Good morning and welcome to JBS second quarter of 2025 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, this conference is being recorded. Any statements eventually made during this conference call in connection with the company business outlook, projections, operating and financial targets, and potential growth should be understood as merely forecasts based on the company's management expectations in relation to the future of JBS. Such expectations are highly dependent on market conditions, on Brazil's overall economic performance, and on industry and international market behavior, and therefore are subject to change. Are present with us today: Gilberto Tomazoni, Global CEO of JBS, Guilherme Cavalcanti, Global CFO of JBS, Wesley Batista Filho, CEO of JBS USA; and Christiane Assis, Investor Relations Director. Now, I'll turn the conference over to Gilberto Tomazoni, Global CEO of JBS Mr. Tomazoni, you may begin your presentation. Good morning, everyone. Thank you for joining us today for our earnings call. The second quarter of 2025 marks the beginning of a new phase for JBS. With the launch of our shares on the New York Stock Exchange, we completed our dual listing. This is a strategic milestone that enhances our global visibility, broadens our investor base, and reinforces JBS S.A.'s position as one of the world's leading food companies. I want to emphasize that this starts a new chapter of our trajectory. We see a clear path to long-term value creation, anchored in operational excellence, diversification, innovation, value-added products, and strong brands. It's worth highlighting that over the coming years, we will keep investing consistently to expand our platform and position the company to meet the growing global demand for protein. We truly believe JBS is well-positioned for the future. We are delivering our long-term strategy with discipline and consistency, and that gives us confidence in the path ahead. At the same time, we will stay fully committed to our mission of returning value to our shareholders, evidenced by $1.2 billion in dividends we paid this quarter, as well as today's announcement of a $400 million share repurchase program. Let's take a closer look at some strategic movements we have made this year. During the first half of 2025, we have made several important investments in the United States. In May, we disclosed a plan to build a new fresh sausage facility in Iowa, totaling $135 million. This came in addition to $200 million allocated to upgrading our beef plants in Texas and Colorado, and $400 million for a new prepared foods facility that Pilgrim's is building in Georgia. Yesterday, we also announced a $100 million investment to acquire and expand the Iowa facility, which will be transformed into the largest ready-to-eat bacon and sausage plant in our U.S. operation. I want to stress here that all these projects are designed to support the growth of JBS prepared foods portfolio, helping us to meet the growing demand from customers and consumers for these products. Even amid a challenging macroeconomic environment and with ongoing pressure in some business units, our second quarter's performance once again reflects the resilience of our diversified global platform. Net sales were record, reaching $21 billion, a 9% increase year- over -year. Adjusted EBITDA was $1.8 billion, with a margin of 8.4%. Poultry operations once again stood out as a key highlight. Pilgrim's achieved the highest EBITDA in its history, supported by lower grain costs and resilient U.S. demand. Results also reflect continuous growth in the prepared foods portfolio, a strong relationship with the key customers, and a solid performance across fresh and ready-to-cook segments in the U.S. Mexico and Europe delivered strong results as well. I'd like to particularly highlight that Seara delivered another quarter of consistent results. Despite the outbreak of avian influenza in Brazil, the business reached an EBITDA margin of 18.1%, driven by disciplined commercial strategy, product mix management, and a strong focus on innovation. The results highlight the robustness of our biosecurity protocols and the maturity of the Brazilian sanitary system. It is important to note that the swift and technical response from Brazil's sanitary authorities, together with the strict industry-wide control, ensured that only one isolated case was confirmed in the country at a commercial farm. In the United States, our beef business continued to face pressure from an unfavorable cattle cycle, as the spread between livestock costs and beef prices narrowed. The pork business was affected on a short-term basis by the trade restrictions, and we expect the performance to return to a normal level over the next few quarters. Diversification remains one of our greatest strengths. In Brazil, Seara delivered strong results, driven by a new export approval and productivity gains. In Australia, we continue to benefit from a favorable livestock cycle, with export growth and operational improvements contributing to another quarter of consistent performance. We also reaffirmed our commitment to financial discipline. The quarter ended with a net leverage of 2.27x, in line with our long-term targets and reflecting the strength of our capital structure and our financial management. With a strong, more balanced, and more innovative global platform, JBS is well prepared for the next phase of global opportunities. I want to conclude by saying that we remain confident in our team and ability to create long-term value. Thank you again for joining us today. I will now turn the call over to Guilherme, who will walk through the financial results in more detail. Guilherme, please go ahead. Thank you, Tomazoni. Let's now move on to the operational and financial highlights of the second quarter of 2025. Starting on slide 13, please. Net revenue for the second quarter of 2025 reached a record of $21 billion. Adjusted EBITDA totaled $1.8 billion, which represents a margin of 8.4% in the quarter, while adjusted operating income was $1.2 billion, with a margin of 5.7%. Net profit was $528 million in the quarter, and earnings per share was $0.48 per share. Excluding the non-recurring items, adjusted net income would be $583 million, and the EPS would be $0.53. Finally, the return on equity was 25.7%, and the return on invested capital was 17%. Although the difference in the EBITDA between the second quarter of 2024 and the second quarter of 2025 was only $141 million, the free cash flow difference reached approximately $1.1 billion due to the mainly following factors: the difference in EBITDA, as mentioned above, $104 million of higher capital expenditures, a $242 million increase in finished goods inventories in the U.S., driven by higher prices. This cash is expected to return to the operating results over the coming quarters as sales are made. $250 million due to livestock hedging. Future purchases from suppliers such as feedlots at fixed prices are hedged through future contracts, exposing us to the spot price and thus matching with the meat sales. Due to the sharp rise in the cattle and hog prices, there was a negative cash impact on operating results due to the hedge. This cash is expected to return in the following quarters as the physical purchases are settled. A $122 million increase in legal settlements, $257 million in higher tax payments, mainly due to improved results from PPC and Australia in recent quarters, a $51 million impact on Seara's chicken inventory caused by the market closure due to a single avian influenza incident. It should return to around $4.5 billion based on the following estimated breakdowns, which may change over time due to the variables beyond our control. Can I punch it? Yeah. Capital expenditures of $2 billion in 2025 and $2 billion in 2026, which already included maintenance capital. Working capital of $900 million in 2025 and $250 million in 2026. The additional $650 million in 2025 compared to 2026 is due to the inventory and hedging impacts explained earlier. Legal settlements of $300 million in 2025 and assuming zero in 2026. Biological assets of $650 million in 2025 and the same amount for 2026. Interest expenses of $1.15 billion in 2025 and $1.1 billion in 2026. Leasing expenses of $500 million in 2025 and repeating in 2026. Moving on to slide 16 to discuss our net position and leverage. In June, we accessed the bull market to refinance our short-term and 2027, 2028, and 2030 maturities. Strong investor demand allowed us to upsize the issuance to $3.5 billion while achieving record low spreads for issuers with our credit ratings, which includes a $1 billion forty-year tranche. In addition, JBS issued approximately $160 million in local debentures. We used $3 billion to efficiently retire that, clearing nearly all maturities through 2031. As a result, our average maturity extended from 11- 15 years, while the average cost increased by just 25 basis points to 5.6%. We kept the 2029 bond outstanding, given its low 3% coupon, along with the 2031 bond at 3.75% and two 2032 notes with coupons of 3.625% and 3%. From the $3.5 billion raised, $500 million was retained as excess cash. Leverage increased to 2.27x in the second quarter of 2025, primarily due to a $141 million decline in the last 12 months EBITDA and the payment of $1.5 billion in dividends. Interest coverage remained stable at 7.7x compared to the previous quarter. With leverage at the lower end of our comfort range, stable interest coverage in line with recent quarters, no significant debt amortization in the coming years, and a strong cash position, we announced a share buyback program of up to $400 million. We believe this represents an efficient use of excess cash, given the current valuation multiples relative to our global peers. The repurchase programs may be implemented through open market purchase, privately negotiated transactions, or under Rule 10b5-1 of the Exchange Act. Even with the share buyback program, we expect to end the year with leverage below 2.5x and interest coverage consistent with the end of 2024 levels at 7.4x. Our $3.4 billion in revolving credit lines and available cash of $3 billion, combined with expected cash generation in the second half, provide a robust financial position to continue pursuing value creation opportunities to our shareholders. I'll now briefly go through the business units. Starting with Seara on slide 20, during the second quarter of 2025, in the first half of the quarter, we saw a favorable commercial environment both in the domestic and export markets. However, in mid-May, Brazil reported its first case of avian influenza in a commercial flock. The country was officially declared free of the disease again in June, but some key export markets remained temporarily closed, which affected commercial performance. Even with the temporary headwinds caused by the outbreak, Seara achieved an adjusted EBITDA margin of 18.1% in the quarter, reflecting our strong focus, agility, and discipline in pursuing operational and commercial excellence. Moving on to slide 21, in the second quarter of 2025, JBS Brazil recorded a net revenue 20% higher than in the second quarter of 2024, driven by strong demand in both international and domestic markets, which partially offset the sharp increase in cattle prices. As a result, the EBITDA margin reached 6.4% in the quarter. Moving on to slide 22, and now speaking in dollars and on the U.S. GAAP, JBS Beef North America net revenue in the second quarter grew 14% year- over- year, driven by strong demand and those cutout values to record levels in the U.S. However, profitability continues to be pressured by the challenging cattle cycle, which has also kept live cattle prices at record highs, as well as by the additional headwinds related to global trade and animal health concerns in Mexico. On slide 23, we have JBS Australia. In the annual comparison, the 20% revenue growth was primarily driven by higher volumes of beef exports. The EBITDA margin reached 12.7% and increased 50 basis points compared to the same period last year, reflecting greater availability of animals for slaughter and gains in operational efficiency. Turning now to JBS USA, pork net revenues for the quarter decreased by 5% year- over- year. The pork business was affected on a short-term basis by trade restrictions, but the expected performance to return to normal levels over the next two quarters. Pilgrim's Pride, as highlighted on slide 25, reported a 4% increase in net revenue in the quarter. In the second quarter of 2025, Pilgrim's delivered a record adjusted EBITDA of $687 million. In addition to a favorable commercial environment across its key markets, the strong performance reflects the successful execution of its strategy, including the strengthening partnership with the customers, expansion of value-added and branded products, innovation, and efficiency gains. With that in mind, I would like to open for a Q&A session. Thank you. The floor is now open for questions from investors and analysts. If you have questions, please click "Raise Hand" at this time. If at any point your question is answered, you can remove yourself from the queue by clicking the lower hand. Questions will be taken in the order that they are received. Please hold while we poll for questions. The first question comes from Lucas Ferreira with JPMorgan. Please go ahead. Hi, Guilherme, Tomazoni, and everybody. Thanks for the space for questions. Guilherme, if you—sorry, I think your line broke a little bit in the beginning of the presentation. I just wanted to explore with you a little better your scenario for the free cash flow break-even this year and next year. I just wanted to understand, especially if you already have any views on the CapEx, given the projects the company is announcing for processed foods. If I may, also a quick follow-up on the effect of the hedges. I just wonder if you can explain a little better how much of that $250 million you mentioned is returning to the EBITDA in the following quarters. If you can explain a little better, that would be great. Thank you. N Hello, excuse me, I can't hear you. Okay, can you hear me now? Yes. Okay. So, Lucas, basically, I'm going to repeat the numbers that were cut. Capital expenditures, $2 billion for 2025 and $2 billion for 2026, already including the expansions announced. Of course, 2026, we still have to budget, and in the beginning of next year, we will give an update on that. Working capital, $900 million for this year and $250 million for 2026. This additional $6 million in 2025 compared to the next year is due to the inventory and hedging impacts that I will explain again. Legal settlements of $300 million this year and assuming zero next year. Biological assets of $650 million this year and the same amount for next year. Interest expenses of $1.15 billion this year and $1 billion next year. Leasing expenses of $500 million in both years. Basically, that's how we get to the $5.5 billion free cash flow break-even for 2025 and $4.5 billion for 2026. Now, the hedging explanation, basically, we purchase cattle and hogs, for example, for sometimes one year from now at a price fixed because sometimes the feedlots need to have a better predicament of their flows to invest in grains and buy the cattle. Then we sell futures to be on the spot. Basically, we buy cattle in the future for a fixed price and we sell futures to be a spot and then meet with the sales price of the meat in the future. This cash flow tends to return as the physical purchases are settled and the meats are sold. Of course, it all depends on the market at the coming quarters, but that's how it works. The thing is, given that the cattle price raised very fast recently, we had this impact on the hedging, on the derivatives, and on the margin that we have to deposit, the cash margin we have to deposit. Again, as the cattle price also comes back and we freeze, also the cash margin tends to be released. It's clear, Lucas. Thank you. The next question comes from Ben Theurer with Barclays. Please go ahead. Yeah, hi. Good morning. Can you guys hear me? Yes, we can hear. Okay. Audio not in our favor today. Two quick ones. Number one, obviously, your business in Australia was really strong this quarter and kind of surprised on the upside. I was wondering if you can help us understand or maybe give a little bit more detail amongst the different categories in Australia, what drove the significant top-line expansion, but on top of it also that margin expansion. Where was that coming from? Which subcategory? I have a quick follow-up on the free cash flow. Thank you. Our results in Australia confirmed we increased volume, domestic and external, and we are able to increase price as well. It was the strong performance came from beef. The other business, they are quite on the same level of what were last quarter, even on the exception of the salmon business that was a bit lower because of the disease we had and we had less amount and volume of salmon to sell. Considering the size of our salmon business is not relevant in all, consider all of our business in Australia, we can tell you that the results, improved results, were in the cattle. We are seeing continues for this year. Okay, that's very clear. One for Guy, just to be clear on what we've talked about following up on Lucas' question, the free cash flow. As a starting point, from a break-even perspective, we should still use the IFRS EBITDA, correct? Correct. I'm talking only in IFRS EBITDA. Okay, just wanted to clarify that. Perfect. Thank you very much and congrats. I'll pass it on. Thank you, Ben. The next question comes from Henrique Brustolin with Bradesco. Please go ahead. Good morning, Tomazoni, Guilherme, Wesley, and Chris. Thank you for taking my questions. I have two that I would like to explore in U.S. beef mainly. We saw this big sequential margin deterioration, right? Which was also typically below some of what was reported already by peers. I would like to understand a little bit more in the quarter specifically what's behind it, if there were some components that could be seen as one-off given how your operations are structured with the vertical integration on some of the byproducts, and that we could see some improvement in the coming quarters. That's the first one. The second also in U.S. beef is based on the experience you already have on that market and navigating previous cycles' lows. What do you believe will be needed to bring margins back to break-even levels? I know this is not an easy one, but if you think it will mostly depend on cattle supplies coming back to growth once again, or there are things that could happen before that, capacity adjustments, even the trade barriers being improved that could bring margins back to those levels sooner than the cattle availability growth. Those would be the two. Thank you. Good morning, Enrique. A few comments. On our performance during the quarter, it was a very challenging quarter for sure. One of the things that makes it very challenging is when the market has a huge increase in volatility and price, like we had. Just to put it in perspective, five-year cattle at the end of the last quarter of last year was at around $190 per hundredweight, and we went up to $230, $238, and actually during the second quarter was around $225. When those swings are really huge like that, sometimes you see some gaps in the, some challenges in the quarter that's basically positioning, and that's a short-term impact. It's a relevant impact, but it's a short-term impact. Actually, we just did a big tour of our beef plants, and all the work that we've been doing from an operational perspective, we're very confident with the work that the plants are doing. When in terms of efficiencies, in terms of use, they're actually improving versus the previous quarters. We don't think that there is anything regarding operations. I think it's much more to do with positioning, and especially when you have an explosive market like what we had in the last quarter. When it comes to where we see from a cycle perspective, and like you said, adjustment in capacity versus cow herd rebuild, obviously we talk a lot about cow herd rebuild because that's what we know in the market, what we see, what we have data, and we are confident that we are fully into herd rebuild. One of the two information that's very, very relevant is cow slaughter is down again this year. If you look, it's been compounding, about 10%- 15% decrease in cow kills year after year. That's a good sign. We're seeing less heifers, less percentage of feeder cattle versus previous periods. Those things are encouraging. Obviously, when they start happening, they take a double hit, right? You already have less cattle. Now you have less heifers coming to market because they're being retained, which is good news long term, but short term, it makes it more challenging. Talking about capacity adjustments, I can obviously just talk about our own business. I can't talk about the market because I wouldn't be able to answer that. We are comfortable with our current capacity, and we don't see any changes coming from that end on our side. That's clear, Wesley. Thanks very much. The next question comes from Andrew Strelzik with Bank of Montreal. Please go ahead. Can you hear me now? Yes. Okay, great. Good morning. Thanks for taking the questions. My first one, can you talk about the outlook for Brazil beef? With the U.S. tariffs, how is that impacting the operating environment and the supply-demand balance there, and how should that play out in margins over the balance of the year? Hi, Andrew. Thank you for the question. When you look for, just to make a comment first by the impact of the tariff, and then I'll talk about how to look about the business. The tariffs were recently implemented, which had no impact in the quarter. When you look globally, the impact of JBS overall would be immaterial. If you look just for Fri boi in Brazil as a whole, the impact is not relevant, but some specific plants that exported more to the U.S. may be. This is the good thing for our global platform that allows production to be redirected and impact to be very mitigated. I think this is one of the moments that the value of the platform is making more strong. If you look for, but if you talk about the future, it's too early to estimate the real impact. It will depend how the global market will be rebalanced because the system is interconnected. Maybe some countries will be substituting Brazilian products, Australia, and in other countries. Even besides that, some of the U.S. products exported today could remain in the market. We put, if made that Brazil will be replaced, that volume that was redirected to the U.S. For us, we're not seeing today this really strong impact. It's too early to say the impact, to quantify the impact. About the outlook, if you see that the Fri boi, they show a strong growth in strong growing volume and even in price, domestic and export. We lost a little bit in terms of gross margins, but we gained more than that. We compensate with a higher volume. We see that for the next quarter, our beef operation in Brazil continues to deliver good results. Okay, that was very helpful color on that. I wanted to also ask on the U.S. prepared foods strategy, and you listed a number of investments that you've made there. How much will that increase your U.S. prepared foods volumes when I take all of those projects together? As you think about continuing to build out that strategy, are you comfortable going with internal projects and smaller acquisitions kind of one by one, or I guess how are you thinking about the aspirations and achieving the aspirations in U.S. prepared foods? No, Andrew. On the prepared foods side, on our chicken, the plant that we announced in Walker County, it's a significant increase. It's going to be, you know, almost going to double our capacity on that. On the other side, on the pork side, on the sausage and cooked sausage, it would probably be a 20%. I can probably get more precise numbers afterwards and send that your way, but it would be a significant increase on both sides. Maybe an average of 25%, 30% increase of our total capacity on volumes in the U.S. We certainly can send you some more precise numbers afterwards. Our approach to this is pretty simple. On how we're investing and where we're deciding to grow, we're really starting off going by where we're seeing the demand in the market and where we're seeing that the market has a need for products. We have grown a lot on our prepared foods side on the chicken, and today we actually need more capacity to continue to grow. That's our bottleneck for growth in this market, it's actually production capacity. It's much more production capacity than actually being able to sell. On the pork side of prepared foods, we've been working a lot with customers, and the demand for these products that we're starting to make are pretty large, and we are deciding to go there. We will obviously always look at assets for acquisitions, and obviously there are a lot of things that are going to play if there is actually something out in the market for an acquisition, or if there isn't, and if there is, if the assets are something that we think are good assets for the long term. In these three cases, we've decided that the best thing to do was to build a plant, modern plants that are going to be completely new and ready for the next 10, 15, 20 years. That's what we've decided. We're very excited about these three plants, and we think they're going to be among the best plants in the country. Great. Thank you very much. The next question comes from Guilherme Guttilla with BTG. Please go ahead. Hi, guys. Good morning. I just want to discuss a bit here about the chicken business. Maybe starting with Seara, if you guys could give us a bit more color on how the avian influenza outbreak impacted the company results. Maybe break down a bit how was the segment profitability and how the outbreak impacted it. Also on chicken, but on a different topic, I just want to discuss a little bit more here about the supply and demand scenario. We already discussed here in previous opportunities about how the lower hedgeability and higher mortality rates are impacting the supply of the chicken supply. What do you guys expect ahead? Until when do you guys believe the supply and constraints can delay this cycle from turning? That's it. Thank you. Hi, Guilherme. Thank you for the question. I will be very pragmatic in the answer here to you. When the outbreak happened in Brazil and all, practically 100% of the market to export to Brazil closed, and we say that the impact that moment in June, that was in June, the impact of our EBITDA in June was around 5%. Not just in chicken, as a company as a whole, Seara. Now, some of the markets reopened, remained closed to important markets like Europe and China. We see that the government and the Ministry of Agriculture are working to reopen markets. I saw in the media yesterday that President Lula discussed it with President Xi Jinping about the issue. I'm so confident that maybe reopen very close these two markets. There is no technical reason to be closed, because all of the technical things were answered, a question that the market made, and OIE declared Brazil free. We are so confident that it will be reopened in the coming weeks. The fact that today is closed and the impact for these two markets is in the impact is in the profitability of Seara. That will be around 2 percentage points or 1.5, say 1.5, 2 percentage points. That is the impact we have now with this. I think this with this, I hope we answered your question of the first question. The second question would be the outlook of the chicken business. We saw a strong demand for chicken globally. All of the markets in Brazil, in the U.S., Europe, Mexico, all of the markets see strong demand because in the U.S., the consumer are changed or substituted beef from chicken. We see all the international markets very demanding. Brazil is, we had a problem, but the market that opened, we export, there is strong demand from the volume. All the things that you have mentioned before about genetics, about mortality, about productivity not changing so far. We remain confident from the outlook for this year for chicken. Very clear. Thank you very much. Barclays. Priya Gupta? Hi, thank you so much for taking my question. Making sure you guys can hear me okay? Yes, we can hear you, Priya. Okay, perfect. Wesley, I'd love to just follow up on the comments that you were making around the prepared foods business. You did highlight that the company does consistently look at acquisitions as well as it considers sort of how to approach growing out capacity. Based on some of these investments that you guys have been talking about, should we assume that the need for acquisitions might be lower in the near future in the prepared side of the business, or is there still scope to look at inorganic growth? Hi, Priya. It's difficult to forecast what's going to be the future on this because these are all based on opportunities. Acquisitions are always based on opportunities. Obviously, like we've always done in our history, we're going to look at anything that comes up, but it's difficult to forecast if it's going to be more one or more the other. Obviously, when we want to grow a business, we look at both. It will be difficult for me to project for you what's going to be the future in this. That's helpful. It's just more of an ongoing thing. With regards to the beef cycle, I would say sort of getting to this point of heifer retention has been a little bit more elongated than we've seen in the past. What's your perspective on how long it could take us to really start to see the bottom on profitability? How are you thinking about getting back to break even in the beef segment and then starting to see growth? Yeah, I think this year and the beginning of next year are going to be the bottom side of the cycle. From there, it's going to be a gradual increase. Somewhere end of 2027, beginning 2028, it's going to be gradual. It's not going to be overnight, right, that you're going to see a complete change in the business. It's going to be gradual. I think the worst part of the cycle is going to be right here for the next maybe three, four quarters. From there, we're going to see this change and gradually improve. Okay, that's helpful. Guilherme, can you remind us again how you think about your ongoing cash balance? You know, we're just shy of about $3 billion at this point if we include some of the margin cash in there. Is that the right level for the near term, or would you like to have a little bit more of a cushion there around where you maintain cash? Hi, Priya. No, I think this is more than enough. I think given the company's cash conversion cycle today, a cash of $2 billion worldwide is more than enough for the operation. We are comforted with the current levels. That's one of the reasons that we announced the share buyback programs because, as you know, we paid $3 billion in debt, and the other debts that we have up to 2032, they all have coupons lower than 3.75%. It was not efficient to buy the debt with excess cash. We announced the share buyback program, but we still have cash above what we need to our cash conversion cycle to operate. Great. Just one last administrative question. Where are you guys in terms of updating the bond ticker now that the equity listing has been completed, and then putting the shelf in place? Thank you. Okay, so first, on the ticker of BZ, we're talking, it's out of our control. We're talking to Bloomberg for a while now to take the BZ out of the ticker. We'll keep following on that. The shelf registration, we need, first, we'll finish all the exchange offer to make all the remaining 144-day bonds registered. We need the first register offer for then to one year to be a WKSI and have a shelf registration. We first need to do an issuance of that in equity for then registered. Then to ask for the shelf registration and WKSI. I think maybe we need a new issuance, which currently we don't envision, given that we just, again, as we talked about, we have more than enough cash. We have no maturities in the near term. I don't see we coming to the market anytime soon. Great. Thank you so much. The next question comes from Gustavo Troyano with Itaú BBA. Please go ahead. Hello, everyone. Can you guys hear me? Yes, Gustavo, we can hear you. Thanks, Guy. My question is on U.S. pork. Earlier in the call, you guys mentioned that margins should recover in the next few quarters. I just wanted to have more granularity on this topic. Maybe the reasons behind the margin compression in U.S. GAAP in this quarter and why you believe they are improving in the remainder of the year? If possible, if we could explore a little bit more like the pace of this recovery and when you expect these margins to reach your, I would say, recurring level going forward? If we could discuss maybe the margin performance in the integrated part of the business compared with the non-integrated part of the business, if that's a fair comparison to do for this quarter, if there are different margin performance between those two operations in there. Thank you very much, Guy. Gustavo, good morning. The U.S. pork performance this quarter was, a lot of it was because of some of the trade disruptions we had with product going to China. There were, for that period of time, there was a 100 and some% tariff and we had products coming back, products that we had to reshuffle. That created a disruption that we did not expect. We expect that as of the third quarter of 2025, right now we're back to normal in margins. That's not something that we're overly concerned about, you know, being a gradual recovery. We think it's an immediate recovery. It's just that it was more of a one-off in the second quarter. We actually are quite optimistic about margins in the pork business. We've grown our live production. Like you're saying, you're asking about the integrated supply in the last five to ten years. We've grown that. You know, when we see grain cost, grain prices being at a relatively low level based on history. You know, on the other side, you see a potential for the cutout of pork to become, you know, when there's low availability of beef and high prices of beef, pork becomes a very good option. You could see a little bit of strength there because of that. We're actually quite optimistic about pork margins in the U.S. going forward. That's super clear. Thank you very much. The next question comes from Leonardo Alencar with XP. Please go ahead. Good morning. I hope you can hear me. Yes, we can hear you. Just speak a little louder, please, Leonardo. Okay, thank you. Good morning, Tomazoni, Cavalcanti, Christiane, Wesley. Thank you for taking your question. I would like to go a little deeper regarding the U.S. beef. I understand this herd rebuilding is ongoing and that you're expecting that to change the scenario for at least three, four quarters ahead. We need to consider the other factors in place, the issue with the cattle import from Mexico that is not really happening right now, and also the impact of the tariffs if Brazil restricted the import of trimmings of beef, lean beef. If you could just go a little deeper on the discussion about the cycle in the U.S. and if you could expect this average weight of cattle to continue to increase or even decrease maybe. I just want to understand how this is going to play in the future because this was a very strong change of metrics, we could say, the average weight of the cattle, and that increased probably the production of fatter meat, let's call it. This was one of my questions. The other one would be a follow-up regarding Seara. I understand that the issue with China, we are expecting this restriction to drop in the foreseeable future. What's your read on China, on the market in China, demand in China? Since they're not importing meat from Brazil for a while now, and demand is probably still good, I wanted to hear that from you if stocks are decreasing in China right now. If you could expect China to resume imports to a previous level we were seeing before the restrictions, or if there's room for improvement on that. That's my questions. Thank you. Morning, Leonardo. You bring in a few good points. This Mexico situation is obviously quite relevant. In the short term, there is about 1 million head, 1.2 million head of feeder cattle that come to the U.S. and they're fed in the U.S. As of November last year, the border got shut and at the beginning of this year, it opened. It got shut down again. We have been following this situation quite closely. What we realized is that the Mexican government is doing a lot of work to make sure that that situation is handled and working with the U.S. government to figure out a way to reopen and continue the flow of cattle. We think that this is going to be, it's very relevant in the medium term, in the short term, but we don't think that necessarily would impact the long term of the cycle of the herd rebuild. I would disconnect those things, though it's a very important point that you bring up. It does create an impact in the U.S., especially in the south of the U.S., which is where a lot of that cattle stays. When it comes to imports, obviously, lean trim is something that the U.S. has imported for a long time. We blend that, the market blends it with a fat trim and make a ground beef. When you lose a source like Brazil, it's significant. The impact of that, it's still relatively early to see because there is inventory in the U.S. There was inventory coming to the U.S. We haven't seen 100% of what this is going to look like, but certainly meat, domestic meat or meat that is imported, that's lean is going to appreciate in value and going to have a higher value. We'll see what that's going to, that's exactly how big the impact is going to be when that Brazilian inventory of meat in the U.S. gets used and we will see less flow of Brazilian beef coming in. It's too early to tell exactly how big is going to be the impact. Okay, thank you. What about China and chicken and Seara? Leonardo, related to chicken and Seara, I think we, I don't know what's clear before, but the impact of the avian influenza when we had the month that had the outbreak was really a strong impact, was around 5% in the result of Seara. Now, after the release of markets, the impact is around 1.5% of the EBITDA. We are really confident with the future of this business because demand is strong, domestic and export, and not just in Brazil. We see all of the markets. We see in the U.S., we're good with releasing the results. I think it was Fabio who mentioned that the strong demand in the U.S. is not different in Mexico. It's not different in Europe. We see, and when you look for the supply, we have the same restriction we had before. We are discussing about genetics, about mortality. All of the issues remain. May increase a little bit more the number of pullets, but when you look for the demand, the increase in the percentage of the number of pullets did not make really the difference to impact the results. We remain very positive with the chicken business for this year. Okay. Thank you very much for the details. The next question comes from John Baumgartner with Mizuho. Please go ahead. Mr. Baumgartner, your microphone is muted on your side. Can you hear me now? Yes, thank you. Great. Great. Thank you. First question for me. Thanks for the opportunity. Following up on U.S. prepared foods and your. Excuse me, ladies and gentlemen, it seems that Mr. Baumgartner has disconnected his line. I'll be moving to the next question, okay? The next question comes from Renata Cabral with Citi. Please go ahead. Hi, everyone. Thank you so much for taking my question. My first one will be on the Brazilian beef cycle, actually. The initial expectations were that maybe this year, 2025, towards 2026, would have the change in cycle in Brazil. We had cattle prices with a lot of volatility naturally because of the recent trade tensions. My question is, the previous expectations remained regarding the cattle cycle in Brazil. If you could discuss a little bit, it would be really helpful. My second question is on disclosures. Now that you are reporting under U.S. GAAP, it's much easier for us to compare your numbers with U.S. peers. Given your recent investments in announced investments in prepared foods, would you be able to share even a rough sense of range of prepared foods representing your business today? Looking ahead, do you see room to provide more details over time to help us to have a better comparison on this front? Thank you so much. Okay, I will start with the second question. Basically, first of all, the thing is our business segment has to be how we manage the company. That's why we don't have prepared foods as a business segment because we have prepared foods in Europe, in the U.S., in PPC, in Brazil, and so on. That's the reason. Of course, we can try to make managerial numbers for how much should be prepared foods. Then comes the question on what is the threshold, what's the device, what is prepared or not. Let's say if we get what is really processed process, I would guess that a 15% currently would be a good estimate. Of course, if you include, for example, brands, case varieties, or just brands that you put in the nature of meat, we can go up to 50% if you put brands on the value-added side. That's something in between that. Of course, we will always try to continue to improve our disclosures. Again, as we grow, we'll try to have this number developing to a better disclosure. I think it's related to Renata, related to beef cycle in Brazil. We are very optimistic with the cycle in Brazil. I believe that the Brazilian sector is in a transformation because when Brazil is increasing the feedlot, that feedlot makes it possible to have increased, reduced the age of the animals to go to processed plants. To have genetic improvements, you have more feedlot because the DDG now is available because of ethanol, corn ethanol. This is a kind of change in the livestock sector that will enhance the production. Producers make a good margin today because if you look for the quarter, the price of the beef increased 20% and the price of livestock increased 40%. It means that these are good moments for the producers. There are a lot of incentives to raise animals. The possibility for increased productivity is huge in Brazil. Brazil has a half of the Earth of the U.S., and we produce the same amount of meat with the U.S. If you look, this is a huge opportunity for improvement. Today, with the conditions we see in the market that I already mentioned, we are positive for this year and the next year for the livestock in Brazil. Thank you so much, Tomazoni and Guilherme. That was helpful. The next question comes from Mr. John Baumgartner with Mizuho. Please go ahead. Good morning. Thanks for. Can you hear me? Yes. Good morning. Thank you. Just wanted to follow up on U.S. prepared foods and your comments there, Wesley. You're making the investments in chicken and bacon and sausage and some of these Italian meats, and you mentioned responding to market demand. I'm curious, are there any particular white spaces in terms of species or product format that you still see as incremental opportunities for you at maybe more in beef or other types of pork? As you develop the portfolio, how do you anticipate the marketing to evolve? Are there opportunities for partnerships like you're doing with Netflix and NCR in Brazil? John, we see that where we're investing, where we have announced so far, is where we're really seeing the demand, like we mentioned, the sausage, the cooked sausage. Just to explain what that is, a lot of that is what would go into what we've seen, pizza toppings and salads. It's prepared bacon and cooked bacon and sausage. We're seeing a lot of demand there. That's where we've built. We're very confident about that. As we see other opportunities, we might communicate, but so far that's where we see the opportunities and where we invested. On the Pilgrim's side, we've done a fantastic job here in the U.S. with branding our products and great success story with Just Bear, and achieved pretty large market share in a pretty short time and a lot of distribution. It's a brand that's continued to grow very much and do a good job. There is a huge opportunity for us to do that on the pork side, on the red meat side of prepared foods. We haven't done much of that, but that's something that's for sure part of our plans and part of what we see as a potential for this prepared foods business in the U.S. Thanks, Wesley. Coming back to U.S. beef and what the market's seeing in terms of resilient demand despite weaker food service traffic, the broader economic challenges facing consumers, I'm curious your thoughts on that demand resilience. Are you seeing something different in terms of how consumers interact with beef during this cycle? Is it the broader protein movement that's driving consumers to prioritize spending on beef more so than past inflationary cycles? Any observations you have on demand resilience there would be great. Yeah, I think it's, you know, there is one comparison that's very, very illustrative of how resilient beef demand is. We've always compared chicken breasts with pork loin and ground beef as accessible, affordable sources of protein. We always compare those items as items that the consumer kind of jumps back and forth. We've obviously seen with the short supply of cattle and all of that, we've seen the ground beef gap of price of ground beef versus those two other sources of protein really open the gap. You mentioned, right, food services is lower, but on the retail side, we've seen, and actually on the overall side, we've seen demand for ground beef continue to be pretty strong and people choosing to still consume ground beef, even with this delta, this gapping, this larger gapping price between pork and chicken. Consumers are still really, really going after beef. I think there are a few things. I think, yes, there are those trends of people eating more protein, but that benefits all of the categories. People prioritizing protein, all of that is very important. I think actually what we're really, you know, I think it's a testament to is the quality of U.S. beef and how the U.S. consumer trusts it and really likes it. Even at a premium versus other proteins, they're still really looking forward to consume it and seek it. Obviously, this price being so, so much different than pork and chicken is more to do with the cattle cycle than anything, but the consumer is responding to that and still choosing to consume U.S. beef because of its quality and how much they trust the product. That's what we think. Thanks, Wesley. The next question comes from Ricardo Alves with Morgan Stanley. Please go ahead. Hey everybody, good morning. Thanks for the call. I have three questions, two for Guilherme. Guilherme, on working capital, I believe you mentioned $900 million of consumption this year, right? That would imply something like $600 million of cash relief into the second half. I just wanted to confirm that level of magnitude at least, and if that's correct, if you could break it down in terms of how much of that would come from inventories, or if you can just give some more granularity in terms of working capital relief into the second half and the magnitude. That's the first question. The second one, also to you, Guilherme, if I may, JBS has been paying a lot of dividends over the past few years, and I think that this year was not different. Now you have the buyback announcement, which is obviously appreciated. What is your current mindset on the distribution side? Are you sticking to that idea of returning something like $1 billion per year? It actually seems that you're running well above those targets. I just wanted to get the latest on your latest thoughts on the distribution side. My last question to you, Wesley, would be, I thought it was very interesting the comment you made on pork, that the sequential recovery would be immediate. I think that that's the expression you used, as opposed to gradual. When you look at the beef performance this quarter, do you think that there are elements to the performance of the second quarter that you could also have an immediate sequential recovery? I know that you also made it clear on the U.S. beef side that you're going to have, through your four quarters, a very tough profitability, which is a view that we tend to share. On a sequential basis, this - 4%, are there elements, are there factors that you believe you can overcome really fast to improve to, I don't know, maybe closer to low single-digit negative margins? Those are my questions. Thank you so much. Okay, hi, Ricardo. So basically for this year, I think the best estimation in terms of cash generation for the second half is that what I mentioned, that the free cash flow break even for this year is $5.5 billion. Get whatever is your estimation for the whole year, -$5.5 billion, and then take out 25% effective tax rate. That should give you a good estimation of how much cash we will generate. You're right, we'll be releasing cash in the second half as every year we do. It comes from decreasing inventories and the postponement. In In the last quarter, we always have around at least $400 million of postponement of livestock payments that releases working capital in the fourth quarter. I think that the math of the cash flow break even that I mentioned can give you a good estimation of what we are expecting to generate the whole year and of course consequently in the second half. In terms of the dividends, if you look at how much we paid in dividends since 2020, we are exactly $1 billion, $975 million average, in fact. We paid in 2020 around $800 million, 2021, another $800 million, and $900 million, so on. In 2023, we paid $450 million, but we promised there the least thing that we paid this year. If we consider that the least thing dividend that we paid in June was really promised in 2023 and get back this number, we'll see that we've been paying on the average of the last five years is exactly around $1 billion. That's as I mentioned. That's why the excess cash, we just turned it on into share buybacks, as we did in the past in 2021. For example, we used the excess cash for share buybacks. It doesn't change going forward. I think we continued with the mindset of paying around $1 billion in dividends every year. Of course, it depends on the M&A opportunity. This year, we could increase to share buybacks given there was no relevant M&A this year. I think it didn't change. $1 billion of dividends, we continue to think about $1 billion of growth CapEx going forward. Again, and also having free cash flow for M&A. If there's no M&A, we can improve the distribution on a buyback, for example. Ricardo, go ahead. Okay, go ahead, Wesley. Ricardo, on the beef side, we think that our internal performance, again, we're going to, I think we're going to perform better in the third quarter than we did in the second quarter. Part of that is because the things that we can improve are much more on the mid-margin side, on the buy and sell side versus operations. We think that can be a quicker improvement in performance. Having said that, it's a lot more difficult for you to project what, you know, and to try to predict the beef market today than the pork market because the pork market is a lot more stable today versus the beef market. It's really tough right now to have a really long-term perspective of exactly what the market itself is going to do on beef. We think on our own performance, we could have a much better quarter in the third quarter versus the second quarter on the things that depend on us. Thank you so much, Wesley. Thanks, Guilherme. The next question comes from Ricardo Boiati with Safra. Please go ahead. Hi, good morning everyone. Thanks for the opportunity. I have a follow-up question on prepared foods. Wesley already gave some nice colors, but I wanted to explore the opportunity in terms of sustainable margin improvement that the ongoing projects could provide for the company. Any estimate of what the incremental normalized margin could be when these projects mature in the future? That's the first question. The second one, I think it goes to Guilherme regarding the shareholder base since the dual listing. How do you see it evolving? Are you seeing already U.S. investors gaining traction? Are you already starting to access fund managers that maybe you previously couldn't? Any color on how that is evolving would be great as well. Thank you, guys. Ricardo, good morning. We think that, you know, the markets that the products that we're investing in and the categories that we're investing in are categories that should have higher double-digit margins, around 15% is our expectation. It should bring the average of our EBITDA up. Ricardo, our expectation in all of the projects was prepared and their ROI will be around 20%. Great. I agree with that. In terms of shareholder base, first of all, I think since we listed in the New York Stock Exchange, our average trading daily volume more than doubled when we compare to last year. Our IR team is receiving a lot of reverse inquiries of new investors, new U.S. investors that are starting to study the story of JBS. We increased already our foreign investor base, and especially on the conferences that we have. For example, we have in September conferences already scheduled. The number of meetings with JBS increased at least 60%. We have full-day schedules in conference. I think people are starting to get the story, making their models. We'll be doing also all these semester non-new road shows in Boston, New York, Los Angeles, San Francisco, Chicago, Toronto, and so on and so forth until the end of the year to try to get also Nashville to get these new investors. At the same time, again, as I mentioned before, we start checking the boxes to get to the index, given that today 54% of the assets under management are passive. This September, we will have, for example, a FTSE index. We'll release their rebalancing. We'll have a vision where we're going to be, for example, in the Russell next year. Most likely June next year we'll be in the Russell. Again, trying to check the boxes and doing developments like we did in terms of releasing numbers in U.S. comparison to be able to be eligible to the most index that we can be. That's great, guys. Thank you very much. The next question comes from Guilherme Palhares with Santander. Please go ahead. Good morning everyone. Thank you for taking the question. Just a quick view here on the table ag industry. You guys, of course, had the investment on Manteguera. I'd like to hear your thoughts now that you are closer to the business, your prospects. If you could also read a bit how this is playing out in the U.S., whether there are opportunities there. We saw the very strong prices of eggs in Brazil also being a player on the exports during Q2. If you could share a bit your thoughts around that business, what it means for growth in the next couple of years for the company, I would appreciate that. Guilherme, thank you for the question. When we announced our joint, when we bought 50% of Manteguera, we mentioned that it's a new wave of growth. We increased our diversification of our platform. We want to do with the eggs what we have done with chicken and pork and beef to be one of the leaders, the global leaders of the category. This is the strategy. We cannot mention one or other strategy because this will be responsible for Manteguera, not for us to say what will be acquisition or something like that. All I can say is it's our priority for growth, both in Brazil and the U.S. in the egg sector. Amazonia, could you share a bit your thoughts about the growth of this category? It seems that when we look in terms of production in Brazil, it has been outpacing other proteins as well. What is your thought going forward for the industry as a whole? I think it's very positive, Guilherme, because I think we have mentioned in other calls that the consumers now have a preference for protein. Protein becomes more healthy. It is a new trend. When you look for the types of protein, we see that the eggs are more affordable among all the other proteins that are available in the market. It means that eggs keep growing and eggs become very, very healthy. I think it's an opportunity to create brands in eggs as well. Manteguera is starting to do that already with the Happy Eggs and Manteguera and some other brands they are developing. This is the strategy. We see that this category will be growing and we can enter in the value-added eggs product as well. We are so excited with the growth of this category. Because of that, we made this investment and we consider this category one of the categories where we make a difference in terms of growth in the future. Thank you, Tomazoni. The next question comes from Igor Guedes with Genial. Please go ahead. Good morning, everyone. Thank you for taking my questions. Can you hear me? Yes, we can hear you. Good morning. My question is about the U.S. pork unit. You exceed our expectations in terms of margins, mainly due to the resilience of domestic pork consumption in the U.S. Beyond that, you mentioned the expansion of high value-added products, which partially offset the negative pressure on pork or fowl prices, redirect to pet food and animal feeding industry due to trade restrictions with China. In other words, as we understand it, the margin could have been even better if you realize price had behaved normally. I would like to understand if there is an expectation to resume normal shipments of pork or fowl to China and restore the realized price in the second half. Thank you once again. Igor, good morning. The trade with China after the trade truce has been kind of in place here and postponed has already resumed to China, and it's normal as of right now. In the next quarter, we can maybe see the realized price of pork U.S. going up in your. We should see normalized margins from the third quarter forward. Okay, thank you very much. The next question comes from Isabella Simonato with Bank of America. Please go ahead. Thank you. Hi everyone. Thank you for the call. Just a quick question on U.S. pork and most related to accounting actually. We saw a big difference, right, in the IFRS margin and U.S. GAAP, which happened in the past. You guys put a footnote explaining a little bit of the accounting. I think our perception, right, is that you took a hit when you think about the U.S. GAAP margin in the end of the quarter because of lower cut-out prices, right, while hog prices moved up during the quarter. Back to the discussion, right, of margin improvement in Q3, can we assume that the margin, right, for the average of the quarter was actually a little bit higher than those 6.5%? If you can break down what was the accounting impact regarding biological assets and mark-to-market of inventories, I think that will help to clarify a little bit of the hit on profitability. Thank you. Isabella, good morning. We manage the business here on a day-to-day on a U.S. GAAP basis. We don't manage, you know, in the U.S., we manage it in U.S. GAAP. We don't follow this on a, you know, IFRS margins on a day-to-day basis. When I mentioned the improvement in margin next quarter and normalizing, going back to normal from where we expect these margins to look like, it's on a U.S. GAAP basis and it doesn't have really a lot to do with U.S. GAAP IFRS differences. I got it. Thank you. The next question comes from Pooran Sharma with Stephens. Please go ahead. Good morning. Thanks for the question here. Just wanted to parse into Australia a little bit more. I think you mentioned before, you know, the other businesses were running about the same as the prior quarter, maybe except for the salmon business. The strong performance came from beef. It sounds like there's continued favorability in terms of the cattle cycle. I was just wondering, as you look out, I think you said you see room for continued improvement for the year. I was wondering if you meant that on a sequential basis, like when I look at EBITDA margins, do they sequentially improve from these strong levels, or were you thinking more on kind of a year-over-year basis? Thank you for the question, Pooran. We see that the margin of the Australia business will be two-digit in the coming quarters. We see favorable livestock availability. We see that improving our results on the salmon business. The other businesses, they are very stable. Pork performs very well and prepared food is doing well. We see that 50% of our business in Australia is beef. We see these results will be above two digits. Above, no, to be two digits, sorry for that. It's two digits and we are very, we remain confident because we are talking the other quarters that the cattle are available, but there is too much rain. They are not able to catch the cattle in the farms. Now the environmental condition is much better and we are normalizing our operations. We are working and our plants are full. We are remaining confident of this business. Great. I appreciate that. Just as a follow-up, I wanted to hone in further on the U.S. and Brazil tariff situation. It sounds like JBS Brazil can find some offsets. You guys mentioned your global platform, and I think you could find some offsets if you see some weakness there. I just wanted to ask about the US chicken business, Pilgrim's Pride. Typically, 4Q is a period where you see seasonal weakness for chicken. I think this year we're seeing just a little bit of incremental supply growth when it comes to egg set. I'm trying to think about the Brazilian kind of beef situation. Do you think this bodes positively for PPC? If so, can you help us think about how much room for improvement there can be from a potential lower beef supply because of Brazilian tariffs? I think it's too early to estimate the real impact now because we see that the volume from Brazil that Brazil does not export to the U.S., maybe we replace from the other markets, from Australia and from other countries. As I mentioned before, besides that, some of the U.S. products today are exported could be remaining in the domestic market. In the end, I think the U.S. market will be supply from the one side, from the other side. This will be open the opportunity for Brazil because this is an interconnected system. There is no more production of beef globally. If some countries directed sales to the U.S., there will be an open opportunity for the market that they leave. I think we need to wait for this rebalance situation that we can more estimate what will be the impact of that. Related to chicken, you are right. There is a little bit increase in terms of egg set. When you see the demand, I think the egg set we talk about, 1%, 2%, it is, and the demand for protein is much higher than this. We don't see any reason to not be in accordance to this normal cycle of the business. Great. Thank you for the color. Thank you, everyone. Ladies and gentlemen, there being no further questions, I would like to pass the floor to Mr. Gilberto Tomazoni. I would like to once again thank you everyone for joining this earnings call. As of this quarter, market, our listing is nice. We reaffirm our focus on growth and deliver value to shareholders, as well as our confidence in the strength of our diversified platform, both in terms of geographic and protein. Year after year, it's proven to be the right strategy and an excellent tool to protect companies from cycles, supply chain disruption, or geopolitical impacts. I would like also to take this opportunity to thank all JBS team members. Our company is truly powered by people who share a common mission and are focused on delivering better results for every day. Thank you, everyone. Thank you all. This is the end of the conference call held by JBS. Thank you very much for your participation and have a nice day.