The Middleby (MIDD) Q4 2025 earnings summary

Executive summary

• Completed sale of 51% stake in Residential Kitchen business in February 2026 for $565 million in cash and a $135 million promissory note, retaining 49% ownership and treating it as discontinued operations going forward.

• Aggressively returned capital to shareholders with $710 million in share repurchases in 2025, reducing share count by up to 9.1%, and an additional $250 million repurchased in early 2026.

• Announced plan to spin off Food Processing segment in Q2 2026, creating two independent, focused companies; Mark Salman named future CEO.

• Q4 2025 revenue for continuing operations (Commercial Foodservice and Food Processing) was $866 million, exceeding expectations and up 4.5–5% year-over-year.

• Q4 and FY 2025 financials restated to exclude Residential, now reported as discontinued operations.

Financial highlights

• Q4 2025 net sales were $866 million, up 4.5–5% year-over-year; FY 2025 net sales reached $3.2 billion, up 1.6%.

• Q4 adjusted EBITDA was $197 million (22.7% margin); FY 2025 adjusted EBITDA was $719.5 million (22.5% margin).

• Q4 adjusted EPS was $2.14; FY 2025 adjusted EPS was $8.39–$9.27.

• Q4 operating cash flow was $178–$178.5 million; free cash flow was $165–$165.5 million.

• Q4 2025 gross margin was 38.8%, down from 40.0% in Q4 2024.

Outlook and guidance

• Q1 2026 revenue guidance: $760–$788 million; adjusted EBITDA: $161–$173 million; adjusted EPS: $1.90–$2.02.

• Full-year 2026 revenue guidance: $3.27–$3.36 billion; adjusted EBITDA: $745–$780 million; adjusted EPS: $9.20–$9.36.

• 2026 organic growth guidance: +1–3% for Commercial Foodservice, +4–6% for Food Processing.

• Guidance excludes one-time spin-off and standalone public company costs for Food Processing.

• Tariff impacts expected to be fully offset in 2026 through price increases and operational initiatives.