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JBT Marel Corp (JBTM)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered revenue of $1.001B, adjusted EBITDA of $171M, and adjusted EPS of $1.94, with orders of $946M and backlog of $1.339B; performance was supported by stronger “book-and-ship,” improved backlog conversion, and poultry mix, coupled with supply chain productivity and cost discipline .
  • Results beat Wall Street consensus across EPS, revenue, and EBITDA; adjusted EPS beat by $0.44, revenue by $67.5M, and EBITDA by $24.6M, signaling stronger-than-expected execution and mix benefits in poultry and shorter cycle products .
  • Full-year 2025 guidance was raised: revenue to $3.76–$3.79B, adjusted EPS to $6.10–$6.40, and adjusted EBITDA margin to 15.75–16.0% (from 15.25–16.0% in Q2 guidance); D&A was lowered to ~$265M and net interest held at ~$105M .
  • Near-term stock reaction catalysts include the guidance raise and the announced realignment to two segments—Protein Solutions and Prepared Food & Beverage Solutions—expected to be recast ahead of the Q4 release .

What Went Well and What Went Wrong

  • What Went Well

    • “JBT Marel outperformed our third quarter earnings expectations, primarily driven by better-than-expected revenue, excellent supply chain and operational productivity, and solid cost control.” — CEO Brian Deck .
    • “Margins also exceeded our expectations, driven by higher volume flow through, a favorable mix of poultry equipment and shorter cycle products, and accelerated synergy savings.” — CFO Matt Meister .
    • In-year realized synergy savings expected at $40–$45M (up from prior), with $14M YoY in Q3; bank total net leverage ratio improved to 2.7x; liquidity ~$1.9B .

  • What Went Wrong

    • GAAP results remain burdened by one-time and acquisition-related costs (restructuring $7M, M&A $6M, acquisition-related amortization/depreciation $33M in Q3), continuing to widen GAAP-to-adjusted spreads .
    • Ongoing tariff cost headwinds acknowledged earlier in the year; while not reiterated quantitatively in Q3, Q2 guidance embedded $20–$30M net tariff costs into H2 margins and mix assumptions .
    • Net debt remained elevated at ~$1.792B despite sequential deleveraging, with total net debt to TTM pro forma adjusted EBITDA at 3.1x; FX tailwinds benefited revenue by ~$26M YoY, underscoring sensitivity to currency .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$453.8 $854.1 $934.8 $1,001.3
Gross Profit Margin (%)36.1% 34.2% 35.8% 35.9%
Operating Margin (%)10.3% (3.9)% 5.2% 10.2%
Adjusted EBITDA ($USD Millions)$81.7 $112.2 $156.2 $170.9
Adjusted EBITDA Margin (%)18.0% 13.1% 16.7% 17.1%
Diluted EPS (GAAP) ($)$1.21 ($3.35) $0.07 $1.26
Adjusted EPS ($)$1.76 $0.97 $1.49 $1.94

Segment breakdown (Q3 2025):

SegmentRevenue ($USD Millions)Adjusted EBITDA ($USD Millions)Adjusted EBITDA Margin (%)
JBT$464.8 $71.3 15.3%
Marel$536.5 $99.6 18.6%
Total$1,001.3 $170.9 17.1%

KPIs and balance sheet/liquidity:

KPIQ1 2025Q2 2025Q3 2025
Inbound Orders ($USD Millions)$916.1 $937.7 $946.3
Ending Backlog ($USD Millions)$1,310.5 $1,393.7 $1,338.9
YTD Operating Cash Flow ($USD Millions)$34.4 $136.6 $224.3
YTD Free Cash Flow ($USD Millions)$17.8 $105.8 $163.0
Liquidity ($USD Billions)~$1.3 ~$1.3 ~$1.9
Bank Total Net Leverage Ratio (x)3.2x 2.84x 2.7x
Net Debt ($USD Millions)$1,886.5 $1,809.7 $1,791.8

Guidance Changes

MetricPeriodPrevious Guidance (Q2 release)Current Guidance (Q3 release)Change
Revenue ($USD Billions)FY 2025$3.675–$3.725 $3.760–$3.790 Raised
Adjusted EBITDA Margin (%)FY 202515.25–16.0 15.75–16.0 Raised (midpoint)
GAAP EPS ($)FY 2025($1.90)–($1.20) ($1.05)–($0.75) Raised (less negative)
Adjusted EPS ($)FY 2025$5.45–$6.15 $6.10–$6.40 Raised
Net Interest Expense ($USD Millions)FY 2025$105–$110 ~$105 Maintained (narrowed)
Total D&A ($USD Millions)FY 2025~285 (incl. ~195 acquisition-related) ~265 (incl. ~180 acquisition-related) Lowered
Other Income (Cross-currency swaps) ($USD Millions)FY 2025~10 ~10 Maintained
Tax Rate (GAAP EPS) (%)Q4 202511–12 (FY assumption) ~21 (Q4 assumption) Updated (higher for Q4)
Tax Rate (Adjusted EPS) (%)Q4 202524–25 (FY assumption) ~25 (Q4 assumption) Maintained
In-year Realized Synergy Savings ($USD Millions)FY 2025$35–$40 $40–$45 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Supply chain productivity & backlog conversionQ1: Integration on track; operational execution aided results . Q2: Strong cash flow and backlog positioning .Backlog conversion ahead of schedule; strong manufacturing and supply chain efficiencies .Improving
Tariffs & macroQ1: Suspended FY guidance; tariff mitigation in progress . Q2: Re-established guidance with $20–$30M H2 net tariff costs assumed .No incremental Q3 quantification; focus on mix and productivity .Stabilizing with mitigations
FX tailwindQ2: +$21M YoY FX benefit; above plan .Q3: ~$26M YoY FX benefit within revenue .Slightly improving
Poultry demand/mixQ1: Healthy demand in poultry/meat/beverages/pharma/pet food . Q2: Mix shift to equipment expected in H2 .Favorable mix in poultry equipment drove margins .Positive
SynergiesQ1: $35–$40M in-year; $80–$90M run rate exiting 2025 . Q2: On track; $35–$40M in-year .In-year raised to $40–$45M; run rate $80–$90M maintained .Improving
Leverage & financingQ1: Net debt/TTM pro forma EBITDA 3.8x . Q2: ~3.39x; Term Loan B executed .Bank leverage ratio 2.7x; closed $575M 0.375% 2030 converts, dilution mitigated to $283.42 strike .Improving
Segment realignment—Realign to two segments (Protein Solutions; Prepared Food & Beverage Solutions); recast prior periods ahead of Q4 release .Structural change (positive clarity)

Management Commentary

  • CEO Brian Deck: “JBT Marel outperformed our third quarter earnings expectations, primarily driven by better-than-expected revenue, excellent supply chain and operational productivity, and solid cost control” .
  • CFO Matt Meister: “Our $65 million revenue outperformance was the result of higher book and ship revenue coupled with better backlog conversion... Margins also exceeded our expectations, driven by... poultry equipment and shorter cycle products, and accelerated synergy savings” .
  • Financing update: “By executing the note hedge transactions and warrant transactions, the Company effectively mitigated shareholder dilution until the share price reaches $283.42 per share” .

Q&A Highlights

  • The Q3 2025 earnings call was scheduled for Nov 4, 2025; the full transcript was not available in the document catalog at the time of this analysis; Q&A highlights cannot be validated without the transcript .

Estimates Context

MetricConsensus*ActualSurprise
Adjusted EPS ($)1.505*1.94 +$0.44
Revenue ($USD Millions)933.8*1,001.3 +$67.5M
Adjusted EBITDA ($USD Millions)146.3*170.9 +$24.6M
# of EPS Estimates6*——
# of Revenue Estimates5*——

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Broad-based beat with revenue, margins, and EPS above expectations; mix and operational productivity were key drivers, especially in poultry and shorter cycle products .
  • Guidance raise across revenue, adjusted EPS, and adjusted EBITDA margin supports estimate revisions upward into Q4; D&A lowered and net interest maintained tighten modeling inputs .
  • Synergy realization accelerated ($40–$45M in-year), and leverage improved to 2.7x bank ratio; execution on integration and cash generation underpin deleveraging trajectory .
  • Convertible notes at 0.375% with hedges reduce potential dilution up to $283.42/share, optimizing capital structure and interest burden vs. high-yield alternatives .
  • Segment realignment to Protein Solutions and Prepared Food & Beverage Solutions should enhance disclosure clarity and peer comparability beginning Q4 .
  • Watch tariff/macro sensitivities and FX tailwinds; Q2 embedded H2 tariff costs, while Q3 benefitted from FX; monitor mix shifts and backlog conversion sustainability into Q4 .
  • Short-term: beat/raise dynamic is a positive trading catalyst; medium-term: integration synergies, deleveraging, and segment clarity support rerating potential if execution persists .