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

Long end offers attractive yield versus Tyson and LatAm peers, supported by a broadly constructive global protein backdrop

We maintain a constructive view of JBS’s overall financial and business risk as it continues to benefit from its scale as the world’s largest protein company, supported by a diversified portfolio across proteins and a global footprint anchored by well-recognized brands. This diversification has helped offset weaker profitability in North America, underscoring the company’s resilience and credit stability.

We see greater value at the long end of the curve and recommend an Overweight position, favoring the 2053s from a carry-to-duration standpoint. We keep a Neutral stance on the short end, where valuations already reflect positive results and strong credit metrics. The 2029s yield 4.4% for a 3.0-year duration, at the lower end of the BBB LatAm range and screening tight versus LatAm peers. Within the belly, most bonds trade tight to JBS’s curve, though we find some value in the 2034 notes, which yield 5.3% for a 6.3-year duration. By contrast, a meaningful portion of the long end trades wide to JBS’s curve, with yields of 6.1%–6.4% that compare favorably to LatAm peers Suzano and Vale, while the 2053s offer a 6.4% yield for a 12.7-year duration. From a price standpoint, we also find value in the JBS 4.375% 2052 notes, yielding 6.1% for a 13.9-year duration, and the 6.250% 2056 notes, yielding 6.3% for a 13.2-year duration, as these bonds are the only ones in the long end priced below par at $77.2 and $99.0, respectively. We think this offers more potential upside and lower sensitivity to spread widening.