JBT Marel (JBTM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $854.1 million, exceeding expectations, with over half from recurring products and services and strong order intake across end markets.

• Adjusted EBITDA was $112.2 million (13.1% margin), up 95.5% year-over-year, but reported net loss was $173 million due to $147 million pension settlement and $74 million M&A charges.

• Integration of JBT and Marel is progressing, with synergy and restructuring plans underway and early cost savings realized.

• Orders totaled $916 million and backlog stood at $1.3 billion, reflecting robust demand in poultry, meat, beverage, pharma, and pet food markets.

• Company outperformed internal expectations for the quarter, but full-year guidance is suspended due to macroeconomic and tariff uncertainties.

Financial highlights

• Q1 2025 revenue was $854.1 million, up 117.7% year-over-year, with Marel contributing $445.3 million and organic revenue up $23 million.

• Adjusted EBITDA margin was 13.1%, up 120 bps year-over-year, with free cash flow of $18 million after $42 million in M&A payments.

• Adjusted EPS was $0.97, while GAAP EPS was $(3.35) due to significant non-cash and M&A-related charges.

• JBT segment revenue was $409 million (14.9% margin); Marel segment revenue was $445 million (11.5% margin).

• Net debt at quarter-end was $1.89 billion, with liquidity of $1.3 billion and a bank leverage ratio of 3.2x.

Outlook and guidance

• Full-year 2025 guidance suspended due to macroeconomic and tariff uncertainty; Q2 2025 revenue expected between $885–$915 million.

• Q2 adjusted EBITDA margin guidance is 14.5–15.25%, with adjusted EPS of $1.20–$1.40.

• Q2 guidance includes $10–$15 million FX tailwind and excludes $11 million restructuring, $18 million M&A, and $41 million amortization from adjusted metrics.

• Estimated Q2 tax rate is 24–25%; interest expense ~$27 million; depreciation and amortization ~$61 million.

• Integration and synergy cost savings targeted at $50–$60 million annualized, with $20 million expected in the remainder of 2025.