Welcome to JBT Marel's Earnings Conference Call for the Second Quarter of 2025. My name is Tiffany, and I will be your conference operator today. As a reminder, today's call is being recorded. I will now turn the call over to JBT Marel, Senior Director of Investor Relations, Marlee Spangler, to begin today's conference.

Thank you, Tiffany. Good morning, everyone, and thank you for joining our conference call. With me on the call today is Chief Executive Officer, Brian Deck, President, Arni Sigurdsson, and Chief Financial Officer, Matt Meister. In today's call, we will use forward-looking statements that are subject to the safe harbor language in our press release and 8-K filing. JBT Marel's periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the Investor Relations section of our website. Also, our discussion today includes references to certain non-GAAP measures. A reconciliation of these measures to the most comparable GAAP measures can be found in the Investor Relations section of our website. With that, I'll turn the call over to Brian.

Thanks, Marlee. JBT posted a strong performance in the second quarter, aided by a few factors, including mix and foreign exchange that Matt will explain. Adjusted EBITDA margins and adjusted EPS exceeded our expectations. We also generated excellent cash flow and made significant progress deleveraging our balance sheet. Moreover, as Arni will highlight, the integrated process is on track as we work to execute on the tremendous commercial operational and financial benefits of the JBT Marel combination. In terms of the demand environment, we booked healthy orders even as we navigated a dynamic economic backdrop. Moreover, while certain CPG companies, QSRs, and full-service restaurants have seen some pressure in connection with the consumer shifting to value-seeking trends, our extremely broad portfolio and end market exposures mean that we can serve our customers regardless of changes in consumer food consumption patterns or channels. Combined JBT Marel orders totaled $938 million, which included $22 million in favorable year-over-year foreign exchange translation. In particular, we experienced continued equipment investment from the poultry industry, our largest end market, and our pipeline for poultry-related projects is expected to provide support into next year. Beyond poultry, we saw good quarterly demand for meat, beverages, food and vegetables, and ready meals. For the quarter, pharma and pet food were softer, while seafood and material handling were neutral. Geographically speaking, EMEA was the strongest region. While North America was relatively soft in the period, the overall demand environment and pipeline is solid. Latin America was strong, while Asia Pacific continues to be choppy. We ended the quarter with a backlog of $1.4 billion, which provides meaningful support for revenue conversion in the back half of the year. Further to the commercial front, as we progress with integration, we're looking to capitalize on the expanded portfolio of offerings and are excited about the ability to cross-sell the legacy JBT and Marel solutions. Arni will provide color on the developing benefits of our combined offering. Regarding the tariff situation, we are taking steps to mitigate the impact on direct material costs, including negotiations with existing suppliers, some repositioning of where we source parts, and consideration for where we assemble equipment, as well as pricing actions. We are pleased with our first half performance, and given expectations for backlog conversion, synergy savings, and greater clarity around tariffs, especially regarding Europe, we are reestablishing full year earnings guidance. Let me turn the call over to Matt to discuss our second quarter performance and outlook for the full year.

Thanks, Brian. For the second quarter of 2025, total revenue was $935 million and included approximately $21 million in favorable year-over-year foreign exchange translation impact. Revenue exceeded the midpoint of our guidance by about $35 million. The main drivers of the outperformance versus our expectations were approximately $25 million in higher than anticipated recurring revenue and $8 million of favorable FX. In the quarter, we realized year-over-year synergy savings of $5 million in operating expense and an additional $3 million in supply chain. The progress we have made on synergies puts us on track to achieve our expected in-year realized cost savings of $35 million to $40 million and expected annualized run rate savings of $80 million to $90 million exiting 2025. In the second quarter, we incurred approximately $9 million in gross tariff costs. The net impact of tariffs in the quarter was essentially offset by the benefits of inventory on hand and mitigating actions. We are working with our supply base as well as evaluating the potential for further pricing actions to mitigate the rising impact of tariffs on margins. Our second quarter adjusted EBITDA margin of 16.7% outperformed the midpoint of our guidance by about 180 basis points. As Brian mentioned, this is primarily due to a favorable mix of higher recurring revenue and higher-margin equipment, as well as benefits from our focus on productivity improvements and cost controls. Second quarter GAAP EPS was $0.07, and adjusted EPS was $1.49. As a reminder, our adjusted EPS calculations exclude certain items such as acquisition-related amortization expense and restructuring costs. In the second quarter, we also incurred an $11 million impairment charge on a joint venture investment, which we exited as a result of the JBT combination with Marel. On a segment basis, JBT second quarter revenue increased 13% year-over-year or approximately 11% on a constant currency basis. JBT segment adjusted EBITDA of $82 million increased 28%, and the adjusted EBITDA margin improved 220 basis points from the prior year period to 18%. This is primarily due to the benefits of favorable recurring revenue mix and flow-through on the higher volume. Marel segment revenue in the second quarter was $480 million. Marel segment adjusted EBITDA was $75 million, representing a margin of 15.5%. Marel's strong profitability in the quarter was a result of savings from integration synergies and restructuring actions, favorable revenue mix, and better margins in the meat and fish businesses. Through the first half of 2025, we generated free cash flow of $106 million, including $88 million in the second quarter, which was supported by good working capital management and customer deposits. The quarterly improvement in free cash flow affirms our view of the solid cash flow model of the combined businesses. As a result of our strong cash flow generation, we were able to make significant progress deleveraging our balance sheet. At the end of the second quarter, leverage decreased to below 3.4x compared to our leverage ratio of 3.8x in the first quarter and 4x at the close of the transaction. Our bank leverage ratio, which includes the benefit of certain run rate synergy savings, was 2.8x as of June 30. This provides us significant liquidity of approximately $1.3 billion. As Brian mentioned, we have reestablished full year 2025 guidance, given greater clarity around the tariff environment, including a 15% rate on Europe, coupled with the strength of our backlog. For full year 2025, we expect revenue to be $3.7 billion at the midpoint of our guidance. This includes approximately $70 million to $85 million in favorable foreign exchange translation benefit on a year-over-year basis. We are forecasting full year adjusted EBITDA margin to be 15.25% to 16% and adjusted EPS of $5.45 to $6.15. Adjusted EPS excludes certain one-time items and acquisition-related costs, which are outlined in yesterday's press release and investor presentation. In terms of the third quarter, we expect revenue to be flat sequentially, which includes a slightly favorable FX translation impact. We expect sequential margins to decline by approximately 100 basis points as a result of increased net tariff costs and less favorable mix, partially offset by synergy savings. With that, let me turn the call over to Arni, who will discuss the progress and specific benefits we are realizing as a result of the business combination and integration.

Thanks, Matt. Since our call 3 months ago, there has been significant activity and progress on the integration front. And I'm really proud of what our JBT model team has accomplished for our customers and broader stakeholders. One of the greatest benefits of the combination of JBT and Marel lies in integrating our complementary portfolios to provide more holistic solutions, making us an even more valuable partner to our customers. Our customers are seeking a preferred partner who has the process know-how and product offering across the value chain. It simplifies installation, commissioning, and service as our customers have one accountable counterpart. It also allows them to optimize product flow and increase efficiency as modules are designed as a part of a full line system with software control of the process and provide access to real-time data and actionable insights. This is the unique value proposition that JBT Marel will continue to refine as we integrate our core technology, software, digital solutions, and service network. For example, in poultry, the primary process is designed to run at extremely high volume up to 250 birds per minute, and it can include more than 20 critical process steps, making it tremendously valuable for our customers that each individual piece of equipment works seamlessly with the next. The optimal way to achieve this outcome is with a fully integrated line, which limits product losses and ensures seamless flow with fewer people, allowing the customer to improve yield, throughput, and quality. And as our customers' products move from primary processing to secondary and further down the line, they can capture the benefits of our software and digital solutions for full traceability and functionality to optimize production and uptime. For example, at one customer, our integrated line and software reduced trim waste by two-thirds while increasing throughput by 20%. At JBT Marel, we will continue this journey and build systems that combine our key technologies and advanced process know-how. As an example, we are combining JBT's DSI waterjet portioner with Marel's SensorX inspection, grading, and material handling technologies to create a high-value modular system within secondary poultry processing. This can automate what is traditionally a highly labor-intensive process. It also removes the burden on the customers' engineering and project management teams related to the design, installation, commissioning, and optimization of the system. And it allows JBT Marel to transition further from unit sales to system sales, creating a deeper partnership and an opportunity to provide more consistent, robust, and effective service and parts delivery. While we are in the early stages of integrating the portfolio from a technology and software standpoint, we are already capturing benefits from cross-selling our respective product lines. This is the result of our broader portfolio and transition to an end market-focused go-to-market strategy. We have an account manager for each customer who represents the entire JBT Marel portfolio relevant to that customer. In poultry, where we are the furthest along, our combined pipeline of opportunities in North America has grown by approximately 15% in the last 6 months as we layer in our synergistic commercial opportunities. Overall, the depth of Marel's customer relationships in poultry, meat, and seafood has created opportunities to sell legacy JBT downstream equipment such as freezers and DSI portioners, and JBT's diversified end markets allow for selling some of Marel's more end market agnostic products. Another key benefit of the combination is our expanded global service network. Given our combined scale, we have realigned our service organization from a centralized model to one connected to each business. We believe this will allow us to be more responsive to customer needs, improve customer satisfaction, and increase our wallet share. Beyond delivering value for customers, our global operating footprint and capacity provide advantages to our internal operating efficiency in the medium to long-term. We have the flexibility to produce our products in the region where our customers are located, providing us with optionality as tariffs continue to evolve. Additionally, we are evaluating opportunities to optimize existing capacity utilization across our manufacturing facilities. We are also advancing our continuous improvement initiatives to elevate the performance of our meat and fish businesses. As an example, our 80/20 analysis of the fish business shows a high concentration of top customers and regions, which gives us the opportunity to focus our go-to-market strategy. Moreover, we have better insights into the performance of individual product lines, which is creating a clearer path for project selection, pricing decisions, and resource allocation. We are taking similar actions in our meat business as we focus on project selectivity, reduce engineering complexity through greater standardization, and improve service quality, which should improve our wallet share of recurring revenue. Taken together, these actions give us confidence as we progress towards our goal of mid-teen margins in both the fish and meat business in 2027. With that, let me turn the call back to Brian.

Thanks, Arni. As I step back and look at the value created by the JBT Marel combination, a few themes come to mind. We are already demonstrating that we are better together in terms of what we can deliver for customers and other stakeholders. As Arni addressed, the combination of our complementary portfolios makes us an even more important partner to customers with full-line solutions that enhance automation, yield, safety, and efficiency. Internally, our continuous improvement work is enabling us to optimize our operating efficiency. And as Matt detailed, our business model provides strong cash generation, which has enabled us to quickly deleverage our balance sheet and provide the liquidity to support our business strategy. I am proud of all the hard work our team has done as we capture the benefits of the businesses coming together. Looking forward, we plan to build off the momentum of our integration initiatives, capturing cost and revenue synergies, and bringing even greater value as we transform the future of food. With that, let's open the call to questions. Operator?

Your first question comes from Ross Sparenblek with William Blair.

Nice to see the 2025 guidance come back. So definitely underwriting some confidence. Thinking through your comments on poultry. You guys have got a year of visibility left there, but the read-throughs with customers seems pretty optimistic. So could you provide anything on customer conversations and given where we are in the cycle? This should probably go on beyond 2026, I have to imagine on reinvestment poultry?

Sure. It's a little too early to talk beyond the front half of 2026. And I would say we have good visibility into the front half of 2026. But what you've seen from some of the more recent earnings announcements, the poultry companies are making good money right now. And we're seeing a combination of investments in some greenfield facilities in areas where they think they can make more money, as well as investments that support automation and efficiency of operations, including yield enhancements. A lot of these facilities over the years were built and not as completely efficient as they should be. So now that they've got capital available, it does allow them to take a step back, look at their footprint, where they should do some brownfields or realignment of their other lines, and get that efficiency and automation out of it. And then, but in other places, we are seeing greenfield investments, frankly, on both some of the primary and secondary sides as well as the downstream side.

I think we're also excited about the opportunity now that there's the ability to increase line speeds in the U.S., and we have developed a very good solution that helps our customers with that, with protection. So there are a lot of encouraging conversations that should help us over the next quarters and into 2026.

That's great. On the line speed, Arni, was there anything that passed on the regulations from the Biden administration that was previously holding that back? I think you guys started to work around it? Or has that since changed? I may have missed it?

Yes. So they used to limit line speeds to 140 birds per minute, with some waivers up to 175. But now the USDA has approved factories going up to 250 birds per minute. However, you need a certain workaround for the inspection, so you're able to slow down the line in certain areas where the inspector is. So now there's more flexibility for our customers in North America to implement that.

Okay. And then can you give us a sense of the orders and what the benefit was from cross-selling, realizing that you guys had a pretty strong first quarter there as well?

Yes. I mean we're very pleased with the progress, and we are already seeing some wins. In the second quarter, it was going to the order of magnitude of $5 million to $10 million. And the pipeline is very promising. And I think this is one of the reasons for the deal; it improved the value proposition of the broader portfolio and our ability to create integrated lines. This is evidence that customers are seeing the logic of the combination of the two businesses. And as I mentioned in the prepared remarks, having a simpler buying process with one counterpart allows customers to know that we will take care of and partner with them in the installation, commissioning, and service after we've brought the line up to speed. I think that is something that our customers are valuing. And then further down, we'll integrate the equipment from a technology standpoint, but this is already very encouraging, I would say.

Your next question comes from the line of Mig Dobre with RW Baird.

Arni, maybe we can talk a little bit about the margin performance at Marel. I mean my records are not perfect here, but I was looking through going back a little bit, and this might be the strongest margin quarter we've seen there since maybe the second half of 2022. And I know that this is not just synergies, it can be just numerically. So there's got to be something different going on versus, say, 6 months ago. Can you outline what's been going on with the fish business and the meat business? Essentially, where is this margin improvement on income?

Mig, I'll start; it's Matt, and then I'll hand it over to Arni to provide a little more detail around some of the improvements, especially in meat and fish. But initially, I'd say the benefits and it's closer to about 400 basis points improvement over what we estimate as the U.S. GAAP adjusted EBITDA last year. So it's really good improvement, and we're really excited about the progress that we're seeing in Marel's performance. That's primarily driven by some of the integration synergies savings as well as some of the restructuring efforts that the Marel business initiated last year before the transaction closed. Additionally, we did see in the Marel business, a high mix of recurring revenue and aftermarket, which tend to have a more favorable margin profile. Finally, I think we just saw the benefits of higher volume, and so that 400 basis point improvement is what we're seeing this year. We're excited about the improvement that we're seeing in meat and fish from the 80/20 work that the two businesses have put in place.

Yes, I think sometimes everything aligns perfectly, and many factors come together. This appears to be one of those instances because, as Matt pointed out effectively, it's important to mention that we've seen an increase in orders over the last few quarters. This uptick aids our manufacturing planning and boosts efficiency. On the pork side, we are gradually seeing improvement as we move beyond the lowest point. We've had better order volumes for several quarters now. Overall, it's a combination of various factors, and I'm pleased to see the advancements. The efforts and actions taken by our team are clearly yielding positive results.

Yes. And I would just add one final comment that some of the discipline on certain businesses regarding project selectivity and resource allocation is really important. As Arni mentioned, there's some incremental support from the mix of aftermarket as well as some of the businesses coming back from a volume perspective that helps as well. Overall, we saw similar overall, as Matt mentioned, the Marel margins are up somewhere in the range of 400 basis points year-over-year, and meat and fish had similar type improvements individually.

And to follow up on this, I think I heard you saying that by 2027, you expect to get to mid-teens margins in fish and in meat, again, we're talking about Marel here. If you get that, is there a way you can help us quantify a little bit in terms of what the EBITDA lift would be simply from getting there within this business?

If you consider those businesses together, their revenue is approximately between $500 million and $600 million. This suggests that we could expect an improvement in the range of 1,000 basis points for those businesses. While the math indicates a potential range of $500 million to $700 million, it's worth noting that meat has a higher starting point than fish. Therefore, it would likely be closer to the lower end of the 500 to 1,000 basis point range, while fish would be at the higher end.

That's very helpful. Maybe last question for me, and I apologize for the still kind of base question here. But as I was looking at your full year guidance, I was looking at Q3, trying to do some math on what that implies for Q4. If my math is right, it implies somewhere just north of $160 million of EBITDA at the midpoint, and I'm sort of curious in terms of the moving pieces as far as what gets us there. It looks a little bit unusual relative to seasonality. Usually, the fourth quarter is your strongest, and at least optically, it wouldn't appear to be the case this time around. So talk a little bit, maybe about tariffs. I'm sure that's part of it, about $12 million. But is there anything else in here, or maybe you're just, I don't know, conservative in your approach at this point?

Yes. I think on the EBITDA dollars, Mig, you're in the ballpark in terms of what the math would suggest. Based on our guidance and the midpoint of our guidance range, it is still the higher quarter from a margin perspective in the year. But Q2 was obviously a very good quarter from a margin perspective as well. I think what we're seeing is some changes in seasonality than what you might have seen in the past for just JBT legacy as the Marel business has a little more weight in Europe, which creates a little bit of seasonality in the summer. But we're still confident in our ability to deliver sort of high 16%, 17% margin in the fourth quarter, driven by the increase in equipment revenue, which tends to have a little bit lower margins, as well as we talked about in the prepared remarks, the impact of tariffs. We do see that continuing to be a pretty significant headwind on a quarterly basis. So those are kind of the headwinds from a margin perspective, the higher nonrecurring revenue and the continued tariff impact that we're seeing in the back half of the year.

But in any case, it will still be our seasonally strongest period both in terms of revenue and margin, although it may not be within the typical range you would expect. If you consider Marel's business, there are many projects coming through, which makes it somewhat muted compared to the traditional JBT mix.

Your next question comes from the line of Saree Boroditsky with Jefferies.

Maybe just quickly, buying on the last commentary on the guidance. I believe Marel stepped down sequentially in Q3 under normal seasonality. So does that imply that JBT stepping down versus Q2 levels? Or just how are you thinking about growth by segment for the remainder of the year?

Yes, we likely expect a decrease in both segments from Q2 to Q3. This is due to the revenue mix leaning more towards equipment and nonrecurring revenue, which typically has a lower margin compared to recurring revenue. Both segments will be affected by this and also by the current tariff environment. Therefore, a decrease in both segments is anticipated from Q2 to Q3. However, as volume increases in the fourth quarter, we may see a return to higher margins for both segments. Overall, it will follow a pattern of a dip followed by an increase in Q4.

I appreciate all the color on the tariffs and the great slide that you have in the deck. You talked about the 100 basis point headwind in Q3, which is net tariff cost, just expectations for that in Q4 related to tariffs and how you expect to enter 2026 based on the current tariff environment?

We expect a net impact of about $10 million to $15 million per quarter, likely around $10 million in Q3 and closer to $15 million in Q4. Throughout the rest of this year, we are taking supply chain actions to mitigate these impacts by shifting some parts sourcing from Europe to the U.S. and exploring our own assembly operations where feasible in the short term. However, we anticipate some effects will carry over into the first half of 2026. We continuously assess our pricing environment and believe it is our responsibility as a reliable supplier to do everything possible to offset tariff costs before considering any price increases. That being said, we will look at price adjustments where necessary, and we did make some changes in the second quarter. Our strategy focuses on mitigating these tariff impacts. We provided specific figures for Q4, which also include a minor effect in the first half of next year. Our goal is to achieve price cost neutrality as quickly as possible, ideally in the first or possibly the second quarter of next year.

Your next question comes from Justin Ages with CJS Securities.

I appreciate the color on the tariffs. I had a question now that we have more clarity there. Have you had any conversations with any of your customers about potential delays in orders or anything that might give pause to their business?

We have observed a few instances, but it is not widespread. There are some orders where customers are reassessing, particularly those looking to import food into the U.S. For example, a vendor of coconut water decided to pause their project due to high tariffs on goods from Thailand. I know of one or two other similar cases, but they are quite specific to individual customers. On the protein side, which makes up more than half of our business, we have seen virtually no impact. Overall, protein appears to be relatively unaffected. So, the occurrences are quite sporadic.

All right. That's very helpful. And then on the mitigation efforts, you mentioned last quarter and then this quarter about potentially moving equipment or facilities. Can you give us an update on where we are? Are you still looking at identifying the best locations and jurisdictions? Or have we moved a step beyond that?

No, we haven't moved a step beyond that yet because we obviously just got clarity on tariffs here in the last 30 days or so. So I would say we are still in that assessment phase, looking at our overall footprint. By the end of the year, we should have a well-developed plan of what our operational strategy will be for the next year or two.

We have dual plants in the U.S. and Europe for our primary cut-up and debone poultry business, which allows us to move production more efficiently. Having that infrastructure helps us respond quickly when changes are needed. This is an area we are currently exploring, and we have successfully adapted in the past, so we believe we can make progress in this area.

Your next question comes from the line of Walter Liptak with Seaport Research.

I wanted to ask about just starting with sector trends, and you guys called out that the meat part of the business had good orders. I wonder if you could help us understand that a little bit by understanding some of the meat is under a little bit more margin pressure? Where are you seeing those orders? And is that something that's sustainable?

Sure. We are seeing some improvement on the pork side. We're starting to see some investments in both the U.S. and Europe. As we increase and improve our value proposition overall, we think we're well positioned for that. It really is on the pork side. The beef side is weak and expected to remain weak for at least the foreseeable future. It takes a long time to grow cattle, and the cattle inventory, if you will, or the herd is quite small right now. So there's no real reason to be investing on the beef side. But on the pork side, the price-cost dynamics for our customer is in pretty decent shape, and the demand profile is improving overall. We do see some investments there. Additionally, I think it's worth mentioning that if you look at the meat business in general, there is a big opportunity for automation there. In poultry, there is much higher automation, but in meat, especially when you are looking at the cut-up and deboning rooms, you have a lot of labor-intensive processes. The fundamentals are improving now that our customers are making money after a very difficult environment. They haven't been investing for a while, so the equipment is aging, and there's the automation opportunity that we see. It's very encouraging to have a few quarters now where the demand has improved, but we'll see how that shapes out over the next few quarters.

Okay. Yes. That sounds great. And it's kind of exciting with the future automation and systems. Switching gears to the discussion about selling prices and volumes. I understand you're trying to do everything you can for your customers to take care of these tariffs. Can you surcharge or are you surcharging in the second quarter for the orders that are coming in? If you didn't take up prices, how much do you take up prices? How did volumes look versus prices in the second quarter?

Right. So in the second quarter, on a combined basis, it was about 10% year-over-year growth. About half of that was on the volume side, and then the rest was split between price and FX. Generally speaking, we did take price increases on parts during the second quarter. In terms of all open quotes for new equipment, we looked to reprice those quotes. For equipment in the backlog, it is case by case, where we have the ability to add a surcharge or have the customers, depending on the shipping terms, pay the tariffs themselves. It is very much case by case. So you might have some leakage here, which we mentioned in our guidance for the third and fourth quarter. As that pricing dynamics build into the new orders, that's how we get to price/cost neutral over the next few quarters.

Okay. And then is there any seasonality in the parts? I mean presumably, there are still operating facilities even in August in Europe. So maybe it's just a pull forward of refurbishments?

There is; Q3 is lighter, particularly in Europe because of the European vacation cycle. So you see less activity generally. Therefore, there is some seasonality. From a recurring revenue perspective, our orange juice lease business is seasonally weaker in Q3 and then picks up in Q4, so that's another component to our seasonality.

Okay. And just one more here, just thinking through the margin exiting the year. Third quarter, the implied synergy capture. I know it's a fourth quarter kind of a hockey stick, but any update there? Also, is R&D fully like-for-like on a definitional basis now? I mean that was a tad bit lower versus our estimates?

Certainly, we'll see a continued increase in synergies sequentially from Q2 to Q3. That's just a function of actions being taken in the quarter getting embedded in Q3 and Q4. We are expecting the benefit of synergies to be a positive to margins by about 75 basis points sequentially. That's obviously offset by the headwinds from mix and tariffs to get to that 100 basis point drop sequentially. But that is a nice tailwind from synergies. I can't remember the second part of your question.

Definition on R&D. I believe that was the last line item that had to be converted.

Yes. I think we're still in the process. I wouldn't say it's 100% completed, but we have been moving more toward the standard definition we've had historically at JBT for the Marel business, but it's still a work in progress.

Your final question comes from the line of Mig Dobre with RW Baird.

This is a longer call than I'm used to. Just a couple of small questions here. The first one is on FX. I just want to make sure that I have it clear in terms of what's embedded for the full year in your outlook. And maybe a quick reminder here, FX, what sort of margin does this line item typically carry? Is it dilutive? Is it in line with the company average? How should we think about it?

I think about it more in line with the company average. Do you see the FX impacting both the top line and the costs? You might see actually a little bit of headwind from FX because you might produce it in one jurisdiction and sell it in another and get some headwind from that as well. I would use about the average.

Yes, that 15%...

We're expecting, I think it's $70 million to $85 million for the year.

Okay. For my last question, you mentioned that the pipeline in North America has increased by 15%, which resulted from the combination of JBT and Marel. Could you explain a bit more about that? When you refer to the pipeline, what specifically does that entail? Is it related to patients or customers? What does that figure really indicate?

It's specifically related to poultry in North America. As a reference point, this is where we are most advanced in our integration process. We examined our order book just before the JBT Marel merger and evaluated the individual opportunities. We also considered some new prospects that we might not have pursued as separate entities. There are some fluctuations in the market compared to six months ago, but overall, it was strong then and remains strong now. While there are some variations, it's clear that the total number of opportunities has increased by about 15%. However, this increase has not yet translated into actual orders. What we mean is that within our sales force, the overall number of opportunities is larger than it would have been otherwise. It's essential for us to convert these opportunities into orders and to demonstrate to customers that having everything under one vendor, like JBT Marel, provides significant advantages, particularly in system and integrated sales compared to component sales.

That concludes our question-and-answer session. I will now turn the call back over to Brian Deck for closing remarks.

Thanks, everyone, for joining us this morning. As always, our IR team will be available if you have any questions. Thank you.

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.