[Executive Summary & Highlights](index=1&type=section&id=Executive_Summary_Highlights) [Second Quarter 2025 Performance Overview](index=1&type=section&id=Q2_2025_Performance_Overview) JBT Marel Corporation reported strong second-quarter 2025 results, exceeding guidance, driven by better-than-expected recurring revenue and favorable foreign exchange - Achieved quarterly orders of **$938 million** and quarter-ending backlog of **$1.4 billion**[6](index=6&type=chunk) - Revenue totaled **$935 million** with more than half generated from recurring revenue[6](index=6&type=chunk) - Income from continuing operations was **$3 million**, and adjusted EBITDA was **$156 million**[6](index=6&type=chunk) - Realized **$8 million** in year-over-year synergy savings from integration efforts related to operating expense and supply chain[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management_Commentary) CEO Brian Deck highlighted outperformance due to recurring revenue and favorable FX, re-establishing full-year guidance with clarity on tariffs and strong backlog. CFO Matt Meister emphasized strong cash flow and working capital management enabling significant deleveraging post-Marel acquisition - CEO Brian Deck: "We are pleased with our second quarter results, which exceeded our guidance, reflecting our ability to navigate a dynamic operating environment and manage the integration of two global businesses." Outperformance was primarily driven by better than expected recurring revenue and favorable foreign exchange translation[4](index=4&type=chunk) - CEO Brian Deck: "We are re-establishing full year 2025 guidance given greater clarity around tariff policies and further supported by the strength of our backlog"[4](index=4&type=chunk) - CFO Matt Meister: "Our strong cash flow, which was supported by working capital management and customer deposits, allowed us to de-lever our balance sheet to just below **3.4x** net debt to trailing twelve months pro forma adjusted EBITDA"[5](index=5&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second_Quarter_2025_Financial_Results) [Consolidated Financial Performance](index=1&type=section&id=Consolidated_Financial_Performance) JBT Marel reported Q2 2025 consolidated revenue of **$935 million**, significantly up from Q2 2024, with a net income of **$3.4 million**. The results were influenced by foreign exchange benefits and higher recurring revenue, but also by substantial acquisition-related and M&A costs [Income Statement Highlights](index=2&type=section&id=Income_Statement_Highlights) | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | YoY Change (%) | | :--------------------------------- | :------------------- | :------------------- | :------------- | | Revenue | 934.8 | 402.3 | 132.4% | | Gross profit | 334.2 | 143.2 | 133.4% | | Gross profit margin | 35.8% | 35.6% | +0.2 pp | | Operating income | 48.4 | 26.8 | 80.6% | | Operating income margin | 5.2% | 6.7% | -1.5 pp | | Income (loss) from continuing operations | 3.4 | 30.7 | -88.9% | | Diluted EPS | 0.07 | 0.95 | -92.6% | - Q2 2025 consolidated revenue of **$935 million** included approximately **$21 million** in year-over-year foreign exchange translation benefit, which was approximately **$8 million** higher than expectations. Additionally, the Company exceeded its recurring revenue expectations by approximately **$25 million**[7](index=7&type=chunk) - Net income from continuing operations of **$3 million** included **$58 million** in acquisition related amortization and depreciation expense, **$20 million** in M&A related costs, an **$11 million** loss on investment related to an impairment charge from a joint-venture, and **$6 million** in restructuring related costs[7](index=7&type=chunk) [Adjusted Non-GAAP Metrics](index=2&type=section&id=Adjusted_Non-GAAP_Metrics) | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | YoY Change (%) | | :-------------------------- | :------------------- | :------------------- | :------------- | | Adjusted EBITDA | 156.2 | 63.7 | 145.2% | | Adjusted EBITDA margin | 16.7% | 15.8% | +0.9 pp | | Adjusted diluted EPS | 1.49 | 1.31 | 13.7% | [Segment Performance](index=2&type=section&id=Segment_Performance) In Q2 2025, the JBT segment generated **$454.6 million** in revenue with an adjusted EBITDA margin of **18.0%**, while the Marel segment contributed **$480.2 million** in revenue with an adjusted EBITDA margin of **15.5%** | Segment | Revenue (Millions $) | Adjusted EBITDA (Millions $) | Adjusted EBITDA Margin (%) | | :------ | :------------------- | :--------------------------- | :------------------------- | | JBT | 454.6 | 81.7 | 18.0% | | Marel | 480.2 | 74.5 | 15.5% | | Total | 934.8 | 156.2 | 16.7% | [Synergy Achievements](index=2&type=section&id=Synergy_Achievements) JBT Marel realized **$8 million** in year-over-year synergy savings in Q2 2025, with **$5 million** from operating expenses and **$3 million** from supply chain improvements. The company remains on track to achieve its full-year synergy targets of **$35 - $40 million** in-year and **$80 - $90 million** annualized run rate savings - Realized year-over-year synergy savings of **$5 million** in operating expense and an additional **$3 million** in supply chain for Q2 2025, totaling **$8 million**[12](index=12&type=chunk) - JBT Marel remains on track to deliver expected in-year realized synergy savings of **$35 - $40 million** and annualized run rate savings of **$80 - $90 million** exiting 2025[11](index=11&type=chunk) - Incurred **$6 million** in restructuring costs and **$20 million** in M&A related costs during the second quarter of 2025[12](index=12&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance_Sheet_and_Liquidity) As of June 30, 2025, JBT Marel reported total assets of **$8,252.6 million** and total liabilities of **$3,877.7 million**. The company's liquidity was approximately **$1.3 billion**, and the bank leverage ratio was **2.8x**, with net debt to trailing twelve months pro forma adjusted EBITDA just below **3.4x**, demonstrating significant deleveraging | Metric | June 30, 2025 (Millions $) | December 31, 2024 (Millions $) | | :------------------------------------ | :------------------------- | :--------------------------- | | Total Assets | 8,252.6 | 3,413.8 | | Total Liabilities | 3,877.7 | 1,869.6 | | Total Stockholders' Equity | 4,374.9 | 1,544.2 | | Cash and cash equivalents | 111.8 | 1,228.4 | | Total debt | 1,921.5 | 1,252.1 | | Net debt | 1,809.7 | 23.7 | - The Company's liquidity as of June 30, 2025, was approximately **$1.3 billion**[9](index=9&type=chunk) - The Company's bank leverage ratio was **2.8x**, which includes the benefit of certain run rate synergies. Net debt to trailing twelve months pro forma adjusted EBITDA was just below **3.4x**[9](index=9&type=chunk)[48](index=48&type=chunk) [Cash Flow Analysis](index=2&type=section&id=Cash_Flow_Analysis) Year-to-date operating cash flow from continuing operations was **$137 million**, and free cash flow was **$106 million**. The company used significant cash for acquisitions but generated positive operating cash flow, reflecting strong working capital management | Metric | Six Months Ended June 30, 2025 (Millions $) | Six Months Ended June 30, 2024 (Millions $) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Cash provided by continuing operating activities | 136.6 | 32.0 | | Cash required by continuing investing activities | (1,780.1) | (22.7) | | Cash provided (required) by continuing financing activities | 543.4 | (16.4) | | Free cash flow (FCF) | 105.8 | 13.5 | [Full Year 2025 Outlook & Guidance](index=2&type=section&id=Full_Year_2025_Outlook_Guidance) [Re-established Full Year Guidance](index=3&type=section&id=Re-established_Full_Year_Guidance) JBT Marel re-established its full-year 2025 guidance, anticipating revenue between **$3,675 million** and **$3,725 million**, with adjusted EBITDA margin projected at **15.25% - 16.0%**. GAAP EPS is expected to be negative, while adjusted EPS is projected to be **$5.45 - $6.15** | Metric | FY 2025 Guidance | | :-------------------------------- | :------------------- | | Revenue | $3,675 - $3,725 | | Income from continuing operations margin | (2.7%) - (1.7%) | | Adjusted EBITDA margin | 15.25% - 16.0% | | GAAP EPS | ($1.90) - ($1.20) | | Adjusted EPS | $5.45 - $6.15 | [Key Guidance Assumptions and Adjustments](index=3&type=section&id=Key_Guidance_Assumptions_Adjustments) The full-year 2025 guidance incorporates an estimated **$20 - $30 million** in net costs from tariffs, an expected mix of equipment versus recurring revenue, continued synergy realization, updated net interest expense, and favorable foreign exchange translation impact. It also accounts for significant one-time and acquisition-related costs - The guidance for the second half of 2025 reflects an additional **$20 - $30 million** in estimated net costs from tariffs[13](index=13&type=chunk) - Full year 2025 revenue will include an approximate **$70 - $85 million** year-over-year tailwind from foreign exchange translation[16](index=16&type=chunk) - Expected one-time and acquisition related costs for FY 2025 include approximately **$25 million** in restructuring costs; **$105 million** in M&A related costs; **$195 million** in acquisition related amortization and depreciation; **$147 million** in non-cash, pre-tax charges related to the final settlement of the U.S. pension plan; and **$11 million** in loss on investment[17](index=17&type=chunk) - Net interest expense is anticipated to be **$105 - $110 million**, which includes **$12 million** in M&A bridge financing fees and related costs[18](index=18&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company_Information_Disclosures) [About JBT Marel Corporation](index=4&type=section&id=About_JBT_Marel_Corporation) JBT Marel Corporation is a leading global technology solutions provider for high-value segments of the food & beverage industry, formed by combining JBT and Marel. The company designs, manufactures, and services cutting-edge technology, systems, and software to optimize food yield, efficiency, safety, and quality, while reducing waste. It operates in over 30 countries - JBT Marel Corporation is a leading global technology solutions provider to high-value segments of the food & beverage industry, bringing together the complementary strengths of both JBT and Marel organizations[21](index=21&type=chunk) - Provides a unique and holistic solutions offering by designing, manufacturing, and servicing cutting-edge technology, systems, and software for a broad range of food and beverage end markets[21](index=21&type=chunk) - Aims to create better outcomes for customers by optimizing food yield and efficiency, improving food safety and quality, and enhancing uptime and proactive maintenance, all while reducing waste and resource use across the global food supply chain[21](index=21&type=chunk) [Non-GAAP Measures Explanation](index=4&type=section&id=Non-GAAP_Measures_Explanation) JBT Marel uses non-GAAP financial measures such as Adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, and free cash flow to provide greater transparency into operating results and trends. These measures exclude certain costs or benefits to offer a more meaningful comparison of ongoing operating results, consistent with management's evaluation of performance - Adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, and free cash flow are non-GAAP financial measures provided to increase transparency in operating results and trends[22](index=22&type=chunk) - These non-GAAP measures eliminate certain costs or benefits from, or change the calculation of, a measure as calculated under U.S. GAAP to provide a more meaningful comparison of ongoing operating results[22](index=22&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking_Statements) The release contains forward-looking statements subject to risks and uncertainties beyond JBT Marel's control. These include risks related to the integration of JBT and Marel, fluctuations in financial results, changes in tariffs, economic conditions, supply chain issues, inflation, geopolitical disruptions, currency fluctuations, and other factors detailed in SEC filings - This release contains forward-looking statements subject to risks and uncertainties that are beyond JBT Marel's ability to control[23](index=23&type=chunk) - Factors that could cause actual results to differ materially include the inability to successfully integrate the legacy businesses of JBT and Marel, fluctuations in financial results, changes to tariffs, deterioration of economic conditions, inflationary pressures, and disruptions in political, regulatory, economic and social conditions[23](index=23&type=chunk) [Investor Relations Contact](index=5&type=section&id=Investor_Relations_Contact) Investors and media can contact Marlee Spangler for inquiries - For investor and media inquiries, contact Marlee Spangler at JBTMarel.IR@jbtc.com or +1 (312) 861-5784[25](index=25&type=chunk) [Supplemental Financial Information](index=6&type=section&id=Supplemental_Financial_Information) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed_Consolidated_Statements_of_Income) This section presents the unaudited condensed consolidated statements of income for the three and six months ended June 30, 2025, and 2024, detailing revenue, cost of sales, gross profit, operating expenses, and net income (loss) from continuing operations | Metric | Three Months Ended June 30, 2025 (Millions $) | Three Months Ended June 30, 2024 (Millions $) | Six Months Ended June 30, 2025 (Millions $) | Six Months Ended June 30, 2024 (Millions $) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenue | 934.8 | 402.3 | 1,788.9 | 794.6 | | Cost of sales | 600.6 | 259.1 | 1,162.2 | 511.1 | | Gross profit | 334.2 | 143.2 | 626.7 | 283.5 | | Operating income | 48.4 | 26.8 | 15.0 | 55.9 | | Income (loss) from continuing operations | 3.4 | 30.7 | (169.6) | 53.4 | | Net income (loss) | 3.4 | 30.7 | (169.6) | 53.5 | | Diluted earnings per share | 0.07 | 0.95 | (3.27) | 1.66 | | Inbound orders | 937.7 | 437.1 | 1,853.8 | 825.6 | | Orders backlog | N/A | N/A | 1,393.7 | 697.2 | [Non-GAAP Reconciliation of Diluted EPS to Adjusted Diluted EPS](index=7&type=section&id=Non-GAAP_Reconciliation_Diluted_EPS_Adjusted_Diluted_EPS) This table provides a reconciliation of GAAP diluted earnings per share from continuing operations to adjusted diluted earnings per share for recent quarters, highlighting adjustments for restructuring costs, M&A related costs, loss on investment, amortization of bridge financing, acquisition-related amortization and depreciation, and pension plan settlement costs | Metric | Q2 2025 (Millions $) | Q1 2025 (Millions $) | Q4 2024 (Millions $) | Q3 2024 (Millions $) | Q2 2024 (Millions $) | | :------------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Income (loss) from continuing operations | 3.4 | (173.0) | (6.9) | 38.1 | 30.7 | | Non-GAAP adjustments (total) | 74.3 | 280.0 | 76.3 | 18.8 | 18.2 | | Adjusted income from continuing operations | 77.7 | 50.3 | 63.4 | 56.7 | 42.1 | | Diluted earnings per share from continuing operations | 0.07 | (3.35) | (0.21) | 1.18 | 0.95 | | Adjusted diluted earnings per share from continuing operations | 1.49 | 0.97 | 1.97 | 1.76 | 1.31 | [Non-GAAP Reconciliation of Income from Continuing Operations to Adjusted EBITDA](index=8&type=section&id=Non-GAAP_Reconciliation_Income_Continuing_Operations_Adjusted_EBITDA) This table reconciles GAAP income (loss) from continuing operations to Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024, detailing adjustments for income tax, interest expense, other financing income, loss on investment, pension expense, restructuring costs, M&A costs, and depreciation and amortization | Metric | Three Months Ended June 30, 2025 (Millions $) | Three Months Ended June 30, 2024 (Millions $) | Six Months Ended June 30, 2025 (Millions $) | Six Months Ended June 30, 2024 (Millions $) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Income (loss) from continuing operations | 3.4 | 30.7 | (169.6) | 53.4 | | Income tax provision (benefit) | 7.9 | (3.3) | (38.3) | 4.8 | | Interest expense (income), net | 29.0 | (1.6) | 70.0 | (4.4) | | Depreciation and amortization | 82.5 | 22.2 | 143.1 | 44.3 | | Adjusted EBITDA from continuing operations | 156.2 | 63.7 | 268.4 | 121.1 | | Adjusted EBITDA margin | 16.7% | 15.8% | 15.0% | 15.2% | [Segment Results (Detailed Table)](index=8&type=section&id=Segment_Results_Detailed_Table) This table provides detailed segment revenue, adjusted EBITDA, and adjusted EBITDA margin for the JBT and Marel segments for the three and six months ended June 30, 2025 | Segment | Three Months Ended June 30, 2025 Revenue (Millions $) | Three Months Ended June 30, 2025 Adjusted EBITDA (Millions $) | Three Months Ended June 30, 2025 Adjusted EBITDA Margin (%) | Six Months Ended June 30, 2025 Revenue (Millions $) | Six Months Ended June 30, 2025 Adjusted EBITDA (Millions $) | Six Months Ended June 30, 2025 Adjusted EBITDA Margin (%) | | :------ | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | JBT | 454.6 | 81.7 | 18.0% | 863.4 | 142.4 | 16.5% | | Marel | 480.2 | 74.5 | 15.5% | 925.5 | 126.0 | 13.6% | | Total | 934.8 | 156.2 | 16.7% | 1,788.9 | 268.4 | 15.0% | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed_Consolidated_Balance_Sheets) This section presents the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | Metric | June 30, 2025 (Millions $) | December 31, 2024 (Millions $) | | :------------------------------------------ | :------------ | :---------------- | | Total Assets | 8,252.6 | 3,413.8 | | Total Current Assets | 1,529.0 | 1,863.3 | | Property, plant and equipment, net | 803.7 | 233.7 | | Goodwill | 3,101.8 | 769.1 | | Intangible assets, net | 2,571.0 | 340.9 | | Total Current Liabilities | 1,643.7 | 535.5 | | Long-term debt, less current portion | 1,511.3 | 1,252.1 | | Total Stockholders' Equity | 4,374.9 | 1,544.2 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) This section provides the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025, and 2024, outlining cash flows from operating, investing, and financing activities | Metric | Six Months Ended June 30, 2025 (Millions $) | Six Months Ended June 30, 2024 (Millions $) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Cash provided by continuing operating activities | 136.6 | 32.0 | | Cash required by continuing investing activities | (1,780.1) | (22.7) | | Cash provided (required) by continuing financing activities | 543.4 | (16.4) | | Net decrease in cash from continuing operations | (1,100.1) | (7.1) | | Cash, cash equivalents and restricted cash from continuing operations, end of period | 130.0 | 474.3 | [Free Cash Flow Reconciliation](index=11&type=section&id=Free_Cash_Flow_Reconciliation) This table reconciles cash provided by continuing operating activities to free cash flow for the six months ended June 30, 2025, and 2024, adjusting for capital expenditures, proceeds from asset disposal, and pension contributions | Metric | Six Months Ended June 30, 2025 (Millions $) | Six Months Ended June 30, 2024 (Millions $) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Cash provided by continuing operating activities | 136.6 | 32.0 | | Less: capital expenditures | 38.5 | 21.0 | | Plus: proceeds from disposal of assets | 4.5 | 0.9 | | Plus: pension contributions | 3.2 | 1.6 | | Free cash flow (FCF) | 105.8 | 13.5 | [Net Debt and Leverage Ratios](index=12&type=section&id=Net_Debt_Leverage_Ratios) This section provides the calculation of net debt and bank total net leverage ratio as of Q2 2025, showing total debt, cash, and adjustments for credit agreement definitions | Metric | Q2 2025 (Millions $) | Q4 2024 (Millions $) | Q2 2024 (Millions $) | | :------------------------------------------ | :------ | :------ | :------ | | Total debt | 1,921.5 | 1,252.1 | 647.6 | | Less: cash and marketable securities | 111.8 | 1,228.4 | 474.3 | | Net debt | 1,809.7 | 23.7 | 173.3 | | Bank total net leverage ratio | 2.84 | N/A | N/A | | Total net debt to trailing twelve months pro forma adjusted EBITDA | 3.39 | N/A | N/A | [Guidance Reconciliations](index=13&type=section&id=Guidance_Reconciliations) This section provides reconciliations for the full year 2025 guidance, detailing adjustments from GAAP diluted EPS to adjusted diluted EPS guidance and from (loss) from continuing operations to adjusted EBITDA guidance | Metric | Full Year 2025 Guidance | | :------------------------------------------ | :---------------------- | | Diluted earnings per share from net income | ($1.90) - ($1.20) | | Non-GAAP adjustments (total) | 7.31 | | Adjusted diluted earnings per share from net income | $5.45 - $6.15 | | (Loss) from continuing operations | ($100) - ($65) | | Adjusted EBITDA from continuing operations | $560 - $595 | | Adjusted EBITDA margin | 15.25% - 16.0% |

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: JBT Marel (JBTM) - JBT Marel currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price appreciation, with a 5.17% increase over the past week and a 15.55% increase over the past month, outperforming the Zacks Technology Services industry [5] - Over the last quarter, JBTM shares have risen 35.45%, and over the past year, they have increased by 42.65%, compared to the S&P 500's gains of 15.97% and 18.37% respectively [6] Trading Volume - JBTM's average 20-day trading volume is 448,092 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions have been positive, with two estimates moving higher in the last two months, raising the consensus estimate from $5.69 to $5.84 [9] - For the next fiscal year, one estimate has increased while no estimates have been revised downward, indicating a favorable outlook [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, JBT Marel is positioned as a promising investment opportunity [11]

Company Overview - JBT Marel (JBTM) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.27, reflecting a +21% change, and revenues anticipated at $898.77 million, which is up 123.4% from the previous year [3][12]. Earnings Expectations - The consensus EPS estimate has been revised 9.29% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The upcoming earnings report is scheduled for August 4, and the stock may react positively if the actual results exceed expectations [2][12]. Earnings Surprise Prediction - JBT has an Earnings ESP of +0.59%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The company holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, increases the probability of an earnings surprise [10][12]. Historical Performance - In the last reported quarter, JBT exceeded the expected EPS of $0.82 by delivering $0.97, resulting in a surprise of +18.29% [13]. - Over the past four quarters, JBT has beaten consensus EPS estimates two times [14]. Industry Comparison - Mirion Technologies, another player in the Zacks Technology Services industry, is expected to report an EPS of $0.1, indicating no change from the previous year, with revenues projected at $213.9 million, up 3.3% [18]. - Mirion Technologies has an Earnings ESP of 0% and a Zacks Rank of 2 (Buy), making it challenging to predict an earnings beat [19].

Company Overview - JBT Marel is part of the Business Services group, which consists of 258 companies and currently ranks 7 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, JBT Marel has increased by approximately 6.6%, outperforming the average gain of 2.1% for Business Services stocks [4] - In comparison, Mirion Technologies, Inc. has shown a significant return of 24.6% since the beginning of the year [4] Earnings Estimates - The Zacks Consensus Estimate for JBT Marel's full-year earnings has risen by 1% over the past quarter, reflecting improved analyst sentiment [3] - In contrast, Mirion Technologies, Inc. has seen a 12.5% increase in its consensus EPS estimate over the last three months [5] Industry Context - JBT Marel operates within the Technology Services industry, which includes 122 companies and currently ranks 85 in the Zacks Industry Rank [6] - Stocks in the Technology Services industry have gained about 12.3% year-to-date, indicating that JBT Marel is slightly underperforming its industry [6] Future Outlook - Investors are encouraged to monitor JBT Marel and Mirion Technologies, Inc. for potential continued strong performance in the Business Services sector [7]

Technical Analysis - JBT Marel Corporation (JBTM) has reached a key level of support, indicated by a "golden cross" where the 50-day simple moving average has crossed above the 200-day simple moving average [1][2] - A golden cross is a bullish chart pattern that suggests a potential breakout, typically involving the 50-day and 200-day moving averages [2] Market Performance - Over the past four weeks, JBTM has gained 11.3%, indicating positive momentum in the stock [4] - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [4] Earnings Outlook - JBTM has a positive earnings outlook for the current quarter, with one upward revision in earnings estimates over the past 60 days and no downward revisions [4] - The Zacks Consensus Estimate for JBTM has also increased, reinforcing the bullish sentiment around the stock [4][5]

Annual Stockholder Meeting Overview - The JBT Marel Corporation's annual stockholder meeting will be held virtually on May 15 [2] - Stockholders can vote shares listed on Nasdaq Iceland via the Lumi platform by May 8 at 23:59 GMT [2] - Shareholders with NYSE-listed shares should follow instructions from their banks or brokers [2] Proposals for Voting - Proposal 1 involves the re-election of Alan D Feldman, Lawrence V Jackson, and Ann E Savage as Directors for a one-year term [5] - Proposal 2 is a non-binding advisory vote on executive compensation [5] - Proposal 3 seeks stockholder ratification of the Audit Committee's reappointment of PwC as the company's independent registered public accounting firm for 2025 [5] Executive Compensation - The CEO's compensation mix includes 16% base salary, 17% performance-based cash MIP, 40% performance-based LTIP, and 27% time-based LTIP, with 84% at-risk compensation [22] - For other NEOs, the compensation mix includes 34% base salary, 22% performance-based cash MIP, 27% performance-based LTIP, and 17% time-based LTIP, with 66% at-risk compensation [27] - The company targets the 50th percentile or median level of the market for all elements of executive officer compensation [19] ESG Strategy - JBT Marel aims to support a sustainable food supply chain through its solutions [16]

Company Overview - JBT Marel has a market capitalization of approximately $6.2 billion as of May 16, 2025 [7] - The combined 2024 revenue for JBT and Marel is approximately $3.5 billion [7] - Approximately 50% of the company's revenue is recurring, and 50% is non-recurring [8] Strategic Rationale & Synergies - The company anticipates achieving $150 million in cost synergies by the end of year 3 post-transaction close [34] - The company expects to generate revenue synergies exceeding $75 million by the end of the third year post-close [30] Market Trends & Growth - The global protein consumption is expected to grow at a low-to-mid-single-digit CAGR from 2023 to 2027 [20] - The global convenience food market is forecasted to grow at a mid-single-digit+ CAGR from 2022 to 2027 [20] - The global ready-to-drink beverage market is estimated to grow at a mid-single-digit CAGR from 2024 to 2029 [20] - The global pet food market is expected to grow at a mid-single-digit CAGR from 2023 to 2027 [21] Cost Synergies Breakdown - Approximately $80 million in cost of goods sold synergies are anticipated through supplier consolidation, best cost country sourcing, and logistics efficiencies [35] - Approximately $70 million in operating expense synergies are expected through streamlining organizational structure and optimizing consolidated spend [35]

Core Insights - The stainless steel rice roll machinery market is undergoing significant transformation due to technological advancements and changing consumer preferences, particularly in the context of street food culture and demand for freshly prepared rice rolls [2][9] Technological Advancements and Market Dynamics - The market has experienced notable innovations such as automation and energy-efficient systems, with manufacturers offering modular designs for customization [3][11] - Smart sensors and predictive maintenance tools are enhancing energy efficiency and operational reliability, while regulatory shifts are pushing for high-grade stainless steel for sanitation [3][11] Market Segmentation Insights - The market is segmented by machine types, end users, distribution channels, capacity ranges, power ratings, and material grades, catering to diverse performance expectations [4][7] Regional Dynamics and Distribution - Consumer behaviors and regulatory frameworks vary by region, influencing distribution trends; North America is seeing increased demand due to health-conscious dining, while Europe and the Middle East & Africa focus on hygiene regulations [5][6] - The Asia-Pacific region benefits from high rice consumption and digital integration, prompting manufacturers to establish localized production and partnerships [5] Competitive Landscape and Key Players - Leading companies are focusing on technological differentiation and R&D for energy-efficient systems, with strategic alliances enhancing access to quality materials [6][11] - Notable players include GEA Group Aktiengesellschaft, Buhler Holding AG, and The Middleby Corporation, which are expanding their product portfolios through mergers and acquisitions [6][12] Navigating Tariff Dynamics - Revised U.S. tariffs have impacted trade dynamics, increasing costs for imported equipment and prompting manufacturers to explore alternative production locations [7][8] - Domestic manufacturers are strengthening their market positions in response to these protective measures, although short-term demand may be affected by higher costs [7][8]

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]