Minerva Foods Q2 2026 earnings beat; shares dip on outlook

Minerva Foods SA said on Tuesday its second-quarter 2026 earnings per share surpassed analyst estimates, though its shares fell as the company’s outlook for the remainder of the year disappointed some investors.

The São Paulo-based beef processor reported adjusted net income of 1.2 billion reais ($240 million) for the three months ended June 30, up 15% from the same period a year earlier. Earnings per share totaled 0.62 reais, exceeding the 0.55-reais consensus estimate compiled by Refinitiv, according to the company’s earnings release.

Revenue rose 8.3% year-over-year to 6.4 billion reais, driven by higher beef sales volumes and improved pricing in key export markets, including China and the Middle East. Minerva attributed the growth to strong demand for Brazilian beef, particularly in Asia, where consumption has remained resilient despite global economic headwinds.

Despite the positive headline figures, Minerva’s shares fell 3.2% in after-hours trading as executives cautioned that margins may compress in the second half of 2026. The company cited rising production costs, including feed expenses and labor, as well as competitive pricing pressures in export markets. Management also noted that currency fluctuations, particularly the strength of the Brazilian real against the U.S. dollar, could further pressure profitability.

For the full year 2026, Minerva maintained its revenue guidance of 24 billion to 25 billion reais but trimmed its EBITDA margin forecast to 12% from 13%, reflecting the anticipated squeeze on profitability. Analysts had expected a margin of 12.5% for the year.

The earnings report comes amid a broader slowdown in global protein markets, with some analysts warning of potential oversupply in the second half of 2026. Minerva, one of the largest beef exporters in Brazil, has faced increasing competition from other Latin American producers, including JBS and Marfrig, which have also expanded their export capacities.

Investor reaction was mixed, with some analysts highlighting the company’s strong operational performance in a challenging environment, while others expressed concern over the reduced margin outlook. The stock closed at 38.50 reais on Tuesday, down from its recent peak of 42.10 reais in May.

Minerva Foods is scheduled to hold an earnings call with analysts on Wednesday to discuss the results in greater detail.