John Bean Technologies Corp (JBT) Reports Strong Q3 2023 Earnings and Increased Backlog
John Bean Technologies Corp (NYSE:JBT) reported a 19% increase in income from continuing operations and earnings per share in Q3 2023.
Adjusted EBITDA from continuing operations rose by 9% to $66 million.
The company's backlog and orders increased by 4% and 14% respectively.
JBT completed the sale of AeroTech, realizing a pre-tax book gain of $588 million.
On October 24, 2023, John Bean Technologies Corp (NYSE:JBT) released its Q3 2023 earnings report, showing strong margins and double-digit year-over-year growth in orders. The company reported income from continuing operations of $31 million and earnings per share of $0.95, both up 19% from the prior year period. Adjusted EBITDA from continuing operations increased 9% to $66 million.
Financial Highlights
John Bean Technologies Corp (NYSE:JBT) reported Q3 2023 revenue of $404 million, a 1% increase year over year. This was driven by a 3% growth from acquisitions, partially offset by a 2% decline in organic revenue. The company's income from continuing operations increased 19% to $31 million. Adjusted EBITDA from continuing operations rose 9% to $66 million, and the adjusted EBITDA margin of 16.4% increased 120 basis points.
Orders for the quarter were $398 million, a 14% increase, and the backlog of $689 million increased 4%. The company generated year-to-date operating cash flow from continuing operations of $96 million, and year-to-date free cash flow was $62 million.
Company Commentary
During the third quarter, we achieved strong margins and double-digit, year-over-year growth in orders," said Brian Deck, President and Chief Executive Officer. "The demand environment is showing signs of improvement in Europe and Asia, and healthier dynamics in the poultry end markets are expected to translate to better order activity. Additionally, with the completion of the AeroTech sale, we have a strong balance sheet and ample liquidity to continue to execute on our Elevate 2.0 strategic priorities."
Outlook for 2023
Based on the fourth quarter outlook and year-to-date performance, JBT is updating and narrowing its guidance for full year 2023. The company expects revenue growth of 4.5 - 5.5% for the full year, with income from continuing operations projected to be between $113 million and $117 million. Adjusted EBITDA is expected to be between $265 million and $271 million, with an adjusted EBITDA margin of 16.0 - 16.25%.
Financial Tables
The company's income statement showed a gross profit margin of 35.7% for Q3 2023, up from 34.0% in the same period last year. Operating income margin also increased to 8.9% from 8.7%. The balance sheet showed a significant increase in cash and cash equivalents from $71.7 million at the end of 2022 to $401.7 million at the end of September 2023, largely due to the sale of AeroTech.
The cash flow statement showed a net increase in cash and cash equivalents from continuing operations of $362.6 million for the first nine months of 2023, compared to a decrease of $6.5 million in the same period of 2022. This was mainly due to the proceeds from the sale of AeroTech and strong cash flow from operations.
This article first appeared on GuruFocus.
