JBT Marel Corp (JBTM)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $854.1M with more than half recurring; adjusted EPS was $0.97 while GAAP diluted EPS was $(3.35), reflecting sizable non-cash pension settlement and M&A-related costs .
• Results exceeded management’s guidance and beat S&P Global consensus: revenue $854.1M vs $832.4M*, adjusted EPS $0.97 vs $0.838*, driven by solid equipment volume, recurring revenue, and expense control .
• Management suspended full-year 2025 guidance due to tariff uncertainty and issued Q2 2025 guidance (revenue $885–$915M; adjusted EPS $1.20–$1.40), citing $10–$15M FX tailwind and defined non-GAAP exclusions .
• Orders and backlog remained robust ($916.1M orders; $1.31B backlog), and liquidity was ~$1.3B with bank leverage ratio at 3.2x, providing flexibility despite higher net debt following the Marel transaction .

What Went Well and What Went Wrong

What Went Well

• “Solid start to the year… outperformed our first quarter expectations,” with healthy demand in poultry, meat, beverages, pharma, and pet food, highlighting breadth of end-market strength .
• “Strong operational execution… leading to results that exceeded our guidance,” supported by equipment volume and expense management; consolidated adjusted EBITDA reached $112M (13.1% margin) .
• Segment performance improved YoY: JBT adjusted EBITDA margin 14.9% vs 14.6% and Marel 11.5% vs 9.6%; total combined adjusted EBITDA rose to $112M from $100M .

What Went Wrong

• GAAP EPS of $(3.35) driven by $147M non-cash pension plan settlement, $74M M&A costs, $42M acquisition-related amortization, and $11M restructuring costs, overshadowing operating progress .
• Gross margin declined YoY to 34.2% from 35.8%, and operating margin was negative (-3.9%) due to elevated SG&A and one-time items .
• Macroeconomic/tariff uncertainty forced suspension of full-year 2025 guidance; management flagged direct COGS impacts and potential demand headwinds despite mitigation actions (vendor concessions, pricing, reshoring) .

Financial Results

Core P&L vs prior year and prior quarter

Note: Q4 2024 reflects JBT standalone pre-combination; Q1 2025 reflects combined JBT Marel; comparisons are directional.

Segment breakdown (combined)

KPIs and Balance Sheet

Guidance Changes

Earnings Call Themes & Trends

Note: No Q3 2024 primary-source documents were available in this dataset; trends reflect Q4 2024 and Q1 2025 sources.

Management Commentary

• CEO: “JBT Marel had a solid start to the year as we outperformed our first quarter expectations. Orders continue to demonstrate the benefits of our diverse and holistic end-market solutions…” .
• CEO on tariffs: “The potential outcomes from global trade and tariff policies are creating increased uncertainty and costs… [we are] taking proactive measures to mitigate impacts… including vendor concessions, price increases, and reshoring of third party suppliers” .
• CFO: “Our team delivered strong operational execution… leading to results that exceeded our guidance” .
• Policy change: Beginning Q1 2025, adjusted EPS excludes acquisition-related amortization; prior periods recast for comparability .

Q&A Highlights

• The company scheduled a call at 11:00 a.m. ET on May 5, 2025, with webcast replay available .
• The Q1 2025 earnings call transcript was not available in the document set searched; themes above reflect press release disclosures [Search window returned 0 transcripts; ListDocuments 2025-01-01 to 2025-06-30].

Estimates Context

Values with asterisks are retrieved from S&P Global.

Interpretation: The company beat on revenue and adjusted EPS relative to consensus*, driven by better equipment/recurring revenue mix and expense control. GAAP profitability was depressed by non-operational items (pension settlement, M&A, amortization), explaining the discrepancy between adjusted and standardized EBITDA views .

Key Takeaways for Investors

• Bold operational beat: Revenue and adjusted EPS exceeded management’s expectations and S&P consensus*, supported by solid volume and recurring revenue >50% .
• Non-GAAP vs GAAP gap matters: Large non-cash pension settlement and M&A-related charges drove GAAP losses; adjusted metrics better reflect core performance trajectory .
• Guidance prudence amid tariffs: Full-year guidance suspended; Q2 guide implies sequential revenue growth with defined cost exclusions; watch tariff cost flow-through to margins .
• Orders/backlog strength: $916M orders and $1.31B backlog provide visibility; supports potential book-and-ship upside and recurring revenue durability .
• Synergy execution: Restructuring and supply chain actions on track to deliver $35–$40M realized savings in 2025 and $80–$90M run-rate exiting 2025; margin optimization likely as integration matures .
• Balance sheet: Liquidity ~$1.3B and bank leverage ratio 3.2x afford flexibility for integration and working capital, though net debt is elevated post-transaction .
• Trading setup: Near-term catalysts include Q2 print vs guidance and tariff mitigation efficacy; medium-term thesis hinges on synergy realization, recurring revenue expansion, and margin recapture as one-time charges fade .

Additional Data and Cross-References

• Cash flow and FCF improved YoY: Operating cash flow $34.4M vs $10.4M; FCF $17.8M vs $0.7M .
• Policy update improves comparability: Adjusted EPS now excludes acquisition-related amortization (prior periods recast) .
• Q2 guidance detail: FX tailwind $10–$15M; expected restructuring $11M, M&A $18M, acquisition amortization $41M; D&A ~61M, interest ~$27M, other financing income ~$(3)M; tax rate 24–25% .

Search notes:

• Q1 2025 8-K with Exhibit 99.1 press release and Item 2.02 reviewed in full –.
• Q4 2024 8-K reviewed for prior-quarter context –.
• No Q1 2025 earnings call transcript or other Q1 press releases were available in the dataset (search returned 0).
• S&P Global consensus estimates retrieved via tool for Q1 2025 (EPS, revenue, EBITDA)*. Values with asterisks are retrieved from S&P Global.