Core Insights - The Middleby Corporation (MIDD) is positioned to benefit from the strength in the Food Processing Equipment Group segment and accretive acquisitions, with shares gaining 10.1% compared to the industry's 8.8% growth over the past year [1]. Business Strength - Middleby is experiencing solid momentum in the Food Processing Equipment Group, driven by increased demand for protein and bakery products, as well as a robust order rate and international market demand. Sales in this segment increased by 8.7% year over year in the first nine months of 2025, with expectations for continued strong performance in Q4 2025 [4]. Expansion Initiatives - The company has enhanced its product portfolio through strategic acquisitions, including Oka-Spezialmaschinenfabrik GmbH & Co. KG and Frigomeccanica S.p.A. in August 2025, which are expected to strengthen its position in the bakery and food processing markets. Additionally, the acquisition of Gorreri Food Processing Technology and JC Ford in November 2024 further bolstered its capabilities in advanced baked goods and snack food categories, contributing to a 3.3% year-over-year sales increase in Q3 2025 [5][6]. Product Innovation Efforts - Middleby is focused on product innovation, having introduced several new products over the past year, including MP Equipment and PIZZABOT. The company is gaining market share in new product categories, particularly in ventless cooking products and automation technologies, which are expected to drive future growth [7][8]. Rewards to Shareholders - The company is committed to returning value to shareholders through share repurchases, having repurchased $514.3 million worth of shares in the first nine months of 2025. The board has authorized multiple share buyback programs, with 8,304,022 shares remaining for repurchase as of September 27, 2025 [9].

Core Insights - JBT Marel has introduced the Fresh'n Squeeze® 1800 Citrus Juicer at the IFPA Global Produce and Floral Show, which utilizes whole fruit extraction technology [1] Company Overview - JBT Marel is recognized as a leading global provider of integrated food processing solutions [1] Product Details - The Fresh'n Squeeze® 1800 Citrus Juicer employs the same technology as larger models in the Fresh'n Squeeze product line, which enables the company to juice over 75% of the world's citrus [1]

Financial Data and Key Metrics Changes - For the second quarter of 2025, total revenue was $935 million, exceeding the midpoint of guidance by approximately $35 million, driven by $25 million in higher recurring revenue and $8 million from favorable foreign exchange [9][10] - Adjusted EBITDA margin was 16.7%, outperforming guidance by about 180 basis points, primarily due to a favorable mix of higher recurring revenue and higher margin equipment [10][11] - Adjusted EPS for the second quarter was $1.49, with GAAP EPS at $0.07 [11] 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 of 18%, up 220 basis points from the prior year [11] - 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 [12] Market Data and Key Metrics Changes - Combined orders totaled $938 million, including $22 million from favorable year-over-year foreign exchange translation [5] - EMEA was the strongest region, while North America was relatively soft; Latin America showed strength, and Asia Pacific remained choppy [6] Company Strategy and Development Direction - The company is focused on capitalizing on the expanded portfolio of offerings and cross-selling opportunities resulting from the integration of JBT and Morell [7][20] - The strategy includes optimizing product flow and increasing efficiency through fully integrated systems, which enhances customer value [17][19] - The company aims to achieve mid-teen margins in both fish and meat businesses by 2027 through project selectivity and improved service quality [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, noting healthy orders despite macroeconomic challenges [5] - The company is reestablishing full-year earnings guidance due to expectations for backlog conversion and synergy savings [7][13] - Management highlighted the importance of mitigating tariff impacts through negotiations and sourcing adjustments [10][57] Other Important Information - 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 [6][13] - Free cash flow for the year was $106 million, with $88 million generated in the second quarter, supporting balance sheet deleveraging [12] Q&A Session Summary Question: Insights on poultry investments and customer conversations - Management noted good visibility into the front half of 2026, with poultry companies making significant investments in automation and efficiency [28][29] Question: Margin performance at Morell - Management indicated a 400 basis point improvement in margins, driven by integration synergies, restructuring efforts, and a favorable mix of recurring revenue [41][44] Question: Impact of tariffs on orders - Management acknowledged some episodic delays in orders due to tariffs but emphasized that the impact is not systemic [63][80] Question: Pricing strategies and backlog - Management confirmed ongoing negotiations regarding backlog pricing and the ability to implement price increases on parts and equipment [88][91] Question: Future guidance and margin expectations - Management expects a sequential decline in margins for Q3 due to tariff impacts and a shift in revenue mix, but anticipates a rebound in Q4 [49][54]

Financial Data and Key Metrics Changes - JBT Morell's first quarter revenue exceeded guidance by $19 million, driven by better-than-expected equipment shipments and strong recurring revenue [17] - Adjusted EBITDA margin was 13.1%, outperforming guidance by 60 basis points, attributed to volume flow-through, favorable mix, and good expense control [17] - Free cash flow for the quarter was $18 million, including approximately $42 million in one-time M&A related payments [19] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 4% year over year, or 5.6% on a constant currency basis, with adjusted EBITDA of $61 million, a 6% increase [18] - MRL segment revenue was flat year over year but grew by 2% on a constant currency basis, with adjusted EBITDA increasing by 19% to $51 million [19] Market Data and Key Metrics Changes - Demand from the poultry industry continued to recover, contributing to a 12% year-over-year increase in orders [6] - The company experienced broad-based strength across global regions, with healthy orders in meat, beverage, pharma, and pet food [6] Company Strategy and Development Direction - The company is focused on integrating its operations to enhance service capabilities and product offerings, positioning itself as a leader in sustainable food solutions [15] - JBT Morell is taking actions to mitigate tariff impacts, including securing concessions from suppliers and implementing selective pricing actions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage near-term impacts from tariffs and macroeconomic uncertainty, highlighting the resilience of recurring revenue [11][23] - The company has temporarily suspended full-year financial guidance due to uncertainty but provided second-quarter guidance, expecting revenue of $885 million to $915 million [22] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, with efforts underway to mitigate these costs [10] - The company is on track to achieve targeted cost synergies of $150 million by the end of 2027 [20] Q&A Session Summary Question: Update on guidance and customer behavior - Management indicated that the decision to pull full-year guidance was due to lack of clarity in the environment, with no significant changes in customer behavior noted [26][28] Question: Backlog and order delays - Management clarified that the backlog was affected by foreign exchange and adjustments during the integration of the two businesses, with no cancellations reported [45] Question: Recurring revenue and digital offerings - The increase in recurring revenue above 50% was primarily due to seasonality in equipment revenue recognition, with ongoing efforts to integrate digital offerings [66] Question: Cost mitigation strategies - Management discussed various strategies to mitigate tariff impacts, including reallocating demand to domestic suppliers and adjusting purchasing strategies [78][80] Question: Integration progress and potential demand changes - Management expressed confidence in managing costs and achieving synergies, but noted that lower demand could impact material purchasing and synergy savings [92]

Financial Data and Key Metrics Changes - JBT Morell's first quarter revenue exceeded guidance by $19 million, driven by better-than-expected equipment shipments and strong recurring revenue [17] - Adjusted EBITDA margin was 13.1%, outperforming guidance by 60 basis points, attributed to volume flow-through, favorable mix, and good expense control [17] - Free cash flow for the quarter was $18 million, including approximately $42 million in one-time M&A related payments [19] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 4% year over year, or 5.6% on a constant currency basis, with adjusted EBITDA of $61 million, a 6% increase [18] - MRL segment revenue was flat year over year but grew 2% on a constant currency basis, with adjusted EBITDA of $51 million, a 19% increase [19] Market Data and Key Metrics Changes - Demand from the poultry industry continued to recover, contributing to a 12% year-over-year increase in orders [6] - The company experienced broad-based strength across global regions, with healthy orders in meat, beverage, pharma, and pet food [6] Company Strategy and Development Direction - The company is focused on integrating its operations to enhance service capabilities and product offerings, positioning itself as a leader in sustainable food solutions [15] - JBT Morell aims to leverage its global footprint and available capacity to manage tariff impacts and maintain competitive positioning [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and tariff impacts, noting that approximately half of the revenue comes from resilient recurring sources [11] - The company has temporarily suspended full-year financial guidance due to uncertainties but provided second-quarter guidance reflecting strong competitive positioning [21] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, with efforts underway to mitigate these costs [10] - The company is on track to achieve targeted cost synergies of $150 million by the end of 2027 [20] Q&A Session Summary Question: Thoughts on guidance and customer behavior changes - Management indicated that the decision to pull full-year guidance was due to lack of clarity in the environment, with no significant changes in customer behavior noted [26][28] Question: Differences in customer behavior between U.S. and international markets - Management noted ongoing conversations regarding equipment pricing and potential shifts in manufacturing locations due to tariffs, but demand remains strong [30][33] Question: Impact of tariffs on recurring revenue - Management believes that recurring revenue will remain strong, with no significant pullback observed in parts orders [35] Question: Details on backlog and order delays - Management clarified that backlog figures may differ due to foreign exchange impacts and adjustments during the integration process, with no cancellations reported [45] Question: Insights on fish market performance - Management noted challenges in the white fish market but highlighted improvements in the salmon industry, indicating a positive outlook for production growth [62][65]

Financial Data and Key Metrics Changes - JBT Morell's revenue exceeded guidance by $19 million, driven by better-than-expected equipment shipments and strong recurring revenue [17] - Adjusted EBITDA margin was 13.1%, outperforming guidance by 60 basis points, attributed to volume flow-through, favorable mix, and good expense control [17] - Free cash flow for the first quarter was $18 million, including approximately $42 million in one-time M&A related payments [19] Business Line Data and Key Metrics Changes - JBT segment revenue increased by 4% year over year, or 5.6% on a constant currency basis, with adjusted EBITDA of $61 million, up 6% [18] - MRL segment revenue was flat year over year but grew 2% on a constant currency basis, with adjusted EBITDA increasing by 19% to $51 million [19] Market Data and Key Metrics Changes - Demand from the poultry industry showed a 12% year-over-year increase, continuing a recovery trend [5] - The company experienced healthy orders across diversified end markets, including meat, beverage, pharma, and pet food [5] Company Strategy and Development Direction - The company is focused on integrating its two organizations to enhance customer service and product offerings [13] - JBT Morell aims to leverage its comprehensive portfolio of solutions to support customers across the entire production value chain [15] - The company has temporarily suspended full-year financial guidance due to macroeconomic uncertainties and tariff impacts [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage near-term impacts from tariffs and macroeconomic uncertainties [7] - There is less visibility for the second half of the year due to potential slower economic growth and higher prices affecting customer investment decisions [8] - Management noted that approximately half of the company's revenue comes from resilient recurring revenue, which is beneficial in uncertain times [11] Other Important Information - The estimated annualized cost impact from tariffs is approximately $50 million to $60 million, or $12 million to $15 million per quarter [10] - The company expects to achieve total in-year cost synergies of $35 million to $40 million in 2025, with annual run rate savings of $80 million to $90 million by the end of the year [20] Q&A Session Summary Question: Thoughts on guidance and customer behavior changes - Management indicated that the decision to pull full-year guidance was due to lack of clarity in the environment, not significant changes in customer behavior [26][28] Question: Recurring revenue impact from tariffs - Management believes that the recurring revenue component is less likely to be impacted by tariffs, as there was strong order strength in parts before tariff visibility [34] Question: Backlog and order delays - Management clarified that the backlog was affected by foreign exchange and adjustments during the integration process, with no significant cancellations reported [45] Question: Integration and demand impact - Management stated that cost synergies can continue regardless of demand changes, but material purchasing volume could be a risk in a lower demand environment [94]

Q1 2025 Earnings Presentation May 5, 2025 FORWARD LOOKING AND NON-GAAP STATEMENTS This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT Marel's ability to control. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estim ...