Financial Data and Key Metrics Changes - JBT reported total revenue of $935 million for the second quarter, exceeding the midpoint of guidance by approximately $35 million, driven by higher recurring revenue and favorable foreign exchange [11][12] - Adjusted EBITDA margin for the second quarter was 16.7%, outperforming guidance by about 180 basis points, primarily due to a favorable mix of higher recurring revenue and productivity improvements [12][14] - Adjusted EPS for the second quarter was $1.49, with GAAP EPS at $0.07, reflecting an impairment charge of $11 million on a joint venture investment [13][14] - The company ended the quarter with a backlog of $1.4 billion, providing significant support for revenue conversion in the latter half of the year [8][15] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 13% year-over-year, with adjusted EBITDA of $82 million and an adjusted EBITDA margin improvement of 220 basis points to 18% [13][14] - Morell segment revenue was $480 million, with adjusted EBITDA of $75 million, representing a margin of 15.5%, attributed to integration synergies and favorable revenue mix [14] - The poultry industry, as the largest end market, continued to see strong equipment investment, with a positive pipeline expected to support growth into next year [6][8] Market Data and Key Metrics Changes - EMEA was the strongest region for demand, while North America experienced relative softness [7] - Latin America showed strong performance, and Asia Pacific remained choppy [8] - The company noted healthy order bookings despite a dynamic macroeconomic backdrop, with total orders amounting to $938 million, including $22 million from favorable foreign exchange translation [6][8] Company Strategy and Development Direction - The integration of JBT and Morell is on track, with a focus on capitalizing on the expanded portfolio and cross-selling opportunities [9][20] - The company aims to transition from unit sales to system sales, enhancing customer partnerships and service delivery [20][21] - Continuous improvement initiatives are being advanced to optimize operational efficiency and capacity utilization across manufacturing facilities [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, particularly in poultry, with visibility extending into the first half of 2026 [30][31] - The company is taking steps to mitigate tariff impacts on direct material costs through supplier negotiations and sourcing adjustments [9][12] - Full-year 2025 guidance has been reestablished, with expected revenue of $3.7 billion at the midpoint, including a favorable foreign exchange translation benefit [15][16] Other Important Information - The company incurred approximately $9 million in gross tariff costs during the second quarter, with net impacts offset by inventory benefits and mitigating actions [12] - Free cash flow for the first half of 2025 was $106 million, with $88 million generated in the second quarter, supporting balance sheet deleveraging [14][15] Q&A Session Summary Question: Insights on poultry investments and customer conversations - Management noted good visibility into the first half of 2026, with poultry companies making significant investments in automation and efficiency [30][31] Question: Margin performance at Morell - Margin improvements were attributed to integration synergies, restructuring efforts, and a favorable mix of recurring revenue [41][44] Question: Expectations for Q4 margins and tariff impacts - Management expects Q4 to be the strongest quarter from a margin perspective, despite headwinds from tariffs and a shift in revenue mix [50][51] Question: Impact of tariffs on order delays - Some episodic delays were noted, particularly for customers importing food into the U.S., but overall demand remains strong [64][82] Question: FX impact on revenue and margins - FX is expected to contribute approximately $70 million to $85 million for the year, with a typical margin impact in line with company averages [106][105]

Core Insights - Quintus Technologies showcased its latest QIF 600L ultra-high pressure processing system at the FBIF Food Innovation Expo, demonstrating how HPP technology achieves food safety and nutrient retention without heat processing [1][29] Group 1: HPP Technology Overview - HPP technology operates at 600MPa, effectively inactivating pathogens like Salmonella and Listeria by disrupting their cell membranes without heat or chemical additives [9] - The sterilization rate exceeds 99.999%, meeting FDA Juice HACCP regulations [10] - Cold-pressed juice shelf life extends from 30 days to 120 days, with over 90% retention of Vitamin C [11] Group 2: Industry Challenges Addressed by HPP - HPP resolves the dilemma of safety versus nutrition, as traditional heat treatments can result in over 30% nutrient loss while cold-pressed methods risk microbial growth [12] - Ready-to-eat meat products can avoid nitrite preservatives while achieving a shelf life of 45 days and a Listeria inactivation rate exceeding 99.999% [13] - HPP technology addresses the sterilization challenges of raw pet food, ensuring nutrient retention and zero detection of Salmonella [14] Group 3: QIF 600L Innovations - The QIF 600L features a 600-liter chamber with a capacity of up to 4150 kilograms per hour, significantly enhancing production efficiency [19] - It includes a modular booster system supporting 12 units for rapid pressure increase to 600MPa [19] - SmartPress system allows real-time monitoring of pressure and temperature, predicting maintenance cycles to minimize unplanned downtime [19] Group 4: Safety and ROI - The patented steel wire-wrapped pressure vessel technology has a zero safety incident record and has been validated over 30 years with over 160 units globally [21] - The design life exceeds 20 years, offering a leading investment return rate with a short payback period [21]