices in the very near term. I wanted to see if you have that view.

Or on the flip side, maybe it could also indicate that demand is expected to be softer, I guess. I don't know.

I don't think that that's the case, but it is a possibility. I just wanted to hear from you what do you get from retailers and food service in your conversations on the ground.

I think that that would be helpful for the very short term on the cutouts. That's my first question.

The second question, really quick one to Guilherme, the pretty significant capex expansion that we've been discussing for the past couple of months and we saw that taking place in the first quarter, could you detail a little bit more, I know that maybe you cannot quantify by division, but at least the main projects that you're working on for the rest of this year just so that we have a better idea of what's going on in your US Pork division, even projects that you're doing on US beef, PPC, and so forth? I think that that would be helpful as well, just a reminder of the capex expansion.

Thanks, everybody.

Ricardo, on beef, cutouts have already started the year already compared to the same time last year much higher than 15% higher than on the whole quarter than compared to the same period of time. The reason is lower volume and demand continues to be strong.

You have a constant demand and a shorter supply, the price tends to go up when that happens. Looking forward, I would expect we have to wait and see how that's going to impact demand, this potentially higher prices.

Supply is tighter, we'll see what happens there. We'll probably see demand continue to stay strong and we know the supply is kind of short.

We'll have to wait and see.

Hi, Ricardo. The main projects continue to be the ones announced.

The pure-breds prepared foods facility in Marshall County, the AI fully cooked bacon and sausage facility, the Perry, Iowa, fresh sausage plant, Cactus, Texas and Greeley, Colorado, modernization of the beef processing plants. Then we have investments in Brazil in biodiesel and the Paraguay chicken plant and also the Oman acquisition.

Bear in mind, the Oman acquisition will not be a cash effort. Even that it will all be financed with local banks there.

Hi, everyone. Thanks for taking my questions.

Two follow-ups. One is on Australia.

It seems like you guys have a sort of a constructive view there on the quality of pastures and the business. I just wanted to understand better potentially the trend for margins there once at least if you look at Australian dollar remains even a bit stronger than the levels we've been seeing in the first quarter.

Cattle prices seem to be sort of stable, but with the MLA outlook of some reduction in slaughtering this year, right, with the changing cycle. I don't know in the regions you guys operate and all the other businesses in Australia, how to think about margins going from here, if it's also some seasonal effects should help lifting the margins going forward.

Number two is on still on the US beef, Wesley, just so I understand your comment, you mentioned that you expect 2026 to be more challenging than '25. Last year, you had a 1.5% negative margin.

Should we expect a weaker margin this year, given your comments? Then, 2Q was particularly weak last year, right, with a minus 3.9 margin, if you remember the issues with the hedging, etc.

Should this sort of a weakness more skewed towards the second half, or how to think about also the evolution of the business from here? Thank you.

Lucas, thank you for your question. Related to Australia, I think where we operate, we are very very positive in terms of the volume that will be harvest this year.

I think we will be not different than the last year, some period of the year, I think it will be higher. I mentioned the beginning in one of the answer that we have Queensland that where we are main operation, that the climate condition is very positive.

I think it's the best in the last 3 years, and this show us that the coming months will be a good supplier and if you talk about supply. Then you talk about demand.

Demand is very, very strong, and I think it's not just in US, but all of the premium markets that Australia sell, that Japan, Korea, and other ones. Australia is very well positioned for catch these benefit from this demand, the grow demand, global protein and low demand.

Still, we are positive where we operate, that will be a great year for this JBS Australia.

Lucas, so, I'm going to say this without giving any guidance, but you could expect this year versus last year, I'm talking market in general, to be 1, 1.5 percentage points worse than last year, one about 1%, I think, is fair. Obviously, then we have our internal dynamics, right, how our operations are.

Like you said, last year, we had some hedging impact in a specific quarter. Overall, we could expect the market to be 1 to 1.5 percentage points worse than last year.

Perfect. Thanks very much, everyone.

Yes, hi. This is Jack Hardin on for Farhan Sharma.

Thanks for the question. For US chicken, consumer demand remains strong, partly supported by tight beef supplies.

Broiler processing margins remain below mid-cycle levels. How do you assess the current supply-demand balance in chicken, and do today's margin levels suggest the industry needs to moderate production growth?

Thanks. Still,

we see very balanced in the chicken demand in US. We had in the beginning of the year that the big bird was a little bit very challenged, but the price of breast recovered during the quarter.

We see that demand is strong. In value-added and prepared, we are strong demand and in all of the business, all of other category that Pilgrim's sell in domestic market in the US.

All of them are positive. When you look for the side in the supply, we see better balanced supply-demand.

We are positive with our business in Pilgrim's business.

Hey, guys. Good morning, everyone.

As always, a pleasure to talk to you. Thanks for the Q&A.

I think the question goes to Tomazoni, and this is just to try to gain perspective beyond the quarter on the benefits from diversification and portfolio. Tomazoni, this was a very rare quarter where we saw very strong demand.

Actually, you mentioned three business units record high sales for a first quarter. At the same time, virtually, all the business units delivered lower margins versus last year.

I think the exception was Brazil Beef. Which, one could argue that this quarter particularly diversification didn't quite help you.

I think my question for you is once you think about the year and the build-up, you mentioned the grilling season in the US, obviously, the year-end brings seasonality also to Brazil. Where are the opportunities where you think margins could show some clearer sequential improvements?

Where are the main risks? How would you expect diversification to help you going forward?

Thank you very much.

Thiago. Good question, Thiago.

I'm very positive with diversification, because when you look for our results this quarter, if you compare to the last quarter, the difference is around $400 $400 million, correct? We can explain this difference with two business units.

First, US Beef US. I think the results of Beef US was impact around 50% of the difference of our EBITDA.

Wesley Filho have explained about that. I think we reached the bottom of the results.

I think is we see that the coming quarter, we cannot say it will be improve a lot, but I think it will be better than was this quarter. With the market conditions didn't change, but I think it's we are more balanced.

We made some adjustments in our structure that I think will be help us to navigate even inside of the company with low cost of operations, more synergy, and outside synergy in terms of commercial. I think it's this is one of the things that give us more confident about that the results will be better than was this quarter.

If you can add, Wesley?

No, I was just going to add, Thiago, that I think a good way to think about diversification is always, more so than comparing every time always on the comp versus last year, is to look just at the absolute number, right? You have Pork USA and Seara with double-digit margins.

You have Australia, even though this quarter was a lower quarter than what it has been, it's still in a very positive high single digit, right, when you have the US Beef US at the low cycle. If you went back 5 years ago, you'd probably see all the other businesses at a lower margin and beef higher.

I think the other way to look at this diversification as working even in this quarter, is when you compare our portfolio of businesses with any one of our peers, right? Each one of them could be that they are in a singularly in a market and that market is really good or really bad.

Our portfolio of business is always going to give a more stable kind of result versus our peers just based on the uniqueness of our diversification. I think I would say that even in this quarter that was a weaker quarter, the diversification thesis that we have is actually pretty evident, in my opinion.

Just to finish my point of view, let us start that 50% was Beef US, the other 50 was Pilgrim's. Pilgrim's need to adapt its portfolio to the market demand.

Before, US was just focused to export the white meat and export the dark meat at export leg quarters. The market changes.

There is a demand in domestic market now in US for dark meat. Pilgrim's need to adapt its layout of the three factories in order to be able to supply the demand of the market.

Then we stop for 2 weeks, three plants, then this was affected the results, and the climate conditions affected as well. Then these two things explain the difference in terms of the results compared to the last year, $400 million, that 200 million in Pilgrim's and around 200 million in Beef.

That is one thing about that. The other thing is, you mentioned that the other business not delivered results, but that was the FX.

FX was affect Seara, and FX was affect Australia. This is if you want to explain the business is that: FX, Seara and Australia, and the Pilgrim's, as I explained, and Beef US.

This is one thing about the results. The other thing, if you talk about diversification, of course, if you were just Beef US, we have a really tough situation.

As we have managed different business in different geography, we are able to compensate. If you compare just a single company with a one business, that would be a huge difference.

Of course, diversification is working. I believe that this difference in terms of cycle is normal in our business.

We need to be able to focus and manage the business in when there is low level, we need to be better than the other competition. At high level, we'll be better in competition.

This is the game.

Fair enough. Thank you very much, Tomazoni and Wesley.

All right. Thank you so much for this space for questions.

My first one is a follow-up related to the last one, diversification, but in the angle of GLP-1 adoption. It was already mentioned by company's management that the adoption of GLP-1 is a structural shift towards high-protein diet, of course, particularly in the US as the adoption is higher right now due to costs.

Could you please calibrate towards how tangible this trend is already in your day-to-day business? Are you seeing measurable change in the consumer behavior already?

For instance, if it's the different perceptions of the consumers for PPC. In terms of innovation, GLP-1 is something that you think about when you are elaborating a new product and mix in terms of smaller proportion or anything different?

This focus in the US, but even for Brazil, are you seeing already this trend or you think the contribution can come in the future? Since you are investing in expansion for Seara, do you have this in mind in terms of the future products that you are going to release on those investments?

This is my first question. The second one is related to grain prices that has been positive for the company for a while.

Right now, there's the discussions on the potential risks on the El Niño and fertilizers costs. If you can share your outlook for 2026, '27, it would be great as well.

Thank you so much.

Thank you for your question. When you talk about GLP-1, I think is GLP-1 is one of the factors that is affecting the global consumption of protein.

When you look for when you say when we are saying here that it's strong demand for protein is globally in all of the market, and this is what this is affected by, of course, as you mentioned, GLP-1. GLP-1, I think is not the most important issue.

I think is the this is the the perception and the and not just perception, but the the the knowledge that protein is very important for to have even in the even in the new generations or in the old the older generations. Because if you want to have longer life, you need to eat more protein.

If you want to have muscle in the beginning, you need to to add to eat protein. That protein become very important for all all of generations.

The second, the regulatory, that you saw that US US FDA change change the pyramid. They invert the pyramid because that they they they put that you need to have more protein in order to have more health, and to eat more protein is healthier.

This is globally. Then there is about this new technology about medicine that is because you want to lose weight, and if you lose weight, you need to eat more protein in order not to lose muscle, just lose fat.

This is it's not in one country. I think this is globally.

We see that it will be continuous high protein, the consumption. We are we are it's not new.

In order now what we see the new now, all the companies try to adapt the portfolio to have more protein. Even that that the companies that work in high carbohydrate products, now they want to adapt for more protein.

This but if you look our core, our core is focused on protein, that we don't need to adapt our core. We need just to accelerate what we have we have done so far.

We are, for example, we have we are launched high-protein, the line of protein products in Seara and other parts of the world. We are and we are work in innovation in order to facilitate how the the people eat protein.

For example, use air fry for simplify this simplify the the the lives to if you want to cook at home. We see that the people cook more at home.

If if they if I say you, we have the right portfolio for the right brands. We not see this as a as a trend, we see this is structural.

They they eat more protein. We are investing as in a in a in and all of the innovation in order to facilitate that.

The second question, I understood that you asked about about grain, about the cost of the about of cost of nutrition of animal. Look, if you look for I say you, despite a global inventories being at comfortable level, there is significant volatility in the market and I think is a lot of uncertainty regarding to the weather conditions and the fertilizer costs.

If you look for corn globally, demand remains very strong, helped support the market even with recent pressure in the grain price. I think is the tendency is to increase the price because of the weather, because of the of the of the fertilizers.

In terms of what is the impact of our company, I can say you that we believe that we are well-positioned from a risk management perspective. While the crop condition have improved, we remain prepared for the potential volatility, including the possible reduction in the Brazilian safrinha crops.

Thank you so much, Tomazoni. Super clear.

Thanks for sharing your thoughts on GLP-1 as well. Very complete answer.

Thank you.

Hi. Good morning, everyone.

Wesley, a couple of follow-ups here regarding North America. The first one, besides the tariffs discussions this week, right, there were some reports about a potential deregulation in the cattle industry.

In your view, what can be really done to incentivize ranchers to raise more cattle sustainably, in the longer term? What is the likelihood of any potential policy change happening this year in that regard?

The second point here on the overall protein demand in North America, this summer, we have the FIFA World Cup happening in North America, right? Can we expect here any meaningful impact coming from that event specifically in North America, maybe a stronger-than-usual barbecue season or something like that?

Lastly, on prepared foods, this is a more broad question for the company. We see many capex initiatives to build or expand capacity in prepared foods.

My question is if you can quantify a little more how fast prepared foods are growing within JBS' portfolio. Do you have any particular long-term target for this category to represent in your overall portfolio in the long term?

Thank you, guys.

Good morning. On the deregulation, for sure, as we see cow-calf producers and ranchers in general trying to rebuild herd and deciding to rebuild herd, regulation and overregulation can be an obstacle.

Anything the government does to help the ranchers, it's very helpful and, for sure, it's important. On the protein side, demand is pretty strong.

Overall, how impactful the FIFA World Cup be, I don't know. I think it's helpful.

It's not negative, but I think it might be relevant in a few days of the next few months, but I don't think it moves the needle enough to say that this substantially structurally changes how we're going to see the overall summer, spring here for beef demand.

What about our strategy for value-added, we don't have a specific target for value-added. We want to increase the share of prepared foods in our portfolio.

Why we want to do that? Because when we talk now a lot about cycle, where is the low part of the cycle, high part of the cycle, prepared, there is particularly no cycle.

The demand normally is very stable and with higher margin. Because of that, we are prioritized our investment in the prepared food and brands.

We are investing in brands and we are investing in the line of prepared foods. If you saw that investment we have, Guilherme just mentioned before, the investment in US about sauces, it's breakfast sauces, it's value-added.

Pilgrim's value-added, prepared plants. You saw in Brazil some investment in Seara was the focus on that.

We are prioritized investments in value-added. This is the fact.

We are not have a specific target on that.

That's clear. Thank you very much, guys.

Great. Thank you so much for taking the questions.

Guilherme, can we talk a little bit about how we should think about net leverage trending through the end of the year? I think earlier, a couple of months ago at CAGNY in particular, we had talked about scope for net leverage to be below 2.5 times this year.

It sounds like it could be ending the year sort of in the upper range of that 2.5 to 3 times area. Just want to make sure that we're thinking about that correctly.

As part of that, you highlighted through the new issuances and tender that you did recently. However, it does look like you tendered less than you issued.

Should we expect some of that incremental amount to get deployed to debt reduction later this year or just kept on the balance sheet? Then the second question I had was just on the free cash flow breakeven.

You talked about it being $5.7 to $6 billion now. Last quarter, you had said it would be 5.7.

If you could just walk us through what's driving the higher end of that range now, that would be helpful. Thank you.

Hi, Priya. From a net leverage perspective, you're right.

I think the perspective to end this year are more likely to be between 2.5 and 3 times, given again the weaker results we had in the first quarter. In terms of the tender we did, bear in mind we have a billion dollars in dividends to be paid in June.

Our cash position is still at $3.5 billion, which is around at least 500 around $500 to $600 million above our minimum cash, given our cash conversion cycle and the different geographies that we are around the world. We have space to buy bonds with this excess cash, but this decision will probably be done in the second semester, when is the period where our cash generation is stronger.

In terms of the free cash flow breakeven, it's just an estimate. I think the accounts that we have continues to be on a $5.7 billion.

Working capital in the first quarter was better than the first quarter last year. Going forward, I just gave this range because there's a lot of moving things like energy prices that could impact grains.

We don't know how much will be these impacts. Basically, on fertilizers and energy in the grain prices, that could move working capital if prices go up.

That's why I gave the range from 5.7 to 6, because of the uncertainties that we have given all the volatility in the markets.

Great. Thank you.

Just a quick follow-up. If you do think about looking at further debt paydown, should we expect you to use a similar approach to what you did in the beginning of the year or could you take other considerations into account?

Sort of thinking through the dangerousness of that reduction versus maturity management and absolute debt reduction. Thank you.

Yes, the approach will be absolutely the same, given that all my debt, including the $2.9 billion maturing in 2032, all the coupons are below Treasury, it's not worth it to pay any of those debts. Any repurchases would be on '34, '33, '35 spots.

The '34, for example, is the highest coupon, which we still have $200 million outstanding. That could be a possible target.

Thank you. Very clear.

Hi, all. Morning.

Thank you for the time. My first question on the beef demand in Brazil, we're still seeing it quite resilient despite of prices.

I'm just trying to get a sense if you're getting pushback from retailers or pushback on the margin on demand growth and or demand reduction. What's the size or scale that we could expect for demand down in Brazil in US beef as a result of higher prices?

Then my second question is on sort of a longer-term view around production. We're seeing quite a lot of restrictions to trade flows, be it quotas or sanitary barriers for exports.

I know the company is highly diversified, but whether there are some additional regions that could become focus for investments in the midterm, such as rest of LatAm or more investments in Europe, that could help circumvent those sanitary and trade flows restrictions in general and how you're incorporating that into the longer-term investment decisions that the company is taking. Those are the two questions.

Thank you.

If I understood well, you asked about the demand for beef in Brazil and beef in US?

Yeah. That's that.

Look, we in Brazil, even that we had the higher price of cattle and the higher price of meat, the demand in Brazil remained strong for beef and for all of the proteins. We talk about JBS.

Now with I think is with the end of the quotas of China, May the price of cattle will be the decrease, and I think it will be more favorable to sell in domestic market. It is important that we have developed a category management 2.0, say that we call Açougue Nota 10.

It's in Brazil that we manage inside of the store of our customers the butcher area. This show that the store they have our model, they sell not just more meat, but they sell more for all of the stores.

This project is get a strong reception from our customers. Because of that, I see that even now with this situation that after the quota of China, I think is we are very well structured, even in Brazil, even in US, to manage the volume for our business, Friboi.

I think it's in US, Wesley, would you like to comment a little bit about the demand?

No, demand continues strong, Matheus. It's we think all the things already mentioned before on just the overall protein trend and people understanding more about nutrition, prioritizing protein.

We've seen that. Just the overall preference also for protein and especially beef has been pretty strong.

That's how we see the demand in the US.

This is relates to the question first we answered about the demand of protein, GLP-1 and the other factor that is booster protein consumption globally. I think is, Matheus, if I'm right, your question about the investment, the future expansion of our investment.

Is it correct?

How you're considering restrictions to trade flows with quotas and sanitary barriers into your investment decisions for the mid-long term. Thank you.

I think is we are very well-positioned where we produce and where we sell our product. I think is we built this global platform.

You look for we are produce where is the most competitive way to produce, and we are present to sell where the market demand is. Then I think is in terms of balance, we are very balanced.

Of course, now, our focus now for this year is to cash generation. We are not looking for to add a new project in our portfolio.

We just start with the project in Paraguay. We start the project in Oman.

I think now we need to develop this project in the greenfield that we are working on. No any new projects in our pipeline now.

Awesome. Super super clear.

Thank you.

Can you hear me?

Okay. Thank you very much for the opportunity.

The first question is about capex. We observed capex essentially doubling year-over-year, and it came slightly higher than expected, reflecting an acceleration across the platform, but mainly related to renovation projects stemming from the downtime at PPC with capacity expansion initiatives.

It would be interesting to understand if you can share with us how the capacity expansion is progressing from a numerical standpoint, how much of increase you expect to achieve based on what production levels, and whether we can expect capex to normalize as early as second quarter. In my second question, I would like to get your perspective on what might happen in the second half of the year regarding the ceiling of China's quotas.

As you have already mentioned, it's possible that cattle prices will fall in Brazil given the quota is being front-loaded faster than initially expected, which could reduce the number of slaughters in the second half of the year, leaving more cattle on hand and lowering price per arroba. My question is more focused on the cutouts side of the domestic market.

Do you think it's possible that with the reduction in exports, part of the volume would be directed to the domestic market, and with more meat supply here, the cutout price might face downward pressure? I would like to take your view on this variable going forward.

Thank you very much. Look,

when you talk about the capex, we have put $1 $1 billion in capex for expansions, the growth capex as we call, growth capex. We are not disclosure one by one, but because is many business units is different types of the capex.

It's difficult to explain volume, because one is number of chicken, the other is a volume of well-prepared food, and to put together will be difficult to explain that. We are not disclosed then.

The capex is, as you mentioned, if you compare for the last year is higher because we are seeing strong demand. We are not see now any moment that we need to review the capex, because we are see the cash generation for the second semester of the year will be strong.

It is something we can see in the future because it's capex of expansion, we can postpone, we can give more time to do. We are not looking now because we are not see that it's necessary for now on.

Could be in the future, it's something that we can take a look. The other thing about the Brazilian situation about the market situation about beef, we said that the end of quota of China, the number of cattle will be harvested for the industry will be down.

Should be down because we need to accommodate this I mentioned 120,000 tons per month for beef. We need to find a market for that.

Then this will be reduced the number of cattle will be harvested. If you reduce the number of cattle will be harvested combined with more availability of corn for feedlot, we believe that the price of cattle will be down as well.

Means that cutout could be down because more volume in domestic, but the price of beef will be down as well. Then I see that the spread between the both price, the cutout and the live cattle, will be remained.

Or depends in our case could be enhanced that we have value-added product. When you talk value-added product, not mean with processed product, is value-added raw products, that I mentioned you better presentation, better way to serve the customer in different cuts of beef.

That if you look for our side, I think is we are very well-structured in Brazil and outside to Brazil to take the impact of this end of the quotas of China.

Super clear. Thank you very much.

I would like to thank you, everyone, for joining us today, and all JBS team members for their dedication. You look ahead, we have not changed our focus: execution, efficiency, and disciplined capital allocation and cash generation.

That is what allows us to deliver consistent results and build a long-term value creation. Thank you.