Financial Data and Key Metrics Changes - The company achieved full-year consolidated revenue of $3.8 billion, exceeding the high end of guidance, driven by strong demand and successful backlog conversion [8] - Adjusted earnings per share for 2025 was $6.41, representing first-year earnings accretion compared to legacy JBT's 2024 adjusted earnings of $6.15 [11] - Consolidated adjusted EBITDA was $600 million, with a margin of 15.8%, at the midpoint of guidance [9] - The leverage ratio improved to less than 2.9 times by year-end 2025, down from just below 4 times at the transaction completion [11] Business Line Data and Key Metrics Changes - Revenue for the Protein Solutions segment was $1.7 billion, while the Prepared Food and Beverage Solutions segment generated $2.1 billion [9] - Adjusted EBITDA margin for Protein Solutions was 20.1%, and for Food and Beverage Solutions, it was 17.2% [9] - The company captured $30 million in order synergies for the full year, with more than half realized in the fourth quarter [7] Market Data and Key Metrics Changes - Full-year orders reached $3.8 billion, with over $1 billion in the fourth quarter, primarily driven by strong demand in the poultry market [5] - The poultry sector showed a sharp recovery after two years of underinvestment, contributing significantly to order strength [5] - Gains were observed across all regions in 2025, with poultry being a leading food category due to its affordability and health benefits [5] Company Strategy and Development Direction - The company plans to invest in strengthening its offerings and providing integrated solutions across key product lines [7] - Future growth is expected to be supported by continued investment momentum in the poultry industry and renewed investment in prepared foods [17] - The company aims to achieve $150 million in run rate synergy savings by the end of 2027 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued investment momentum in the poultry equipment demand into 2026 [17] - The impact of higher tariffs was acknowledged, with an estimated cost of approximately $43 million for the year, affecting adjusted EBITDA margins [10] - The company anticipates healthy year-over-year growth in revenue, margins, and earnings for 2026, with guidance for adjusted earnings per share of $8.00-$8.50 [14] Other Important Information - The company will provide further details on strategic growth priorities and financial targets at the upcoming Investor Day on March 26 [17] - The company is focused on completing the integration of JBT and Marel, with a strong emphasis on enhancing customer value propositions [46] Q&A Session Summary Question: What end markets stood out in the fourth quarter? - Management indicated that poultry remains the leader across all categories, followed by beverages, with expectations for a recovery in AGVs [21][22] Question: Can you provide expectations for R&D and SG&A for 2026? - Synergy savings were predominantly in SG&A, with R&D not specifically called out for synergies [24] Question: How do you differentiate top-line growth for 2026 between segments? - Overall revenue growth is guided at 5%-7%, with Protein Solutions expected to be at the higher end and Prepared Food and Beverage at the lower end [36] Question: What is the expected impact of tariffs on pricing? - Management expects to mitigate some tariff impacts through pricing actions, estimating a net negative benefit of 25 to 50 basis points for the full year [41] Question: What are the expectations for sales synergies in 2026? - The company is ahead of pace on original synergy targets, with $30 million captured in 2025 and expectations for continued growth in 2026 [60]

Financial Data and Key Metrics Changes - Net sales increased by 31% to $1.7 billion, driven by favorable pricing and the full quarter impact of the S&P EMEA acquisition [12][13] - Adjusted EBITDA rose by 38% to $338 million, with an adjusted EBITDA margin improvement of 170 basis points to 16.6% [13][18] - Adjusted earnings per share increased by 23% to $1.30, primarily due to strong productivity and favorable price-cost performance [12][13] Business Line Data and Key Metrics Changes - Consumer Packaging segment saw a remarkable 127% growth in adjusted EBITDA, attributed to the EVOSYS acquisition and strong volume mix [6][14] - Industrial Packaging segment experienced a 6% increase in adjusted EBITDA, despite a low single-digit decline in volume [15][18] - All Other business reported sales of $85 million and adjusted EBITDA of $14 million, affected by the divestiture of Protective Solutions [16] Market Data and Key Metrics Changes - North American metal packaging business achieved a 10% organic volume mix improvement, with strong growth in aerosols and food cans [10][36] - EMEA metal packaging adjusted EBITDA increased by approximately 23%, driven by productivity savings and a favorable price-cost environment [10][14] - Industrial sales decreased by 6% to $558 million, impacted by lower volumes and unfavorable currency translation [15] Company Strategy and Development Direction - The company is focused on fewer, bigger businesses, enhancing its core sustainable packaging platforms and reinvesting in higher return opportunities [11][12] - Integration of the Ebiosis acquisition is underway, with expectations of achieving $40 million in synergy savings by 2025 [9][20] - The company aims to increase long-term profitability and return capital to shareholders, reaffirming its commitment to dividend payments [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, highlighting the resilience of the consumer packaging business during economic stress [22][23] - The company anticipates continued strength in legacy businesses and expects adjusted EPS to be in the range of $6 to $6.20 for the full year [18][26] - Management noted that the integration of the metal packaging business is progressing well, with strong customer interest in global capabilities [56][57] Other Important Information - The company has reduced its net leverage to just under four times net debt to adjusted EBITDA, using proceeds from the TFP sale to significantly reduce debt [17][70] - Operating cash flow is projected to be between $800 million to $900 million, with free cash flow expected between $450 million to $550 million [19][26] Q&A Session Summary Question: Can you provide more detail on volume performance by region and segment? - Management indicated mid-single-digit growth globally in the consumer segment, with North America slightly up and Europe down [31][32] Question: Are there any changes in purchasing behavior or supply chain issues? - Management noted minimal changes in purchasing behavior, with some stagnation due to a major customer's acquisition [43][44] Question: What are the opportunities in managing the global network? - Management is evaluating the best locations for production across their global platform to optimize costs and market share [48][49] Question: What is the outlook for the ThermoSafe business? - Management is preparing for a resolution on the ThermoSafe situation by the end of the year, with positive performance noted [65] Question: What is the current status of net adjusted debt post the TFP pay down? - Management confirmed net adjusted debt is expected to be under four times by year-end, with a target of 3 to 3.3 times by the end of 2026 [69][70]