JBT Marel (JBTM) Q4 2024 earnings summary

Executive summary

• JBT and Marel completed their merger on January 2, 2024, creating a leading global food technology provider focused on integrated solutions and customer-centric strategies.

• Integration is progressing well, with organizational design nearly complete, a new brand and vision launched, and initial policy alignment impacting Marel's adjusted EBITDA.

• The combined company leverages complementary portfolios to offer full-line solutions, enhancing operational efficiency and customer value.

• Achieved record Q4 2024 orders and backlog for both JBT and Marel, with strong demand in key end markets and resilient recurring revenue.

• Cost synergy expectations for the combined company were raised to $150 million annual run rate within three years post-transaction, mainly from supply chain savings.

Financial highlights

• JBT reported record Q4 orders of $523 million, while Marel reported €474 million; combined Q4 orders exceeded $1 billion.

• JBT 2024 revenue grew 3% (3.5% organically) to $1,716 million, with adjusted EBITDA of $295 million (up 8%, margin 17.2%).

• Marel's full-year 2024 revenue was €1.64 billion (down 4.6%), with recurring revenue up 5% to €821 million and adjusted EBITDA of €200 million.

• Combined 2024 results: revenue of $3.5 billion, adjusted EBITDA of $479 million (13.7% margin).

• JBT generated $199 million in free cash flow, up 20% year-over-year.

Outlook and guidance

• 2025 revenue guidance: $3,575–$3,650 million, with 4.5%-6.5% constant currency growth and a negative FX impact of $75 million expected.

• Adjusted EBITDA margin guidance for 2025 is 15.75%-16.5%, over 200 basis points improvement.

• Cost synergies of $35-$40 million expected in 2025, with run rate synergies of $80-$90 million by year-end.

• Projected 2025 adjusted EPS of $5.50-$6.10; Q1 revenue expected at $820-$850 million.

• Leverage ratio expected to fall below 3.0x by year-end 2025, supported by strong free cash flow and synergy realization.