JBT Marel Corporation Q1 FY2026 earnings call

• 2026 got off to a solid start with orders exceeding one billion for second consecutive quarter, margin expansion, strong cash flow and progress in reducing financial leverage.
• Investor Day in late March unveiled next-gen strategy and 2028 financial targets, progress in integrating JBT and Morrell highlighted.
• Next-gen strategy pillars: advancing customer-centric service model, enhancing product offering and digital capabilities, capturing commercial opportunities, continuous improvement culture, and strategic M&A.
• Expect revenue to grow at 3-year organic compound annual rate of 5% to 7% and adjusted EBITDA margin of 20% in 2028.

Protein solutions revenue was $460 million, grew 22% year-over-year. Organic growth was primarily due to higher poultry volume. Protein solution segment adjusted EBITDA margin improved by more than 500 basis points year-over-year to 21.7%. Prepared food and beverage solution segment revenue was $476 million, flat year over year. Adjusted EBITDA margin for the segment declined 170 basis points year over year to 14.7%.

• Remain confident in delivering original earnings guidance for the year.
• Q2 anticipated revenue of $975 million to $1 billion and adjusted EBITDA margins of 17% to 17.5%.
• Full-year guidance remains unchanged, factoring in 25 to 50 basis point headwind from tariffs after mitigation actions.

• Middle East conflict not having noteworthy impact on order book and pipeline, but results in more challenging logistics, fertilizer, and energy inflationary environment with attention to cost dynamics for company and customers.

Q: Sam Karlovan asked about comparison of current inflationary trend to 2022.

A: Poultry customers in stronger position today, corn and soybean in low-cost position, combined company more diversified.

Q: Justin Ages asked about headwinds in prepared food and beverage solutions and poultry geography.

A: Warehouse automation impacted by tariff changes and discrete projects, actions to improve margins starting in Q2; poultry demand broad-based with Europe, North America, South America strong, Asia has good opportunities.

Q: Mig Dobre asked about poultry visibility and prepared food and beverage segment.

A: Poultry demand driven by secular tailwinds, line speed issue in North America as multi-year investment opportunity; prepared food and beverage seeing recovery, Q1 orders improved, organic growth mid-single digits, margins to improve year over year