JBT Marel Corporation (JBTM) Q3 2025 Earnings Call Transcript
Total Revenue Approximately $1 billion, an increase of 7% sequentially. Reasons for the increase include excellent manufacturing and supply chain productivity, which allowed for higher backlog to revenue conversion, and $20 million in higher book and ship revenue.
Orders $946 million, an increase of 7% year-over-year. Reasons for the increase include continued equipment investment from the poultry industry and robust orders from pet food and pharma sectors.
Backlog $1.3 billion. No year-over-year change mentioned, but it provides visibility for the remainder of the year and support as the company enters 2026.
Adjusted EBITDA Margin 17.1%, exceeded expectations by 140 basis points. Reasons for the increase include favorable mix of poultry equipment, shorter-cycle products, and better-than-expected synergy savings.
Synergy Savings $14 million year-over-year. Reasons include disciplined execution of integration plans and optimization of procurement strategies.
GAAP EPS $1.28. No year-over-year change or reasons mentioned.
Adjusted EPS $1.94. Excludes certain one-time items and acquisition-related costs.
Net Tariff Impact Approximately $15 million in the quarter, slightly less than anticipated due to cost mitigation efforts.
JBT Segment Revenue $465 million, an increase of 2% year-over-year and sequentially. Reasons for the increase include higher share of corporate-related costs carried in the JBT segment.
JBT Segment Adjusted EBITDA Margin 15.3%, a decrease of 13% year-over-year and sequentially. Reasons for the decrease include unfavorable mix of equipment and one-off project variances.
Marel Segment Revenue $537 million, an increase of 12% sequentially. Reasons for the increase include favorable mix from higher-margin poultry equipment, integration synergies, and volume leverage.
Marel Segment Adjusted EBITDA Margin 18.6%. Reasons for the strong profitability include favorable mix from higher-margin poultry equipment, integration synergies, and volume leverage.
Operating Cash Flow $88 million for the third quarter, a record quarterly figure for the combined company. No year-over-year change mentioned.
Free Cash Flow $163 million for the first 9 months of 2025. No year-over-year change mentioned.
Financial Leverage Decreased to 3.1x from an initial leverage ratio of 4x at the close of the combination. Reasons for the decrease include strong cash flow and deleveraging efforts.
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JBT Marel Announces Reportable Segment Realignment
- Segment Realignment: JBT Marel announced that its plan to realign reportable segments will take effect in Q4 2025, aimed at integrating the company's operating model to enhance overall business efficiency.
- Historical Data Restatement: The company recast its historical segment results in a Form 8-K filed with the SEC, which will help investors better understand the company's financial performance under the new structure.
- Earnings Release Schedule: JBT Marel will report its Q4 and full-year 2025 financial results on February 23, 2026, after market close, and will hold a conference call the following day to further discuss the financial data.
- Global Operational Capacity: Operating over 50 manufacturing and distribution facilities worldwide, JBT Marel's integrated equipment, service, and software solutions enable customers to optimize food yield and efficiency, improve food safety and quality, and reduce resource waste.
ACK Asset Management Fully Liquidates JBT Marel Position
- Liquidation Overview: On February 13, 2026, ACK Asset Management disclosed in an SEC filing that it fully liquidated its position in JBT Marel Corporation by selling 350,546 shares, with an estimated transaction value of $49.23 million, indicating a cautious outlook on the stock's future performance.
- Portfolio Impact: Following this liquidation, ACK's top holdings include MTRN at $59.03 million (7.5% of AUM) and GVA at $57.67 million (7.3% of AUM), suggesting a strategic shift in its investment portfolio that may affect future earnings structure.
- Company Performance Highlights: JBT Marel reported over $1 billion in revenue for Q3 2025, with 49% derived from recurring revenue, and an adjusted EBITDA of $171 million, showcasing its strong performance in the food and beverage processing sector.
- Financial Health Status: Despite JBT Marel's net debt of approximately $1.79 billion and a net debt to adjusted EBITDA ratio of 3.1x, indicating significant financial leverage, management has raised the full-year 2025 revenue guidance, reflecting solid operational execution.
JBTM Options Volume Hits 231,400 Shares, Significant Increase
- Active Options Trading: JBT Marel Corp's options volume reached 2,314 contracts today, equivalent to approximately 231,400 shares, indicating a trading activity level of 48.3% of its average daily volume over the past month.
- High Strike Price Interest: Notably, the $160 strike call option expiring on February 20, 2026, saw 1,150 contracts traded today, representing about 115,000 shares, reflecting strong market interest at this price point.
- Zillow Options Activity: Zillow Group Inc experienced options trading volume of 13,065 contracts, representing approximately 1.3 million shares, or about 48.1% of its average daily trading volume over the past month, indicating market attention on its future performance.
- High Strike Price Trading: The $70 strike call option for Z saw a trading volume of 6,228 contracts today, representing approximately 622,800 shares, reflecting bullish sentiment among investors at this price level.
JBT Marel to Host Investor Day on March 26, 2026
- Investor Day Announcement: JBT Marel will host an Investor Day in New York City on March 26, 2026, starting at 9:00 AM ET, where CEO Brian Deck and the executive team will update on strategic priorities and financial objectives, aiming to bolster investor confidence.
- Diverse Participation Options: While in-person attendance is encouraged, the event will also be accessible via live webcast and replay due to space limitations, ensuring broader investor access to key information and enhancing company transparency.
- Global Business Operations: JBT Marel operates sales, service, manufacturing, and sourcing in over 30 countries, showcasing its global influence in the food and beverage industry and further solidifying its market leadership.
- Technological Solutions Focus: The company aims to create better customer outcomes by optimizing food yield and efficiency and improving food safety and quality, highlighting the strategic importance of reducing waste and resource use across the food supply chain.
Skillsoft Shares Drop 69% Year-to-Date: Is It Time to Invest or Stay Away?
Stock Performance: Skillsoft Corp. (SKIL) shares have dropped 69.2% year-to-date, significantly underperforming its industry and peers like JBT Marel and MediaAlpha, which have seen positive growth.
AI-Driven Innovation: The company is focusing on AI-fueled innovation, achieving notable improvements in its learning platform, Percipio, with substantial increases in AI learners and learning hours, indicating a strong market demand for AI upskilling solutions.
Financial Challenges: Skillsoft has revised its fiscal 2026 revenue guidance downward due to unexpected weaknesses in federal and discretionary spending, leading to concerns about its ability to meet internal targets and a current ratio below industry averages.
Investment Outlook: Analysts recommend a cautious approach, advising current investors to hold and potential buyers to wait, as the company faces operational headwinds and liquidity issues despite its long-term upside potential through AI-driven strategies.
JBT Marel (JBTM): Assessing Valuation Amid Recent Investor Interest and Stock Activity
Recent Stock Performance: JBT Marel (JBTM) has gained investor attention with a 5.07% one-day return and a 15.51% total shareholder return over the past year, indicating renewed optimism despite mixed quarterly results.
Valuation Insights: Analysts suggest JBT Marel may be undervalued, with a fair value estimate of $152.75, approximately 9% above its recent closing price, raising questions about whether the market has fully accounted for the company's growth potential.
Growth Drivers: The company's margin improvements, driven by realized merger synergies, aftermarket expansion, and advanced digital offerings, are expected to enhance long-term profitability and competitive advantage.
Risks and Considerations: Ongoing integration challenges and global tariff pressures pose risks to JBT Marel's growth trajectory, necessitating careful consideration of these factors in investment decisions.
JBT Marel Announces Reportable Segment Realignment
- Segment Realignment: JBT Marel announced that its plan to realign reportable segments will take effect in Q4 2025, aimed at integrating the company's operating model to enhance overall business efficiency.
- Historical Data Restatement: The company recast its historical segment results in a Form 8-K filed with the SEC, which will help investors better understand the company's financial performance under the new structure.
- Earnings Release Schedule: JBT Marel will report its Q4 and full-year 2025 financial results on February 23, 2026, after market close, and will hold a conference call the following day to further discuss the financial data.
- Global Operational Capacity: Operating over 50 manufacturing and distribution facilities worldwide, JBT Marel's integrated equipment, service, and software solutions enable customers to optimize food yield and efficiency, improve food safety and quality, and reduce resource waste.
ACK Asset Management Fully Liquidates JBT Marel Position
- Liquidation Overview: On February 13, 2026, ACK Asset Management disclosed in an SEC filing that it fully liquidated its position in JBT Marel Corporation by selling 350,546 shares, with an estimated transaction value of $49.23 million, indicating a cautious outlook on the stock's future performance.
- Portfolio Impact: Following this liquidation, ACK's top holdings include MTRN at $59.03 million (7.5% of AUM) and GVA at $57.67 million (7.3% of AUM), suggesting a strategic shift in its investment portfolio that may affect future earnings structure.
- Company Performance Highlights: JBT Marel reported over $1 billion in revenue for Q3 2025, with 49% derived from recurring revenue, and an adjusted EBITDA of $171 million, showcasing its strong performance in the food and beverage processing sector.
- Financial Health Status: Despite JBT Marel's net debt of approximately $1.79 billion and a net debt to adjusted EBITDA ratio of 3.1x, indicating significant financial leverage, management has raised the full-year 2025 revenue guidance, reflecting solid operational execution.
JBTM Options Volume Hits 231,400 Shares, Significant Increase
- Active Options Trading: JBT Marel Corp's options volume reached 2,314 contracts today, equivalent to approximately 231,400 shares, indicating a trading activity level of 48.3% of its average daily volume over the past month.
- High Strike Price Interest: Notably, the $160 strike call option expiring on February 20, 2026, saw 1,150 contracts traded today, representing about 115,000 shares, reflecting strong market interest at this price point.
- Zillow Options Activity: Zillow Group Inc experienced options trading volume of 13,065 contracts, representing approximately 1.3 million shares, or about 48.1% of its average daily trading volume over the past month, indicating market attention on its future performance.
- High Strike Price Trading: The $70 strike call option for Z saw a trading volume of 6,228 contracts today, representing approximately 622,800 shares, reflecting bullish sentiment among investors at this price level.
JBT Marel to Host Investor Day on March 26, 2026
- Investor Day Announcement: JBT Marel will host an Investor Day in New York City on March 26, 2026, starting at 9:00 AM ET, where CEO Brian Deck and the executive team will update on strategic priorities and financial objectives, aiming to bolster investor confidence.
- Diverse Participation Options: While in-person attendance is encouraged, the event will also be accessible via live webcast and replay due to space limitations, ensuring broader investor access to key information and enhancing company transparency.
- Global Business Operations: JBT Marel operates sales, service, manufacturing, and sourcing in over 30 countries, showcasing its global influence in the food and beverage industry and further solidifying its market leadership.
- Technological Solutions Focus: The company aims to create better customer outcomes by optimizing food yield and efficiency and improving food safety and quality, highlighting the strategic importance of reducing waste and resource use across the food supply chain.
Skillsoft Shares Drop 69% Year-to-Date: Is It Time to Invest or Stay Away?
Stock Performance: Skillsoft Corp. (SKIL) shares have dropped 69.2% year-to-date, significantly underperforming its industry and peers like JBT Marel and MediaAlpha, which have seen positive growth.
AI-Driven Innovation: The company is focusing on AI-fueled innovation, achieving notable improvements in its learning platform, Percipio, with substantial increases in AI learners and learning hours, indicating a strong market demand for AI upskilling solutions.
Financial Challenges: Skillsoft has revised its fiscal 2026 revenue guidance downward due to unexpected weaknesses in federal and discretionary spending, leading to concerns about its ability to meet internal targets and a current ratio below industry averages.
Investment Outlook: Analysts recommend a cautious approach, advising current investors to hold and potential buyers to wait, as the company faces operational headwinds and liquidity issues despite its long-term upside potential through AI-driven strategies.
JBT Marel (JBTM): Assessing Valuation Amid Recent Investor Interest and Stock Activity
Recent Stock Performance: JBT Marel (JBTM) has gained investor attention with a 5.07% one-day return and a 15.51% total shareholder return over the past year, indicating renewed optimism despite mixed quarterly results.
Valuation Insights: Analysts suggest JBT Marel may be undervalued, with a fair value estimate of $152.75, approximately 9% above its recent closing price, raising questions about whether the market has fully accounted for the company's growth potential.
Growth Drivers: The company's margin improvements, driven by realized merger synergies, aftermarket expansion, and advanced digital offerings, are expected to enhance long-term profitability and competitive advantage.
Risks and Considerations: Ongoing integration challenges and global tariff pressures pose risks to JBT Marel's growth trajectory, necessitating careful consideration of these factors in investment decisions.
