The Middleby (MIDD) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded expectations, with strong organic growth in both Commercial Foodservice and Food Processing segments, and full-year guidance was raised.

• Announced and advanced the separation into two standalone public companies, with the Food Processing spin-off targeted for July 6, 2026.

• Completed the sale of a 51% stake in the Residential Kitchen Equipment Group, resulting in a $94.9 million pre-tax loss and reclassification as discontinued operations.

• Aggressive share repurchases continued, totaling $520 million YTD 2026 and reducing shares outstanding by 7%.

• Portfolio transformation included management build-out for Food Processing and key leadership appointments.

Financial highlights

• Q1 2026 net sales were $839.9 million, up 15% year-over-year, with adjusted EBITDA of $181 million and adjusted EPS from continuing operations of $2.16.

• Commercial Foodservice Q1 net sales were $615.5 million (9.4% reported, 8.1% organic growth), with adjusted EBITDA margin of 25.7–25.8%.

• Food Processing Q1 net sales were $224.4 million (33.7% reported, 25% organic growth), with adjusted EBITDA margin of 18.5–19.5%.

• Q1 operating cash flow was $87.8–$88 million; free cash flow was $79.9–$80 million.

• Net loss for the quarter was $50.1 million, primarily due to the Residential sale loss.

Outlook and guidance

• Q2 2026 revenue expected at $815–$850 million; adjusted EBITDA $180–$192 million; adjusted EPS $2.27–$2.39.

• Full-year 2026 revenue guidance is $3.36–$3.44 billion, adjusted EBITDA $758–$945 million, and adjusted EPS $9.54–$9.70.

• Organic growth expected at 4–7% for Food Processing and 4–6% for Commercial Foodservice in FY 2026.

• Guidance assumes a consistent macro environment and continued cautious optimism due to consumer and inflationary pressures.