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Jun 30, 2021
JBT Q2 2021 Earnings Report
JBT Corporation's results for the second quarter of 2021 were reported, demonstrating robust demand with record orders.
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.