JBT MAREL Corp Q1 FY2025 earnings call

Brian highlighted strong first quarter performance with better-than-anticipated revenue, adjusted EBITDA, and margins, driven by recurring revenue strength and operational execution. Order flow up 12% y/y, with strength in Poultry, meat, beverage, pharma, and pet food sectors globally. Arni discussed integration progress, including a new end-market focused organizational structure, combined capabilities in Poultry and other sectors, and full-line solutions. Matt recapped first quarter results, adjusted EBITDA margin outperformance, debt leverage improvement, suspended full-year guidance, and provided second quarter guidance.

JBT segment: Revenue increased 4% year-over-year (5.6% on constant currency basis), adjusted EBITDA $61 million, up 6%, margin 14.9%. Marel segment: Revenue flat vs prior year but 2% on constant currency basis, adjusted EBITDA $51 million, up 19%, margin 11.5%.

Suspended full-year 2025 guidance due to tariff uncertainty. Provided second quarter 2025 guidance: revenue $885M-$915M (including $10M-$15M favorable FX impact), adjusted EBITDA margin 14.5%-15.25%, adjusted EPS $1.20-$1.40.

Impact of US tariff policy and macroeconomic uncertainty, potential customer order delays/losses, uncertainty in tariff rates affecting cost of goods sold.

Q: Updated thoughts on guidance, customer behavior, global markets.

A: Guidance suspended due to uncertainty, minimal customer behavior change, discussions on cost and tariffs globally.

Q: Backlog, order delays, Marel's margin strength.

A: Backlog adjustments due to FX and alignment, margin strength from restructuring and synergy actions.

Q: Fish and whitefish market, recurring vs non-recurring revenue.

A: Fish market challenges, salmon industry improvement, recurring revenue due to seasonality and software integration.

Q: Cost mitigation, second half and 2026, integration impact on demand.

A: Cost mitigation plans, second half mitigation efforts, integration flexibility in demand changes.