JBTM

• Post-Merger Integration & Synergies

  • The JBT-Marel combination has delivered three consecutive quarters of orders exceeding $1 billion, with 10% year-over-year order growth in Q2 2026.
  • Cross-selling synergies hit $45 million in the first half of 2026, reaching $75 million over the first 18 months post-close, with the strongest opportunities in the prepared foods segment.
  • Total cumulative cost synergy savings are tracking ahead of original targets: footprint optimization alone is expected to deliver $25-30 million in annualized savings by 2028, up from the original $10-15 million forecast. $4-5 million of these savings are already included in the 2026 full-year forecast.
  • Leverage has fallen to just below 2.5x adjusted EBITDA, hitting the 2-2.5x target range just 18 months after the merger close.

• Operational Optimization Initiatives

  • The company has reduced its global operating footprint by approximately 15% (1.3 million square feet total, 1.1 million square feet of manufacturing/distribution space and 200,000 square feet of office space), with 80% of the manufacturing space reduction concentrated in the PFB segment to unlock margin potential.
  • Restructuring of the warehouse automation (AGV) business is complete, with product standardization implemented and two facilities consolidated into one. The restructuring is expected to generate $9 million in total annual savings, with $3 million of savings realized in H2 2026.
  • Supply chain optimization efforts include consolidated purchasing, parts/subcomponent standardization, and accelerated localization of European supply to the U.S. to mitigate tariff impacts, reduce lead times and lower costs.

• Market Demand Highlights

  • Investment in the poultry industry remains solid, with JBT Marel positioned to capture growth across the entire poultry value chain from primary processing to end-of-line solutions.
  • Protein consumption is a strong underlying market driver, with approximately 70% of total company revenue exposed to the protein market when including PFB segment protein-related activity.

• Full year 2026 guidance for consolidated revenue and adjusted EBITDA is maintained, with 6% year-over-year consolidated revenue growth and 145 basis points of adjusted EBITDA margin expansion expected at the midpoint. Adjusted EPS guidance was only refined to update assumptions for depreciation, amortization and the effective tax rate.
• Organic revenue growth of 2-4% year-over-year is expected for Q3 2026, partially offset by a 1% negative foreign exchange impact, with adjusted EBITDA margins guided to a range of 17% to 17.5%.
• A steeper ramp in results is expected in Q4 2026 compared to Q3 2026, as production efficiency improves and delayed Q2 PFB revenue is recognized across the second half.
• For the PFB segment, management expects 25-50 basis points of year-over-year margin improvement in Q3 2026, followed by an additional 100 basis points of sequential margin improvement from Q3 to Q4 2026 as production inefficiencies from footprint consolidation are resolved and volume increases.
• Protein segment margins are expected to remain relatively flat in H2 2026 at the low-to-mid 20% level (excluding Q2 tariff impacts), despite a small expected shift in mix to higher equipment volume (which carries lower margins than aftermarket revenue).
• The company remains on track to hit its long-term target of 20% adjusted EBITDA margin in 2028.

Consolidated Q2 2026 revenue was $981 million, a 5% year-over-year increase (3% organic growth, 2% from foreign exchange).

1. Protein Solutions segment: Revenue reached $467 million, growing 11% year-over-year (8% organic growth, 3% from foreign exchange), contributing 47.6% of total consolidated revenue. Adjusted EBITDA margins improved year-over-year even excluding the impact of IEPA tariff refunds, driven by volume leverage in the poultry business and synergy/continuous improvement benefits. A non-cash intangibles impairment charge was recorded for the 2021 acquisition of Provenio, reflecting a market demand shift away from its antimicrobial offering to commodity-based alternatives.

2. Prepared Food and Beverage (PFB) segment: Revenue was flat year-over-year (including a 2% favorable FX impact), contributing approximately 52.4% of total consolidated revenue. Revenue and margins fell short of internal expectations due to temporary logistics constraints and production inefficiencies from ongoing manufacturing footprint optimization, which delayed revenue recognition in the quarter. Despite these short-term headwinds, the segment delivered strong double-digit order and backlog growth year-over-year, led by value-added prepared foods technology.

• Ongoing production and logistics disruptions from phased footprint consolidation could continue to create short-term headwinds for revenue recognition and margins in the PFB segment through the end of 2026, while consolidation activities extend into 2027.
• Elevated inflation, particularly for logistics, metals and other input costs, creates ongoing margin pressure, and not all recent logistics cost increases have been passed through to customers, creating near-term margin leakage.
• Weakness in consumer demand for CPG products and ongoing shifts in consumer behavior (including impacts from GLP-1 usage on non-protein categories) create uncertainty for the non-protein portion of the PFB segment portfolio.
• Beef segment investment is very weak due to limited cattle inventory for processors, though beef represents less than 5% of the protein segment portfolio so the impact is limited.
• Regulatory decision timing for U.S. USDA poultry line speed increases is uncertain, as with any government regulatory process.

Q: Analyst asks for clarification on PFB margin cadence after Q2 challenges, and how much delayed Q2 revenue will be pushed to the second half of 2026. They also ask for context on protein segment margins after the strong Q2 result, and what to expect in H2. / A: $20 million in Q2 revenue was missed entirely in the PFB segment, half from logistics delays and half from production inefficiencies from footprint moves. All $20 million is redistributed across the second half of the year, creating a $5-6 million EBITDA headwind in Q2 that will reverse in H2. For PFB margins, 25-50 bps YoY improvement is expected in Q3, followed by 100 bps sequential improvement from Q3 to Q4. Protein's 24% Q2 margin included ~200 bps of benefit from IEPA tariff refunds; margins will stay flat at low-to-mid 20% in H2, with a small mix shift to lower-margin equipment offsetting other strength.

Q: Analyst asks for an update on protein demand strength outside of poultry, and an update on the AGV business improvement and trajectory beyond Q2. / A: Poultry remains the largest and strongest protein category, with continued solid investment in primary and secondary processing. Fish and pork saw modest strength in Q2 with a positive outlook, while beef is the weakest segment due to low cattle inventory, though it makes up less than 5% of the protein portfolio. For AGV (within PFB), Q2 was the strongest volume quarter in six quarters after prior tariff-related demand declines. While volume improved QoQ it still missed expectations, driving the recent restructuring; higher volume plus restructuring cost savings are expected to drive a strong AGV ramp in H2 2026.

Q: Analyst asks when footprint consolidation activities will be fully completed, and what the transition timeline looks like for upcoming moves. / A: Consolidation is being phased: some moves completed in Q2, another wraps in H2 2026, and two larger facility consolidations will occur in 2027 (one mid-year, one end-year). 2026-2027 transitions are moving at a deliberate pace to avoid overwhelming receiving facilities, after Q2 saw unexpected disruption at one receiving plant. Upcoming 2027 moves are consolidations into facilities that already produce the relevant products, so transitions will be much smoother than the 2026 moves that caused Q2 disruption. Full consolidation will be completed by the end of 2027.

Q: Analyst asks whether sustained strong poultry investment will slow, and if demand will shift to PFB from protein solutions in 2027. / A: Underlying demand for poultry remains very strong, as it is now the most consumed protein globally, with a strong trend toward regional self-sufficiency in protein production that supports ongoing investment. The pipeline for primary and secondary poultry investment remains strong heading into 2027. That said, PFB prepared foods order growth (15% YoY in Q2) has now outpaced primary/secondary protein investment, as customers shift capital to added-value prepared food product lines. The overall 2027 pipeline remains strong for both segments, with backlog already extending well into 2027.

Q: Analyst asks for an update on USDA rulemaking for higher U.S. poultry line speeds, and what the opportunity means for JBT Marel. / A: A final rule decision is expected by late summer or early fall 2026, though government timing remains uncertain. Current U.S. limits are 140 birds per minute (175 with waivers), versus an average of 240 birds per minute in Europe, creating large productivity upside for U.S. processors if higher permanent speeds are approved. With over 350 existing U.S. poultry lines and less than 20% currently running at 175 birds per minute, this would create a multi-year tailwind for the company. JBT Marel's leading technology is optimized for higher line speeds, giving it a strong competitive advantage for this opportunity.