Q3 2025 Earnings Presentation 2 JBT MAREL DELIVERED SOLID THIRD QUARTER 2025 RESULTS Q3 2025 Consolidated Results Key Takeaways November 3, 2025 NON-GAAP AND FORWARD-LOOKING STATEMENTS Non-GAAP Measures and Reconciliations to GAAP Measures Adjusted EBITDA, Adjusted EBITDA margin, Adjusted income from continuing operations, Adjusted diluted earnings per share from continuing operations ("Adjusted EPS"), and free cash flow are non-GAAP financial measures. JBT Marel provides non-GAAP financial measures in orde ...

Financial Data and Key Metrics Changes - The company reported a modest revenue decline in 2024 to approximately $3.9 billion, with adjusted EBITDA of $866 million at a margin of 22.4%, slightly ahead of the previous year [19][20] - Free cash flow reached a record $229 million in Q4, contributing to a total of over $640 million for the year [18][23] - Q4 revenues surpassed $1 billion, with adjusted EBITDA of over $251 million at a margin of 24.8% [20][22] Business Line Data and Key Metrics Changes - Food Processing segment achieved 4.7% organic revenue growth in Q4, resulting in revenues exceeding $219 million and an adjusted EBITDA margin of 29.6%, up 200 basis points year-over-year [20][21] - Residential segment reported Q4 revenues of $185 million, a sequential increase from Q3, but down 2.4% year-over-year, with an adjusted EBITDA margin of 13% [21][22] - Commercial segment's Q4 revenues were over $609 million, with organic revenues down 2.8% year-over-year, maintaining healthy margins over 28% [22] Market Data and Key Metrics Changes - The company noted gradual improvement in macro conditions for both commercial and residential businesses, despite challenges persisting [14][15] - The Food Processing business finished the year strongly, with expectations for continued growth driven by favorable long-term market drivers [15][19] Company Strategy and Development Direction - The company announced plans to separate its Food Processing business into a stand-alone public company, aiming to enhance strategic and operational focus for both entities [5][6] - The remaining Middleby Corporation will focus on commercial and residential kitchen equipment, with an emphasis on innovation and automation [9][10] - The company is positioned to capture market opportunities through strategic acquisitions and investments in new product categories [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the residential business, anticipating gradual improvement in 2025 [50][110] - The company expects low single-digit organic revenue growth across segments in 2025, with profitability growth rates exceeding organic revenue growth [30][31] - Management highlighted the importance of M&A activities and strategic investments to drive future growth [62][66] Other Important Information - The company added two new Board members, enhancing its governance and strategic direction [11][12] - The separation of the Food Processing business is expected to be executed through a tax-free spinoff by early 2026 [10] Q&A Session Summary Question: Can you walk us through the decision to separate Food Processing? - Management indicated that the decision was based on a long-term strategic review, believing that separation will accelerate growth for both entities [41][44] Question: What are the expected free cash flow conversions for the separate businesses? - Management suggested that both businesses could achieve 100% or greater free cash flow conversion, although specific long-range guidance for Food Processing is still being developed [46][47] Question: How do you view the recovery in the residential business? - Management noted that the residential business is at a cyclical trough but has significant growth potential, with expectations for gradual recovery in 2025 [49][50] Question: What is the leverage profile expected post-spin? - Management anticipates less leverage on the Food Processing business, allowing for more focus on M&A opportunities [95] Question: Are there any strategic alternatives being considered for the residential business? - Management confirmed that the residential business is continuously reviewed, but currently, it is seen as a strong platform with potential for margin expansion [72][110]