JBT Marel Corporation, a leading global technology solutions provider to high-value segments of the food & beverage industry, reported financial results for the first quarter of 2025.
"JBT Marel had a solid start to the year as we outperformed our first quarter expectations," said Brian Deck, Chief Executive Officer. "Orders continue to demonstrate the benefits of our diverse and holistic end-market solutions, with healthy demand in poultry, meat, beverages, pharmaceuticals, and pet food."
"The potential outcomes from global trade and tariff policies are creating increased uncertainty and costs, and we are taking proactive measures to mitigate impacts on our cost exposure, including vendor concessions, price increases, and reshoring of third party suppliers," added Deck.
Comparisons in this news release are to the comparable period of the prior year, unless otherwise noted. An earnings presentation with supplemental information is available on the Company's Investor Relations website at https://ir.jbtc.com/events-and-presentations/.
JBT Marel First Quarter 2025 Results
"Our team delivered strong operational execution, with solid equipment volume and expense management, leading to results that exceeded our guidance," said Matt Meister, Chief Financial Officer.
Beginning in the first quarter of 2025, the Company revised its adjusted income from continuing operations and adjusted EPS calculations to exclude acquisition related amortization expense. The Company believes this change better reflects its core operating earnings and improves comparability versus peers. Prior year periods have been recast to reflect this change.
First quarter 2025 consolidated revenue was $854 million with more than half generated from recurring products and services. Net income from continuing operations of $(173) million included pre-tax charges of $147 million related to the non-cash final settlement of the U.S. pension plan, $74 million in M&A related items, $42 million in acquisition related amortization expense, and $11 million in restructuring costs. Consolidated adjusted EBITDA was $112 million, and consolidated adjusted EBITDA margin was 13.1 percent. Diluted EPS was $(3.35), and adjusted EPS was $0.97. Orders totaled $916 million, and backlog was $1.3 billion.
First quarter 2025 operating cash flow from continuing operations was $34 million, and free cash flow was $18 million. Included in free cash flow was approximately $42 million in one-time M&A related cash payments. As of March 31, 2025, the Company's bank leverage ratio was 3.2x, which includes the benefit of certain run rate synergies. Net debt to trailing twelve months adjusted EBITDA was 3.8x, an improvement of approximately 0.2x from January 2, 2025. Additionally, the Company's liquidity as of March 31, 2025, was approximately $1.3 billion, providing significant flexibility to fund strategic initiatives.
Comparison Summary of Segment and Combined Results
The below tables provide a summary, for comparison purposes, of certain first quarter 2025 and first quarter 2024 financial results for JBT and Marel segments as well as total combined JBT and Marel. The first quarter 2024 information contained in this table is not intended to represent pro forma financial information for JBT Marel as defined in Regulation S-X, Article 11.
|
Three Months Ended March 31, 2025 |
|||||||||||
|
In millions except margin |
JBT |
Marel |
Total |
||||||||
|
Revenue |
$ |
409 |
$ |
445 |
$ |
854 |
|||||
|
Adjusted EBITDA(1) |
61 |
51 |
112 |
||||||||
|
Adjusted EBITDA margin |
14.9 |
% |
11.5 |
% |
13.1 |
% |
|||||
|
Three Months Ended March 31, 2024 |
|||||||||||
|
In millions except margin |
JBT |
Marel(2) |
Total |
||||||||
|
Revenue |
$ |
392 |
$ |
449 |
$ |
841 |
|||||
|
Adjusted EBITDA(1) |
57 |
43 |
100 |
||||||||
|
Adjusted EBITDA margin |
14.6 |
% |
9.6 |
% |
11.9 |
% |
|||||
|
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations. |
|||||||||||
|
(2) Marel results for March 31, 2024, represent converted USD and U.S. GAAP figures. |
|||||||||||
Synergy Actions and Target Cost Savings
The Company remains on track to deliver expected in-year realized synergy savings of $35 - $40 million and annualized run rate savings of $80 - $90 million exiting 2025. In connection with these efforts, JBT Marel implemented a restructuring plan during the first quarter of 2025 to achieve a portion of its synergy targets and incurred the aforementioned $11 million in restructuring costs. These first quarter 2025 restructuring costs are expected to generate in-year realized savings of $12 - $15 million with annualized run rate savings of $15 - $20 million exiting 2025.
For the full year 2025, the Company expects to incur $25 - $30 million in total restructuring costs. These full year restructuring costs are anticipated to generate in-year realized savings of $20 - $25 million and annualized run rate synergy savings of $50 - $60 million exiting 2025.
Additionally, the Company continues to advance its synergy savings from supply chain initiatives. Based on those supply chain efforts, JBT Marel continues to expect in-year savings of approximately $15 million with annualized run rate savings of approximately $30 million exiting 2025.
JBT Marel Outlook
As a result of macroeconomic uncertainty created by trade policies and tariffs, it is more difficult to ascertain the potential impact on global demand. As a result, the Company has suspended its full year 2025 guidance and chosen to provide second quarter 2025 guidance.
The below table reflects JBT Marel's consolidated guidance for the second quarter of 2025.
|
Guidance |
|
|
$ millions except EPS |
Q2 2025 |
|
Revenue |
$885 - $915 |
|
Income from continuing operations |
$10 - $20 |
|
Adjusted EBITDA(1) margin |
14.50 - 15.25% |
|
GAAP EPS |
$0.20 - $0.40 |
|
Adjusted EPS(1) |
$1.20 - $1.40 |
|
(1) Non-GAAP figure. Please see supplemental schedules for adjustments and reconciliations. |
|
For the second quarter of 2025, the Company's consolidated revenue guidance includes a favorable $10 - $15 million tailwind from foreign exchange translation. JBT Marel expects to incur certain acquisition and restructuring costs, which are included in income from continuing operations and GAAP guidance and excluded from adjusted EPS and adjusted EBITDA calculations. These exclusions include approximately $11 million in restructuring costs, $18 million in M&A related costs, and $41 million in acquisition related amortization expense.
For the second quarter of 2025, the Company anticipates total depreciation and amortization expense to be approximately $61 million. Interest expense is estimated to be approximately $27 million. The Company also expects to generate approximately $3 million in other financing income. The other financing income is related to the hedging strategy for the Term Loan B, which provides access to lower EURIBOR interest rates. The estimated tax rate is 24 - 25 percent.
JBT Marel expects that current tariff policies will create direct impacts to its cost of goods sold and is implementing short-term mitigation actions. Additionally, the Company believes that there could be impact to demand from the evolving tariff uncertainty. JBT Marel believes it is well positioned to maintain its global competitiveness as a result of its expansive global manufacturing footprint and holistic solutions offering. Please refer to the supplemental earnings presentation for incremental information.
Earnings Conference Call
A conference call is scheduled for 11:00 a.m. ET on Monday, May 5, 2025, to discuss first quarter 2025 results. A simultaneous webcast and audio replay of the call will be available on the Company’s Investor Relations website at https://ir.jbtc.com/events-and-presentations/.
