The Middleby (MIDD) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales declined 1.4% year-over-year to $977.9 million, with operating income down 11.6% and net earnings down 8.1%; organic sales fell 5.4% due to economic uncertainty in key end markets.

• Commercial Foodservice and Residential Kitchen segments saw sales declines, while Food Processing grew revenue 14.4% year-over-year, driven by acquisitions and new product launches.

• Tariffs and inflation pressured margins, with a $10 million Q2 headwind; pricing actions and operational initiatives are expected to offset these by FY 2026.

• Over $420 million in share repurchases were completed in Q2 and July, reducing shares outstanding by 5.7% and reflecting confidence in long-term growth.

• Board approved the spin-off of the Food Processing business, targeting completion in the first half of 2026.

Financial highlights

• Q2 2025 consolidated revenue was $977.9 million, with Commercial Foodservice at $580.6 million, Residential Kitchen at $181.1 million, and Food Processing at $216.2 million.

• Q2 gross profit was $371.3 million (38.0% margin); adjusted EBITDA was $200.2 million (20.5% margin); adjusted EPS was $2.35.

• Net earnings for Q2 were $106 million (diluted EPS $1.99); adjusted net earnings were $124 million.

• Q2 free cash flow was $101 million; operating cash flow for six months was $263.1 million.

• Net leverage ratio at quarter-end was 2.3x, within the 2.0–2.5x target range.

Outlook and guidance

• Q3 2025 revenue is forecasted at $950–$975 million, with adjusted EBITDA of $185–$195 million and adjusted EPS of $2.02–$2.19.

• Full-year 2025 guidance: revenue of $3.81–$3.87 billion, adjusted EBITDA of $770–$800 million, and adjusted EPS of $8.65–$9.05.

• Tariff headwinds are expected to be fully offset by the start of FY 2026.

• Food Processing spin-off targeted for completion by first half of 2026, pending approvals.

• Long-term, annual EPS growth is targeted in the high single to low double-digit range.