Financial Data and Key Metrics Changes - Revenue from operations for Q1 was $736 million, a slight increase of $6 million or 1% from the previous quarter [42] - Total adjusted EBITDA for the quarter was $206.3 million, down from $220.5 million in the fourth quarter, reflecting a decline of $14 million [46] - U.S. drilling revenue decreased by $11 million or 4.5% sequentially to $231 million [43] - Average daily rig margins in the Lower 48 came in just under $14,300, down $660 or 4% from the fourth quarter [48] Business Line Data and Key Metrics Changes - The international drilling segment generated revenue of $382 million, an increase of $10.3 million or 3% from the prior quarter [45] - Drilling Solutions revenue increased by $17.2 million or 22.6% to $93.2 million, benefiting from the Parker acquisition [45] - Rig Technologies segment revenue declined by $12 million sequentially to $44.2 million, primarily due to lower capital equipment deliveries [46] Market Data and Key Metrics Changes - The Lower 48 market average quarterly rig count remained stable, with Nabors' rig count averaging 61, a decrease of five rigs from the fourth quarter [43] - The international rig count increased slightly from 84.8 to 85 rigs during the quarter, driven by the Parker acquisition [45] - The Baker Hughes weekly Lower 48 rig count remained stable, but there was a noted shift with smaller operators adding rigs while larger ones reduced activity [14][25] Company Strategy and Development Direction - The company is focused on achieving $40 million in cost synergies from the Parker acquisition by 2025 [6][33] - There is a strategic emphasis on international markets, particularly in Saudi Arabia and Kuwait, where new builds are expected to contribute significantly to earnings [20][52] - The company aims to reduce debt and improve cash flow, with a target of generating free cash in 2025 despite cash consumption [29][56] Management's Comments on Operating Environment and Future Outlook - Management noted challenges in the oil market due to OPEC+ output adjustments and high U.S. shale production, but expressed optimism about natural gas activity recovery [7][8] - The company expects a slight increase in rig count in the second quarter, with deployments in Saudi Arabia and Kuwait [41] - Management remains cautious about the impact of tariffs on operations but believes they can mitigate potential costs through alternative sourcing [74][112] Other Important Information - The company suspended operations in Russia due to U.S. sanctions and does not expect to resume activities there [11][40] - The Parker Wellbore acquisition is expected to contribute approximately $150 million of EBITDA for the full year of 2025 [59] - The company plans to refinance Parker's debt to achieve interest savings [58] Q&A Session Summary Question: Has any debt started accruing in the SANAD joint venture? - No, there are no plans to accrue debt in SANAD for now [67] Question: Is Saudi Aramco finished with rig releases? - There have been suspensions and additions, but the situation remains fluid with contingency plans in place [68][70] Question: Which business segment is most affected by tariffs? - The impact is more on spares and pumps rather than drill pipe, with potential costs mitigated through alternative vendors [74] Question: How does the company view the potential for an IPO of SANAD? - The company sees it as a viable option to realize value, especially given the attractive valuations in the Middle East [80] Question: What is the expected corporate run rate for the second quarter with Parker's full contribution? - The Parker contribution is expected to be in the mid-40s for the second quarter [92] Question: What is the timing from award to delivery for new builds? - It takes about one year from award to delivery for new builds [103]

Financial Data and Key Metrics Changes - The company reported fourth quarter sales of $561 million, up 23% year-over-year and up 7% on a constant currency basis [18][22] - Adjusted gross margin for the fourth quarter was 60.1%, an increase of 150 basis points year-over-year [20] - Adjusted EBITDA grew 38%, delivering a margin of 20.1%, up 210 basis points compared to the same quarter last year [21] - Adjusted earnings per share were $0.98, a 24% increase versus the prior year [22][23] Business Line Data and Key Metrics Changes - In the Recon segment, global revenue grew 59% reported and 10% on a comparable basis, with double-digit growth in both Hip Knee and Extremities segments [10][19] - The P&R segment experienced 3% growth, reflecting a stable market environment [15][19] - The Lima acquisition significantly contributed to the growth and integration of the Recon business, exceeding revenue and profit goals [13][14] Market Data and Key Metrics Changes - U.S. Recon grew 7%, with 10% growth in U.S. Extremities and 8% in Hip Knees [10] - Internationally, the company achieved 13% growth while executing integration plans [11] - The company anticipates high single-digit growth in Recon for 2025, with stable low single-digit growth in P&R [26] Company Strategy and Development Direction - The company aims for continued growth through new product launches and cross-selling opportunities, particularly in the Recon segment [12][34] - The focus for 2025 will be on small bolt-on acquisitions while completing the integration of Lima [44][46] - The company is committed to maintaining a strong cash flow and reducing debt levels while pursuing strategic growth opportunities [72][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategic goals and operational performance, despite a noncash goodwill impairment of $645 million [23][24] - The company expects 2025 to be another year of strong execution, with revenue guidance of $2.19 billion to $2.22 billion [26][28] - Management highlighted the importance of addressing tariff impacts and maintaining supply chain resilience [31][100] Other Important Information - The company is transitioning leadership as the CEO announced plans to retire later this year [36][39] - The integration of Lima is largely complete, with ongoing opportunities for cross-selling and operational improvements [88][92] Q&A Session Summary Question: What is the M&A strategy post-Lima? - The company plans to focus on small bolt-on acquisitions in 2025 while ensuring the successful integration of Lima [44][46] Question: Is there a pathway to double-digit growth in Recon? - Management believes there are multiple paths to achieve double-digit growth, but has set a strategic goal of high single digits for 2025 [49][51] Question: What are the margin assumptions for 2025? - The company expects adjusted EBITDA margin improvement of 60 to 70 basis points for 2025, driven by core operating leverage and synergies from Lima [58][61] Question: How is the integration of Lima progressing? - The integration is largely complete, with key channel integrations and leadership team combinations finalized, allowing for a focus on cross-selling opportunities [92][94] Question: What are the expectations for the Hip business in 2025? - The new Hip products are expected to launch in the first half of 2025, which should help recapture lost market share and drive growth [84][86] Question: How will the company address tariff impacts? - The company has been working on supply chain diversification and pricing strategies to mitigate the impact of tariffs [98][100]

Summary of JBT and Marell Conference Call Industry and Company Overview - The conference call discusses the merger between JBT Corporation (JBT) and Marell (MREL), focusing on the food and beverage processing industry [3][6][35] - JBT aims to enhance its position in the global food supply chain by combining with Marell, which specializes in poultry, meat, seafood, and pet food processing technologies [8][12] Core Points and Arguments - **Transaction Details**: JBT plans to acquire all outstanding shares of Marell, with a voluntary takeover offer expected to launch soon. The transaction is anticipated to close by the end of 2024 [3][14][15] - **Strategic Rationale**: The merger is expected to create a leading global food and beverage solutions company, leveraging complementary technologies and services to enhance customer operations and drive shareholder value [6][11][12] - **Market Growth**: The combined company is projected to grow revenue from approximately $3.5 billion in 2023 to about $4 billion by 2025, with nearly half of this revenue coming from recurring streams such as spare parts and services [27][32] - **Cost Synergies**: Expected annual run rate cost savings of approximately $70 million in the first year, growing to over $125 million by year three, primarily from operational efficiencies and reduced redundancies [29][70] - **Revenue Synergies**: Anticipated revenue uplift of over $75 million by the end of the third year post-close, driven by integrated solutions and cross-selling opportunities [30] Additional Important Insights - **Cultural Integration**: Emphasis on aligning the cultures of both companies to ensure a successful integration process, recognizing the importance of Marell's heritage [16][34] - **Customer Focus**: The combined entity aims to enhance customer relationships through improved service capabilities and integrated technology solutions, addressing operational efficiency and automation needs [22][74] - **Sustainability and Innovation**: Both companies are committed to sustainability, aiming to reduce food and packaging waste while improving resource efficiency [26][35] - **Regulatory Review**: The regulatory process is expected to be straightforward due to minimal overlaps in business operations, with confidence in receiving necessary approvals [41][42] Financial Metrics - JBT's revenue for the last four quarters ending March 31 was approximately $1.7 billion with an adjusted EBITDA margin of 16.6% [17] - Marell's revenue for the same period was about $1.8 billion with an adjusted EBITDA margin of 12.4% [18] - The combined company aims for an adjusted EBITDA margin of about 16% by 2025, factoring in synergies and market recovery [27][44] Conclusion - The merger between JBT and Marell is positioned as a strategic move to create a robust player in the food and beverage processing industry, with significant growth potential, operational efficiencies, and a strong commitment to customer service and sustainability [35][80]