JBT Corporation, a leading global technology solutions provider to high-value segments of the food & beverage industry, has reported its fourth quarter and full year 2023 results, as well as established guidance for 2024. The company's revenue for the fourth quarter of 2023 increased by 1 percent year over year to $445 million, with income from continuing operations reaching $53 million, a 69 percent increase. Additionally, adjusted EBITDA of $81 million increased by 18 percent, and adjusted EBITDA margin of 18.2 percent increased by 260 basis points. Diluted earnings per share (EPS) for the quarter was $1.64, a 69 percent increase, and adjusted EPS was $1.40, a 24 percent increase.
For the full year 2023, JBT Corporation recorded revenue of $1,664 million, marking a 5 percent increase year over year. The company reported income from continuing operations of $129 million, a 25 percent increase, and adjusted EBITDA of $273 million, a 20 percent increase. Adjusted EBITDA margin also increased by 210 basis points to 16.4 percent. Diluted EPS for the full year was $4.02, a 24 percent increase, and adjusted EPS was $4.10, a 12 percent increase.
Looking ahead to 2024, Matt Meister, Executive Vice President and Chief Financial Officer, stated, "In 2024, we expect to deliver mid-single-digit organic top line growth primarily through recurring revenue initiatives and a strengthening demand environment for equipment, which includes improvement in the North American poultry market in the back half of the year." He also added, "We also expect to capture continued margin expansion through further advancement of our supply chain and manufacturing efficiency initiatives as well as ongoing benefits from our restructuring efforts."
The company's guidance for full year 2024 includes revenue in the range of $1,750 million to $1,780 million, income from continuing operations in the range of $150 million to $162 million, and adjusted EBITDA in the range of $295 million to $310 million. Additionally, JBT Corporation expects adjusted EPS in the range of $5.05 to $5.45.
JBT Corporation also announced its intention to pursue a potential merger with Marel on January 19, 2024. The company anticipates the launch of the tender offer for Marel at an offer price of €3.60, with the offer including terms that are expected to achieve a weighted average mix consideration of 65 percent in JBT shares and 35 percent in cash.
Brian Deck, President and Chief Executive Officer of JBT Corporation, commented on the results, "JBT delivered solid year-over-year earnings growth and continued margin expansion in 2023." He added, "Moreover, we made continued progress on our elevate 2.0 strategy by becoming a pure-play food and beverage technology solutions provider, advancing the adoption of our digital solutions, and growing recurring revenue."
The company's shares have moved -2.9% following the release of the results and are currently trading at a price of $99.82.
The company's full 8-K submission is available here.
