Financial Data and Key Metrics Changes - For Q3 2025, total revenue was approximately $1 billion, a 7% sequential increase, exceeding expectations by about $65 million [6][12] - Adjusted EBITDA margin for Q3 was 17.1%, exceeding expectations by approximately 140 basis points [6][12] - GAAP EPS for Q3 was $1.28, while adjusted EPS was $1.94, excluding certain one-time items [8][12] - The company raised its full-year 2025 revenue guidance to between $3.76 billion and $3.79 billion, reflecting strong Q3 results [12][13] Business Line Data and Key Metrics Changes - JBT segment revenue was $465 million, a 2% increase year-over-year and sequentially, with adjusted EBITDA of $71 million, a 13% decrease [10][11] - Marel segment revenue was $537 million, a 12% sequential increase, with adjusted EBITDA of $100 million and a margin of 18.6% [11] - Year-over-year synergy savings for Q3 amounted to $14 million, contributing to improved margins [7][12] Market Data and Key Metrics Changes - Combined JBT/Marel orders totaled $946 million, a 7% increase from the prior year, with strong demand in the poultry industry [3][4] - North America showed strong demand, while Europe and Asia were softer sequentially; Latin America had a good quarter with large orders [4][12] - The company ended Q3 with a backlog of $1.3 billion, providing visibility for the remainder of the year [4][12] Company Strategy and Development Direction - The integration of JBT and Marel is on track, focusing on capturing synergy savings and enhancing customer value [4][12] - New segment reporting will be introduced in Q4, dividing operations into Protein Solutions and Prepared Food and Beverage Solutions [10][12] - The company aims to achieve annual run rate savings of $150 million within three years of the combination [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand in the poultry market and anticipated continued investment in related projects [3][39] - The company expects to see a ramp in tariff expenses impacting margins in Q4, but remains optimistic about overall demand [8][29] - Visibility into 2026 revenue is strong, with expectations for growth supported by a healthy backlog and order pipeline [42][43] Other Important Information - The company made significant progress on deleveraging its balance sheet, reducing the leverage ratio from four times to 3.1 times by the end of Q3 [12] - A new global production center was inaugurated in Pune, India, enhancing the company's manufacturing capabilities in the Asia-Pacific region [16][18] - Sustainability remains a core focus, with the publication of the first joint sustainability report highlighting efforts to minimize waste and improve food safety [17][18] Q&A Session Summary Question: What is driving the high EBITDA margin in the Marel segment? - Management highlighted strong volume throughput and operating leverage as key factors, along with a higher share of synergies and improved technology [25][26] Question: What are the expectations for Q4 revenue and cost impacts? - Management expects lower revenue in Q4 compared to Q3 due to a one-time boost in Q3 from backlog clearance and anticipates increased tariff expenses impacting margins [28][29] Question: How is automation trending in the business? - Automation remains a key focus, particularly in the protein sector, with significant opportunities in secondary processing areas [31] Question: Can you provide insights on cross-selling opportunities? - Management noted improvements in cross-selling opportunities, with successful integration of JBT and Marel portfolios leading to stronger pipeline development [33][36] Question: What is the outlook for the AGV business? - The AGV business is expected to see strong demand moving into Q4 and 2026, despite a weaker performance in Q3 due to tariffs and delayed orders [52] Question: How is the company managing tariff impacts on pricing? - The company has enacted price increases to mitigate tariff impacts and has maintained strong order levels, indicating effective management of customer relationships [47][53]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was approximately $1,000,000,000, representing a 7% sequential increase and exceeding expectations by about $65,000,000 [5][8] - Adjusted EBITDA margin for Q3 was 17.1%, exceeding expectations by approximately 140 basis points [9] - GAAP EPS for Q3 was $1.28, while adjusted EPS was $1.94, excluding certain one-time items [10] - The company raised its full-year 2025 revenue guidance to between $3,760,000,000 and $3,790,000, reflecting strong Q3 results [15] Business Line Data and Key Metrics Changes - JBT segment revenue was $465,000,000, increasing approximately 2% year-over-year and sequentially, with adjusted EBITDA of $71,000,000, a decrease of 13% [13] - MREL segment revenue was $537,000,000, a 12% sequential increase, with adjusted EBITDA of $100,000,000 and a margin of 18.6% [13][14] - Year-over-year synergy savings for Q3 amounted to $14,000,000 [10] Market Data and Key Metrics Changes - Combined JBT Madau orders reached $946,000,000, a 7% increase from the prior year [5] - Demand was strong in North America, while Europe and Asia showed softer performance; however, Latin America had a good quarter with large orders in pet food, poultry, and juice [6] Company Strategy and Development Direction - The company plans to introduce new segment reporting for 2025, focusing on Protein Solutions and Prepared Food and Beverage Solutions [12] - The integration of JBT and Morel is on track, with actions taken to capture synergy savings and enhance customer value [7][18] - The company aims to achieve annual run rate savings of $150,000,000 within three years of the combination [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment, particularly in the poultry market, with visibility extending into 2026 [49][61] - The company anticipates a growth year in 2026, supported by a strong backlog and healthy demand [59][61] - Management highlighted the importance of automation in response to labor pressures in food factories, particularly in the protein sector [37] Other Important Information - The company generated operating cash flow of $224,000,000 and free cash flow of $163,000,000 for the year, with record quarterly operating cash flow of $88,000,000 in Q3 [14] - The financial leverage ratio decreased from four times at the close of the combination to 3.1 times by the end of Q3, with expectations to drop below three times by year-end [14][15] Q&A Session Summary Question: What is driving the higher EBITDA margins in the Morrel segment? - Management attributed the higher margins to increased volume, operating leverage, and synergy savings, along with improvements in meat and fish segments [30] Question: What are the expectations for Q4 in terms of revenue and costs? - Management expects lower revenue in Q4 compared to Q3 due to a pickup in Q3 that is not expected to recur, along with anticipated increases in tariff expenses impacting margins [33][35] Question: How is automation trending in the business? - Automation remains a key focus, particularly in the protein sector, with significant opportunities in secondary processing areas [37] Question: Can you provide insights on cross-selling opportunities? - Management noted improvements in cross-selling opportunities, with a strong pipeline and successful integration of sales teams from both legacy companies [42][48] Question: What is the outlook for the AGV business? - The AGV business is expected to see strong demand moving into Q4 and 2026, despite a weaker performance in Q3 due to tariffs and delayed orders [76] Question: How is the company managing tariff impacts and pricing? - The company has enacted price increases to mitigate tariff impacts and has been fair with customers, resulting in strong order retention [78]