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Jun 30, 2023
JBT Q2 2023 Earnings Report
JBT's product and end market diversification drove solid contribution from recurring revenue and healthy order demand. The sale of AeroTech to Oshkosh Corporation was completed, transforming JBT into a pure-play food and beverage solutions provider.
Key Takeaways
JBT Corporation reported a 9 percent increase in revenue from continuing operations to $428 million for the second quarter of 2023. Income from continuing operations increased 8 percent, and adjusted EBITDA increased 34 percent. The company completed the sale of AeroTech to Oshkosh Corporation.
Revenue from continuing operations increased 9 percent to $428 million.
Income from continuing operations increased 8 percent to $28 million, with earnings per share increasing 9 percent to $0.87.
Adjusted EBITDA from continuing operations increased 34 percent to $71 million.
Orders from continuing operations increased 13 percent to $445 million, and backlog increased 4 percent to $697 million.
JBT
JBT
Forward Guidance
JBT is introducing guidance for the third quarter 2023 and updating its full year 2023 outlook to reflect continuing operations.
Positive Outlook
- Third quarter 2023 revenue is expected to be $410 - $425 million.
- Third quarter 2023 income from continuing operations is expected to be $21 - $26 million.
- Third quarter 2023 adjusted EPS is expected to be $0.90 - $1.05.
- Full year 2023 revenue is expected to be $1,670 - $1,720 million.
- Full year 2023 adjusted EPS is expected to be $3.80 - $4.05.
Challenges Ahead
- Third quarter 2023 adjusted EBITDA includes approximately $16 million in corporate related costs.
- Third quarter 2023 interest expense is estimated to be approximately $2 million.
- Third quarter 2023 is expected to incur approximately $7 - $8 million in restructuring expense, $1 million in LIFO expense, and $1 - $2 million in M&A related costs.
- The tax rate is estimated to be 22 - 23 percent.
- Full year 2023 adjusted EBITDA includes approximately $57 - $60 million in corporate related costs.