JBT Marel — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the quarter was $994 million, a 1% decline year-over-year from $1,001 million.
• Net income was $70 million, a 6% increase from $66 million in the prior year period.
• Net income margin improved to 7.0% from 6.7% in the prior year.
• Consolidated adjusted EBITDA was $179 million, a 5% increase from $171 million in the prior year.
• Adjusted EBITDA margin reached a record 18.0%, up 90 basis points from 17.1% in the prior year.
• Diluted EPS was $1.34 compared to $1.26 in the prior year; adjusted EPS was $2.19 compared to $1.94.
• Year-to-date operating cash flow was $320 million and free cash flow was $252 million.
• Net debt to trailing twelve months adjusted EBITDA was 2.45x as of September 30, 2026.
• Total debt was $1,694 million, down from $1,882 million at year-end 2025.
• Cash and cash equivalents were $98 million as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance revised to $3,950 million – $4,000 million.
• Full-year 2026 net income margin guidance revised to 5.6% – 6.0%.
• Full-year 2026 adjusted EBITDA margin guidance increased to 17.25% – 17.50%.
• Full-year 2026 GAAP diluted EPS guidance increased to $4.30 – $4.60.
• Full-year 2026 adjusted EPS guidance increased to $8.10 – $8.40.
• Full-year 2026 revenue growth expected to be approximately 5% at the midpoint, inclusive of 1.5% foreign exchange benefit.
• Full-year 2026 total depreciation and amortization expected to be approximately $261 million.
• Full-year 2026 interest expense estimated at approximately $46 million.
• Full-year 2026 tax rate estimated at approximately 23%.

Business Segments and Product Lines:

• Protein Solutions: Revenue increased 6% to $469 million, driven by volume growth in the Poultry business. Adjusted EBITDA margin improved 110 basis points to 22.4%.
• Prepared Food and Beverage Solutions: Revenue declined 6% to $525 million, primarily due to lower CPG-related book-and-ship volume in the Diversified Food and Health business. Adjusted EBITDA margin improved 90 basis points to 19.2%.
• Orders totaled $976 million for the quarter.
• Quarter-ending backlog was $1.52 billion.

Market and Competitive Landscape:

• Revenue performance was impacted by lower CPG-related book-and-ship volume expectations.
• Management cited inflationary and tariff pressures as ongoing market conditions.
• The company operates more than 50 manufacturing and distribution facilities globally.

Risks and Challenges:

• Full-year 2026 includes one-time and acquisition-related costs: $168 million in acquisition-related amortization and depreciation, $33 million in M&A related costs, $24 million in restructuring costs, and $33 million in non-cash impairment expense.
• Forward-looking statements note risks including fluctuations in financial results, loss of major customer contracts, supply chain delays, inflationary pressures, and changes in trade regulations or tariffs.

Management Commentary and Tone:

• CEO Brian Deck stated the company executed well in a dynamic environment, delivering margins above the midpoint of guidance despite lower volume.
• Management highlighted meaningful benefits from cost synergy initiatives, including labor productivity, supply chain savings, and footprint optimization.
• CFO Matt Meister noted the commitment to disciplined capital allocation and the use of share repurchases when stock trades below long-term value.

Other Key Points:

• The Board of Directors authorized a $500 million increase to the existing share repurchase program, bringing the total authorization to $700 million.
• The company repurchased approximately 800,000 shares for $94 million during the third quarter.
• Share repurchases are expected to be balanced to maintain a leverage ratio within the long-term target range of 2.0x – 2.5x.
• A conference call to discuss results is scheduled for November 3, 2026, at 11:00 a.m. ET.