MBRF3 after 2Q26: record volume and R$3.2bn EBITDA versus R$864m cash burn

On 13 August 2026, Marfrig Global Foods S.A. (B3: MBRF3; ADR: MBRFY) released 2Q26 results for the period ended 30 June 2026. The company now reports as a multi-protein platform: beef North America (National Beef), beef South America, and BRF (processed poultry, pork, and brands such as Sadia and Perdigão). Consolidated net revenue was R$ 40.7 billion (+4.9% year on year). Adjusted EBITDA reached R$ 3.20 billion (+5.4%) at a 7.9% margin. Sales volume hit 1.969 million metric tons — a record for a second quarter. Net income attributable to controllers was R$ 69 million, down from R$ 85 million in 2Q25.

The educational frame is operating strength versus cash and leverage. EBITDA grew and volume set a quarterly record, yet the company disclosed cash consumption of R$ 864 million in the quarter after R$ 1.41 billion of capex and R$ 1.62 billion of financial outflows, despite R$ 2.17 billion of operating cash flow. Net leverage closed at 3.41× LTM adjusted EBITDA in reais (3.48× in dollars). Readers who studied JBSS3’s revenue–loss divergence or the BRFS3 segment margins inside the same filing will recognize the pattern: in global protein, segment EBITDA can look healthy while consolidated cash and debt tell a tighter story.

Consolidated snapshot

1H26: net revenue R$ 80.2 billion (+2.4%), adjusted EBITDA R$ 6.30 billion (+1.0%), net income R$ 180 million (+4.0%).

Average Ptax in 2Q26 was R$ 5.05/US$ versus R$ 5.67 in 2Q25 (Central Bank series cited in the release). A stronger real translates dollar beef revenue into fewer reais and pressures export competitiveness — even when dollar prices rise.

Where the EBITDA actually comes from

Revenue and EBITDA are not evenly distributed across proteins or geographies:

Roughly 72% of consolidated revenue is USD-linked (North America plus exports). The headline margin near 8% is therefore a blend: BRF’s 16.8% segment EBITDA margin carries the group, while US beef runs at thin profitability.

Integration metrics matter at this scale:

Management stated 47% of the 2026 synergy target was achieved after 1H26. SG&A as a share of revenue fell 40 bps to 8.8%; administrative expenses fell 13% year on year on a consolidated basis — evidence the merger cost story is showing up below gross profit.

Beef North America: revenue up, margin near zero

National Beef operated in a tight US cattle cycle: industry slaughter down 7.3% year on year (USDA), but MBRF increased sales volume 2.0% on heavier carcass weights.

US$ 7.86/kg average selling price versus US$ 6.98/kg in 2Q25 did not fully offset US$ 254.4/cwt steer costs (+15.9% vs 2Q25 on the USDA KS benchmark). Drop credits improved to US$ 14.20/cwt from US$ 11.47/cwt, helping but not transforming the segment P&L. In reais, North America still contributes nearly half of revenue but single-digit percent of group EBITDA — the key reason consolidated net income can stay near R$ 70 million while BRF prints R$ 2.6 billion of EBITDA.

Beef South America: volume and price, FX as a headwind

South American beef posted volume +8.8% and revenue +26.4%:

Exports were 62% of segment revenue; ~53% of export volume went to China and Hong Kong, with diversification to the US, Europe, and 15 new export authorizations in the quarter. Management linked capacity additions (Promissão, Pampeano, Argentina, Uruguay) to volume growth. CEPEA live cattle in Brazil averaged R$ 352.90/@ (+12.0% YoY) while export beef averaged US$ 6.43/kg versus US$ 5.23/kg — spread economics still work, but real appreciation trimmed translated export revenue.

Commercial integration with BRF added 20,000+ retail points of sale for beef SKUs — a structural cross-sell story separate from commodity spread math.

BRF segment: still the earnings engine

At consolidated level, BRF’s 2Q26 segment results (detailed in the BRFS3-focused post) anchor group profitability:

Sadia Halal in the GCC posted US$ 95 million of EBITDA at a 16.1% margin despite Middle East logistics stress — management cited pricing above incremental geopolitical costs. Domestic BRF volume rose 4.6% quarter on quarter through June as employment and confidence indicators improved (IBGE/FGV series in the release).

For MBRF3 holders, the segment post explains gross margin vs EBITDA margin inside BRF; this article emphasizes how that segment weight interacts with beef and balance-sheet lines at the listed parent.

Cash, capex, and leverage — the binding constraint

Operating performance in 2Q26 did not translate one-for-one into free cash:

• Operating cash flow: R$ 2,168 million
• Capex: R$ 1,411 million (R$ 1.12 bn at BRF, R$ 291 m beef)
• Financial outflows (bridge): R$ 1,622 million
• Cash consumption: R$ 864 million

Management attributed working-capital pressure to Middle East inventory in transit, full feedlots in South America, campaign inventory build, and payables timing. Net financial expense rose 23% to R$ 1.78 billion on higher interest (R$ 1.42 billion provisioned net interest in the quarter).

Net debt reached R$ 45.0 billion (US$ 8.69 billion). ~50.9% of gross debt is foreign currency. The company repurchased R$ 261.6 million of shares in the quarter. On the 2Q26 call, CFO José Ignacio Scoceria told press that 1H26 capex was about R$ 2.5 billion (excluding leases) with a similar 2H26 pace (~R$ 5 billion for 2026, below R$ 6.2 billion LTM), and guided 2027 capex more than R$ 1 billion lower — targeting under R$ 4 billion — while expecting working-capital recovery in the second half.

That narrative connects record volume to temporary cash timing rather than abandoning growth capex (Lucas do Rio Verde, Jeddah greenfield, Buriti Alegre optimization, Kindsvater logistics acquisition in the US, etc.).

How to read the next filing

1. Split segment EBITDA shares before extrapolating group margin — US beef can grow revenue double digits with sub-1% EBITDA margin.
2. Track operating cash against capex and financial expense together; EBITDA growth with negative cash consumption is coherent when inventories and interest both rise.
3. Monitor leverage at 3.41× against LTM EBITDA moves and FX on ~51% foreign debt.
4. Compare synergy and MBRF+ captures to the 2026 full-year target — integration is already in the P&L, not only in slides.
5. For BRF-specific margin bridges, use the BRFS3 article; for peer protein cycles, see JBSS3.

Where to see this on the explorer

• MBRF3 company page
• BRFS3 company page — segment ticker still listed
• Blog index

Sources

• Marfrig Global Foods S.A. — Management Report 2Q26 and CVM financial statements for the period ended 30 June 2026, disclosed 13 August 2026
• MBRF — 2Q26 earnings news release (14 August 2026)
• Contemporaneous press on 2Q26 cash flow, capex, and management guidance (August 2026)
• MBRF3 on the explorer

Disclaimer

This article is for informational and educational purposes only. It is not investment advice. Adjusted EBITDA, segment results, and leverage ratios follow MBRF’s earnings materials and may differ from statutory IFRS lines in CVM filings. Protein markets, FX, and working-capital swings can move quarter-to-quarter results materially. Refer to official documents and, if needed, a licensed professional.