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]