Financial Performance - Total revenue for Q3 2025 reached $1,001.3 million, a 120.6% increase compared to $453.8 million in Q3 2024, driven by the acquisition of Marel which contributed $536.5 million[154] - Gross profit for the quarter was $359.8 million, with a gross profit margin of 35.9%, consistent with the same period last year[157] - Operating income for Q3 2025 was $102.1 million, reflecting a 118.2% increase from $46.8 million in Q3 2024[154] - Net income for the quarter was $66.0 million, a 69.7% increase compared to $38.9 million in the same quarter last year[154] - Adjusted EBITDA for Q3 2025 was $170.9 million, compared to $81.7 million in Q3 2024, representing an increase of 109.2%[165] - Total revenue for the nine months ended September 30, 2025, increased by $1,541.8 million or 123.5% compared to the same period in 2024[170] - JBT revenue for the nine months ended September 30, 2025, was $1,328.2 million, a 6.4% increase from $1,248.4 million in 2024[168] - Marel revenue contributed $1,462.0 million in the nine months ended September 30, 2025, with a favorable foreign currency translation impact of approximately $19.3 million[170] - Adjusted EBITDA from continuing operations for Q3 2025 was $170.9 million, significantly up from $81.7 million in Q3 2024, and for the nine months ended September 30, 2025, it reached $439.3 million compared to $202.8 million in 2024[189] Expenses and Costs - Selling, general and administrative expenses increased by $110.4 million to $222.0 million, primarily due to the Marel acquisition, but as a percentage of revenue, it decreased to 22.2% from 24.6%[158] - Research and development expenses rose by $23.3 million to $28.7 million, largely due to costs associated with the Marel business[159] - Selling, general and administrative expenses increased by $428.4 million, with expenses as a percentage of revenue rising to 27.0% from 26.1% year-over-year[172] - Research and development expenses increased by $75.6 million, primarily due to costs associated with the Marel acquisition[173] - Interest expense increased by $87.8 million due to a higher average debt balance and interest rates related to the Marel acquisition[178] Income and Loss - Income from continuing operations for Q3 2025 was $66.8 million, up from $38.1 million in Q3 2024, an increase of 75.3%[164] - Loss from continuing operations for the nine months ended September 30, 2025, was $102.8 million, compared to income of $91.5 million in 2024, a decrease of $194.3 million[181] - Income from continuing operations for Q3 2025 was $66.8 million, compared to $38.1 million in Q3 2024, while the nine-month loss from continuing operations was $(102.8) million, down from $91.5 million in the same period last year[189] Cash Flow and Liquidity - Free cash flow for the nine months ended September 30, 2025, was $163.0 million, an increase of $83.8 million compared to $79.2 million in the same period of 2024[195] - Total operating cash flows from continuing operations for the nine months ended September 30, 2025, were $224.3 million, with expectations of generating positive cash flows for the full year[203] - Cash provided by continuing operating activities for the nine months ended September 30, 2025 was $224.3 million, a $120.4 million increase from $103.9 million in 2024[208] - Cash required by continuing investing activities surged to $1,811.3 million in 2025, compared to only $31.8 million in 2024, primarily due to the acquisition of Marel[209] - Cash provided by financing activities was $490.9 million in 2025, a significant increase from cash required of $23.1 million in 2024, driven by net proceeds from Term Loan B and convertible notes[210] - As of September 30, 2025, the company had $114.9 million in cash and cash equivalents, with $102.8 million held by foreign subsidiaries[206] - Liquidity as of September 30, 2025, was $1.9 billion, including cash and borrowing ability under existing revolving credit facilities[203] - As of September 30, 2025, the company had $62.7 million drawn on its revolving credit facility with $1.7 billion available[211] - The company was in compliance with all covenants in its Second A&R Credit Agreement as of September 30, 2025[212] Restructuring and Integration - The total cost of the 2022/2023 restructuring plan was $17.5 million, completed by March 31, 2024, while the JBT Marel 2025 Integration restructuring plan is estimated to cost between $30.0 million and $35.0 million[196][197] - Cumulative cost savings from the JBT Marel 2025 Integration restructuring plan are expected to be between $50.0 million and $60.0 million, with approximately $10.0 million expected to be realized during the remainder of 2025[198] - The company closed the Marel Transaction on January 2, 2025, acquiring approximately 97.5% of Marel's equity for $983.7 million in cash consideration[202] Market and Orders - Orders remained strong, particularly in the poultry, pharmaceutical, and pet food markets, indicating healthy demand[151] - The Marel Transaction, completed on January 2, 2025, aims to create a leading global food and beverage technology solutions provider[150] Tax and Regulatory - The effective tax rate for income from continuing operations was 20.4% for Q3 2025, slightly up from 20.0% in Q3 2024[163] - The company anticipates that 2025 performance will be affected by evolving tariff costs and is taking proactive measures to mitigate these impacts[152] Debt and Hedging - Approximately 50% of the total gross outstanding debt of $1,937.0 million was variable rate debt as of September 30, 2025[218] - The company entered into five cross-currency swaps with a combined notional amount of $696.5 million to hedge the impact of variability in exchange rates on U.S. dollar denominated debt[219] - A hypothetical 10% adverse movement in currency exchange rates underlying the cross-currency swaps would have resulted in a loss in value of $65.9 million[225] - The company entered into a series of cross-currency swaps with an aggregate notional amount of $2.1 billion to hedge currency exchange components of net investments in foreign subsidiaries[226]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was approximately $1 billion, a 7% sequential increase, exceeding expectations by about $65 million [6][12] - Adjusted EBITDA margin for Q3 was 17.1%, exceeding expectations by approximately 140 basis points [6][12] - GAAP EPS for Q3 was $1.28, while adjusted EPS was $1.94, excluding certain one-time items [8][12] - The company raised its full-year 2025 revenue guidance to between $3.76 billion and $3.79 billion, reflecting strong Q3 results [12][13] Business Line Data and Key Metrics Changes - JBT segment revenue was $465 million, a 2% increase year-over-year and sequentially, with adjusted EBITDA of $71 million, a 13% decrease [10][11] - Marel segment revenue was $537 million, a 12% sequential increase, with adjusted EBITDA of $100 million and a margin of 18.6% [11] - Year-over-year synergy savings for Q3 amounted to $14 million, contributing to improved margins [7][12] Market Data and Key Metrics Changes - Combined JBT/Marel orders totaled $946 million, a 7% increase from the prior year, with strong demand in the poultry industry [3][4] - North America showed strong demand, while Europe and Asia were softer sequentially; Latin America had a good quarter with large orders [4][12] - The company ended Q3 with a backlog of $1.3 billion, providing visibility for the remainder of the year [4][12] Company Strategy and Development Direction - The integration of JBT and Marel is on track, focusing on capturing synergy savings and enhancing customer value [4][12] - New segment reporting will be introduced in Q4, dividing operations into Protein Solutions and Prepared Food and Beverage Solutions [10][12] - The company aims to achieve annual run rate savings of $150 million within three years of the combination [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand in the poultry market and anticipated continued investment in related projects [3][39] - The company expects to see a ramp in tariff expenses impacting margins in Q4, but remains optimistic about overall demand [8][29] - Visibility into 2026 revenue is strong, with expectations for growth supported by a healthy backlog and order pipeline [42][43] Other Important Information - The company made significant progress on deleveraging its balance sheet, reducing the leverage ratio from four times to 3.1 times by the end of Q3 [12] - A new global production center was inaugurated in Pune, India, enhancing the company's manufacturing capabilities in the Asia-Pacific region [16][18] - Sustainability remains a core focus, with the publication of the first joint sustainability report highlighting efforts to minimize waste and improve food safety [17][18] Q&A Session Summary Question: What is driving the high EBITDA margin in the Marel segment? - Management highlighted strong volume throughput and operating leverage as key factors, along with a higher share of synergies and improved technology [25][26] Question: What are the expectations for Q4 revenue and cost impacts? - Management expects lower revenue in Q4 compared to Q3 due to a one-time boost in Q3 from backlog clearance and anticipates increased tariff expenses impacting margins [28][29] Question: How is automation trending in the business? - Automation remains a key focus, particularly in the protein sector, with significant opportunities in secondary processing areas [31] Question: Can you provide insights on cross-selling opportunities? - Management noted improvements in cross-selling opportunities, with successful integration of JBT and Marel portfolios leading to stronger pipeline development [33][36] Question: What is the outlook for the AGV business? - The AGV business is expected to see strong demand moving into Q4 and 2026, despite a weaker performance in Q3 due to tariffs and delayed orders [52] Question: How is the company managing tariff impacts on pricing? - The company has enacted price increases to mitigate tariff impacts and has maintained strong order levels, indicating effective management of customer relationships [47][53]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was approximately $1,000,000,000, representing a 7% sequential increase and exceeding expectations by about $65,000,000 [5][8] - Adjusted EBITDA margin for Q3 was 17.1%, exceeding expectations by approximately 140 basis points [9] - GAAP EPS for Q3 was $1.28, while adjusted EPS was $1.94, excluding certain one-time items [10] - The company raised its full-year 2025 revenue guidance to between $3,760,000,000 and $3,790,000, reflecting strong Q3 results [15] Business Line Data and Key Metrics Changes - JBT segment revenue was $465,000,000, increasing approximately 2% year-over-year and sequentially, with adjusted EBITDA of $71,000,000, a decrease of 13% [13] - MREL segment revenue was $537,000,000, a 12% sequential increase, with adjusted EBITDA of $100,000,000 and a margin of 18.6% [13][14] - Year-over-year synergy savings for Q3 amounted to $14,000,000 [10] Market Data and Key Metrics Changes - Combined JBT Madau orders reached $946,000,000, a 7% increase from the prior year [5] - Demand was strong in North America, while Europe and Asia showed softer performance; however, Latin America had a good quarter with large orders in pet food, poultry, and juice [6] Company Strategy and Development Direction - The company plans to introduce new segment reporting for 2025, focusing on Protein Solutions and Prepared Food and Beverage Solutions [12] - The integration of JBT and Morel is on track, with actions taken to capture synergy savings and enhance customer value [7][18] - The company aims to achieve annual run rate savings of $150,000,000 within three years of the combination [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment, particularly in the poultry market, with visibility extending into 2026 [49][61] - The company anticipates a growth year in 2026, supported by a strong backlog and healthy demand [59][61] - Management highlighted the importance of automation in response to labor pressures in food factories, particularly in the protein sector [37] Other Important Information - The company generated operating cash flow of $224,000,000 and free cash flow of $163,000,000 for the year, with record quarterly operating cash flow of $88,000,000 in Q3 [14] - The financial leverage ratio decreased from four times at the close of the combination to 3.1 times by the end of Q3, with expectations to drop below three times by year-end [14][15] Q&A Session Summary Question: What is driving the higher EBITDA margins in the Morrel segment? - Management attributed the higher margins to increased volume, operating leverage, and synergy savings, along with improvements in meat and fish segments [30] Question: What are the expectations for Q4 in terms of revenue and costs? - Management expects lower revenue in Q4 compared to Q3 due to a pickup in Q3 that is not expected to recur, along with anticipated increases in tariff expenses impacting margins [33][35] Question: How is automation trending in the business? - Automation remains a key focus, particularly in the protein sector, with significant opportunities in secondary processing areas [37] Question: Can you provide insights on cross-selling opportunities? - Management noted improvements in cross-selling opportunities, with a strong pipeline and successful integration of sales teams from both legacy companies [42][48] Question: What is the outlook for the AGV business? - The AGV business is expected to see strong demand moving into Q4 and 2026, despite a weaker performance in Q3 due to tariffs and delayed orders [76] Question: How is the company managing tariff impacts and pricing? - The company has enacted price increases to mitigate tariff impacts and has been fair with customers, resulting in strong order retention [78]

Financial Performance - JBT Marel's Q3 2025 revenue reached $1001 million, compared to $454 million in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $171 million, with an adjusted EBITDA margin of 171%, exceeding expectations[6,7] - The company generated $88 million in cash from operating activities during the quarter[7] - Full year 2025 revenue guidance is $3760 - $3790 million, with an adjusted EBITDA margin of 1575% - 160%[27] - Adjusted EPS guidance for full year 2025 is $610 - $640[27] Segment Results - JBT segment revenue for Q3 2025 was $465 million, with an adjusted EBITDA margin of 153%[9] - Marel segment revenue for Q3 2025 was $537 million, with an adjusted EBITDA margin of 186%[9] Orders and Revenue Breakdown - Quarterly orders totaled $946 million, including approximately $26 million from foreign exchange translation[6,16] - Recurring revenue accounted for 49% of total revenue in Q3 2025[14,16] Capital Structure - The company has approximately $400 million in 2026 Convertible Senior Notes, ~$63 million in Revolving Credit Facility, ~$575 million in 2030 Convertible Senior Notes, and ~$900 million in Term Loan B outstanding[17] - JBT Marel has ample liquidity of ~$19 billion[21] Tariff Mitigation - Estimated total tariff impact before mitigation is ~$90 - $105 million annually, or ~$22 - $25 million per quarter[22]

Financial Performance - Third quarter 2025 revenue totaled $1.0 billion, with 49% generated from recurring revenue[5] - Net income from continuing operations was $67 million, representing a margin of 6.7%[6] - Adjusted EBITDA for the third quarter was $171 million, with a margin of 17.1%[7] - Revenue for Q3 2025 was $1,001.3 million, a significant increase from $453.8 million in Q3 2024, representing a growth of 120%[26] - Gross profit margin for Q3 2025 was 35.9%, slightly down from 36.1% in Q3 2024[26] - Operating income for Q3 2025 was $102.1 million, compared to $46.8 million in Q3 2024, reflecting a growth of 118%[26] - Adjusted EBITDA for Q3 2025 was $170.9 million, up from $81.7 million in Q3 2024, indicating an increase of 109%[32] - Adjusted diluted earnings per share from continuing operations for Q3 2025 was $1.94, compared to $1.49 in Q3 2024[28] - The company reported a net income of $66.0 million for Q3 2025, compared to a net income of $38.9 million in Q3 2024[26] Orders and Backlog - The company achieved quarterly orders of $946 million and a quarter-ending backlog of $1.3 billion[5] - Inbound orders for Q3 2025 reached $946.3 million, compared to $439.6 million in Q3 2024, marking a growth of 115%[26] - Orders backlog as of September 30, 2025, was $1,338.9 million, up from $698.1 million a year earlier[26] Cash Flow and Liquidity - Year-to-date operating cash flow from continuing operations was $224 million, and free cash flow was $163 million[8] - Free cash flow for the nine months ended September 30, 2025, was $163.0 million, up from $79.2 million in 2024, indicating improved liquidity[44] - Cash provided by continuing operating activities was $224.3 million for the nine months ended September 30, 2025, compared to $103.9 million in 2024, showing a significant improvement[42] Debt and Interest Expense - Full year 2025 net interest expense is anticipated to be $105 million, including $12 million in M&A bridge financing fees[19] - Total debt increased to $1,906.7 million as of Q3 2025, compared to $1,252.1 million in Q4 2024, representing a rise of 52%[46] - Net debt reached $1,791.8 million in Q3 2025, a substantial increase from $23.7 million in Q4 2024[48] - The bank total net leverage ratio is calculated at 2.7, while total net debt to trailing twelve months pro forma adjusted EBITDA stands at 3.1[48] Guidance and Future Plans - Full year 2025 revenue guidance is raised to $3,760 - $3,790 million, including a foreign exchange translation tailwind of approximately $70 - $85 million[16][17] - The company expects to realize in-year synergy savings of $40 - $45 million and maintain annualized run rate savings of $80 - $90 million exiting 2025[11] - The company plans to incur approximately $105 million in M&A related costs for the full year 2025, which includes various integration and advisory expenses[53] - The company plans to realign its reportable segments into Protein Solutions and Prepared Food and Beverage Solutions in Q4 2025[12] Restructuring and Costs - JBT Marel incurred $7 million in restructuring costs and $6 million in M&A related costs during the third quarter[11] - Research and development expenses for Q3 2025 were $28.7 million, significantly higher than $5.4 million in Q3 2024[26] Assets and Financial Position - Total assets increased to $8,199.4 million as of September 30, 2025, compared to $3,413.8 million on December 31, 2024, reflecting a growth of 140%[40] - Net loss from continuing operations for the nine months ended September 30, 2025, was $102.8 million, a significant decline from a net income of $91.5 million in the same period of 2024[42] - Adjusted EBITDA from continuing operations is projected to be between $590.0 million and $605.0 million for the full year 2025, with revenue guidance of $3,760 million to $3,790 million[52] - Diluted earnings per share from net income is guided to be between ($1.05) and ($0.75) for the full year 2025[50]

Core Insights - JBT Marel Corporation reported strong financial results for Q3 2025, exceeding earnings expectations due to better-than-expected revenue, effective supply chain management, operational productivity, and solid cost control [1] Financial Performance - The company demonstrated improved revenue performance compared to previous quarters, contributing significantly to the overall earnings [1] - Operational productivity enhancements played a crucial role in the financial results, indicating effective management practices [1] Management Commentary - Brian Deck, the CEO, highlighted the company's ability to outperform expectations, emphasizing the importance of supply chain efficiency and cost management in achieving these results [1]

Core Insights - JBT Marel has introduced the Fresh'n Squeeze® 1800 Citrus Juicer at the IFPA Global Produce and Floral Show, which utilizes whole fruit extraction technology [1] Company Overview - JBT Marel is recognized as a leading global provider of integrated food processing solutions [1] Product Details - The Fresh'n Squeeze® 1800 Citrus Juicer employs the same technology as larger models in the Fresh'n Squeeze product line, which enables the company to juice over 75% of the world's citrus [1]

Core Insights - JBT Marel Corporation has released its 2024 Sustainability Report titled "Shaping the Future of Food Together" [1] - The report emphasizes the company's commitment to creating a meaningful impact across various stakeholders including customers, employees, communities, and the broader food ecosystem [1] - CEO Brian Deck stated that sustainability is viewed as a responsibility rather than just a goal, highlighting the importance of current actions in shaping the future [1]

Core Insights - JBT Marel, a leader in food processing technology, will showcase innovations at Pack Expo Las Vegas from September 29 to October 1 [1] - This event marks the first Pack Expo since the merger of JBT and Marel in early 2025, highlighting their commitment to transforming the future of food [1] Company Developments - The company will launch a new product, feature a VR immersive room, and conduct a live chef demonstration at their booth N8612 [1] - The merger aims to unite the strengths of both companies to enhance food processing solutions [1]

Core Insights - Gladstone Commercial (GOOD) has executed a 10-year, one-month lease extension with JBT Marel Corporation for a 67,200 square foot industrial building in Chalfont, PA, marking the third extension since the original purchase [1][3][7] - JBT Marel is a global technology solutions provider for the food and beverage sector, focusing on design, production, and servicing of products and systems, including automated guided vehicle systems for various applications [2] - The lease extension indicates JBT Marel's long-term commitment to the facility, securing a reliable tenant for Gladstone and enhancing portfolio stability [3] Company Performance - Over the past month, shares of Gladstone Commercial have declined by 4%, contrasting with the industry's growth of 2.5% [4] - The Zacks Consensus Estimate for Plymouth Industrial REIT's 2025 FFO per share has increased by 2 cents to $1.88, while Crown Castle's estimate has moved up by 3 cents to $4.21 [5][8]