JBTMarel Corp (JBTM) Q1 2026 Earnings Call Transcript
JBT Marel Corporation provides technology solutions to food and beverage industry in North America, Europe, the Middle East, Africa, the Asia Pacific, and Central and South America. It offers value-added processing that includes equipment, solutions, software and services, stunning, slaughtering, scalding/dehairing, chilling, mixing/grinding, separation, injecting, blending, marinating, tumbling, flattening, forming, portioning, coating, cooking, frying, freezing, extracting, pasteurizing, sterilizing, concentrating, high pressure processing, weighing, inspecting, filling, closing, sealing, end of line material handling, labeling, and packaging solutions to the food, beverage, and health market. The company also provides automated guided vehicle systems for material movement in the manufacturing, warehouse, and medical facilities. It serves poultry, beef, pork, seafood, ready-to-eat meals, fruits, vegetables, plant-based meat alternatives, dairy, bakery, pet foods, soups, sauces, juices, and aqua feed industries. The company markets and sells its products and solutions through direct sales force, independent distributors, sales representatives, and technical service teams. The company was formerly known as John Bean Technologies Corporation and changed its name to JBT Marel Corporation in January 2025. JBT Marel Corporation was incorporated in 1994 and is headquartered in Chicago, Illinois.
JBT Marel posted 2025 revenue of $3.8B with EBITDA of $600M (15.8% margin), achieved EPS accretion, delivered $85M run-rate synergies, and issued 2026 guidance of 5–7% revenue growth and 17.0–17.5% EBITDA margin, while navigating tariff headwinds and targeting further leverage reduction.
⭐ Key Highlights
✔Positive Signals
- 2025 revenue of $3.8B and ASPO EBITDA margin of 15.8% at the high end of guidance
- First-year adjusted EPS accretion relative to legacy JBT
- Leverage reduced to <2.9x, down from just below 4x at closing
- Synergy execution ahead of plan, with $30M in 2025 orders and $85M run-rate benefits exiting 2024
- 2026 guidance of 5%–7% revenue growth and 17%–17.5% EBITDA margin
✖Negative Signals
- Tariff headwinds costing ~50bp margin in 2025 and ~45M of higher tariff costs in 2026 before pricing actions
- Q4 2025 EBITDA margin declined to 16% due to tariff acceleration and growth investments
- Some inefficiencies in Prepared Foods & Beverage, particularly AGV, with expectations to improve in early 2026
- Tariffs and ongoing supply-chain disruption pose a moving target for costs
- Near-term capital allocation remains contingent on completing integration and achieving leverage targets
📊Financial Results
- Full-year revenue: $3.8B, above high end of prior guidance
- Adjusted EBITDA: $600M, 15.8% margin (midpoint of guidance)
- FY2025 synergy savings: $43M YoY, with ~ $85M run-rate savings vs 2024 baseline
- Leverage: ended 2025 at <2.9x (target <3x), on track to 2–2.5x by end-2026
- Q4 2025 adjusted EBITDA margin: 16% (sequential decline due to tariffs and growth investments)
🔮Future Guidance
- 2026 revenue growth guidance: 5%–7% (with Protein Solutions at the higher end and Prepared Foods at the lower end)
- 2026 adjusted EBITDA margin guidance: 17%–17.5%
- 2026 GAAP EPS guidance: $4.70–$5.15; non-GAAP EPS guidance: $8.00–$8.50
- Tariff headwinds included in guidance: ~ $45M higher tariffs before pricing actions; pricing actions expected to mitigate some impact
- Synergy realization: ~ $60M annual run-rate benefits expected in 2026, with ongoing cost-structure optimization and potential footprint rationalization
💡Interesting Insights
- Integrated, end-to-end solutions across both legacy businesses are being actively marketed, with cross-selling accelerating as organizational design and branding unify
- The company is actively regionalizing supply chains and duplicating plants in the U.S. to mitigate tariff exposure, with some accelerations possible in poultry-focused plants
Detailed Analysis
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