John Bean Tech ((JBTM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for John Bean Tech (JBT) reflected an overall positive sentiment, highlighting strong performance in the second quarter of 2025. The company demonstrated significant progress in synergies, improved cash flow, and reduced leverage. However, challenges such as tariff costs, geographic performance variability, and softness in certain segments were also acknowledged.
Strong Q2 Performance
JBT posted a robust performance in the second quarter, with adjusted EBITDA margins and adjusted EPS surpassing expectations. The company reported total revenue of $935 million, marking a 13% year-over-year growth in the JBT segment. The Marel segment also contributed significantly, achieving a revenue of $480 million.
Significant Progress in Synergies and Cash Flow
The company realized year-over-year synergy savings of $5 million in operating expenses and $3 million in the supply chain. Free cash flow for the first half of 2025 was $106 million, with $88 million generated in the second quarter, supported by effective working capital management and customer deposits.
Improvement in Leverage
JBT successfully reduced its leverage to below 3.4x by the end of the second quarter, down from 3.8x in the first quarter and 4x at the close of the transaction. The bank leverage ratio was reported at 2.8x as of June 30.
Poultry Industry Demand
The poultry industry, JBT’s largest end market, continued to invest in equipment, with a pipeline expected to support growth into the next year. The combined pipeline of opportunities in North America grew by approximately 15% over the last six months.
Integration and Cross-Selling Benefits
JBT successfully integrated its portfolio with Marel, capturing benefits from cross-selling. This integration led to a 15% increase in the combined pipeline of opportunities in North America over the past six months.
Tariff Costs
The company incurred approximately $9 million in gross tariff costs in Q2, with continued impacts anticipated in Q3 and Q4. JBT is actively working on mitigating actions, including supply chain adjustments and pricing strategies.
Pharma and Pet Food Demand Softness
The company experienced softer quarterly demand in the pharma and pet food segments, indicating challenges in these market areas.
Geographic Performance Variability
JBT noted variability in geographic performance, with North America being relatively soft and the Asia Pacific region remaining choppy, highlighting regional demand challenges.
Impairment Charge
An $11 million impairment charge was incurred on a joint venture investment as a result of the JBT combination with Marel.
Forward-Looking Guidance
JBT Marel’s earnings call for the second quarter of 2025 provided robust guidance, reflecting strong performance. The company expects total revenue of $3.7 billion at the midpoint for the full year 2025, with adjusted EBITDA margins ranging from 15.25% to 16% and adjusted EPS between $5.45 and $6.15. The company anticipates achieving $35 million to $40 million in expected in-year synergy savings and an annualized run rate of $80 million to $90 million in savings by the end of 2025.
In summary, John Bean Tech’s earnings call highlighted a positive outlook with strong Q2 performance, significant synergy progress, and improved leverage. Despite challenges such as tariff costs and segment softness, the company’s forward-looking guidance remains optimistic, with expectations of continued growth and synergy savings.