Financial Performance - JBT Marel Corporation achieved record quarterly orders of $523 million and full year revenue of $1,716 million, representing a 3% year-over-year increase[3][5]. - Full year 2024 adjusted EBITDA was $295 million, an 8% increase, with an adjusted EBITDA margin of 17.2%, up 80 basis points[5][6]. - Revenue for Q4 2024 was $467.6 million, an increase of 5.7% from $444.6 million in Q4 2023[33]. - Gross profit margin improved to 38.4% in Q4 2024, up from 36.2% in Q4 2023[33]. - Operating income decreased to $15.7 million in Q4 2024, down from $55.1 million in Q4 2023, resulting in an operating income margin of 3.4%[33]. - The company reported a full year 2024 net loss of €25 million, impacted by unfavorable year-end adjustments of €17 million[8][10]. - The company reported a net loss of $7.0 million in Q4 2024, compared to a net income of $81.1 million in Q4 2023[33]. - Net income for the twelve months ended December 31, 2024, was $85.4 million, a decrease from $582.6 million in 2023[45]. Orders and Backlog - Marel standalone orders for 2024 totaled €1,663 million, with fourth quarter orders reaching €474 million, a 2% increase year-over-year[7][10]. - The combined JBT and Marel fourth quarter 2024 orders exceeded $1 billion, with a book-to-bill ratio of 1.11[3][4]. - Inbound orders increased to $523.1 million in Q4 2024, compared to $418.1 million in Q4 2023, indicating strong demand[33]. - Orders backlog stood at $720.5 million as of December 31, 2024, an increase from $678.2 million in 2023[33]. Cash Flow and Debt - JBT Marel's full year 2024 operating cash flow from continuing operations was $233 million, with free cash flow increasing by 20% to $199 million[6][6]. - Cash provided by continuing operating activities increased to $232.6 million from $74.2 million year-over-year[47]. - Free cash flow (FCF) for the twelve months ended December 31, 2024, was $199.3 million, compared to $166.5 million in 2023[47]. - Cash and cash equivalents rose significantly to $1,228.4 million as of December 31, 2024, compared to $483.3 million a year earlier[43]. - Total debt as of Q4 2024 was $1,252.1 million, up from $646.4 million in Q4 2023[49]. - Net debt decreased to $23.7 million in Q4 2024 from $163.1 million in Q4 2023[49]. - JBT Marel's net debt as of January 2, 2025, was approximately $1.9 billion, with a leverage ratio just below 4.0x, expected to decrease to below 3.0x by year-end 2025[14][14]. Guidance and Projections - JBT Marel's 2025 revenue guidance is set between $3,575 million and $3,650 million, with expected revenue growth of approximately 5.5% on a constant currency basis[19][21]. - Full year 2025 adjusted EPS guidance is projected to be between $5.50 and $6.10, while GAAP EPS is expected to range from $(1.30) to $(0.70)[19][20]. - Guidance for full year 2025 indicates diluted earnings per share from continuing operations will range from ($1.30) to ($0.70)[53]. - Adjusted EBITDA from continuing operations for Marel is projected to be between $560.0 million and $600.0 million for 2025[56]. - The company anticipates realizing cost synergies of $35 - $40 million in 2025, with an annual run rate of $80 - $90 million expected by the end of 2025[22]. - M&A related costs for Marel are estimated at approximately $120 million for the full year 2025[57]. Adjusted Earnings - Adjusted EBITDA for Q4 2024 was $92.1 million, representing an adjusted EBITDA margin of 19.7%[38]. - Adjusted diluted earnings per share from continuing operations for Q4 2024 was $1.70, compared to $1.40 in Q4 2023[34]. - Adjusted EBITDA from continuing operations for Marel was $216.3 million, with a total revenue of $1,778.3 million, resulting in an adjusted EBITDA margin of 12.2%[61].

Core Points - John Bean Technologies Corporation (JBT) has successfully acquired Marel hf, with 97.5% of Marel shareholders approving the deal, which is set to finalize on January 2, 2025 [1][5] - The combined entity will be named "JBT Marel Corporation" and will trade under the ticker "JBTM" on both NYSE and Nasdaq Iceland starting January 3, 2025 [2] - The merger aims to create a leading global food and beverage technology company, with expected revenues of $4 billion and an adjusted EBITDA margin exceeding 16% [6] Acquisition Details - JBT's initial offer for Marel was €3.15 per share in November 2023, which was later increased to €3.60 per share by June 2024 [3][4] - The acquisition has received necessary approvals from JBT shareholders and regulatory bodies, overcoming the final hurdle with more than 90% acceptance from Marel shareholders [5] Synergies and Financial Impact - The merger is projected to generate cost synergies exceeding $125 million within three years, driven by efficiencies in procurement, manufacturing, and administrative functions [7] - Additional revenue synergies of over $75 million are anticipated within three years, attributed to cross-selling opportunities and enhanced customer care capabilities [8] - The deal is expected to be accretive to earnings per share within the first full year post-closing [8] Stock Performance - JBT shares have increased by 33% over the past three months, outperforming the industry average growth of 11.3% [9]

Core Viewpoint - John Bean Technologies Corporation (JBT) is set to acquire Marel hf, with the transaction expected to close by January 3, 2025, following the receipt of necessary regulatory approvals [1][3][4]. Group 1: Acquisition Details - JBT announced a voluntary takeover offer for Marel on June 24, 2024, with a consideration mix of 65% stock and 35% cash, amounting to €950 million in cash for Marel shareholders [2]. - Marel shareholders will own approximately 38% of the combined entity, which will be named JBT Marel Corporation [2]. - The acquisition has received clearance from the Australian Competition and Consumer Commission and the European Commission [3]. Group 2: Financial Expectations - The merger is anticipated to generate cost synergies exceeding $125 million within three years, driven by efficiencies in procurement, manufacturing, and administrative functions [5]. - Additional revenue synergies of over $75 million are expected from cross-selling and enhanced customer care capabilities [6]. - The deal is projected to be accretive to earnings per share within the first full year post-closing [6]. Group 3: Company Strategy and Market Position - JBT's Elevate 2.0 strategy aims to drive growth and margin expansion by leveraging trends in the food and beverage processing industry [7]. - The demand for customer-centric, digitally enabled solutions is increasing, particularly in automation and sustainability [8]. - JBT reported adjusted earnings of $1.50 per share in Q3 2024, a 35.1% increase year-over-year, with revenues of $454 million, up 12.4% from the previous year [9][10]. Group 4: Stock Performance - JBT shares reached a 52-week high of $127.40 before closing at $125.01, reflecting an 18.5% increase over the past year, compared to the industry's 55% growth [1][11].

Core Viewpoint - John Bean Technologies Corporation (JBT) has received all necessary regulatory approvals to proceed with its acquisition of Marel hf, with the transaction expected to close by January 3, 2025 [1][2][3]. Transaction Details - JBT's voluntary takeover offer for Marel will expire on December 20, 2024, unless extended, and requires acceptance from at least 90% of Marel shareholders [4]. - The initial offer was €3.15 per share in November 2023, later increased to €3.40 per share in December 2023 [5]. - The overall consideration for the transaction consists of 65% stock and 35% cash, with Marel stockholders set to receive €950 million in cash and own approximately 38% of the combined entity [6]. Strategic Benefits - The merger aims to combine complementary product portfolios and advanced technologies, positioning the new entity as a leading global food and beverage technology solutions provider [7]. - Anticipated cost synergies from the merger are expected to exceed $125 million within three years, driven by efficiencies in procurement, manufacturing, and administrative functions [8]. - Additional revenue synergies of over $75 million are projected, stemming from cross-selling opportunities and enhanced customer care capabilities [9]. Market Performance - JBT's stock has increased by 21% over the past year, compared to a 59.5% growth in the industry [10].

Core Viewpoint - John Bean Technologies (JBT) reported strong Q3 2024 earnings, with adjusted earnings per share of $1.50, exceeding estimates and reflecting a 35.1% year-over-year increase [2][3]. Financial Performance - Adjusted earnings per share were $1.50, beating the Zacks Consensus Estimate of $1.41, driven by volume growth, restructuring actions, supply-chain cost savings, and lower net interest expenses [2] - Reported earnings per share from continuing operations were $1.18, compared to $0.97 in the prior year [3] - Revenues reached $454 million, a 12.4% increase from the previous year, surpassing the Zacks Consensus Estimate of $445 million [3] - Backlog from continuing operations was $698 million, up 1.3% year-over-year, while orders increased by 10.5% to $440 million [3] Margin Analysis - Cost of sales rose 12.1% year-over-year to $290 million, while gross profit increased by 13% to $164 million, resulting in a gross margin of 36.1% [4] - Selling, general and administrative expenses increased by 15.3% to $117 million, but operating profit improved by 26.8% to $47 million, with an operating margin of 10.3% [5] - Adjusted EBITDA was approximately $82 million, reflecting a year-over-year increase of 23.2%, with an adjusted EBITDA margin of 18% [5] Cash and Debt Position - Cash and cash equivalents at the end of Q3 2024 were $534.5 million, up from $483 million at the end of 2023 [6] - Total debt was reported at $648 million as of September 30, 2024, slightly up from $646 million at the end of 2023 [7] Guidance and Estimates - The company revised its 2024 income from continuing operations expectations to $116-$125 million, down from $137-$146 million [8] - Expected revenues for 2024 are projected between $1.715 billion and $1.750 billion, with adjusted EBITDA forecasted at $295-$305 million and an EBITDA margin between 17% and 17.5% [8] - Adjusted earnings per share for 2024 are anticipated to be between $5.05 and $5.35 [8] Market Sentiment - Estimates for the stock have trended downward over the past month, with a current Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [9][10]

Market Overview - The "Meat Processing Equipment World Market" report provides a comprehensive analysis of the global meat processing equipment market, focusing on various meat types, equipment types, applications, and geographic regions [1][4]. - The report includes historical and current trends, as well as future forecasts for the market value in US dollars for the years 2021, 2024, and 2030 [4]. Equipment and Applications - Meat processing requires specialized machinery for different production stages, including cutting, slicing, blending, grinding, tenderizing, dicing, smoking, and massaging [2]. - Essential equipment also includes filling and packaging machines, vacuum-sealing machines, and cooking and preserving equipment to ensure meat safety and prolong shelf life [2]. Product Types - Processed meat products encompass a variety of types, such as fresh processed meats, precooked meats, raw cooked meats, cured meats, dried meats, and raw fermented meats, each requiring distinct processing methods to meet consumer demands [3]. Market Segmentation - The report segments the market by meat type (e.g., beef, pork, mutton), equipment type (e.g., cutting/slicing, blending, grinding), application, and geographic region [6]. - Key geographic regions analyzed include North America, Europe, Asia-Pacific, South America, and the Rest of the World [5][7]. Key Market Developments - Recent advancements in the industry include improved product life and human health through the use of Pulsed Electric Field (PEF) technology in meat processing [7]. - The integration of automation and machine vision is also transforming the meat processing industry, enhancing efficiency and product quality [7]. Major Players - The report profiles several key players in the meat processing equipment market, including Apache Stainless Equipment Corporation, Biro Manufacturing Company, Duravant, and GEA Group Aktiengesellschaft, among others [6].

Revenue and Profit Growth - Revenue for Q3 2024 increased by $50.2 million (12.4%) year-over-year, driven by higher pricing and volume[100][101] - The company expects year-over-year revenue growth for 2024, supported by a strong backlog and recovery in global poultry equipment demand[97] - Total revenue for the nine months ended September 30, 2024 increased by $28.6 million (2.3%) compared to the same period in 2023, driven by higher pricing and non-recurring revenue volume[113] - Income from continuing operations increased by $14.9 million (19.5%) to $91.5 million for the nine months ended September 30, 2024, compared to the same period in 2023[121] - Income from continuing operations for Q3 2024 was $38.1 million, compared to $31.1 million in Q3 2023, representing a 22.5% increase[128] Gross Profit and Margin Improvement - Gross profit margin improved to 36.1%, up 20 basis points from 35.9% in Q3 2023, primarily due to higher pricing, volume, and cost-saving initiatives[100][102] - Gross profit margin increased by 100 bps to 35.8% for the nine months ended September 30, 2024, primarily due to higher volume, pricing, and savings from restructuring and sourcing initiatives[114] Operating Income and Expenses - Operating income rose by $9.9 million (26.8%) to $46.8 million, reflecting higher volume and cost-saving measures[100] - Selling, general, and administrative expenses increased by $15.5 million (15.3%), mainly due to $12.9 million in M&A-related costs for the Marel transaction[100][103] - Selling, general, and administrative expenses increased by $37.7 million (12.3%) for the nine months ended September 30, 2024, largely due to $32.6 million in M&A-related costs for the Marel Transaction[115] - The company plans to improve operating margins by 200 basis points through supply chain and strategic sourcing initiatives[94] Adjusted EBITDA and Earnings - Adjusted EBITDA increased by $15.4 million (23.2%) to $81.7 million, driven by higher gross profit[100][109] - Adjusted EBITDA increased by $10.7 million (5.6%) to $202.8 million for the nine months ended September 30, 2024, driven by higher gross profit[121] - Adjusted diluted earnings per share from continuing operations for Q3 2024 was $1.50, up from $1.11 in Q3 2023, a 35.1% increase[128] Interest Income and Expense - Interest income increased by $1.3 million (28.3%) due to cash on hand from the AeroTech business sale[106] - Interest expense decreased by $1.4 million (25.5%) due to a lower average debt balance and interest rate[107] - Interest income increased by $10.6 million (158.2%) for the nine months ended September 30, 2024, driven by cash on hand from the sale of AeroTech[117] - Interest expense decreased by $10.1 million (47.6%) for the nine months ended September 30, 2024, due to a lower average debt balance and weighted average interest rate[118] Discontinued Operations - Income from discontinued operations for the three months ended September 30, 2024 was $0.8 million, compared to $410.5 million in the same period in 2023, which included a $444.1 million gain from the sale of AeroTech[110] - Income from discontinued operations for the nine months ended September 30, 2024 was $0.9 million, compared to $424.9 million in 2023, which included a $444.1 million gain from the sale of AeroTech[122] Cash Flow and Liquidity - Free cash flow for the nine months ended September 30, 2024 was $79.2 million, compared to $61.8 million in the same period in 2023, a 28.2% increase[129] - Operating cash flows from continuing operations for the nine months ended September 30, 2024 was $103.9 million, an 8.7% increase compared to the same period in 2023[133] - As of September 30, 2024, the company had $534.5 million of cash and cash equivalents, with $44.5 million held by foreign subsidiaries[135] - The company expects an adverse impact of approximately $9 million to cash from continuing operations in 2024 due to changes in U.S. tax law regarding R&D expenditures[137] Debt and Financing - The company secured a 5-year, $1.8 billion revolving credit facility and a 7-year, $900 million Senior Secured Term Loan B in October 2024[141] - The company entered into a Bridge Credit Agreement for €1.9 billion in April 2024, which will be used to fund the Marel Transaction[144] - The company closed a private offering of $402.5 million in 0.25% Convertible Senior Notes due 2026, with net proceeds of approximately $392.2 million[145] - The company's total outstanding debt as of September 30, 2024, is $652.5 million, effectively fixed rate debt with the Convertible Senior Notes at 0.25% and the revolving credit facility at an average fixed rate of 0.76%[146] Pension and Tax - Pension expense, excluding service cost, increased by $0.8 million due to lower expected returns on pension assets[105] - The company's tax rate from continuing operations decreased to 13.5% for the nine months ended September 30, 2024, compared to 18.8% in 2023, due to a $9.2 million non-recurring deferred tax benefit[119] Restructuring and Cost Savings - Cumulative savings from the 2022/2023 restructuring plan as of September 30, 2024 was $18.8 million, with an additional $1.0 million expected in the remainder of 2024[131] Marel Transaction Costs - The company expects to incur approximately $40 million of pre-close transaction costs related to the Marel Transaction during 2024[134] Interest Rate Swaps - The company has four interest rate swaps with a combined notional amount of $200 million expiring in April 2025 and one swap with a notional amount of $50 million expiring in May 2025[146] Accounting and Market Risks - No material changes in the company's critical accounting estimates during the period ended September 30, 2024[147] - No material changes in reported market risks from the information reported in the Annual Report on Form 10-K for the year ended December 31, 2023[148]

Financial Data and Key Metrics - Revenue for Q3 2024 was $454 million, a 12.4% year-over-year increase [3] - Adjusted EBITDA for Q3 2024 was $82 million, a 23% year-over-year increase, with an adjusted EBITDA margin of 18%, up 160 basis points [4] - Adjusted EPS for Q3 2024 was $1.50, compared to $1.11 in the prior year [4] - Free cash flow for the trailing 12 months as of September 30th was $184 million [4] - Full-year guidance for revenue growth remains at 3% to 5%, with adjusted EBITDA growth of 10% at the midpoint [3] Business Line Performance - Orders totaled $440 million in Q3 2024, a 10% increase year-over-year, driven by recovery in the poultry end market and healthy demand in pet food, food, vegetable, and pharma markets [8] - The Automated Guided Vehicle (AGV) business posted record sales and orders, with revenue expected to exceed $150 million for the year, growing over 30% [15] - AGV margins are above the company's guidance range of 17% to 17.5%, targeting 20%+ for the year [15] Market Performance - Geographically, order activity improved in Asia and Europe, with North America also showing good momentum [9] - The poultry market showed recovery globally, with North America seeing an incremental $10 million to $15 million in orders compared to Q2 2024 [23][25] - Asia and Europe also saw improvements in poultry orders, with Asia showing investments in full-line solutions [25] Strategic Direction and Industry Competition - The company is focusing on integrating with Marel, with regulatory approvals nearing completion, including a 25-day review period by the European Commission [12][27] - The merger with Marel is expected to close by the end of 2024, with financing secured through a $900 million Term Loan B and an expanded revolving credit facility to $1.8 billion [6][7] - The AGV business is transitioning to a subscription model, which is expected to drive recurring revenue growth [11] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the full-year guidance, citing strong backlog and operational performance [3][4] - The poultry market recovery is expected to continue, with visibility into projects for the next 18 to 24 months [19][20] - Labor availability has improved, but automation remains a key focus, especially in the context of potential immigration policy changes [22] Other Important Information - The company plans to settle all outstanding obligations of its pension plan, incurring $30 million in non-cash pretax charges in Q4 2024 and an additional $145 million in Q1 2025 [5] - The AGV business is benefiting from investments in R&D, product standardization, and a shift to larger, scalable projects [10][11] Q&A Session Summary Question: AGV Business Size and Margins - The AGV business is expected to exceed $150 million in revenue for the year, with margins above the company's guidance range, targeting 20%+ [15] Question: Poultry Market Recovery - The poultry market is recovering, with North America seeing incremental orders of $10 million to $15 million compared to Q2 2024, and Asia and Europe also showing improvements [23][25] Question: Impact of Immigration Policies on Automation - Management noted that tighter immigration controls could drive demand for automation solutions, particularly in manual processes like cut-up lines [22] Question: Synergy Targets with Marel - The company remains confident in achieving $125 million in synergies from the Marel merger, with potential for further margin improvements from volume recovery [29][30] Question: Aftermarket Sales Growth - Aftermarket sales grew 5% in the quarter, with initiatives focused on on-time delivery, digital offerings, and optimizing the service network [34][36]

| --- | --- | --- | --- | |-----------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | Q3 2024 Earnings | | | | | Presentation | | | | | O c t o b e r 2 2 , 2 0 2 4 | | | | Forward-Looking and Non-GAAP Statements 2 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's ability to co ...

John Bean Technologies Corporation (JBT) reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41. Volume growth, gains from the company’s restructuring actions and supply-chain cost savings, and lower net interest expenses were instrumental in driving the results in the quarter. On a reported basis, the company’s earnings per share (from continuing operations) were $1.18 compared with the prior-year ...