Q4 2024 JBT Marel Corp Earnings Call

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Pam: Good morning and welcome to JBT Marel's earnings conference call for the fourth quarter and full year 2024. My name is Pam and I will be your conference operator today. As a reminder, today's call is being recorded.

Operator: Good morning, and welcome to JBT Marel's Earnings Conference Call for the Q4 and full year 2024. My name is Pam, and I will be your conference operator today. As a reminder, today's call is being recorded. At this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. I will now turn the call over to JBT Marel's Director of Investor Relations, Marlee Spangler, to begin today's conference.

Good morning, and welcome to JBT Morehouse earnings conference call for the fourth quarter and full year 'twenty 'twenty. Four my name is Pam and I will be conference operator today as a reminder, today's call is being recorded at this time all lines have been placed on mute to prevent any background noise.

Pam: At this time, all lines have been placed on mute to prevent any back. After the speaker's remarks, there will be a question and answer session.

After the Speakers' remarks, there will be a question and answer session.

Marlee Spangler: I will now turn the call over to JVT Marel's Director of Investor Relations, Marlee Spangler, to begin today's call. Thank you, Pam. Good morning, everyone, and thank you for joining our conference call.

I will now turn the call over to J D T more else director of Investor Relations Marley Spangler to begin today's conference.

Marlee Spangler: Thank you, Pam. Good morning, everyone, and thank you for joining our conference call. With me on the call today is our Chief Executive Officer, Brian Deck, President, Arni Sigurdsson, and Chief Financial Officer, Matthew J. Meister. In today's call, we will use forward-looking statements that are subject to the safe harbor language in yesterday's press release and 8-K filing. JBT Marel's periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the investor relations section of our website. Also, our discussion today includes references to certain non-GAAP and non-IFRS measures. A reconciliation of these measures to the most comparable GAAP and IFRS measures can be found in the investor relations section of our website. With that, I'll turn the call over to Brian.

Marley Spangler: Thank you Pam and good morning, everyone and thank you for joining our conference call with me on the call today is our Chief Executive Officer, Brian deck, President Army Secrets, and and Chief Financial Officer, Matt Meister in today's call. We will use forward looking statements that are subject to the safe.

Marlee Spangler: With me on the call today is our Chief Executive Officer, Brian Deck, President Arni Sigurdsson, and Chief Financial Officer, Matt Meister. In today's call, we will use forward-looking statements that are subject to the Safe Harbor language in yesterday's press release and 8K finals. JBT-MAREL's periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the Investor Relations section of our website. Also, our discussion today includes references to certain non-GAAP and non-IFRS measures. A reconciliation of these measures to the most comparable GAAP and IFRS measures can be found in the Investor Relations section of our website.

Marley Spangler: Harbor language in yesterday's press release, and 8-K filing J.

Marley Spangler: <unk> periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the Investor Relations section of our website.

Marley Spangler: Also our discussion today includes references to certain non-GAAP and non <unk> measures. A reconciliation of these measures to the most comparable GAAP and <unk> measures can be found in the Investor Relations section of our website with that I'll turn the call over to Brian.

Brian Deck: With that, I'll turn the call over to Brian. Thanks, Marley, and good morning. We are excited to be hosting our first earnings call since uniting JBT and Morrell. The combination, which we completed on January 2nd, represents the culmination of more than a year of work, bringing together two leaders in the food technology industry. We are now seven weeks into integration and are increasingly confident in our ability to generate long-term value for our customers, shareholders, and other stakeholders. Given our focus on realizing the benefits of this combination, I will begin today's call providing an update on our progress.

Brian Deck: Thanks, Marlee, and good morning. We are excited to be hosting our first earnings call since uniting JBT and Marel. The combination, which we completed on 2 January, represents the culmination of more than a year of work bringing together two leaders in the food technology industry. We are now 7 weeks into integration and are increasingly confident in our ability to generate long-term value for our customers, shareholders, and other stakeholders. Given our focus on realizing the benefits of this combination, I will begin today's call providing an update on our progress. Arne will provide color on the integration process and talk about Marel's 2024 performance. Lastly, Matt will provide an overview of JBT's 2024 performance, followed by guidance for the combined company in 2025.

Brian Deck: Thanks, Molly and good morning, we're excited to be hosting our first earnings call since uniting JBT and morale.

Brian Deck: Combination, which we completed on January 2nd represents.

Brian Deck: It represents the culmination of more than a year of work, bringing together two leaders in the food technology industry.

Brian Deck: We are now seven weeks into the integration and are increasingly confident in our ability to generate long term value for our customers shareholders and other stakeholders.

Brian Deck: Given our focus on realizing the benefits of this combination I will begin today's call providing an update on our progress then Ernie will provide color on the integration process and talk about our 2020 for performance.

Arni Sigurdsson: Then Arni will provide color on the integration process and talk about Marel's 2024 performance.

Brian Deck: Lastly, Matt will provide an overview of JBT's 2024 performance, followed by guidance for the combined company in 2025. In uniting JBT and Marel, we have the ability to be an even more valuable partner to our global customers by providing holistic equipment solutions with enhanced application knowledge, service capabilities, and innovative technology. In terms of integration, our efforts are focused on best serving our customers' constantly evolving needs. That starts with a purpose-built company leveraging talent from both organizations. We have already made significant progress establishing the JBT-MAREL organizational design and expect to be materially complete by the end of March.

Brian Deck: Lastly, Matt will provide an overview of Jbt's 2024 performance followed by guidance for the combined company in 2025.

Brian Deck: Yeah.

Brian Deck: In uniting JBT and Marel, we have the ability to be an even more valuable partner to our global customers by providing holistic equipment solutions with enhanced application knowledge, service capabilities, and innovative technology. In terms of integration, our efforts are focused on best serving our customers' constantly evolving needs. That starts with a purpose-built company leveraging talent from both organizations. We have already made significant progress establishing the JBT Marel organizational design and expect to be materially complete by the end of March. We are also focusing on a customer-centric go-to-market commercial strategy that adopts an end-market focus. This will allow us to cross-sell the breadth of our solutions. We believe this customer-driven approach versus one organized by technology will streamline our commercial presence and enhance our value proposition to the customer.

Brian Deck: And uniting JBT MRO, we have the ability to be even more valuable partner to our global customers by providing holistic equipment solutions with enhanced application knowledge service capabilities and innovative technology.

Brian Deck: In terms of integration our efforts are focused on best serving our customers constantly evolving needs.

Brian Deck: That starts with a purpose built company leveraging talent from both organizations.

Brian Deck: We have already made significant progress establishing the JBT Moreau organizational design and expect to be materially complete by the end of March.

Brian Deck: We're also focusing on a customer centric go to market commercial strategy that adopts an end market focus. This will allow us to cross-sell the breadth of our solution. We believe this customer-driven approach versus one organized by technology will streamline our commercial presence and enhance our value proposition to the customer. In fact, our diverse technology solutions were on full display at the recent IPPE trade show, otherwise known as the poultry show. Combination of JVT and Marel's complimentary portfolio of innovative technology and service capabilities allows us to integrate primary, secondary, further and end of line processing under one brand.

Brian Deck: We're also focusing on our customer centric go to market commercial strategy that adopts and end market focus.

Brian Deck: This will allow us to cross sell the breadth of our solutions. We believe this customer driven approach.

Brian Deck: Versus one organized by technology with streamline our commercial presence and enhance our value proposition to the customer.

Brian Deck: In fact, our diverse technology solutions were on full display at the recent IPPE trade show, otherwise known as the Poultry Show. The combination of JBT and Marel's complementary portfolio of innovative technology and service capabilities allows us to integrate primary, secondary, further, and end-of-line processing under one brand. This matters for our customers as it reduces the complex engineering required to integrate and commission full-line solutions. It also leads to improved operational efficiency, machine uptime, and traceability in high-volume operations. Additionally, our software and digital solutions are a differentiator as customers increasingly adopt digital technologies to optimize processing efficiency and improve profitability. Overall, our many productive conversations at IPPE, along with the recently reported financial results of our customers, confirm the strong fundamentals of the poultry industry.

Brian Deck: In fact, our diverse technology solutions were on full display at the recent <unk> trade show.

Brian Deck: <unk> known as the poultry show.

Brian Deck: The combination of JBT MRO as complimentary portfolio of an innovative technology and service capabilities allows us to integrate primary secondary further and endocrine processing under one brand.

Brian Deck: This matters for our customers. as it reduces the complex engineering required to integrate and commission full-line solutions. It also leads to improved operational efficiency, machine uptime, and traceability in high volume operations. Additionally, our software and digital solutions are a differentiator as customers increasingly adopt digital technologies to optimize processing efficiency and improve profitability. Overall, our many productive conversations at IPPE, along with the recently reported financial results of our customers, confirm the strong fundamentals of the poultry industry. We believe we will see incremental investment in 2025 as customers look to take advantage of our technology to support automation and efficient operations by investing in existing facilities, as well as consider greenfield opportunities in a more meaningful way than we have seen in some time.

Brian Deck: This matters for our customers as it reduces the complex engineering required to integrate and commission full line solutions.

Brian Deck: That also leads to improved operational efficiency machine uptime, and traceability and high volume operations.

Brian Deck: Additionally, our software and digital solutions are a differentiator as customers increasingly adopt digital technologies to optimize processing efficiency and improve profitability.

Brian Deck: Overall, our many productive conversations that IPP, along with the recently reported financial results of our customers confirm the strong fundamentals of the poultry industry.

Brian Deck: We believe we look for incremental investment in 2025 as customers look to take advantage of our technology to support automation and efficient operations by investing in existing facilities, as well as consider greenfield opportunities in a more meaningful way than we have seen in some time. I am pleased that we are already seeing the commercial strategies created by the combination. We secured a few significant orders at IPPE that included equipment we booked on the strength of each other's existing relationships. Speaking of orders, as you saw in our earnings release, JBT reported record orders of $523 million in Q4. Marel also reported record orders of EUR 474 million. Together, orders totaled more than $1 billion for the period, benefiting from broad-based strength. Geographically, we enjoyed a pickup globally, with the sole exception of Asia Pacific.

Brian Deck: We believe we refer incremental investment in 2025 as customers look to take advantage of our technology to support automation and efficient operations by investing in existing facilities as well as consider greenfield opportunities in a more meaningful way than we have seen in some time.

Brian Deck: I am pleased that we are already seeing the commercial strategies created by the combination. We secured a few significant orders at IPPE that included equipment we booked on the strength of each other's existing relationship. Speaking of orders, as you saw in our earnings release, JBT reported record orders of $523 million in the fourth quarter. Marel also reported record orders of 474 million euros. Together, orders totaled more than $1 billion for the period, benefiting from broad-based strength. Geographically, we enjoy the pickup globally, with the sole exception of Asia-Pacific. From an end market perspective, as already mentioned, the poetry industry remains strong in the fourth quarter and is expected to improve further in 2025.

Brian Deck: I am pleased that we are already seeing the commercial strategies created by the combination.

Brian Deck: We secured a few significant orders in IPP that included equipment, we booked on the strength of each other's existing relationships.

Brian Deck: Speaking of orders as you saw in our earnings release, JBT reported record orders of $523 million in the fourth quarter.

Brian Deck: <unk> also reported record orders of 474 million euros.

Brian Deck: Together orders totaled more than $1 billion for the period.

Brian Deck: <unk> benefiting from broad based strength.

Brian Deck: Geographically, we enjoyed a pickup globally with the sole exception of Asia Pacific.

Brian Deck: From an end market perspective, as already mentioned, the poultry industry remained strong in the Q4 and is expected to improve further in 2025. Other proteins, we enjoyed a very solid quarter for both meat and fish. While the fundamentals of these markets remain uncertain, we are starting to see increased pipeline activity for pork and remain confident in the long-term fundamentals for fish. We also enjoyed strong order demand in the fruit and vegetable and pharmaceutical markets, which have continued into the Q1 of 2025. While the beverage end market was weaker through most of 2024 due to challenging industry fundamentals, we saw some pickup exiting the year. Lastly, both pet food and ready meals performed well in the quarter, while AGV, our automated material handling business, experienced another solid quarter of demand.

From an end market perspective, as already mentioned the poultry industry remains strong in the fourth quarter and is expected to improve further in 2025.

Brian Deck: For other proteins, we enjoyed a very solid quarter for both meat and fish. While the fundamentals of these markets remain uncertain, we are starting to see increased pipeline activity for pork and remain confident in the long-term fundamentals for fish. We also enjoyed strong order demand in the fruit and vegetable and pharmaceutical markets, which have continued into the first quarter of 2025. While the beverage end market was weaker through most of 2024 due to challenging industry fundamentals, we saw some pickup exiting the year. Lastly, both pet food and ready meals performed well in the quarter, while AGV, our automated material handling business, experienced another solid quarter of demand.

Brian Deck: Other proteins, we enjoyed a very solid quarter for both meat and fish.

Brian Deck: While the fundamentals of these markets remain uncertain, we are starting to see increased pipeline activity for pork and remain confident in the long term fundamentals for fish.

Brian Deck: Yeah.

Brian Deck: We also enjoyed strong order demand in the fruit and vegetable and pharmaceutical markets, which have continued into the first quarter of 2025.

Brian Deck: While the beverage end market was weaker through most of 2024 due to challenging industry fundamentals, we saw some pick up exiting the year.

Brian Deck: Lastly, both.

Brian Deck: Lastly, both pet food and ready meals performed well in the quarter, while adv or automated material handling business experienced another solid quarter of demand.

Brian Deck: Okay.

Brian Deck: Our positive view on the key end markets must be balanced against macro concerns, including U.S. and potential retaliatory tariffs and the prospect of higher inflation. However, we believe that end market dynamics are generally favorable for investment, while a recurring revenue franchise for parts and service is expected to provide resilience, growth, and close to half of our total revenue. Most importantly, we are increasingly confident in the value created by this combination as it relates to serving our customers.

Brian Deck: Our positive view on the key end markets must be balanced against macro concerns, including US and potential retaliatory tariffs and the prospect of higher inflation. However, we believe that end market dynamics are generally favorable for investment, while our recurring revenue franchise for parts and service is expected to provide resilience, growth in close to half of our total revenue. Most importantly, we are increasingly confident in the value created by this combination as it relates to serving our customers. Now, let me turn the call over to Arni.

Our positive view on the key end markets must be balanced against macro concerns, including U S and potential retaliatory tariffs and the prospect of higher inflation.

Brian Deck: However, we believe the end market dynamics are generally favor for favorable for investment while our recurring revenue franchise for parts and service is expected to provide resilience growth and close to half of our total revenue.

Brian Deck: Most importantly, we are increasingly confident in the value created by this combination as it relates to serving our customers.

Arni Sigurdsson: Now let me turn the call over to Arni. Thanks, Brian. When JBT and Marel began exploring the potential to combine the two pistons... It quickly became clear that we share a common purpose. which is to transform the future of... We achieve that purpose by helping our customers improve their operations, solutions uptime, and sustainable processes. I'm very pleased to see and experience the momentum generated in just the first few weeks as JVT models. Right after finalizing the transaction, we launched our new JBT model brand. We also introduced our new purpose, vision, and values, which resonated well with our teams as it builds on the two company cultures while we transition to a new and exciting future.

Now, let me turn the call over to Ernie.

Árni Sigurdsson: Thanks, Brian. When JBT and Marel began exploring the potential to combine the two businesses, it quickly became clear that we share a common purpose, which is to transform the future of food. We achieve that purpose by helping our customers improve their operations, solutions uptime, and sustainable processes. I'm very pleased to see and experience the momentum generated in just the first few weeks as JBT Marel. Right after finalizing the transaction, we launched our new JBT Marel brand. We also introduced our new purpose, vision, and values, which resonated well with our teams as it builds on the two company cultures while we transition to a new and exciting future. We also went on the road hosting welcome days at key locations around the world, introducing the leadership team and the strategic pillars of JBT Marel. It was a great success, and I'm excited about the future.

Ernie: Thanks, Brian.

Ernie: When JBT and model began exploring the potential to combine the two businesses. It quickly became clear that we share a common purpose.

Ernie: Which is to transform the future of food.

Ernie: We achieved that purpose by helping our customers improve their operations solutions uptime and sustainable processes.

Ernie: I am very pleased to see and experience the momentum generated in just the first few weeks as JBT modest.

Ernie: Right after finalizing the transaction, we launched our new JBT modern brands.

Ernie: We also introduced our new purpose vision and volumes, which resonated well with our teams as it builds on the two company cultures, while we transition to a new and exciting future.

Arni Sigurdsson: We also went on the road, hosting welcome days at key locations around the world, introducing the leadership team and the strategic pillars of JBT Moderns. It was a great success and I'm excited about the future. We also recognize the respective strengths that each company brings to the table that makes this combination so exciting. For example, I'm very proud of the reputation that Marel has for its industry-leading technology and ongoing investment in innovation. And JVT, beyond its technology, brings a highly disciplined and efficient operational culture focused on continuous improvement. We realize that a combination of this scale requires rigorous execution and oversight by an experienced team of operators across the organization.

Ernie: We also went on the road hosting welcome days at key locations around the world introducing the leadership team and the strategic pillars of GBT modest.

Ernie: It was a great success and I am excited about the future.

Árni Sigurdsson: We also recognize the respective strengths that each company brings to the table that makes this combination so exciting. For example, I'm very proud of the reputation that Marel has for its industry-leading technology and ongoing investment in innovation. JBT, beyond its technology, brings a highly disciplined and efficient operational culture focused on continuous improvement. We realize that a combination of this scale requires rigorous execution and oversight by an experienced team of operators across the organization. The integration teams are co-led by top talent from our respective legacy organizations and report directly to Brian and me. Throughout this integration, our highest priority is to ensure business continuity and a seamless experience for our customers. Moreover, we are focused on cultural integration as our talented teams across the world represent our greatest asset.

Ernie: We also recognize the respective strengths that each company brings to the table that makes this combination so exciting.

Ernie: For example, I am very proud of the reputation that motto has for its industry, leading technology and ongoing investments in innovation.

Ernie: And JBT beyond its technology brings a highly disciplined and efficient operational culture focused on continuous improvement.

Ernie: Okay.

Ernie: We realized that a combination of this scale requires rigorous execution and oversight by an experienced team of operators across the organization.

Arni Sigurdsson: The integration team. are co-led by top talent from a respective legacy organization. and report directly to Brian and me. Throughout this integration, our highest priority is to ensure business continuity and a seamless experience for our customers. Moreover, we are focused on cultural integration, as our talented teams across the world represent our greatest assets. Since the close of the transaction, we have been able to have full transparency with one another, allowing us to do a deeper analysis into the benefits of the combination. Based on this extensive work, we have raised our expectations for cost synergies to an annual run rate savings of $150 million, and that's by the end of year three.

Speaker Change: The integration teams are co led by top talent from our respective legacy organizations and report directly to Brian in meat.

Throughout this integration our highest priority is to ensure business continuity and a seamless experience for our customers.

Speaker Change: Moreover, we are focused on cultural integration as our talented teams across the world represent our greatest asset.

Árni Sigurdsson: Since the close of the transaction, we have been able to have full transparency with one another, allowing us to do a deeper analysis into the benefits of the combination. Based on this extensive work, we have raised our expectations for cost synergies to an annual run rate savings of $150 million, and that's by the end of year 3. That compares with our prior guidance of greater than $125 million. Most of that increase is the result of supply chain savings as we leverage our purchasing power and optimize our combined footprint. Looking at Marel's performance in 2024, I'm happy to report that we had a strong Q4 to close the year. On an IFRS basis, record orders of EUR 474 million increased 18% sequentially and reflect the improvement we have been expecting.

Speaker Change: Since the close of the transaction, we have been able to have full transparency with one another allowing us to do a deeper analysis into the benefits of the combination.

Speaker Change: Based on this extensive work we have raised our expectations for cost synergies to an annual run rate savings of $150 million and thats by the end of year three.

Arni Sigurdsson: That compares with our prior guidance of greater than $125 million. Most of that increase is the result of supply chain savings as we leverage our purchasing power and optimize our combined footprint. Looking at models performance in 2024, I'm happy to report that we had a strong fourth quarter to close the year. On an IFRS basis, record orders of €474 million increased 18% sequentially and reflect the improvement we have been expecting. We saw sequential growth in orders for meat, fish, and pet food, while poultry had another healthy quarter. The strong book-to-bill of 1.11 increased the order book 8% sequentially to €600 million.

Speaker Change: That compares with our prior guidance of greater than $125 million.

Speaker Change: Most of that increase is the result of supply chain savings as we leverage our purchasing power and optimize our combined footprint.

Speaker Change: Looking at modest performance in 2024, I'm happy to report that we had a strong fourth quarter to close the year.

Speaker Change: On an IRS basis record orders of $474 million increased 18% sequentially and reflect the improvement we had been expecting.

Árni Sigurdsson: We saw sequential growth in orders for meat, fish, and pet food, while poultry had another healthy quarter. The strong book-to-bill of 1.11 increased the order book 8% sequentially to EUR 600 million. Marel's full-year revenue of EUR 1.64 billion declined 4.6% compared to the prior year due to lower project revenues. At the same time, there were continued gains in recurring revenue with a record Q4. For the full year, recurring revenues were EUR 821 million and grew 5%. Full-year adjusted EBITDA of EUR 200 million included a net year-end adjustment of EUR 17 million, resulting from initial efforts to align policies related to balancing reserves as a part of our combination with JBT.

Speaker Change: We saw sequential growth in orders for meat fish and pet food, while poultry had another healthy quarter.

Speaker Change: The strong book to Bill of 111 increased the order book, 8% sequentially to $600 million euros.

Arni Sigurdsson: Marel's full year revenue of 1.64 billion euros declined 4.6% compared to the prior year due to lower project revenue. At the same time, there were continued gains in recurring revenue with a record fourth quarter. For the full year, recurring revenues were €821 million and grew 5%. Full year adjusted EBITDA of €200 million included a net year-end adjustment of €70 million, resulting from initial efforts to align policies related to balance sheet reserves as a part of our combination with JBT. Underlying performance improved year-over-year as a result of cost discipline and efficiency improvement. Excluding the balance sheet adjustments, Marel's adjusted EBITDA margin for 2024 was in line with our most recent guidance of 13 to 14%.

Speaker Change: Modest full year revenue of $1 64 billion euros declined four 6% compared to the prior year due to lower project revenues.

Speaker Change: At the same time, there were continued gains in recurring revenue with a record fourth quarter.

Speaker Change: For the full year recurring revenues were $821 million and grew 5%.

Speaker Change: Full year, adjusted EBITDA of $200 million.

Speaker Change: Included a net year end adjustment of $17 million euros, resulting from initial efforts to align policies related to balance sheet reserves as a part of our combination with JBT.

Brian Deck: Underlying performance improved year-over-year as a result of cost discipline and efficiency improvements. Excluding the balance sheet adjustments, Marel's adjusted EBITDA margin for 2024 was in line with our most recent guidance of 13% to 14%. I want to take this opportunity to commend the dedication and valuable contribution of our teams across the world. We are excited by legacy Marel's momentum entering 2025, underpinned by order growth and strengthening order book, and our ability as JBT Marel to do even greater things for our customers with the combined and highly complementary product portfolios. With that, let me turn the call over to Matt.

Speaker Change: Underlying performance improved year over year, as a result of cost discipline and efficiency improvements.

Speaker Change: Excluding the balance sheet adjustments modest adjusted EBITDA margin for 2024 was in line with our most recent guidance of 13% to 14%.

Arni Sigurdsson: I want to take this opportunity to commend the dedication and valuable contribution of our teams across the world. We are excited by Legacy Models momentum entering 2025 underpinned by order growth and strengthening order book and our ability as JBT models to do even greater things for our customers. with a combined and highly complementary product portfolio.

Speaker Change: I want to take this opportunity to commend the dedication and valuable contribution of our teams across the world.

Speaker Change: We are excited by legacy models momentum entering 2025, underpinned by order growth and strengthening order book and our ability as JBT model to do even greater things for our customers with the combined and highly complementary product portfolios.

Matt Meister: With that, let me turn the call over to Matt. Thanks, Arni, and good morning. Let me begin with a quick recap of JVT's performance in 2024. We ended the year with extremely strong orders in the fourth quarter, up 25% year-over-year and 19% sequential. The full year, orders increased 7%. JVT's full year revenue increased 3%, or about 3.5% organically. excluding the impact of foreign exchange. Adjusted EBITDA of $295 million, increased 8%. The adjusted EBITDA margin of 17.2% for the year was an improvement of 80 basis points. Driven by Supply Chain Savings and Continuous Improvement Initiatives.

With that let me turn the call over to Matt.

Matthew J. Meister: Thanks, Arnie, and good morning. Let me begin with a quick recap of JBT's performance in 2024. We ended the year with extremely strong orders in Q4, up 25% year-over-year and 19% sequentially. For the full year, orders increased 7%. JBT's full-year revenue increased 3%, or about 3.5% organically, excluding the impact of foreign exchange. Adjusted EBITDA of $295 million increased 8%. The adjusted EBITDA margin of 17.2% for the year was an improvement of 80 basis points, driven by supply chain savings and continuous improvement initiatives. Specific to Q4, our results came in at the lower end of our guidance due to a mix of lower-than-expected volume on quick turn, book and ship revenue, and some delayed equipment shipments. On the expense side, we had higher-than-expected employee healthcare costs.

Matt Meister: Thanks, Ernie and good morning.

Matt Meister: Let me begin with a quick recap of Jbt's performance in 2024.

We ended the year with extremely strong orders in the fourth quarter up 25% year over year and 19%.

Matt Meister: Sequentially.

Matt Meister: For the full year orders increased 7%.

Matt Meister: Jbt's full year revenue increased 3% or about three 5% organically, excluding the impact of foreign exchange.

Matt Meister: Adjusted EBITDA of $295 million increased 8%.

Matt Meister: The adjusted EBITDA margin of 17, 2% for the year was an improvement of 80 basis points driven.

Matt Meister: Driven by supply chain savings and continuous improvement initiatives.

Matt Meister: Specific to the fourth quarter, our results came in at the lower end of our guidance due to a mix of lower-than-expected volume on quick-turn book and ship revenue and some delayed equipment shipping. On the expense side, we had higher than expected employee health care costs. That said, adjusted EBITDA margins for the quarter were 19.7 percent, which represented a 150 basis point improvement over the prior year.

Matt Meister: Specific to the fourth quarter. Our results came in at the lower end of our guidance due to a mix of lower than expected volume on quick turn book and ship revenue and some delayed equipment shipments.

On the expense side, we had higher than expected employee healthcare costs.

Matthew J. Meister: That said, adjusted EBITDA margins for the quarter were 19.7%, which represented a 150 basis points improvement over the prior year. Beginning in 2025, we are revising our adjusted EPS calculation to exclude acquisition-related items such as intangible amortization expense. We believe this change will better reflect our core operating earnings and improve comparability versus peers. When further adjusted for this change, JBT 2024 standalone adjusted EPS would have been $6.15, compared to the reported figure of $5.10. For 2024, we delivered strong cash flow performance, driven by more efficient management inventory and higher deposits from the strong order growth. For the year, we generated free cash flow of $199 million, an increase of 20% from the prior year period. Now let's move to the results and expectations for the combined JBT Marel business.

Matt Meister: That said adjusted EBITDA margins for the quarter were 19, 7%, which represented 150 basis point improvement over the prior year.

Matt Meister: Beginning in 2025, we are revising our adjusted EPS calculation to exclude acquisition related items such as intangible amortization expense. We believe this change will better reflect our core operating earnings and improve comparability versus peers. When further adjusted for this change, JBT 2024 standalone adjusted EPS would have been $6.15. compared to the reported figure of $5.

Matt Meister: Beginning in 2025, we are revising our adjusted EPS calculation to exclude acquisition related items, such as intangible amortization expense.

Matt Meister: We believe this change will be will better reflect our core operating earnings and improve comparability versus peers.

Matt Meister: When further adjusted for this change Jbt's 'twenty 'twenty four standalone adjusted EPS would have been $6 15.

Matt Meister: Compared to the reported figure of $5 10.

Matt Meister: Finally, for 2024, we deliver strong cash flow performance. driven by more efficient management inventory and higher deposits. For the year we generated a free cash flow of $199 million, an increase of 20% from the prior year period.

Matt Meister: Finally for 'twenty 'twenty four we delivered strong cash flow performance driven by more efficient management of inventory and higher deposits from the strong order growth.

Matt Meister: For the year, we generated free cash flow of $199 million, an increase of 20% from the prior year period.

Matt Meister: Now let's move to the results and expectations for the combined JBT-Marel business. on a combined basis, which reflects adjustments to align Marel's IFRS results with US GAAP. 2024 results were as follows. Orders of $3.6 billion, revenue of $3.5 billion, and adjusted EBITDA $479 million. representing an adjusted EBITDA margin of 13.7%. 2025 we are forecasting four year revenue growth on a constant currency basis, a four and a half and a half percent. includes a projected negative foreign exchange impact of approximately $75 million, or 2%, due to the recent strength in the U.S. dollar. We are guiding to adjust EBITDA margin of 15.75% to 16.5% in 2025.

Matt Meister: Now, let's move to the results and expectations for the combined JBT Morrell business.

Matthew J. Meister: On a combined basis, which reflects adjustments to align Marel's IFRS results with US GAAP, 2024 results were as follows: orders of $3.6 billion, revenue of $3.5 billion, and adjusted EBITDA of $479 million, representing an adjusted EBITDA margin of 13.7%. In 2025, we are forecasting full-year revenue growth on a constant currency basis of 4.5% to 6.5%, which excludes a projected - $75 million foreign exchange impact of approximately, or 2%, due to the recent strength in the US dollar. We are guiding to adjust the EBITDA margin of 15.75% to 16.5% in 2025, which represents more than 200 basis points of improvement. We expect to realize cost synergies of $35 to $40 million in 2025 and exiting the year estimate achieving run rate synergies of $80 to $90 million.

Matt Meister: On a combined basis, which reflects adjustments to align <unk> results with U S. GAAP 224 results were as follows.

There's a $3 6 billion revenue of $3 5 billion and adjusted EBITDA $479 million.

Matt Meister: Representing an adjusted EBITDA margin of 13, 7%.

Matt Meister: Before 25, we're forecasting full year revenue growth on a constant currency basis of four and a half.

Matt Meister: To six 5%, which excludes the projected negative foreign exchange impact of approximately $75 million or 2% due to the recent strength in the U S dollar.

Matt Meister: We are guiding to adjusted EBITA margin of 15, and three quarters to 16, 5% in 2005.

Matt Meister: which represents more than 200 basis points of improvement. We expect to realize cost synergies of $35 million to $40 million in 2025, and exiting the year, estimate achieving run rate synergies of $80 million to $90 million. For the full year we are projecting adjusted EPS of $5.50 to $6.10. It includes certain one-time items and acquisition-related costs, which were outlined in yesterday's press release and investor presentation. For the first quarter of 2025, we expect revenue to be in the range of $820 to $850 million. All inclusive of an estimated negative $23 million of year-over-year FX translation impact.

Matt Meister: Which represents more than 200 basis points of improvement.

Matt Meister: We expect to realize cost synergies of $35 million to $40 million in 2025, and exiting the year estimate achieving run rate synergies of $80 million to $90 million.

Matthew J. Meister: For the full year, we are projecting adjusted EPS of $5.50 to $6.10, includes certain one-time items and acquisition-related costs, which were outlined in yesterday's press release and investor presentation. For Q1 2025, we expect revenues to be in the range of $820 to 850 million, inclusive of an estimated -$23 million of year-over-year FX translation impact. Q1 is historically JBT's seasonally lightest. For Marel, pickup in orders occurred in late 2024. Given the large project nature of its business, the conversion time from order to revenue is longer. We are forecasting adjusted EBITDA margins of 12% to 13% and adjusted EPS in the range of $0.70 to $0.90. On the balance sheet, we expect CapEx of $90 to 100 million for the year. Starting leverage post-merger was just under 4 times, which excludes the benefit of any projected synergies.

Matt Meister: For the full year, we are projecting adjusted EPS of $5 50 to $6 10.

Matt Meister: Excludes certain onetime items and acquisition related costs, which were outlined in yesterday's press release and investor presentation.

For the first quarter of 2025, we expect revenues to be in the range of $820 million to $850 million inclusive of an estimated negative.

Matt Meister: $23 million of year over year FX translation impact.

Matt Meister: The first quarter is historically JVT's seasonally lightest. For Marel, pickup and orders occurred in late 2024. And given the large project nature of its business, the conversion time from order to revenue is longer. We are forecasting adjusted EBITDA margins of 12% to 13% and adjusted EPS in the range of 70% to 90%. On the balance sheet, we expect CapEx of $90 to $100 million for the year. Starting leverage post-merger was just under four times. We do not exclude the benefit of any projected synergies.

Matt Meister: The first quarter is historically jbt's seasonally lightest.

For morale pickup in orders occurred in late 2024.

Matt Meister: And given the large project nature of its business the conversion time from order to revenue is longer.

Matt Meister: We are forecasting adjusted EBITDA margins of 12%, 13% and adjusted EPS in the range of 70 to 90.

Matt Meister: On the balance sheet, we expect capex of $90 million to $100 million for the year.

Matt Meister: Starting leverage post merger was just under four times, which excludes the benefit of any projected synergies synergies.

Matthew J. Meister: We continue to expect to delever to below 3x by year-end 2025 due to higher adjusted EBITDA, which includes realized cost synergies and strong cash flow generation. Let me turn the call back to Brian for some concluding remarks.

Matt Meister: We continue to expect to de-lever to below three times by year-end 2025 due to higher adjusted EBITDA, which includes realized cost synergies and strong cash flow generation.

Matt Meister: We continue to expect to Delever to below three times by year end 'twenty five due to higher adjusted EBITDA, which includes realized cost synergies and strong cash flow generation.

Brian Deck: Let me turn the call back to Brian for some concluding remarks. Thanks, Matt. There's been a tremendous amount of hard work getting to this point where we can leverage our combined expertise and achieve more for our employees, customers and communities at JVT Morale. Together, we've established an unmatched position across the value chain as the premier global food and beverage solutions provider.

Brian Deck: Let me turn the call back to Brian for some concluding remarks.

Brian Deck: Thanks, Matt. There's been a tremendous amount of hard work getting to this point where we can leverage our combined expertise and achieve more for our employees, customers, and communities at JBT Marel. Together, we've established an unmatched position across the value chain as the premier global food and beverage solutions provider. Thank you to everyone across the organization for all you've done. We look forward to the exciting things to come as we transform the future of food. Now, let's open the call to questions. Operator?

Brian Deck: Thanks, Matt.

Brian Deck: There has been a tremendous amount of hard work getting to this point, where we can leverage our combined expertise and achieve more for our employees customers and communities at JBT morale.

Brian Deck: Together, we've established an unmatched position across the value chain as the premier global food and beverage solutions provider.

Brian Deck: Thank you to everyone across the organization for all you've done. We look forward to the exciting things to come as we transform the future of food.

Brian Deck: Thank you to everyone across the organization for all you've done.

Brian Deck: We look forward to the exciting things to come as we transform the future of food.

Pam: Now, let's open the call to questions. Operator? Thank you.

Brian Deck: Now, let's open the call to questions operator.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, if you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. Your first question comes from Sari Boroditsky with Jefferies. Please go ahead.

Pam: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone to raise your hand and join the. If you would like to redraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking a question.

Thank you we will now begin the question and answer session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad you May go ahead and join the queue.

Brian Deck: We would like to withdraw your question simply press Star one again.

Brian Deck: We are called upon to ask a question in or listening via loud speaker in your device. Please pickup your handset and ensure that your phone is not on mute when asking your question.

Sari Boroditsky: Again, if you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join And your first question comes from Sari Boroditsky with Jefferies. Please go ahead. So I wanted to touch on the synergies. So you are now kind of two months into owning Merle and you are able to increase the cost synergy guidance on the kind of supply chain synergies. So can you talk more about what gave you confidence to raise the guidance, like a little bit more color on the supply synergies? And was there a lot of like low hanging fruits that you were able to identify after owning them?

Brian Deck: Again, if you would like to ask a question. Please press star one on your telephone keypad to raise your hand and joined us.

Laura: And your first question comes from Savi, Laura did Steve with Jefferies. Please go ahead.

Sari Boroditsky: I wanted to touch on the synergy. You are now kind of 2 months into owning Marel, and you are able to increase the cost synergy guidance on kind of supply chain synergies. Can you talk more about what gave you confidence to raise the guidance, like a little bit more color on the supply synergies? Was there a lot of low-hanging fruit that you were able to identify after owning them? Thank you.

Speaker Change: So I wanted to touch on the synergies. So you are now kind of two months into owning moral and you were able to increase the cost synergy guidance on kind of supply chain synergies. So can you talk more about what gave you confidence to raise the guidance.

Speaker Change: <unk>, a little bit more color on the supply synergies and whilst there are a lot of like low hanging fruit that you were able to identify after owning time. Thank you.

Matt Meister: Thank you.

Matt Meister: Yes, good question. So, we've been working together, the two companies, for the last year or so, but there has been certain limitations on vendor names, customer names, etc., that until we combined, we weren't able to have access to. So, after getting access to that, we were really able to determine our strategy as it relates to supply chain savings, and including some of the early hits, we do feel that 35-40 million first year savings will include some early hits on the supply chain side, as well as some of the organizational design things that we're doing. So, the confidence really came along from access to information that we otherwise didn't have in the past.

Brian Deck: Yes, good question. We've been working together, the two companies, for the last year or so. There has been certain limitations on vendor names, customer names, et cetera, that until we combined, we weren't able to have access to. After getting access to that, we were really able to determine our strategy as it relates to supply chain savings, and including some of the early hits. We do feel that $35 to 40 million first-year savings will include some early hits on the supply chain side, as well as some of the organizational design things that we're doing. The confidence really came along from access to information that we otherwise didn't have in the past.

Speaker Change: Yes. Good question, so we've been working together.

Speaker Change: Companies for the last year or so, but there has been certain limitations on vendor names customer names et cetera that until we combined we were able to have access to so.

Speaker Change: After getting access to that we were really able to determine.

Speaker Change: Our strategy as it relates to supply chain savings.

Speaker Change: And including some of the early hits, we do feel that that $38 $35 million to $40 million first year savings will include some early hits on on the supply chain side as well as some of the organizational design things that we're doing so it really the confidence really became came along from access to information.

Speaker Change: That we otherwise didn't have in the past.

Sari Boroditsky: Got it. Great. Thanks for the caller.

Sari Boroditsky: Got it. Great. Thanks for the color. I guess kind of staying on the synergy, more on the revenue side, I think you noticed some benefit to customers, providing integrated solutions and opportunities to kind of cross-sell. Can you provide more color on kind of revenue synergy opportunities?

Speaker Change: Got it great. Thanks for the color and I guess kind of.

Brian Deck: And I guess kind of staying on the synergy, more on the revenue side, I think you notice some benefit to like customers, like providing like integrated solutions and opportunities to kind of sell. So can you provide more color on kind of revenue synergy opportunities? Yes, we're really excited about this. So, as I mentioned in the prepared remarks, we had a really excellent IPPE show, the poultry show, and the conversations were great. And frankly, the thing that was most exciting about it was the way our commercial teams interacted with one another. They really fell right into understanding each other's product lines.

Speaker Change: On the synergy on more on the revenue side I think you noted some benefit to our customers providing.

Speaker Change: Integrated solutions and opportunities to kind of cross sell so.

Speaker Change: Can you provide more color on kind of revenue synergy opportunities.

Brian Deck: Yes. We're really excited about this. As I mentioned in the prepared remarks, we had a really excellent IPPE show, the poultry show, and the conversations were great. Frankly, the thing that was most exciting about it was the way our commercial teams interacted with one another. They really fell right into understanding each other's product lines. We obviously have experts across the industry, so it was fairly natural for them to be able to engage in conversations with customers on a combined basis. As part of that, what we also found was each legacy company has some particularly strong relationships with certain customers, and that really facilitated conversations about providing either JBT or Marel solution to some of the projects that they were considering that perhaps they had not considered one or the other in the past. That really developed nicely.

Speaker Change: Yes.

We're really excited about this so as I mentioned in the prepared remarks, we had a really excellent.

Speaker Change: IPP show the poultry show and the conversations were great and frankly, the thing that was most exciting about it was the way our commercial teams interacted with one another.

Speaker Change: Really fell right into <unk>.

Brian Deck: You know, we obviously have experts across the industry. So, it was fairly natural for them to be able to engage in conversations with customers on a combined basis. And as part of that, what we also found was each company, legacy company, has particularly strong relationships with certain customers. And that really facilitated conversations about providing either JBT or Marel's solution to some of the projects that they were considering that perhaps they had not considered one or the other in the past. So, that really developed nicely. And then I would say, you know, we announced earlier $75 million of revenue synergies by year three.

Speaker Change: <unk> each of those product lines, where we are.

Speaker Change: Obviously of experts across the industry. So it was fairly natural for them to be able to engage in conversations with customers on a combined basis.

Speaker Change: And as part of that what we also found was.

Speaker Change: Each company, our legacy company has particularly strong relationships with certain customers and that really facilitated conversations about provides.

Speaker Change: Providing either JBT, our morale solution to some of the projects that they were considering that perhaps they had not considered one or the other in the past.

Speaker Change: No.

Speaker Change: It was really developed nicely and then I would say, we announced earlier $75 million of revenue synergies by year, three or we haven't updated that but we are taking a close look at it again now that we have access to customer data and conversations.

Brian Deck: I would say, we announced earlier $75 million of revenue synergies by year 3. We haven't updated that, we are taking a close look at it again now that we have access to customer data and conversations on a more combined basis. We are taking a review of that, we'll follow up in the next quarter or 2 what that means.

Brian Deck: We haven't updated that, but we are taking a close look at it. Again, now that we have access to customer data and conversations on a more combined basis, we are taking a review of that, and we'll follow up in the next quarter or two on what that means.

Speaker Change: On a more combined basis, what we are taking a review of that and we'll follow up in the next quarter or two and what that means.

Árni Sigurdsson: Just briefly to add on that, again, I think what was exciting around kind of what we heard and saw and experienced at IPPE was a lot of conversation in the prepared foods area, where our portfolio is quite complementary. We've talked in the past, for example, a chicken nugget line, when you just see kind of the different technologies across that same line. That's where we saw some interesting opportunities, which was really kind of confirming what we believed, but it was just nice to see that really happen.

Speaker Change: And just briefly to add on that I can add I think what was exciting around kind of what we heard and saw and experienced that IPA was.

Speaker Change: A lot of conversation in the prepared foods area, where our portfolio is quite complementary.

Speaker Change: And we've talked in the past for example, a chicken nugget line.

Speaker Change: When you do see kind of a different technologies across that same line. So that's where we saw some interesting opportunities, but it was really kind of confirming what we believe but it which is nice to see that really happen.

Speaker Change: Yes.

Mig Dobre: Your next question comes from Mig Dobre with BIRD. Please go ahead. Thank you. Good morning, everyone. And I'll apologize in advance. I actually have a bunch of questions. So hopefully you hear me here.

Operator: Your next question comes from Mircea Dobre with Baird. Please go ahead.

Speaker Change: Your next question comes from Mig <unk> with Baird.

Speaker Change: Please go ahead.

Mircea Dobre: Thank you. Good morning, everyone. I'll apologize in advance. I actually have a bunch of questions, hopefully you humor me here.

Speaker Change: Thank you good morning, everyone and goodbye.

Speaker Change: Apologize in advance.

Speaker Change: We have a bunch of questions. So hopefully you can join me here.

Brian Deck: Okay.

Matt Meister: I guess maybe we can start with a clarification. Maybe I missed this in the guidance slides, but free cash flow for 25. How should we think about that? Yeah, let's start with that. Let's start with free cash. Yeah, Meg, I think from a free cash flow perspective, it's still a little early for us to provide sort of specific numbers around that, I'd say, as we try to get a better feel for how the cadence and cash flows will go through the year. But, you know, I think the fundamentals of the business, both businesses together still remain strong with relatively low capex, high recurring revenue and deposits from customers.

Mircea Dobre: I guess maybe we can start with a clarification. Maybe I missed this in the guidance slides, but free cash flow for 2025, how should we think about that? Yeah, let's start with that. Let's start with free cash flow.

Speaker Change: Hi.

Speaker Change: I guess, maybe we can start with a clarification, maybe I missed this in the guidance slides, but.

Speaker Change: Free cash flow for 25, how should we think about that.

Speaker Change: Yes, let's let's start with that let's start with free cash flow.

Matthew J. Meister: Yeah, Mircea, I think from a free cash flow perspective, it's still a little early for us to provide sort of specific numbers around that, I'd say, as we try to get a better feel for how the cadence and cash flows will go through the year. I think the fundamentals of both businesses together still remain strong, with relatively low CapEx, high recurring revenue, and deposits from customers. When we account for some of the one-time items on the P&L side, our expectation is that we should be able to achieve 100% free cash flow for the year.

Speaker Change: Yes, I think from a free cash flow perspective, it's still a little early for us to provide specific numbers around that I would say as we try to get a better feel for how the cadence and cash flows will go through the year, but.

Speaker Change: I think the fundamentals of the business both businesses together still remains strong with relatively low capex high recurring revenue and deposits from customers and so when we account for some of the onetime items.

Matt Meister: And so when we account for some of the one time items on the P&L side, you know, our expectation is that we should be able to achieve 100% free cash flow for the on adjusted net income, right? Right. So yeah, so we'll provide more guidance. But if you think about the general profile this business make, it's still quite attractive when you think about the math just between the capex spend versus the depreciation and kind of how that flows. We will have a lot of one-time costs in 2025, as mentioned in the press release. But if you kind of look away from that, it's certainly a profile of more than 100% of adjusted net income.

Speaker Change: P&L side, our expectation is that we should be able to achieve 100% free cash flow for the year.

Brian Deck: On adjusted net income, right?

Speaker Change: Net income alright, alright, so yes, so we'll provide more guidance, but if you think about the general profile of this business Mig.

Matthew J. Meister: Right.

Brian Deck: Right. We'll provide more guidance. If you think about the general profile of this business, Mircea, it's still quite attractive when you think about the math just between the CapEx spend versus the depreciation and kind of how that flows. We will have a lot of one-time costs in 2025, as mentioned in the press release. If you kind of look away from that, it's certainly a profile of more than 100% of adjusted net income.

Speaker Change: It is still quite attractive when you think about the.

Speaker Change: The math just between the capex spend versus depreciation and kind of how that.

Speaker Change: Those we will have a lot of onetime costs in 2025 is.

Speaker Change: As mentioned in the in the press release, but if you kind of look away from that.

Speaker Change: Certainly profile of more than 100% of adjusted net income.

Mig Dobre: That's helpful.

Mircea Dobre: That's helpful. One of the things that also stood out to me was the order intake. I think Marel had a bit of a tough comp, and yet they were able to grow off of that. You had quite a bit of growth in legacy JBT. Maybe talk a little bit about what's going on here. We heard from you that the poultry markets are getting better. I guess it's more than just poultry. The question here is on sustainability into 2025. Has this quarter simply been a bit unusual? Was there a CapEx flush or something like that to help you out? Are these trends sustaining into Q1? We're almost through February. What have you seen in Q1 thus far?

Matt Meister: One of the things that also stood out to me was the order intake, right? For I think Marel had a bit of a tough comp, and yet they were able to grow off of that. You had quite a bit of growth in legacy JVT. Maybe talk a little bit about what's going on here. We heard from you that the poultry markets are getting better, but I guess it's more than just poultry. And the question here is on sustainability into 2025. Has this quarter simply been a bit unusual? Was there like a CapEx flush or something like that that helped you out?

That's helpful.

One of the things that also stood out to me.

Was the order intake rate for I think morale had a bit of a tough comp and they were able to grow off of that.

Speaker Change: You had quite a bit of growth in legacy JBT.

Speaker Change: Yes.

Speaker Change: Maybe talk a little bit about what's what's going on here, we heard from you that the poultry markets are getting better but.

Speaker Change: I guess, it's more than just poultry in the the.

Speaker Change: The question here is on sustainability into 2025 as this quarter has simply been a bit unusual was there like a capex flush or something like that to help you out or are these trends.

Matt Meister: Or are these trends kind of sustaining into Q1? I mean, we're almost through February. What have you seen in Q1?

Speaker Change: Kind of sustaining into the into Q1, I mean, almost through February what have you seen in Q1, thus far.

Matt Meister: Sure. I'll provide some comments on Legacy JBT, and Arni can provide a little bit on Legacy, Marel, and kind of how we're thinking about this going forward. So, on the JBT side, what we normally see is, I'm talking from an end market perspective, there's always pluses and minuses. Fruit and juice is up, maybe beverages down, and that's, since I've been here, that's always been the case, because these are lumpy projects, often. So, you see a lot of variability, and almost magically, it kind of evens out by the end of the quarter. However, in the fourth quarter, there was really no weak markets, which is quite unusual.

Brian Deck: Sure. I'll provide some comments on legacy JBT, Arni can provide a little bit on legacy Marel and how we're thinking about this going forward. On the JBT side, what we normally see is, I'm talking from an end market perspective, there's always pluses and minuses. Fruit and juice is up, maybe beverage is down. Since I've been here, that's always been the case because these are lumpy projects often. You see a lot of variability and almost magically evens out by the end of the quarter. However, in Q4, there was really no weak markets, which is quite unusual. Everything hit. We mentioned ready meals, pet food, our AGV business, fruit and juice, even beverage improved in the quarter. Poultry remained strong. It really just flowed through it in a nice way.

Speaker Change: Sure I'll provide some comments on legacy JBT and Ernie can provide a little bit on legacy morale and kind of how we're thinking about this going forward. So.

Speaker Change: On the JBT side, what we normally see is I'm talking from an end market perspective.

Speaker Change: There's always pluses and minuses prudent uses up maybe beverages down and.

Speaker Change: And thats since I've been here, that's always been the case because these are lumpy projects often so you see a lot of variability.

And almost magically kind of evens out by the end of the quarter.

Speaker Change: However, in the fourth quarter.

Speaker Change: There was really no weak markets, which is quite unusual so everything kind of hit we mentioned ready meals pet food.

Arni Sigurdsson: So, everything kind of hit. We mentioned ready meals, pet food, our AGV business, fruit and juice, even beverage improved in the quarter. Poultry remained strong. So, it really kind of just flowed through it in a nice way.

Speaker Change: Our <unk> business fruit and juice, even beverage improved in the quarter.

Speaker Change: Poultry remains strong so it really kind of.

Speaker Change: Just flu.

Speaker Change: Flew through flow through in a nice way.

Arni Sigurdsson: You know, I can't say this was a cat-back stump, but here's the way I think of it generally, is a $900 million is kind of the baseline for us, right? And that billion dollars in the month was extraordinarily strong. So, I still think we're going to coalesce around that number, plus or minus, and there'll still be variability given the lumpy nature of our business. So, I do think there'll be some general reversion, but overall, the markets are strong right now. And I put the caveat about regarding tariffs and whatnot, but kind of aside from that, conditions do seem strong.

Brian Deck: I can't say this was a CapEx dump, but here's the way I think of it generally is a $900 million is the baseline for us. That $1 billion in the month was extraordinarily strong. I still think we're going to coalesce around that number, plus or minus, and there'll still be variability given the lumpy nature of our business. I do think there'll be some general reversion, but overall, the markets are strong right now. I put the caveat about regarding tariffs and whatnot. Aside from that, conditions do seem strong.

Speaker Change: This is a capex dump, but here's the way I think of it generally.

Speaker Change: Is a.

Speaker Change: $900 million kind of the baseline for us right in the $1 billion.

Speaker Change: In the month was extraordinarily strong so I still think we're going to coalesce around that number plus or minus and they'll still be variability given the lumpy nature of our business. So I do think there'll be some general reversion.

Speaker Change: But overall the markets are strong right now and I put the caveat about regarding tariffs and whatnot, but.

Speaker Change: Aside from that.

Speaker Change: Conditions do seem strong.

Arni Sigurdsson: Yeah, and on the model side, obviously very pleased with the orders in the quarter and poultry, the poultry market continues to be quite attractive. And we see that in also just if you look at the results of some of our customers, I mean, they are showing very robust numbers on the poultry side. So that continued to be healthy in the fourth quarter for us. But then if we look at it sequentially, then we saw improvement in the other segments as well on the model side. And what I would say is on the pork side, kind of the market sentiment is improving, but kind of from a very low level, there is kind of with the low investment that has been there for kind of throughout the cycle, there needs to be at some point catch up on and kind of renewing the install base and more automation.

Árni Sigurdsson: On the Marel side, obviously very pleased with the orders in the quarter. The poultry market continues to be quite attractive, and we see that in poultry use. If you look at the results of some of our customers, they're showing very robust numbers on the poultry side. That continued to be healthy in Q4 for us. If we look at it sequentially, we saw improvement in the other segments as well on the Marel side. What I would say is on the pork side, the market sentiment is improving but from a very low level. With the low investment that has been there throughout the cycle, there needs to be at some point catch up in renewing the installed base and more automation. Consolidation in Europe is in the final steps.

Speaker Change: Yes.

On the motto side, obviously very pleased with the orders in the quarter in poultry the poultry market continues to be quite.

Speaker Change: Quite attractive and we see that in.

Speaker Change: Also just if you look at.

The results of some of our customers I mean, they are they're showing very robust numbers on the poultry side. So that continues to be healthy in the fourth quarter for us, but then if we look at it sequentially than we saw improvement in.

Speaker Change: And the other segments as well on the on the module side and what I would say is.

Speaker Change: On the pork side kind of the the market sentiment is improving but kind of from a from a very low level.

Speaker Change: There is going to have with the low investment that has been therefore kind of throughout the cycle. There there needs to be at some point catch up on and kind of renewing the installed base and more automation.

Arni Sigurdsson: And we kind of consolidation in Europe is in the final steps. We saw improved pipeline in the fourth quarter on the pork side. So that was kind of encouraging. I mean, fish also improved sequentially.

Speaker Change: And we kind of consolidation in Europe is in the final steps kind of we saw improved pipeline.

Árni Sigurdsson: We saw improved pipeline in the Q4 on the pork side. That was encouraging. Fish also improved sequentially, but I think I'm not as confident about the market there yet, even though we really believe in the fundamentals of that market.

Speaker Change: In the fourth quarter on the pork side, so that was kind of encouraging.

Speaker Change: Face also improved sequentially.

Arni Sigurdsson: But I think I'm not as confident about the market there yet, even though we really believe in the fundamentals of that market.

Speaker Change: But I think I'm not as confident about the market there yet even though we really believe in the fundamentals of that market.

Mig Dobre: And Meg, just to clarify that $900 million baseline, that's the combined company, quarterly kind of, I'll say baseline, if you will, for orders. Thank you for the clarification there.

Brian Deck: Mig, just to clarify that $900 million baseline, that's the combined company quarterly, I'll say baseline, if you will, for orders.

Speaker Change: And maybe just to clarify that $900 million baseline. That's the combined company quarterly kind of I'll say baseline if you will for orders.

Mircea Dobre: Thank you for the clarification there. I want to move on to your outlook, your guidance. Apologize for the numbers and the math here, but I'm trying to understand the moving pieces. At the midpoint, your EBITDA, you're guiding at $582 million. On a combined basis, the company has done pro forma $479 million. We're looking at $103 million of EBITDA growth. $37 million of that is synergies. The rest of it, $66 million, would be the lift from the two businesses. When we look at this $66 million, how much of it comes from legacy JBT versus lift in Marel's business relative to the prior year?

Speaker Change: Thank you for the clarification there.

Mig Dobre: And I want to move on to your outlook, your guidance. Apologize for the numbers and the math here, but I'm trying to understand the moving pieces, right? So at the midpoint, your EBITDA, you're guiding at $582 million. On a combined basis, the company has done pro forma $479 million. So We're looking at $103 million of EBITDA gross. Thirty-seven of that is synergy. So the rest of it, 66, would be the lift from the two businesses.

Speaker Change: And I want to move onto to your outlook your guidance.

Speaker Change: Apologize for the numbers in the math here, but im trying to understand the moving pieces right. So at the midpoint your EBITDA, you're guiding at $582 million.

Speaker Change: On a combined basis the company has done pro forma $479 million. So.

Speaker Change: We're looking at $103 million of EBITDA growth.

Speaker Change: 37 of that is synergies.

Speaker Change: So the rest of it 66 would be the lift from the two businesses when we look at the 66.

Matt Meister: When we look at this 66, How much of it comes from legacy JBT versus Lyft in Marel's business relative to the prior Yeah, I think the starting point on the 479 for 2024, MIG, is you have to adjust for the year-end piece that Marel was about 20 million or so, 17, 20 million US dollars of sort of year-end adjustments to kind of add that back as starting point. So you're kind of starting closer to 500 million for the combined company. And then you add in the synergies. So now you're at 538. So now you're kind of doing the math off of that number.

Speaker Change: How much of it comes from legacy JBT versus lift in morality business relative to the prior year.

Matthew J. Meister: Yeah. I think the starting point on the 479 for 2024, Mig, is you have to adjust for the year-end piece at Marel was about $20 million or so, 20 million US dollars of year-end adjustments. You add that back as a starting point. You're starting closer to $500 million for the combined company. You add in the synergies. You're at 538. The flow-through from the combined business is closer to 35% to 40%. There is a benefit from Marel on some of the restructuring activities that they took in 2024 that's also coming through. We estimate that at around $8 million to $10 million benefit in 2025.

Speaker Change: Yes, I think the starting point on the $4 79 for 2024, Meg is you have to adjust for that year end.

Speaker Change: Piece at morale was about.

Speaker Change: $20 million or so 17 $20 million of sort of year end adjustments to kind of add that back and it is.

Speaker Change: Starting point to kind of starting closer to $500 million for the combined company.

Speaker Change: And then you add in the synergies.

Speaker Change: So now you are at $5 38. So now you are kind of doing the math off of that number and so the flow through.

Matt Meister: And so the flow-through from the combined business is closer to like 35 to 40 percent. And it's a little higher than we would typically expect for flow-through on the combined business. But there is the benefit from Marel on some of the restructuring activities that they took in 2024 that's also coming through. And we estimate that sort of around an 8 to 10 million benefit in 2025. Right. So you've got the benefit of the synergies, the volume, as well as some of the, I'll say, rollover of some of the actions that Marel took in last year.

Speaker Change: From the combined business is closer to 35% to 40% and it's a little higher than we would typically expect for flow through on the combined business, but there is the benefit from morale on some of the restructuring activities that they took in 2024. That's also coming through we estimate that sort of around.

Speaker Change: $8 million to $10 million benefit in 2025, right. So you've got the benefit of the synergies the volume.

Brian Deck: Right. You've got the benefit of the synergies, the volume, as well as some of the, I'll say, rollover of some of the actions that Marel took in last year. Overall, Mig, I'd say more of the improvement is coming from the Marel side, given they have a little bit higher growth rate in their forecasted revenues versus JBT because of the continued recovery of the poultry market, as well as some of the restructuring actions that they took last year, which will flow into this year.

Speaker Change: As well as some of the I'll say.

Speaker Change: Rollover of some of the actions that morale took in last year.

Matt Meister: So overall, MIG, I'd say more of the improvement is coming from the Marel side, given some of the they have a little bit higher growth rate in their forecasted revenues versus JBT because of the recovery, continued recovery of the poultry market as well as some of the restructuring actions that they took last year, which will flow into this year.

Speaker Change: So overall Mig I'll say more of the improvement is coming from the morale side, giving some given some of the they are a little bit higher growth rate in their forecasted revenues versus JBT because of the recovery.

Speaker Change: Recovery of the poultry market is as well as some of the restructuring actions that they took.

Speaker Change: Last year, which will flow into this year.

Mircea Dobre: Well, to be honest with you, based on what you've just told me, to me it seems like it is the opposite, where you end up with X synergies. You end up with maybe less than $50 million of EBITDA lift, but a good chunk of that would probably come just from JBT and the growth that you have on your business, assuming normal incremental margins on that organic revenue growth. Which, maybe I am missing something or you are just being conservative, which is perfectly fine. I am just looking to make sure that we understand the moving pieces.

Speaker Change: To be honest with you based on what you've just told me to me it seems like its the opposite where you end up with.

Speaker Change: Ex synergies you end up with maybe like less than $50 million of EBITDA lift, but a good chunk of that would probably come just from JBT and the growth that you have on your business, assuming normal incremental margins on that organic revenue growth.

Speaker Change: Which.

Speaker Change: Maybe I'm missing something or you're just being conservative which is perfectly fine.

Speaker Change: Just looking to make sure that we understand the moving pieces.

Matt Meister: Yeah, so the so I think we've given revenue guidance for the two businesses individually. And if you look at that, and apply, generally, you apply, you know, 30% ish flow through on that incremental volume. And then from there, you add on the benefit of the synergies and whatnot.

Brian Deck: Yeah. I think we've given revenue guidance for the two businesses individually, and if you look at that and apply, generally you apply 30%-ish flow through on that incremental volume. From there, you add on the benefit of the synergies and whatnot. Take a look. We're happy to walk through in more detail as we go from here. Our math shows a little bit more contribution from the Marel side than the JBT side, at least from an EBITDA perspective.

Speaker Change: Yes, so I think we've given revenue guidance for the two businesses individually and if you look at that and apply generally you apply 30% ish flow through on that incremental volume.

Speaker Change: And then from there.

Matt Meister: So take a look, we're happy to walk through in more detail, as we go from here. But our math shows a little bit more contribution from the morale side than the GBT side, at least from an EVA perspective. Perfect.

Speaker Change: And the benefit of the synergies and whatnot. So take a look we're happy to walk through in more detail as we go from here, but our math shows a little bit more contribution from the <unk> side than the JBT size at least from an EBITDA perspective.

Mircea Dobre: Perfect. My final question is on Marel specifically. As we're trying to look through what the Q4 looked like, at least on our math, the Q4 looked to be a sequential step down in margin, and maybe even tougher than some of the prior quarters in 2024. Maybe you can give us some context or Arni can give us some context as to what's been going on with margins in the Q4. Big picture, how you think about progression here through 2025, and maybe you can comment on fish and meat specifically, because it's pretty clear that poultry's doing all right. It's the other two segments that have struggled. Thank you.

Mig Dobre: And my final question is on Marel specifically. You know, as we're trying to look through what the fourth quarter looked like, at least on our math, the fourth quarter looked to be a sequential step down in margin, and maybe even tougher than some of the prior quarters in 24. Maybe you can give us some context, or Arni can give us some context as to what's been going on with margins in the fourth quarter.

Speaker Change: Perfect then my final question.

Speaker Change: On morale specifically.

Speaker Change: That's what we're trying to look through what the fourth quarter look like at least.

Speaker Change: On our math, the fourth quarter looks to be a sequential step down in margin.

And maybe even tougher than some of the prior quarters in 'twenty four.

Speaker Change: Maybe you can give us some context, our orange if you can give us some context as to what's been going on with margins in the fourth quarter.

Arni Sigurdsson: And big picture, sort of how you think about progression here through 2025, and maybe you can comment on fish and meat specifically, because it's pretty clear that poultry is doing all right, but the other two segments that have struggled. Thanks. Yeah, so what I would say, kind of, we saw healthy, absent the balance sheet adjustment that we talked through, we saw a good margin in Q4, both improving sequentially and year over year. So I think, kind of, that is moving in the right direction. We also saw that, kind of, moving in the right direction for fish and meat, but there is still a lot of work to be done on that front.

Speaker Change: Big picture sort of how you think about progression here through 2025, and maybe you can comment on fish and meat, specifically, but it's pretty clear that.

Speaker Change: Poultry is doing all right. It's the other two segments that have struggled thank you.

Árni Sigurdsson: Yeah. What I would say, absent the balance sheet adjustment that we talked through, we saw a good margin in Q4, both improving sequentially and year over year. I think that is moving in the right direction. We also saw that moving in the right direction for fish and meat. There's still a lot of work to be done on that front. That's on the margin side where we are on the right track and exiting the year at a healthy level, or more healthy level, improving over the year. We can expect to be able to do more as we enter 2025. Some of the initiatives that we have been going through, we will continue with, such as standardizing the portfolio more rigorously, project control, and selecting the projects.

Speaker Change: Yes, so what I would say.

Speaker Change: We saw healthy kind of absent the balance sheet adjustment that we talked through we saw.

Speaker Change: A good margin in Q4, both improving sequentially.

Speaker Change: Sequentially and year over year, so I think that as moving.

Speaker Change: In the right direction.

Speaker Change: We also saw that kind of moving in the right direction for for us for efficient meat, but there are still there's still a lot of work to be done on that front. So.

Arni Sigurdsson: So we are, kind of, just taking, kind of, so that is, kind of, on the margin side where we, kind of, yeah, are on the right track and, kind of, exiting the year at a healthy level or more healthy level, kind of, improving over the year and we can expect to be able to, kind of, do more as we enter 2025 and, I mean, some of the initiatives that we have been going through, we will continue with, such as, kind of, standardizing the portfolio, more rigorous, kind of, project control and selecting the projects. And then we are also, kind of, we have designed the combined organization in a way where we believe those businesses will benefit more with greater scale in emerging markets, embedding the service capabilities and some of the other designs that we have taken.

Speaker Change: So we are taking.

Speaker Change: Taking that out so that's kind of on the margin side, where we are.

Speaker Change: Yes on the right track and kind of exiting the year at a healthy level.

Speaker Change: Or more healthy level of kind of improving over the year and we.

Speaker Change: We expect to be able to kind of do more as we enter 2025 and I mean, some of the initiatives that we have been going through we will continue with such as kind of a standard is standardizing the portfolio more rigorous.

Speaker Change: Can a project control and selecting the projects.

Árni Sigurdsson: We've designed the combined organization in a way where we believe both businesses will benefit more with greater scale in emerging markets, embedding the service capabilities and some of the other designs that we have taken.

Speaker Change: And then we're also kind of we have designed the combined organization in a way.

Speaker Change: Where we believe those businesses will benefit more with.

Speaker Change: Greater scale in emerging markets and betting the service capabilities and some of the other designs that we have taken.

Matt Meister: And to add on to that, Meg, as we look to bring some of the continuous improvement capabilities, we've already started that on both meat and fish, and we obviously have a large tool chest. One of the things we're actually looking at right now is applying some of the 80-20 approach to the business and looking at the segmentation of the larger customers, larger projects and product lines, and how that profitability is segmented and making sure that we've got the right resources and the right places to attack that, as well as some of the general continuous improvement things that we're looking at.

Brian Deck: To add onto that, Mircea, as we look to bring some of the continuous improvement capabilities, we've already started with that on both meat and fish, and we obviously have a large tool chest. One of the things we're actually looking at right now is applying some of the 80/20 approach to the business and looking at the segmentation of the larger customers, larger projects, and product lines, and how that profitability is segmented, and making sure that we've got the right resources in the right places to attack that. As well as some of the general continuous improvement things that we're looking at. We are laser-focused on the overall improvement and the synergies perspective, but in particular, meat and fish are getting good attention all the way up to the top.

Speaker Change: And to add up to add onto that.

Speaker Change: Mig.

Speaker Change: As we look to bring some of the continuous improvement capabilities.

Speaker Change: We've already started that on both meat and fish and.

Speaker Change: We obviously have a large tool chest one of the things we're actually looking at right now is applying some of the 80 20 approach too.

Speaker Change: To the business and looking at the segmentation of.

Speaker Change: Of the larger customers larger projects in our product lines and.

Speaker Change: And how that profitability is segmented in making sure that we've got the right resources in the right places too.

Speaker Change: To attack that so.

Speaker Change: As well as with some of the general continuous improvement things that we're looking at so we are laser focused on the overall improvement in the synergies perspective, but in particular.

Matt Meister: So we are laser-focused on the overall improvement in the synergies perspective, but in particular, meat and fish are getting good attention all the way up to the top. Yeah, and just, Meg, just to clarify again, on the Q4 margins, again, we want to make sure we kind of look at it with and without the year-end adjustments that were booked at Morrell in December. Those were really some sort of alignment on accounting policies and procedures between Morrell and JVT, and so they're a little bit, I think, kind of one-time in nature and related to some older inventory and some older AR valuation reserves.

Speaker Change: Meat and fish are getting good intention all the way up to the.

Matthew J. Meister: Yeah. Mircea, just to clarify again on the Q4 margins. Again, I want to make sure we look at it with and without the year-end adjustments that were booked at Marel in December. Those were really some sort of alignment on accounting policies and procedures between Marel and JBT. They're a little bit, I think, one time in nature and related to some older inventory and some older AR valuation reserves. I think if you look at the underlying business, I think what Arni had said, that they are seeing some improvements in the margins, and that's what we would expect to see heading into 2025.

Speaker Change: Yeah, and just make just to clarify again on the Q4 margins again, we want to make sure we kind of look at it with and without the year end adjustments that were booked at morale in December those were really some sort of alignment on accounting policies and procedures.

Speaker Change: <unk> between Morrell and JBT and so there are a little bit I think kind of onetime in nature and related to some older inventory at some older AAR evaluation reserves and I think if you look at the underlying business I think what <unk> said that they are seeing some improvements in the margins and that's what we.

Matt Meister: And I think if you look at the underlying business, I think what Arnie had said, that they are seeing some improvements in the margins, and that's what we would expect to see heading into 2025. I'm sorry, just to clarify the 20 million that that was a 20 million euro ad back. So so in the fourth quarter with the IFRS margin at morale be somewhere close to 15%. Yeah, I think it's in the 13-14% range. It's $20 million. It's about €17 million. We're not adding that back from an adjusted perspective, it's just a different kind of accounting approach, so I don't want to blur the underlying performance of the operations with those adjustments.

Speaker Change: We would expect to see heading into 2025.

Mircea Dobre: I'm sorry, just to clarify, that was a EUR 20 million add back. In Q4, would the IFRS margin at Marel be somewhere close to 15%?

Speaker Change: I'm, sorry, just to clarify the $20 million that that was a $20 million euro add back so in the fourth quarter with.

Speaker Change: <unk> margin at morale be somewhere close to 15%.

Matthew J. Meister: Yeah, I think it's in the 13% to 14% range. It's $20 million. It's about €17 million.

Speaker Change: I think its in the yeah.

Speaker Change: Yes, I think its in the 13% to 14% range is $20 million is about $17 million euros.

Mircea Dobre: Okay. Helpful.

Okay helpful. We're not adding that back from it we're not adding that back from an adjusted perspective is just it's just a different I think again, a different kind of accounting approach. So I don't want to I don't want to blur the underlying performance of the operations with those adjustments.

Matthew J. Meister: We're not adding that back from an adjusted perspective. It's just, I think, again, a different kind of accounting approach. I don't want to blur the underlying performance of the operations with those adjustments.

Mig Dobre: Understood. But you're correct, Meg. You're correct, Meg. If you look at the reported results, IFRS 200 million euros, that is burdened by about 17-18 million dollars of one item. And if you would, absent of that, you would have, kind of, EBITDA margin for the full year, kind of, a little bit north of 13%. And so, so, for quarter was, was more healthy. Got it, thank you.

Mircea Dobre: Understood. Thank you.

Speaker Change: Understood understood.

Brian Deck: You're correct, Mig. If you look at the reported results, IFRS, EUR 200 million, that is burdened by about EUR 17 million, EUR 18 million of one-time items.

Speaker Change: Correct Me Youre correct me if you look at the reported results <unk> $200 million euros that is burdened by about $17 million to $18 million of one time items.

Árni Sigurdsson: If you would, absent of that, you would have EBITDA margin for the full year a little bit north of 13%. Q4 was more healthy than that.

Speaker Change: And if you would absent of that you would have kind of EBITDA margin for the full year.

Speaker Change: Would have been north of 13%.

Speaker Change: So fourth quarter was more healthy.

Speaker Change: Yes.

Speaker Change: Got it thank you.

Speaker Change: Okay.

Mig Dobre: Okay, thanks.

Brian Deck: Okay, thanks.

Speaker Change: Okay. Thanks.

Ross Buck: Your next question comes from Ross Buck with William Blair, please go ahead. Hey, good morning, guys. Matt, you touched on this in your opening remarks, but can you maybe just remind us of the timing for back wall conversion for JBT and Marel, and kind of what that mix looks like on a pro format? Yeah, I mean, for the most part, we look at about, for JBT, it's in the. 50% or so of our equipment revenue is in backlog that we'd expect. So the backlog for equipment is sort of in the $450 million range for JBT historically, or legacy JBT.

Operator: Your next question comes from Ross Sparenblek Buck with William Blair. Please go ahead.

Speaker Change: Your next question comes from Ross <unk> Buck with William Blair. Please go ahead.

Ross Sparenblek: Hey, good morning, guys.

Ross Buck: Hey, good morning, guys.

Brian Deck: Morning.

Morning.

Ross Sparenblek: Matt, you touched on this in your opening remarks, can you maybe just remind us of the timing for backlog conversion for JBT and Marel, and kind of what that mix looks like on a pro forma entity going forward?

Speaker Change: Matt you touched on this in your opening remarks, but can you maybe just remind us of the timing of backlog conversion for JBT and morale and kind of what that mix looks like on a pro forma and are you going forward.

Matthew J. Meister: For the most part, we look at about, for JBT, it's in the 50% or so of our equipment revenue is in backlog that we'd expect. The backlog for equipment is sort of in the $450 million range for JBT historically, or legacy JBT. Only a small portion of that sort of bleeds into next year. We did take some bigger pharma projects and fruit and veg projects, those will bleed into 2026. For Marel, they do have some larger greenfield-type projects that do have longer lead times. I don't have the exact sort of timing of that, I would expect their revenue cadence to look very similar in terms of the backlog for equipment. I'd expect probably 80% to 85% of their backlog on equipment would result in revenue in 2025.

Ross Buck: Yes.

Ross Buck: For the most part.

Ross Buck: Look at about.

Ross Buck: JBT it's in.

Ross Buck: 50% or so of our equipment revenue is in backlog that we would expect for the backlog for equipment is sort of in the $450 million range for JBT, historically or legacy JBT.

Matt Meister: And only a small portion of that sort of bleeds into next year. We did take some bigger pharma projects and fruit and veg projects, so those will bleed into 2026. For Marel, they do have some larger greenfield type projects that do have longer lead times. I don't have the exact sort of timing of that, but I would expect their revenue cadence to look very similar in terms of the backlog for equipment. So I'd expect probably 80 to 85% of their backlog on equipment would result in revenue in 2025. And I'd say as a whole, when you consider the stability of the recurring revenue business, when you kind of add that into kind of the visibility as we start the year on the equipment side, we have somewhere, you know, ballpark 70% visibility for the full year revenue.

Ross Buck: And only a small portion of that sort of leads into next year. We did take some bigger pharma projects and fruit and veg projects. So those will bleed into 2026.

Ross Buck: Four.

Morrell they do have some larger.

Ross Buck: Greenfield type projects that do have longer lead times I don't have the exact.

Ross Buck: Sort of timing of that but I would expect.

Ross Buck: Their revenue cadence to look very similar in terms of the backlog for equipment. So I would expect probably 80% to 85% of their.

Ross Buck: Backlog on equipment.

Ross Buck: <unk> revenue in 2025.

Brian Deck: I'd say, as a whole, when you consider the stability of the recurring revenue business, when you add that into the visibility as we start the year on the equipment side, we have somewhere, ballpark 70% visibility for the full year revenue.

Ross Buck: And I would say as a whole when you consider the stability of the recurring revenue business.

Ross Buck: When you kind of add that into kind of the visibility as we start the year on the equipment side, we have similar ballpark, 70% visibility for the full year revenue.

Ross Sparenblek: Okay. With that expectation, then, recurring revenue is probably being implied over 50% in kind of your 2025 guidance?

Matt Meister: Okay, so with that expectation, then recurring revenue is probably being implied over 50% in kind of your 2025 guidance. How are you? Actually, a little bit less because your equipment, we were about combined at right about 50% last year. However, we do expect equipment growth to outpace aftermarket growth in 2025. So the mix will actually grow both, but the mix will change a little bit just because of the outside growth on the equipment side. Okay, that's helpful. And then just going back to a prior question on kind of the morale margin list for next year, you know, the filings called out, I believe, 11,700 employees, which does imply some material attrition over the past year.

Ross Buck: Okay. So with that expectation then on recurring revenue is probably mean imply to over 50% and kind of your 'twenty guidance.

Brian Deck: Actually a little bit less. We were at about, combined, right about 50% last year. We do expect equipment growth to outpace aftermarket growth in 2025. We'll grow both, but the mix will change a little bit just because of the outside growth on the equipment side.

Speaker Change: Actually a little bit less because youre, a little bit less because your equipment. We were at about combined right about 50% last year. However, we do expect equipment growth to outpace aftermarket growth in 2025, so that mix will actually will.

Speaker Change: Grow both but the mix will change a little bit just because of the asset growth on the equipment side.

Ross Sparenblek: Okay. That's helpful. Just going back to a prior question on kind of the Marel margin lift for next year. The filings called out, I believe, 11,700 employees, which does imply some material attrition over the past year. I'm just trying to get a sense of timing there around the reductions and maybe how we should think about sizing that benefit in the context of the eight to 10 Marel prior restructuring actions that are going to step up next year.

Speaker Change: Okay. That's helpful. And then just going back to a prior question on kind of done around margin lift for next year. The filings called out I believe 11700 employees, which does imply some material attrition over the past year.

Matt Meister: So trying to get a sense of timing there around reductions, and maybe how we should think about sizing that benefit in the context of the eight to 10 morale, prior restructuring actions that are going to step up next year. Yeah, I think there's two things to kind of mention there, Ross. First, I think there is, as we're going through this integration process, some definitional differences between what was reported historically for MAREL and what we reported as at 11,700. So that's a little bit of the difference. But I do think that MAREL has taken some significant actions in 2024 to reduce their FTEs.

Speaker Change: Just trying to get a sense of timing there around reductions and maybe how should we should think about sizing that benefit.

Speaker Change: Contact stent that eight to 10 and morale.

Speaker Change: Restructuring actions that are going to step up next year.

Matthew J. Meister: Yeah, I think there's two things to kind of mention there, Ross. First, I think there is, as we're going through this integration process, some definitional differences between what was reported historically for Marel and what we reported as that 11,700. I do think that Marel has taken some significant actions in 2024 to reduce their FTEs. That's sort of already built into our guidance and part of the additional self-help that we were talking about in terms of the margin uplift for Marel. That is before we actually think about the benefit from synergies.

Ross Buck: Yes, I think theres, two things to kind of mentioned there Ross.

Ross Buck: First I think there is as we're going through this integration process. Some definitional differences between what was reported historically for tomorrow and what we reported is that 11700, so thats a little bit of a difference, but I do think that morale has taken some significant actions in 2020 forward to reduce.

Matt Meister: That's sort of already built into our guidance and part of the process. So that's sort of the additional self-help that we were talking about in terms of the margin uplift for MAREL. And that is before we actually think about this, the benefits. Okay, and is there any definitional changes between the recurring revenue from Morrell and JVC? Kind of look like there might have been slightly, slightly. There's a big question is open questions, refurbishments and how they we both treat those. Otherwise, we haven't married those up quite yet. So we will do that as we report out the first quarter, but not materially.

Their ftes.

Ross Buck: That's sort of already built into our guidance and part of.

Ross Buck: The additional self help that we were talking about in terms of the margin uplift from rail and that is before we actually think about this the benefit from synergies.

Ross Sparenblek: Okay. Is there any definitional changes between the recurring revenue from Marel and JBT? Kind of looked like there might have been some.

Ross Buck: Okay and is there any definitional changes between the recurring revenue from our LNG team.

Brian Deck: Slightly. The big question is, open question is refurbishments and how we both treat those. We haven't married those up quite yet, so we will do that as we report out Q1. Not materially.

Ross Buck: There might have been slightly slightly.

Ross Buck: <unk>.

Ross Buck: There is.

Ross Buck: The Big question is.

Ross Buck: Questions Refurbishments and how we both treat those otherwise.

Ross Buck: We havent marry those up quite yet so you will do that as we report out the first quarter.

Ross Buck: Not materially.

Matt Meister: Okay, thank you guys.

Ross Sparenblek: Okay. Thank you, guys.

Ross Buck: Okay. Thank you guys.

Ross Buck: Hum.

Walt Liptak: Your next question comes from Walt Liptak with Seaport Research Partners. Please go ahead. All right, thanks.

Operator: Your next question comes from Walter Liptak with Seaport Research Partners. Please go ahead.

Speaker Change: Your next question comes from Walter Liptak with Seaport Research partners. Please.

Walter Liptak: Hi. Thanks. Good morning, and congratulations on getting the deal done.

Ross Buck: Go ahead.

Walter Liptak: Hi, Thanks, good morning, and congratulation on the deal running.

Matt Meister: Good morning and congratulations on the deal. I wonder about the year one synergy saving and I wonder if you could just help bucket it for us, you know, in terms of... You know, procurement versus people cost. Plant Consolidation. And then, and then on that procurement side, how are you thinking about pricing and tariffs this year?

Brian Deck: Morning.

Matthew J. Meister: Thank you.

Walter Liptak: Wondering about the year 1 synergy saving. I wonder if you could just help bucket it for us in terms of procurement versus people cost versus plan consolidation. On that procurement side, how are you thinking about pricing and tariffs this year? If there are inflationary pressures, how do you expect to deal with those?

Ross Buck: Thank you.

Ross Buck: The year one.

Ross Buck: Synergy savings and I Wonder if you could just.

Ross Buck: Help bucket it for us in terms of.

Ross Buck: Procurement versus people costs versus planned consolidation.

Ross Buck: And then.

Ross Buck: Procurement side, how are you thinking about pricing and tariffs this year and.

Matt Meister: And you know, if there are inflationary pressures, you know, how do you expect Yeah, I'll take the first part, Walt. So in terms of bucketing, you know, I would say, approximately of the 35 to 40 million, 45 to 50% of that is related to procurement and cost of goods sold. And the remainder of the synergies is going to be related to either, you know, redundant contracts, logistics, and other SG&A related sort of redundancies that we may have between the two businesses. And then as it relates to tariffs, it's still a little bit early to tell, we still don't know all the specifics of the tariff policies and any potential retaliation.

Ross Buck: Our.

Ross Buck: Inflationary pressures.

Ross Buck: How do you expect to deal with those.

Matthew J. Meister: Yeah, I'll take the first part, Walt. In terms of bucketing, I would say approximately of the $35 to 40 million, 45% to 50% of that is related to procurement and cost of goods sold. The remainder of the synergies is going to be related to either redundant contracts, logistics, and other SG&A-related sort of redundancies that we may have between the two businesses.

Ross Buck: Yes, I'll take the first part.

Ross Buck: So in terms of pocketing I would say approximately of the 34, 35% to 40 million, 45% to 50% of that is related to procurement and cost of goods sold.

Ross Buck: And the remainder of the.

Synergies is going to be related to either.

Redundant contracts logistics.

Ross Buck: <unk>.

Ross Buck: Other SG&A related sort of redundancies that we may have between the two businesses.

Brian Deck: As it relates to tariffs, it's still a little bit early to tell. We still don't know all the specifics of the tariff policies and any potential retaliation. We haven't factored in tremendous amount into the numbers right now, mainly because as it sits today with what has been announced, we can largely manage through that in terms of our supply chain. Over the last few years coming out of COVID, and this applies to both legacy Marel and JBT, we've enhanced our supply chain in terms of more options, I'll say more diversification of our supply chain just because of some of the challenges we saw a few years ago. I think we're both well-positioned and we're particularly well-positioned relative to our competition given our global scale, our strength of our procurement organization, as well as our diversified manufacturing footprint.

Ross Buck: And then as it relates to tariffs is still little bit early to tell we still don't know all the specifics of the tariff policies in and any potential retaliation.

Matt Meister: So we haven't factored in tremendous amount into the numbers right now, mainly because as it fits today with what has been announced, we can largely manage through that in terms of our supply chain. So over the last few years coming out of COVID, and this is, applies to both Legacy, Morrell, and JBT, we've enhanced our supply chain in terms of more options. I'll say more diversification of our supply chain just because of some of the challenges we saw a few years ago. So I think we're both well-positioned, and we're particularly well-positioned relative to our competition, given our global scale, our strength of our procurement organization, as well as our diversified manufacturing footprint.

Ross Buck: So we haven't factored.

Ross Buck: Factored in tremendous amount into the numbers right now mainly because as it sits today with what has been announced.

Ross Buck: Can largely managed through that in terms of our supply chain. So over the last few years coming out of Covid and this is Earl.

Ross Buck: Ties to both legacy morale in JBT.

We've enhanced our supply chain in terms of.

Ross Buck: More options.

Ross Buck: I'll say more diversification of our supply chain just because of some of the challenges. We saw a few years ago. So I think for both.

Ross Buck: Well positioned.

Ross Buck: We're particularly well positioned relative to our competition given our.

Ross Buck: Global scale, our strength of our procurement.

Ross Buck: <unk>.

Ross Buck: As well as our diversified manufacturing footprint so.

Walt Liptak: So we do need to see how this plays out. But I think in the short term, in terms of at least what we know today, we don't see a material impact in 2025. Okay, great. Thanks for that.

Brian Deck: We do need to see how this plays out, but I think in the short term, in terms of at least what we know today, we don't see a material impact in 2025.

Ross Buck: So we do need to see how this plays out but I think in the short term in terms of at least what we know today, we don't see a material impact in 2025.

Walter Liptak: Okay. Okay, great. Thanks for that. Then I wanted to ask a follow-on. You commented about doing some segmentation and some 80/20 work, and that is very interesting to me. I wonder if you could talk a little bit more about that. Is this like a homegrown thing or are you bringing in experts? How robust of a 80/20 program are you thinking about?

Speaker Change: Okay. Okay, great. Thanks for that and then wanted to ask a follow on.

Matt Meister: And I wanted to ask a follow on, you commented about doing some segmentation and some 80-20 work. And that's very interesting to me. I wonder if you could talk a little bit more about that. Is this like a homegrown thing? Or are you bringing in experts? Like, is it how robust of a 80-20 program? Yeah, well, we are the experts on continuous improvement in 8020. So we have more than enough resources within within the company. So what we're going to do is just to get a little bit more specific, what you do is look at the revenue streams and, and you segment that and look at the underlying, I'll say, concentration.

Ross Buck: <unk>.

Ross Buck: You commented about.

Ross Buck: Doing some segmentation in some 80 20 work.

Ross Buck: And that's very interesting to me.

Speaker Change: I Wonder if you could talk a little bit more about that as like a homegrown thing or are you, bringing in experts like how robust.

Ross Buck: 820 program are you thinking about.

Brian Deck: Yeah. Well, we are the experts on continuous improvement in 80/20, so we have more than enough resources within the company. What we're going to do is, just to get a little bit more specific, what you do is look at the revenue streams and you segment that and look at the underlying, I'll say, concentration. What are the costs associated with those buckets, if you will. You make sure that you're serving your best customers and your best product lines in a way that allows you to grow them. Taking a close look at your projects, otherwise, and I'll say the discipline around pricing, the discipline around costing those projects before you give those quotes, and then strongly in the execution on those projects as you go through. There's a lot of different tools that we'll have.

Ross Buck: Yes, well we are the experts on continuous improvement and 80 20, so we have more than enough resources within within the company.

Ross Buck: So we're going to do is just to get a little bit more specific what you do is look.

Ross Buck: Look at the revenue streams and.

Ross Buck: And new segment that and look at the underlying.

Matt Meister: And then what are the costs associated with those buckets, if you will, and then you make sure that you're serving your best customers and your best product lines in a way that allows you to grow them. And then taking taking a close look at your projects, otherwise, and say the discipline around pricing the discipline around costing those projects before you give those quotes, and then strongly and execution on those projects as you go through. So there's a lot of different tools that we'll have. It's not just 8020. But as continuous improvement experts, we are focused on Okay, great.

Ross Buck: I will say concentration.

Ross Buck: And then what are the costs associated with those buckets. If you will and then you make sure you're that you're serving your best customers and your best product lines in a way that allows you to grow them and then ticking taking a close look at.

Ross Buck: Your projects otherwise.

Ross Buck: The discipline around pricing discipline around.

Ross Buck: Costing those projects before you give those quotes.

Ross Buck: And then strongly in execution on those projects as you go through so there is a lot of different tools that will have its not just $8 20.

Brian Deck: It's not just 80/20, but as continuous improvement experts, we are focused on this.

Ross Buck: But.

Ross Buck: As continuous improvement experts.

Ross Buck: We are focused on this.

Walter Liptak: Okay, great. Thanks. With regard to the change in focus to end markets, has that happened already or what's the timing on that taking place?

Ross Buck: Okay, great. Thanks, and then.

Matt Meister: Thanks.

Matt Meister: And then, with regards to the change in focus to NMARC, Has that happened already or what's the timing? happening as we speak. It started organizational design started in the fourth quarter and continues through the end of the first quarter here. So organizationally wise, we should be done by the end of the first quarter.

Ross Buck: With regard to the <unk>.

Ross Buck: Change in focus to end markets.

Ross Buck: Is that has that happened already or what's the timing on that taken place.

Brian Deck: It's happening as we speak. Organizational design started in Q4, and continues through the end of Q1 here. Organizationally-wise, we should be done by the end of Q1. I think there'll be some transition over the next few months, but I would say we would be done with that transition by the middle of the year completely.

Ross Buck: <unk> as we speak it started.

Ross Buck: Organizational design started in the fourth quarter and continues to the end of the first quarter here. So organizationally wise, we should be done by the end of the first quarter I think there'll be some transition over the next.

Matt Meister: I think there'll be some transition over the next few months, but I would say we would be done with that transition by the middle of the year completely. Okay, great. Thank you.

Ross Buck: A few months, but I would say, we would be done with that transition by the middle of the year completely.

Walter Liptak: Okay, great. Thank you.

Speaker Change: Okay, great. Thank you.

Brian Deck: Thank you.

Ross Buck: Thank you.

Justin Ages: Your next question. and Justin Ages, CJS. Hi, how's everyone doing? Great, thanks. During the prepared remarks, there was a comment about some greenfield opportunities, but just hoping to get a little more color on either end markets or, you know, where that is. Yeah, so, I mean, I would say first and foremost, that is in the poultry segment. I mean, that is an area where kind of the fundamentals have been improving. We've seen some of those opportunities kind of in the past. I mean, I think Marel spoke to kind of one big one in the fourth quarter of 2023, which kind of explained the top comp for Q4 2024.

Operator: Your next question comes from Justin Ages with CJS Securities. Please go ahead.

Ross Buck: Your next question comes from Justin Aegis.

Ross Buck: J S Securities. Please go ahead.

Justin Ages: Hi. How's everyone doing?

Speaker Change: Hi has ever under.

Brian Deck: Great, thanks.

Speaker Change: Great. Thanks.

Justin Ages: During the prepared remarks, there was a comment about some greenfield opportunities. Was just hoping to get a little more color on either end markets or where that is.

Speaker Change: During the prepared remarks, there was a comment about some greenfield opportunities, but just hoping to get a little more color on either end markets or.

Speaker Change: There that is.

Árni Sigurdsson: I would say first and foremost, that is in the poultry segment. That is an area where kind of the fundamentals have been improving. We've seen some of those opportunities kind of in the past. I think Marel spoke to kind of one big one in Q4 2023, which kind of explained the tough comp for Q4 2024. We've seen kind of just the improvement in the market in H2 2024. Also what is very interesting, which I've spoken about in Marel's results, is some of the solutions and technologies that we've been introducing in the US market, such as a line split solution that allows our customers to increase the line speeds. Marel has kind of very good technologies to be able to advance the industry and help our customers, in particular in the US market, to invest.

Speaker Change: Yes, so I.

Speaker Change: I would say first and foremost that is in the poultry segment I mean that is.

Speaker Change: An area where.

Speaker Change: The fundamental mentals have been improving.

Speaker Change: We've seen some of those opportunities.

Speaker Change: In the past I mean, I think modest spoke to kind of one big one in the fourth quarter of 2023 weeks kind of explained the tough comp.

Brian Deck: And then we've seen kind of just the improvement in the market in the second half of 2024. Also, what is very interesting, which I've spoken about in Marel's results, is some of the solutions and technologies that we've been introducing in the U.S. market, such as a line split solution that allows our customers to increase the line speeds. And Marel has kind of very good technologies to be able to advance the industry and help our customers, in particular in the U.S. market, to invest. So, there's a lot there's a few very interesting opportunities that we see there.

Speaker Change: For Q4 2024.

Speaker Change: And then we've seen kind of the improvement in the market in the second half of 2024 also what is very interesting, which I've spoken spoke.

Speaker Change: Spoken about and modest results is some of the solutions and technologies that we have been introducing in the U S market such as the <unk>.

Speaker Change: Line split solution that allows our customers to two.

Speaker Change: To increase the line speeds.

Speaker Change: And we model has been a very good technologies.

To be able to advance.

Speaker Change: The industry and help our customers.

Speaker Change: In particular in the U S market.

Árni Sigurdsson: There's a few very interesting opportunities that we see there. It's still early, but we're optimistic.

Speaker Change: And to invest so theres a lot of there is a few very interesting opportunities that we see there it's still early but we're optimistic.

Brian Deck: It's still early, but we're optimistic. And just to follow up on that, so on the poultry side, Marel's technology is best in class, without question. And some of these techniques of line split allows, I'll say, the unleashing of the speed and that technology that is currently, I'll say, under some restrictions under USDA policy. But this line split solution effectively allows us to, again, leverage this technology while still remaining compliant with USDA. So that's exciting for our customers. In fact, what we do here is, if you can unleash this technology in these line speeds, it allows customers to take current, I'll say, inefficient operations.

Brian Deck: Just to follow up on that. On the poultry side, Marel's technology is best in class, without question. Some of these techniques of line split allows, I'll say, the unleashing of the speed and that technology that is currently under some restrictions under USDA policy. This line split solution effectively allows us to, again, leverage this technology while still remaining compliant with USDA. That's exciting for our customers. In fact, what we do here is, if you can unleash this technology and these line speeds, it allows customers to take current inefficient operations. Maybe you can close two facilities and open one new greenfield facility that you could take on that capacity with one operation. Those are the type of conversations that are happening on the poultry side.

Speaker Change: And just to follow up on that so on the poultry side Morose technology is best in class without question.

Speaker Change: Some of these techniques of line split allows I'll say, the unleashing of the speed and the and that technology that is currently let's say under some restrictions under the USDA policy, but this line split solution effectively allows us to again leverage this technology, while still remaining compliant with you.

So that's exciting for our customers in fact.

Speaker Change: What we do here is.

Speaker Change: If you can.

Speaker Change: Unleashed this technology and these line speeds it allows customers to take.

Speaker Change: Current I'll say inefficient operations.

Brian Deck: Maybe you can close two facilities and open one new greenfield facility that you could take on that capacity with one operation. So those are the type of conversations that are happening on the poultry side. And then on the non-poultry side, what we have been seeing is, particularly in the Middle East, a lot of greenfield opportunities on fruit and juice. And then we're also seeing greenfield opportunities on the farmer's side. So those are the areas where we are seeing some good activity.

Speaker Change: Maybe you can closed two facilities and opened one new Greenfield facility that you could take on that capacity with one operation. So those are the type of conversations that are happening on the poultry side and then on the non poultry side. What we are we have been seeing.

Brian Deck: On the non-poultry side, what we have been seeing is, particularly in the Middle East, a lot of greenfield opportunities on fruit and juice. We're also seeing greenfield opportunities on the pharma side. Those are the areas where we are seeing some good activity.

Speaker Change: Is particularly in the middle East a lot of greenfield opportunities on fruit and juice.

Speaker Change: And then we're also seeing greenfield opportunities on the pharma side. So those are the areas, where we are seeing some good activity.

Justin Ages: That's helpful. Thanks.

Justin Ages: That's helpful. Thanks. Just one more on AGV, and I know it's a smaller portion of the combined entity now, but was hoping to get a little more color. I know you said demand in Q4 was good, looking ahead, what are expectations for that segment or end market? However you want to define it.

Speaker Change: That's helpful. Thanks, and then just one more on <unk> and I know, it's a smaller portion of the combined entity now, but I was hoping to get a little more color I know you said demand in the fourth quarter, which was good but looking ahead what it is.

Brian Deck: And then just one more on AGV. And I know it's a smaller portion of the combined entity now, but was hoping to get a little more color. I know you said demand in fourth quarter was was good.

Brian Deck: But you know, looking ahead, what is, you know, what are expectations for that segment or end market? Hope you want to define Yeah, AGV is a great business. It was probably it was definitely our most improved business in 2024. We talked quite a bit about that. I won't go into all those details. But there is a very good business. So and in terms of go forward expectations, continued double digit revenue growth. And, and they're in that 20% EBITDA range. So creative on the growth and a creative on the market.

Speaker Change: What are expectations for that segment or end market. However, you want to define it.

Brian Deck: Yeah. AGV is a great business. It was definitely our most improved business in 2024. We talked quite a bit about that. I won't go into all those details, but there is very good business. In terms of go-forward expectations, continued double-digit revenue growth, and they are in that 20% EBITDA range, so accretive on the growth and accretive on the margins.

Speaker Change: Yes, <unk> is a great business. It was probably it was definitely our most improved business in 2024, we talked quite a bit about that I won't go into all those details, but there is very good business. So and in terms of go forward expectations continued double digit.

Speaker Change: Revenue growth.

Speaker Change: And they are in that 20% EBITDA range, so accretive on the growth and accretive on the margins.

Justin Ages: I appreciate that. Thank you.

Justin Ages: I appreciate that. Thank you.

Speaker Change: I appreciate that thank you.

Speaker Change: Okay.

Brian Deck: Thank you.

Thank you.

Speaker Change: Okay.

Pam: There are no more questions.

Operator: There are no more questions. I will now turn the conference back over to Mr. Brian Deck for closing remarks.

Speaker Change: There are no more questions I will now turn the conference back over to Mr. Brian <unk> for closing remarks.

Brian Deck: I will now turn the conference back over to Mr. Brian Deck for closing remarks. Thank you all for joining us this morning. As always, our investor relations team will be available if you have any additional questions.

Brian Deck: Thank you all for joining us this morning. As always, our investor relations team will be available if you have any additional questions.

Brian Deck: Thank you all for joining us this morning as always our Investor relations team will be available if you have any additional questions.

Pam: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Brian Deck: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Brian Deck: Yeah.

Brian Deck: Okay.

Brian Deck: Yeah.