JBT Marel's Q2 2025 Earnings Call: Navigating Key Contradictions in Revenue, Tariffs, and Market Recovery

Repricing backlog and tariff impact, recurring revenue and digital offerings, tariff mitigation and cost structure, poultry market recovery and labor concerns, AGV business growth and potential are the key contradictions discussed in JBT Marel Corporation's latest 2025Q2 earnings call.



Strong Financial Performance and Revenue Growth:
- JBT Marel Corporation reported a strong performance with total revenue of $935 million for the second quarter of 2025, exceeding the midpoint of their guidance by about $35 million.
- The growth was driven by favorable foreign exchange impact, higher recurring revenue, and benefits from productivity improvements and cost controls.

Backlog and Order Trends:
- The company booked $938 million in orders for the quarter, including $22 million in favorable year-over-year foreign exchange translation.
- The demand remained healthy, particularly in the poultry industry and for meat, beverages, food, and vegetables, with a backlog of $1.4 billion providing support for revenue conversion in the back half of the year.

Integration and Synergy Benefits:
- JBT Marel realized year-over-year synergy savings of $5 million in operating expenses and an additional $3 million in supply chain.
- The integration progress is expected to lead to in-year realized cost savings of $35 million to $40 million and an annualized run rate savings of $80 million to $90 million by the end of 2025.

Tariff Mitigation and Margins:
- The company incurred approximately $9 million in gross tariff costs in the second quarter, which were offset by inventory and mitigation actions.
- Despite tariff pressures, the company's second quarter adjusted EBITDA margin outperformed guidance by around 180 basis points, reaching 16.7%.