Financial Data and Key Metrics Changes - JBT Morell's first quarter 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 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, a 6% increase [18] - MRL segment revenue was flat year over year but grew 2% on a constant currency basis, with adjusted EBITDA of $51 million, a 19% increase [19] Market Data and Key Metrics Changes - Demand from the poultry industry continued to recover, contributing to a 12% year-over-year increase in orders [6] - The company experienced broad-based strength across global regions, with healthy orders in meat, beverage, pharma, and pet food [6] Company Strategy and Development Direction - The company is focused on integrating its operations to enhance service capabilities and product offerings, positioning itself as a leader in sustainable food solutions [15] - JBT Morell aims to leverage its global footprint and available capacity to manage tariff impacts and maintain competitive positioning [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and tariff impacts, noting that approximately half of the revenue comes from resilient recurring sources [11] - The company has temporarily suspended full-year financial guidance due to uncertainties but provided second-quarter guidance reflecting strong competitive positioning [21] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, with efforts underway to mitigate these costs [10] - The company is on track to achieve targeted cost synergies of $150 million by the end of 2027 [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, with no significant changes in customer behavior noted [26][28] Question: Differences in customer behavior between U.S. and international markets - Management noted ongoing conversations regarding equipment pricing and potential shifts in manufacturing locations due to tariffs, but demand remains strong [30][33] Question: Impact of tariffs on recurring revenue - Management believes that recurring revenue will remain strong, with no significant pullback observed in parts orders [35] Question: Details on backlog and order delays - Management clarified that backlog figures may differ due to foreign exchange impacts and adjustments during the integration process, with no cancellations reported [45] Question: Insights on fish market performance - Management noted challenges in the white fish market but highlighted improvements in the salmon industry, indicating a positive outlook for production growth [62][65]

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]

Core Insights - JBT Marel (JBTM) reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, and up from $0.85 per share a year ago, representing an earnings surprise of 18.29% [1] - The company posted revenues of $854.1 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.69%, and significantly up from $392.3 million year-over-year [2] - JBT shares have declined approximately 15.7% since the beginning of the year, compared to a 3.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.25 on revenues of $880.7 million, and for the current fiscal year, it is $5.78 on revenues of $3.6 billion [7] - The estimate revisions trend for JBT is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which JBT belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting that companies in the top half of the Zacks-ranked industries tend to outperform those in the bottom half by more than 2 to 1 [8]

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]

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]