The following is a summary of the John Bean Technologies Corporation (JBT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 reported revenue was $402 million, a decrease of 6% year-over-year primarily due to shortfalls in book and ship orders and customer delivery scheduling.

• Second quarter gross profit margin improved by 120 basis points year-over-year to 35.6%, driven by restructuring and cost savings initiatives.

• Adjusted EBITDA declined by 11% year-over-year to $64 million, with a marginal improvement sequentially.

• Adjusted EPS for Q2 was $1.05, up from $0.97 the previous year, supported by a net interest expense improvement of $9 million.

• Year-to-date free cash flow stood at $14 million, lower than the previous year due to higher working capital requirements.

Business Progress:

• JBT experienced a recovery in orders from North American poultry producers and saw strong demand in its automated material handling business (AGV).

• Updated full year organic revenue growth guidance to 3-5% reflecting year-to-date performance and additional contributions expected from AGV in the latter half of the year.

• Backlog remained at $700 million, with scheduled conversions to revenue in the latter half of the year anticipated to be about $90 million higher than the previous year.

• Implementation of manufacturing process improvements and product standardization in AGV, expected to enhance efficiency and reduce lead times.

Opportunities:

• Continued recovery and increased orders expected from North American poultry producers indicate a strengthening market presence , enhanced by specific improvements in processing technologies pertinent to the poultry industry.

• AGV's expanded role in contributing to JBT's total revenue growth for 2024 forecasts an increase in automated solutions, potentially broadening its market share in warehouse automation.

Risks:

• High cost of capital continues to pose a challenge, especially for smaller customers, affecting overall order placements and financial flexibility.

• Specific end market weaknesses persist, despite strong pockets of performance in segments like food and beverage and AGV.

More details: John Bean Technologies IR

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