JBT Marel (JBT) FY 2025 Annual General Meeting May 15, 2025 10:30 AM ET Speaker0 Hello, and welcome to JBT Morrell Corporation Annual Meeting of Stockholders. Please note that this call is being recorded. I'd now like to hand the call over to Alan Feldman. Please go ahead, sir. Speaker1 Good morning. I'm Alan Feldman, Chairman of the Board of Directors of J. B. T. Morrell Corporation. And on behalf of the company, I want to welcome you to our twenty twenty five Annual Meeting of Stockholders. Before proceed ...

Revenue and Profitability - Total revenue for Q1 2025 increased by $461.8 million or 117.7% compared to Q1 2024, with Marel contributing $445.3 million of this revenue[116][118] - JBT revenue increased by $16.5 million or 4.2% year-over-year, driven by an increase in volume for recurring revenue[117] - Gross profit margin decreased by 160 basis points to 34.2% compared to 35.8% in 2024, primarily due to the lower margin of the acquired Marel business[119] - Adjusted EBITDA for the same period was $112.2 million, an increase of $54.8 million from $57.4 million in 2024, primarily driven by incremental gross profit from the recently acquired Marel business[128] - Adjusted EBITDA margin decreased by 150 basis points to 13.1% compared to 14.6% in 2024, attributed to a decrease in gross profit margin and higher selling, general, and administrative expenses[129] - The JBT segment's Adjusted EBITDA was $60.8 million with a margin of 14.9%, while the Marel segment's Adjusted EBITDA was $51.4 million with a margin of 11.5%[129] Expenses and Costs - Selling, general and administrative expenses rose by $178.0 million, with expenses as a percentage of revenue increasing to 33.0% from 26.4%[119] - Research and development expenses increased by $27.2 million, mainly due to costs associated with the Marel acquisition[120] - Pension expense, other than service cost, surged by $145.8 million, primarily due to a settlement charge of $146.9 million recognized in Q1 2025[121] - Interest expense increased by $39.5 million, driven by a higher average debt balance and interest rates related to the Marel Transaction[124] - The total cost of the JBT Marel 2025 Integration restructuring plan is estimated to be between $25.0 million and $30.0 million, with cumulative cost savings expected to be between $50.0 million and $60.0 million[144][145] Cash Flow and Liquidity - Free cash flow for the three months ended March 31, 2025, was $17.8 million, a significant increase from $0.7 million in the same period in 2024[142] - As of March 31, 2025, the company's liquidity, including cash and borrowing capacity, was $1.3 billion, supporting integration and capital allocation priorities[149] - Cash provided by continuing operating activities for the three months ended March 31, 2025 was $34.4 million, a $24.0 million increase compared to the same period in 2024[155] - Cash required by investing activities was $1,765.6 million during the three months ended March 31, 2025, primarily due to the acquisition of Marel[156] - Cash provided by financing activities was $621.4 million during the three months ended March 31, 2025, compared to cash required of $6.1 million in the same period in 2024[157] - As of March 31, 2025, the company had $691.7 million drawn on its revolving credit facility with $1.1 billion available[158] Taxation - The tax rate on the loss from continuing operations was 21.1% for Q1 2025, with a tax benefit reduced by non-deductible acquisition costs totaling $2.4 million[125] - The tax rate on income from continuing operations for the three months ended March 31, 2024, was 26.2%, with a tax provision increase of $1.0 million due to discrete items[126] - The company expects an adverse impact of approximately $7 million to cash from continuing operations in 2025 due to changes in tax regulations[154] Acquisition and Integration - The acquisition of Marel hf. aims to create a leading global food and beverage technology solutions provider, enhancing the company's market position[110] - The company expects capital expenditures to be between $90 million and $100 million during 2025, along with integration costs related to the Marel acquisition estimated at $55 million to $65 million[150] - The company implemented a restructuring plan in 2022/2023, with total costs of $17.5 million, completed as of March 31, 2024[143] Debt and Financial Instruments - Approximately $1,341.7 million or 67% of the total debt balance as of March 31, 2025 was variable rate debt subject to floating rates[164] - The company executed takeout financing on January 2, 2025, consisting of a $1.8 billion revolving credit facility and a $900 million senior secured term loan B[160] - The aggregate fair value of the cross-currency swaps related to the U.S. dollar denominated debt was a liability position of $53.5 million at March 31, 2025[171] - A hypothetical 10% adverse movement in currency exchange rates underlying the swaps would have resulted in a loss in value of $71.9 million[171] Operational Performance - For the three months ended March 31, 2025, the loss from continuing operations was $173.0 million, a decrease of $195.7 million compared to income of $22.7 million for the same period in 2024[128]

JBT Marel (JBT) Q1 2025 Earnings Call May 05, 2025 11:00 AM ET Company Participants Marlee Spangler - Senior Director - Investor RelationsBrian Deck - President & CEOÁrni Sigurdsson - PresidentMatthew Meister - EVP & CFOJustin Ages - Director - Equity Research Conference Call Participants Mircea Dobre - Associate Director of Research & Senior Research AnalystRoss Sparenblek - Equity Research Analyst Operator Welcome to JBT Morell's Earnings Conference Call for the First Quarter of twenty twenty five. My nam ...

Financial Data and Key Metrics Changes - JBT Morell's revenue exceeded guidance by $19 million, driven by better-than-expected equipment shipments and strong recurring revenue [17] - Adjusted EBITDA margin was 13.1%, outperforming guidance by 60 basis points, attributed to volume flow-through, favorable mix, and good expense control [17] - Free cash flow for the first quarter was $18 million, including approximately $42 million in one-time M&A related payments [19] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 4% year over year, or 5.6% on a constant currency basis, with adjusted EBITDA of $61 million, up 6% [18] - MRL segment revenue was flat year over year but grew 2% on a constant currency basis, with adjusted EBITDA increasing by 19% to $51 million [19] Market Data and Key Metrics Changes - Demand from the poultry industry showed a 12% year-over-year increase, continuing a recovery trend [5] - The company experienced healthy orders across diversified end markets, including meat, beverage, pharma, and pet food [5] Company Strategy and Development Direction - The company is focused on integrating its two organizations to enhance customer service and product offerings [13] - JBT Morell aims to leverage its comprehensive portfolio of solutions to support customers across the entire production value chain [15] - The company has temporarily suspended full-year financial guidance due to macroeconomic uncertainties and tariff impacts [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage near-term impacts from tariffs and macroeconomic uncertainties [7] - There is less visibility for the second half of the year due to potential slower economic growth and higher prices affecting customer investment decisions [8] - Management noted that approximately half of the company's revenue comes from resilient recurring revenue, which is beneficial in uncertain times [11] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, or $12 million to $15 million per quarter [10] - The company expects to achieve total in-year cost synergies of $35 million to $40 million in 2025, with annual run rate savings of $80 million to $90 million by the end of the year [20] Q&A Session Summary Question: Thoughts on guidance and customer behavior changes - Management indicated that the decision to pull full-year guidance was due to lack of clarity in the environment, not significant changes in customer behavior [26][28] Question: Recurring revenue impact from tariffs - Management believes that the recurring revenue component is less likely to be impacted by tariffs, as there was strong order strength in parts before tariff visibility [34] Question: Backlog and order delays - Management clarified that the backlog was affected by foreign exchange and adjustments during the integration process, with no significant cancellations reported [45] Question: Integration and demand impact - Management stated that cost synergies can continue regardless of demand changes, but material purchasing volume could be a risk in a lower demand environment [94]

JBT Marel (JBTM) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.29%. A quarter ago, it was expected that this food processing and transportation services company would post earnings of $1.80 per share when it actually produced earnings of $1.70, delivering a surprise of -5.56%.Ove ...

Financial Performance - First quarter 2025 consolidated revenue was $854 million, with over 50% generated from recurring products and services[7] - Revenue for Q1 2025 reached $854.1 million, a significant increase of 117.5% compared to $392.3 million in Q1 2024[29] - Gross profit for Q1 2025 was $292.5 million, resulting in a gross profit margin of 34.2%, down from 35.8% in Q1 2024[29] - The company reported a net loss of $173.0 million in Q1 2025, compared to a net income of $22.8 million in Q1 2024, reflecting a substantial decline[29] - Basic and diluted loss per share from continuing operations was $(3.35) in Q1 2025, compared to earnings of $0.71 in Q1 2024[29] - Adjusted EBITDA was $112 million, resulting in an adjusted EBITDA margin of 13.1%[8] - Adjusted EBITDA from continuing operations for Q1 2025 was $112.2 million, with an adjusted EBITDA margin of 13.1%[35] - Adjusted diluted earnings per share guidance for Q2 2025 is projected to be between $1.20 and $1.40[54] - Adjusted EBITDA from continuing operations for Q2 2025 is expected to be between $128.0 million and $140.0 million[57] Orders and Backlog - Quarterly orders totaled $916 million, with a backlog of $1.3 billion[8] - Inbound orders for Q1 2025 totaled $916.1 million, up from $388.5 million in Q1 2024, indicating strong demand[29] - The orders backlog increased to $1,310.5 million in Q1 2025, compared to $663.6 million in Q1 2024, suggesting future revenue growth potential[29] Costs and Expenses - The company anticipates incurring $25 - $30 million in total restructuring costs for the full year 2025, expected to generate in-year realized savings of $20 - $25 million[14] - The company plans to incur approximately $11 million in restructuring-related costs and $18 million in M&A-related costs for Q2 2025[58][60] - Research and development expenses rose to $33.6 million in Q1 2025, compared to $6.4 million in Q1 2024, highlighting increased investment in innovation[29] - The company incurred $74.4 million in M&A related costs in Q1 2025, reflecting ongoing strategic acquisitions[31] Cash Flow and Liquidity - Operating cash flow from continuing operations was $34 million, and free cash flow was $18 million[9] - Cash provided by continuing operating activities increased to $34.4 million from $10.4 million year-over-year[47] - Free cash flow (FCF) for Q1 2025 was $17.8 million, significantly up from $0.7 million in Q1 2024[47] - As of March 31, 2025, the company's liquidity was approximately $1.3 billion, providing significant flexibility for strategic initiatives[9] - Cash and cash equivalents from continuing operations decreased to $119.0 million from $479.0 million year-over-year[45] Debt and Leverage - Total debt rose to $1,987.5 million in Q1 2025, up from $1,252.1 million in Q4 2024[49] - Net debt increased to $1,886.5 million, reflecting a substantial rise from $23.7 million in Q4 2024[51] - The bank total net leverage ratio was reported at 3.2, indicating a significant increase in leverage compared to previous periods[51] Guidance and Outlook - The company has suspended its full year 2025 guidance due to macroeconomic uncertainty but provided Q2 2025 guidance instead[16] - For Q2 2025, the revenue guidance is set between $885 million and $915 million, with adjusted EPS expected to be between $1.20 and $1.40[17] - The company expects to achieve $35 - $40 million in realized cost synergies for the full year and $80 - $90 million in annualized run rate savings exiting 2025[7]

Q1 2025 Earnings Presentation May 5, 2025 FORWARD LOOKING AND NON-GAAP STATEMENTS This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT Marel's ability to control. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estim ...

Company Overview - JBT Marel (JBTM) shares increased by 7.3% to $102.51 in the last trading session, following a significant volume of shares traded, contrasting with a 23.8% loss over the past four weeks [1][2] - The price increase is attributed to the unification of JBT and Marel, enhancing operational efficiency, machine uptime, and traceability in high-volume operations [2] Earnings Expectations - The company is projected to report quarterly earnings of $0.82 per share, reflecting a year-over-year decline of 3.5%, while revenues are expected to reach $831.7 million, marking a 112% increase from the previous year [3] - The consensus EPS estimate for JBT has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - JBT is classified under the Zacks Technology Services industry, which includes other companies like Cricut, Inc. (CRCT), that experienced an 8.7% increase in their last trading session but have returned -15.1% over the past month [4] - Cricut's consensus EPS estimate has also remained unchanged, with a projected decline of 11.1% from the previous year, and it currently holds a Zacks Rank of 4 (Sell) [5]

Group 1 - JBT Marel (JBTM) has shown a year-to-date performance of approximately 4.6%, outperforming the average loss of 0.4% in the Business Services sector [4] - The Zacks Consensus Estimate for JBTM's full-year earnings has increased by 2.8% over the past three months, indicating improved analyst sentiment [4] - JBT Marel holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock in the near term [3] Group 2 - JBT Marel is part of the Technology Services industry, which consists of 151 stocks and currently ranks 64 in the Zacks Industry Rank, with an average loss of 0.9% this year [6] - In comparison, OppFi Inc. (OPFI), another stock in the Business Services sector, has achieved a year-to-date return of 26% and has a Zacks Rank of 1 (Strong Buy) [5] - The Financial Transaction Services industry, to which OppFi belongs, is ranked 146 and has seen a gain of 3.9% this year [6]

Company Performance - JBT Marel (JBTM) reported quarterly earnings of $1.70 per share, missing the Zacks Consensus Estimate of $1.80 per share, but showing an increase from $1.40 per share a year ago, resulting in an earnings surprise of -5.56% [1] - The company posted revenues of $467.6 million for the quarter ended December 2024, which was 4.62% below the Zacks Consensus Estimate, compared to $444.6 million in the same quarter last year [2] - Over the last four quarters, JBT has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Outlook - JBT shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 2.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $397.92 million, and for the current fiscal year, it is $5.65 on revenues of $1.81 billion [7] Industry Context - The Technology Services industry, to which JBT belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of JBT's stock may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]