JBT Marel's Q1 2025 Earnings Call: Unpacking Contradictions in Tariffs, Revenue Growth, and Backlog Dynamics

Tariff impact and customer behavior, recurring revenue growth and digital offerings, backlog and order inflows, tariff impact and cost mitigation, backlog and order trends are the key contradictions discussed in JBT Marel Corporation's latest 2025Q1 earnings call.



Revenue and Earnings Performance:
- JBT Marel Corporation reported that consolidated revenue exceeded the midpoint of our guidance by $19 million, with a consolidated adjusted EBITDA margin outperforming the midpoint by 60 basis points to 13.1%.
- This was driven by better-than-expected equipment shipments, strong recurring revenue, and favorable foreign exchange translation.

Order Strength and Segment Performance:
- Orders increased by 12% year-over-year, reaching $916 million, with record orders for the Marel segment and healthy year-over-year growth for the JBT segment.
- Growth was driven by increased demand from the Poultry industry, diversified end markets like meat, beverage, pharma, and pet food, and broad-based strength across global regions.

Integration and Synergy Progress:
- The company achieved multiple significant integration milestones, including a new organizational structure and improvements in order strength by combining complementary capabilities.
- Cost synergies are on track to deliver approximately $35 million to $40 million in 2025, with annual run rate savings expected to reach $80 million to $90 million by year-end.

Tariff and Cost Management:
- JBT Marel estimated the annualized cost impact of tariffs at $50 million to $60 million or $12 million to $15 million per quarter.
- Mitigation efforts include securing concessions from suppliers, implementing select pricing actions, and exploring operational adjustments like shifting manufacturing locations to mitigate these costs.