John Bean Technologies Reports 3.1% Revenue Increase, Net Income Declines 85.3% Amid Marel Acquisition

John Bean Technologies Corporation (JBT) reported a revenue increase of 3.1% for the fiscal year ending December 31, 2024, totaling $1.716 billion, compared to $1.664 billion in 2023. The company's gross profit rose to $626.5 million, reflecting a gross profit margin improvement to 36.5%, up from 35.2% the previous year. However, net income saw a significant decline, dropping 85.3% to $85.4 million, primarily due to increased selling, general, and administrative expenses, which surged by 23.7% to $506.7 million, largely attributed to costs associated with the recent acquisition of Marel hf.

The acquisition of Marel, finalized on January 2, 2025, was a strategic move aimed at enhancing JBT's position in the food and beverage technology sector. The total consideration for the transaction was approximately $4.4 billion, which included $1 billion in cash, $900 million for Marel's debt repayment, and $2.5 billion in stock issuance. This merger is expected to create a leading global food and beverage technology solutions provider, leveraging the complementary strengths of both companies. Following the acquisition, JBT rebranded as JBT Marel Corporation, with its stock trading under the new ticker symbol "JBTM."

Operationally, JBT Marel reported a record order intake of $1.788 billion in 2024, a 7.2% increase from the previous year, with a backlog of $720.5 million as of December 31, 2024. The company anticipates converting approximately 88% of this backlog into revenue in 2025. The workforce also expanded, with approximately 12,200 employees globally, reflecting the company's commitment to growth and operational efficiency.

Looking ahead, JBT Marel expects continued demand growth in 2025, driven by recovery in equipment demand from poultry customers and resilient aftermarket service demand. The company aims to enhance margins through volume growth and synergy realization from the Marel acquisition. However, the increased debt load from the acquisition, which significantly raised the company's leverage, poses potential risks to operational flexibility and financial stability. The management remains focused on integrating Marel's operations effectively to achieve the anticipated benefits and synergies from the merger.