John Bean Technologies(US:JBT)2025-05-05 18:33Revenue 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]