John Bean Technologies(US:JBT)2025-11-04 22:11Financial Performance - Total revenue for Q3 2025 reached $1,001.3 million, a 120.6% increase compared to $453.8 million in Q3 2024, driven by the acquisition of Marel which contributed $536.5 million[154] - Gross profit for the quarter was $359.8 million, with a gross profit margin of 35.9%, consistent with the same period last year[157] - Operating income for Q3 2025 was $102.1 million, reflecting a 118.2% increase from $46.8 million in Q3 2024[154] - Net income for the quarter was $66.0 million, a 69.7% increase compared to $38.9 million in the same quarter last year[154] - Adjusted EBITDA for Q3 2025 was $170.9 million, compared to $81.7 million in Q3 2024, representing an increase of 109.2%[165] - Total revenue for the nine months ended September 30, 2025, increased by $1,541.8 million or 123.5% compared to the same period in 2024[170] - JBT revenue for the nine months ended September 30, 2025, was $1,328.2 million, a 6.4% increase from $1,248.4 million in 2024[168] - Marel revenue contributed $1,462.0 million in the nine months ended September 30, 2025, with a favorable foreign currency translation impact of approximately $19.3 million[170] - Adjusted EBITDA from continuing operations for Q3 2025 was $170.9 million, significantly up from $81.7 million in Q3 2024, and for the nine months ended September 30, 2025, it reached $439.3 million compared to $202.8 million in 2024[189] Expenses and Costs - Selling, general and administrative expenses increased by $110.4 million to $222.0 million, primarily due to the Marel acquisition, but as a percentage of revenue, it decreased to 22.2% from 24.6%[158] - Research and development expenses rose by $23.3 million to $28.7 million, largely due to costs associated with the Marel business[159] - Selling, general and administrative expenses increased by $428.4 million, with expenses as a percentage of revenue rising to 27.0% from 26.1% year-over-year[172] - Research and development expenses increased by $75.6 million, primarily due to costs associated with the Marel acquisition[173] - Interest expense increased by $87.8 million due to a higher average debt balance and interest rates related to the Marel acquisition[178] Income and Loss - Income from continuing operations for Q3 2025 was $66.8 million, up from $38.1 million in Q3 2024, an increase of 75.3%[164] - Loss from continuing operations for the nine months ended September 30, 2025, was $102.8 million, compared to income of $91.5 million in 2024, a decrease of $194.3 million[181] - Income from continuing operations for Q3 2025 was $66.8 million, compared to $38.1 million in Q3 2024, while the nine-month loss from continuing operations was $(102.8) million, down from $91.5 million in the same period last year[189] Cash Flow and Liquidity - Free cash flow for the nine months ended September 30, 2025, was $163.0 million, an increase of $83.8 million compared to $79.2 million in the same period of 2024[195] - Total operating cash flows from continuing operations for the nine months ended September 30, 2025, were $224.3 million, with expectations of generating positive cash flows for the full year[203] - Cash provided by continuing operating activities for the nine months ended September 30, 2025 was $224.3 million, a $120.4 million increase from $103.9 million in 2024[208] - Cash required by continuing investing activities surged to $1,811.3 million in 2025, compared to only $31.8 million in 2024, primarily due to the acquisition of Marel[209] - Cash provided by financing activities was $490.9 million in 2025, a significant increase from cash required of $23.1 million in 2024, driven by net proceeds from Term Loan B and convertible notes[210] - As of September 30, 2025, the company had $114.9 million in cash and cash equivalents, with $102.8 million held by foreign subsidiaries[206] - Liquidity as of September 30, 2025, was $1.9 billion, including cash and borrowing ability under existing revolving credit facilities[203] - As of September 30, 2025, the company had $62.7 million drawn on its revolving credit facility with $1.7 billion available[211] - The company was in compliance with all covenants in its Second A&R Credit Agreement as of September 30, 2025[212] Restructuring and Integration - The total cost of the 2022/2023 restructuring plan was $17.5 million, completed by March 31, 2024, while the JBT Marel 2025 Integration restructuring plan is estimated to cost between $30.0 million and $35.0 million[196][197] - Cumulative cost savings from the JBT Marel 2025 Integration restructuring plan are expected to be between $50.0 million and $60.0 million, with approximately $10.0 million expected to be realized during the remainder of 2025[198] - The company closed the Marel Transaction on January 2, 2025, acquiring approximately 97.5% of Marel's equity for $983.7 million in cash consideration[202] Market and Orders - Orders remained strong, particularly in the poultry, pharmaceutical, and pet food markets, indicating healthy demand[151] - The Marel Transaction, completed on January 2, 2025, aims to create a leading global food and beverage technology solutions provider[150] Tax and Regulatory - The effective tax rate for income from continuing operations was 20.4% for Q3 2025, slightly up from 20.0% in Q3 2024[163] - The company anticipates that 2025 performance will be affected by evolving tariff costs and is taking proactive measures to mitigate these impacts[152] Debt and Hedging - Approximately 50% of the total gross outstanding debt of $1,937.0 million was variable rate debt as of September 30, 2025[218] - The company entered into five cross-currency swaps with a combined notional amount of $696.5 million to hedge the impact of variability in exchange rates on U.S. dollar denominated debt[219] - A hypothetical 10% adverse movement in currency exchange rates underlying the cross-currency swaps would have resulted in a loss in value of $65.9 million[225] - The company entered into a series of cross-currency swaps with an aggregate notional amount of $2.1 billion to hedge currency exchange components of net investments in foreign subsidiaries[226]