JBT Q2 2021 Earnings Report
Key Takeaways
JBT Corporation reported strong second-quarter results, exceeding expectations for revenue and earnings, driven by record orders. The company is adjusting its full-year guidance to reflect robust commercial activity, increased cost pressures, and supply chain disruptions.
Revenue of $476 million and earnings per share of $0.95, or $1.19 as adjusted, exceeded expectations.
Record orders increased 68 percent year over year and 19 percent sequentially with an expanding backlog.
Generated strong operating cash flow of $45 million and free cash flow of $35 million.
Completed acquisition of Prevenio in early July.
JBT
JBT
Forward Guidance
JBT has revised its full-year 2021 guidance to reflect strong first-half results and order trends, partially offset by increased inflationary pressures and supply chain challenges.
Positive Outlook
- Full-year 2021, the Company raised revenue growth guidance to 14 - 16 percent at FoodTech, including 2 percent from foreign exchange translation and 2 percent from acquisitions.
- Projected operating margins of 14.0 - 14.75 percent and adjusted EBITDA margins in the 19.0 - 19.75 percent range for FoodTech.
- The Company narrowed its revenue growth guidance to 1 - 4 percent compared to 2020 at AeroTech.
- Operating and adjusted EBITDA margin guidance remains unchanged at 10.75 - 11.25 percent and 12.0 - 12.5 percent, respectively, for AeroTech.
- JBT expects total revenue expansion of 10 to 13 percent for the full year.
Challenges Ahead
- Increased inflationary pressures
- Supply chain challenges
- Corporate expense is expected to be approximately 2.7 percent of revenue.
- Interest expense for 2021 is forecasted at $9 million to $10 million and the tax rate is expected to be approximately 25 percent prior to a $4 million discrete item associated with a UK tax law change.
- Current issues, including the rate of vaccination and new variants of the COVID-19 virus, could result in a slower recovery than currently anticipated in the full-year 2021 outlook.