News Details

CHICAGO--(BUSINESS WIRE)-- JBT Corporation (NYSE: JBT), a leading global technology solutions provider to high-value segments of the food & beverage industry, today reported results for the first quarter of 2023.

"JBT outperformed our first quarter expectations primarily driven by stronger recurring revenue and higher shipments as supply chain dynamics improved," said Brian Deck, President and Chief Executive Officer. "At FoodTech, we continue to see a high level of customer engagement with a focus on products and solutions that enhance automation, sustainability, and digitalization. AeroTech posted record orders with robust demand from the infrastructure and commercial airline markets."

Comparisons in this news release are to the comparable period of the prior year, unless otherwise noted. An earnings presentation with supplemental information is also available on the Company's Investor Relations website at https://ir.jbtc.com/events-and-presentations/.

First Quarter 2023 Results

"Revenue and margins increased year over year as a result of improved price-cost realizations and a higher mix of recurring revenue at FoodTech," said Matt Meister, Executive Vice President and Chief Financial Officer.

First quarter 2023 FoodTech revenue of $389 million increased 9 percent year over year driven by 2 percent organic growth and 10 percent growth from acquisitions; this was partially offset by a negative foreign exchange impact of 3 percent. Operating profit of $46 million increased 16 percent, and operating profit margin of 11.9 percent improved 70 basis points. Adjusted EBITDA of $70 million increased 21 percent, and adjusted EBITDA margin of 18.1 percent improved 180 basis points. FoodTech orders totaled $406 million, which decreased 1 percent. On a constant currency basis, orders were $417 million, or slightly above the prior year. FoodTech backlog was $678 million.

AeroTech revenue of $141 million increased 25 percent year over year. Operating profit of $13 million increased $6 million, or 94 percent, and operating profit margin of 9.4 percent improved 340 basis points. Adjusted EBITDA of $14 million increased $6 million, or 79 percent, and adjusted EBITDA margin of 10.1 percent improved 300 basis points. AeroTech achieved record orders of $232 million, which increased 51 percent. AeroTech backlog of $482 million was also a record level.

In total, consolidated JBT revenue of $530 million increased 13 percent year over year. Net income of $26 million was consistent with the prior year while adjusted EBITDA of $70 million increased 30 percent. Diluted earnings per share (EPS) from net income of $0.80 was consistent, and adjusted EPS of $0.94 increased 7 percent.

JBT generated cash from operations of $22 million. Free cash flow was $4 million, which included investment in inventory to support JBT's total revenue growth. Liquidity at quarter end was $543 million, and the Company's net leverage ratio was 3.0x net debt to trailing twelve months pro forma adjusted EBITDA.

2023 Outlook

JBT is largely reiterating its full year 2023 guidance and continues to expect that margins will approach pre-pandemic levels.

For the full year 2023, FoodTech year-over-year revenue growth is estimated to be 5 - 9 percent, comprised of 1 - 4 percent from organic growth and 4 - 5 percent from acquisitions. FoodTech operating profit margin is forecast to be 13 - 14 percent, and adjusted EBITDA margin is expected to be 18.5 - 19.5 percent.

For the full year 2023, AeroTech year-over-year revenue growth is estimated to be 12 - 14 percent. AeroTech operating profit margin is forecast to be 11.25 - 11.75 percent, and adjusted EBITDA margin is projected to be 12 - 12.5 percent.

Additionally, for the full year 2023, JBT expects to incur approximately $4 million of restructuring expense related to FoodTech. These restructuring plans, along with the actions taken in the second half of 2022, are expected to generate savings of $5 - $6 million in 2023 with annual run rate savings of $9 - $12 million in 2024.

For the second quarter 2023, FoodTech year-over-year revenue growth is estimated to be 5 - 10 percent. FoodTech operating profit margin is forecast to be 12.5 - 13.25 percent, and adjusted EBITDA margin is projected to be 18.0 - 18.75 percent.

For the second quarter 2023, AeroTech year-over-year revenue growth is expected to be 4 - 7 percent. AeroTech operating profit margin is forecast to be 10 - 11 percent, and adjusted EBITDA margin is projected to be 10.75 - 11.75 percent.

The table below reflects consolidated JBT guidance.

For the second quarter 2023, corporate expense is estimated to be approximately 2.7 percent of sales, which excludes approximately $2 - $3 million in M&A related costs, $2 million in LIFO expense, and $3 million in restructuring expense. For the full year 2023, corporate expense is forecast to be approximately 2.7 percent of sales, which excludes approximately $8 million in M&A related costs, $8 - $9 million in LIFO expense, and $4 million in restructuring expense.

First Quarter 2023 Earnings Conference Call

A conference call is scheduled for 10 a.m. ET on Wednesday, April 26, 2023, to discuss first quarter 2023 results. Participants may access the conference call through online registration at https://conferencingportals.com/event/lguQsHOL. A simultaneous webcast and audio replay of the call will be available on the Company’s Investor Relations website at https://ir.jbtc.com/events-and-presentations/.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to high-value segments of the food & beverage industry. JBT designs, produces and services sophisticated products and systems for multi-national and regional customers through its FoodTech segment. JBT also sells critical equipment and services to domestic and international air transportation customers through its AeroTech segment. JBT Corporation employs approximately 7,200 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtc.com.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT’s ability to control. These forward-looking statements include, among others, statements relating to our business and our results of operations, our strategic plans, our restructuring plans and expected cost savings from those plans, our liquidity and our covenant compliance. The factors that could cause our actual results to differ materially from expectations include but are not limited to the following factors: fluctuations in our financial results; unanticipated delays or acceleration in our sales cycles; deterioration of economic conditions; including impacts from supply chain delays and reduced material or component availability; inflationary pressures, including increases in energy, raw material, freight, and labor costs; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; changes to trade regulation, quotas, duties or tariffs; risks associated with acquisitions or strategic investments; fluctuations in currency exchange rates; changes in food consumption patterns; impacts of pandemic illnesses, food borne illnesses and diseases to various agricultural products; weather conditions and natural disasters; impact of climate change and environmental protection initiatives; our ability to comply with the laws and regulations governing our U.S. government contracts; acts of terrorism or war, including the recent conflict between Russia and Ukraine; termination or loss of major customer contracts and risks associated with fixed-price contracts, particularly during periods of high inflation; customer sourcing initiatives; competition and innovation in our industries; difficulty in implementing our pure play food and beverage business strategy, including our ability to timely execute on strategic alternatives for AeroTech, and whether we can achieve the potential benefits of such strategic alternatives; our ability to develop and introduce new or enhanced products and services and keep pace with technological developments; difficulty in developing, preserving and protecting our intellectual property or defending claims of infringement; catastrophic loss at any of our facilities and business continuity of our information systems; cyber-security risks such as network intrusion or ransomware schemes; loss of key management and other personnel; potential liability arising out of the installation or use of our systems; our ability to comply with U.S. and international laws governing our operations and industries; increases in tax liabilities; work stoppages; fluctuations in interest rates and returns on pension assets; a systemic failure of the banking system in the United States or globally impacting our customers' financial condition and their demand for our goods and services; availability of and access to financial and other resources; and other factors described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K filed by JBT with the Securities and Exchange Commission and in any subsequently filed Form 10-Q. JBT cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements. JBT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, subsequent events or changes in circumstances or otherwise.

We provide non-GAAP financial measures in order to increase transparency in our operating results and trends. These non-GAAP measures eliminate certain costs or benefits from, or change the calculation of, a measure as calculated under U.S. GAAP. By eliminating these items, we believe we provide a more meaningful comparison of our ongoing operating results, consistent with how management evaluates performance. Management uses these non-GAAP measures in financial and operational evaluation, planning and forecasting.

These calculations may differ from similarly-titled measures used by other companies. The non-GAAP financial measures disclosed are not intended to be used as a substitute for, nor should they be considered in isolation of, financial measures prepared in accordance with U.S. GAAP.