John Bean Technologies(JBT) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 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] - Revenue totaled $935 million with more than half generated from recurring revenue[6] - Income from continuing operations was $3 million, and adjusted EBITDA was $156 million[6] - Realized $8 million in year-over-year synergy savings from integration efforts related to operating expense and supply chain[6] 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] - 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] - 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] Second Quarter 2025 Financial Results 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 | 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] - 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] 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 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 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] - 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] - Incurred $6 million in restructuring costs and $20 million in M&A related costs during the second quarter of 2025[12] 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] - 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][48] 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 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 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] - Full year 2025 revenue will include an approximate $70 - $85 million year-over-year tailwind from foreign exchange translation[16] - 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] - Net interest expense is anticipated to be $105 - $110 million, which includes $12 million in M&A bridge financing fees and related costs[18] Company Information & Disclosures 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] - 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] - 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] 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] - 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] 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] - 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] 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] Supplemental Financial Information 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 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 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) 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 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 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 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 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 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% |