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|||||
|
|
SECOND QUARTER CONTINUING OPERATIONS HIGHLIGHTS
ELGIN, Ill.--(BUSINESS WIRE)--The Middleby Corporation (NASDAQ: MIDD), a global leader in commercial foodservice solutions, today reported net earnings for the second quarter of 2026.
Tim FitzGerald, CEO of the Middleby Corporation said, "The second quarter marked a transformational milestone for our company as we successfully completed the separation of our Food Processing business and launched Midera as an independent, publicly traded leader in food processing equipment. With this separation, Middleby is now a pure-play commercial foodservice company, focused on driving innovation and growth across the global foodservice industry. Throughout this transformation, we remained committed to disciplined capital allocation, repurchasing approximately 1.4 million shares, or 3% of our outstanding shares, during the second quarter and 8.7 million shares, or 16% of our outstanding shares, over the past six quarters. These actions underscore our confidence in the strength of our business and our commitment to creating long-term shareholder value.”
Tim FitzGerald continued, "We delivered strong second quarter results at our commercial foodservice business with 8% organic growth that was broad-based across channels, customer types, and regions. The strategic investments we have made in recent years are delivering results, and we continue to define the future of commercial foodservice through industry-leading innovation and customer-focused solutions. These results give us great confidence as we begin our journey as a pure-play commercial foodservice leader."
2026 Second Quarter Financial Results
All results presented are on the reported second quarter continuing operations basis, inclusive of Food Processing unless otherwise noted.
($ in millions) |
Commercial
|
|
Food
|
|
Total
| ||||||
Net Sales | $ | 630.6 |
|
| $ | 244.9 |
|
| $ | 875.5 |
|
|
|
|
|
|
| ||||||
Reported Net Sales Growth |
| 8.6 | % |
|
| 13.3 | % |
|
| 9.9 | % |
Acquisitions |
| — | % |
|
| 11.0 | % |
|
| 3.0 | % |
Foreign Exchange Rates |
| 0.3 | % |
|
| 1.0 | % |
|
| 0.5 | % |
Organic Net Sales Growth(1)(2) |
| 8.3 | % |
|
| 1.3 | % |
|
| 6.4 | % |
|
|
|
|
|
| ||||||
(1) Organic net sales growth defined as total sales growth excluding impact of acquisitions and foreign exchange rates. | |||||||||||
(2) Totals may be impacted by rounding. | |||||||||||
($ in millions) |
Commercial
|
|
Food
|
|
Total
| ||||||
Adjusted EBITDA | $ | 162.5 |
|
| $ | 49.8 |
|
| $ | 193.2 |
|
|
|
|
|
|
| ||||||
Adjusted EBITDA % |
| 25.8 | % |
|
| 20.3 | % |
|
| 22.1 | % |
Acquisitions |
| — | % |
|
| — | % |
|
| — | % |
Foreign Exchange Rates |
| — | % |
|
| (0.2 | )% |
|
| — | % |
Organic Adjusted EBITDA %(2)(3) |
| 25.8 | % |
|
| 20.5 | % |
|
| 22.2 | % |
|
|
|
|
|
| ||||||
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $19.2 million. | |||||||||||
(2) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of acquisitions and foreign exchange rates. | |||||||||||
(3) Totals may be impacted by rounding. | |||||||||||
2026 Outlook
Management also provided the following expectations for the third quarter and full year 2026 for the total company post-spin of the Food Processing business and excluding Residential:
| 3rd Qtr, 2026 |
| Full Year 2026 |
Net sales | $620-$640 M |
| $2.48-2.53 B |
Organic Growth | 4% |
| 7% |
Adjusted EBITDA(1) | $143-150 M |
| $572-588 M |
Adjusted EPS(2) | $1.67-1.83 |
| $6.73-6.89 |
|
|
|
|
(1) Includes corporate and other general company operations. | |||
(2) FY 2026 Adjusted EPS expectation is the sum of the four quarters of Adjusted EPS, please reference earnings slides for further detail on guidance. | |||
Beginning in the third quarter of 2026, the historical financial results of the Food Processing business for periods prior to the spin-off will be reflected in the company’s consolidated financial statements as discontinued operations. The below amounts represent Middleby excluding Food Processing and Residential which are to be considered preliminary and could change as the company finalizes discontinued operations.
| 1st Qtr, 2026 |
| 2nd Qtr, 2026 |
Net sales | $616 M |
| $631 M |
Adjusted EBITDA(1) | $139 M |
| $145 M |
Adjusted EPS | $1.55 |
| $1.74 |
|
|
|
|
(1) Includes corporate and other general company operations. | |||
| 1st Qtr, 2025 |
| 2nd Qtr, 2025 |
| 3rd Qtr, 2025 |
| 4th Qtr, 2025 |
| Full Year 2025 |
Net sales | $563 M |
| $581 M |
| $606 M |
| $602 M |
| $2.35 B |
Adjusted EBITDA(1) | $130 M |
| $139 M |
| $142 M |
| $140 M |
| $551 M |
Adjusted EPS | $1.47 |
| $1.40 |
| $1.72 |
| $1.52 |
| $6.10 |
|
|
|
|
|
|
|
|
|
|
(1) Includes corporate and other general company operations. | |||||||||
Conference Call
The company has scheduled a conference call to discuss the second quarter results at 10 a.m. Eastern/9 a.m. Central Time on August 11th. The conference call is accessible through the Investor Relations section of the company website at www.middleby.com. If website access is not available, attendees can join the conference by dialing (844) 676-5090, or (412) 634-6754 for international access. The conference call will be available for replay from the company’s website.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release or otherwise attributable to the company regarding the company's business which are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations with respect to our future performance and the outcome of our strategic review. The company cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. Such factors include variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company's products; the availability and cost of raw materials; any variation between the preliminary and final historical results of the Food Processing business; and other risks detailed herein and from time-to-time in the company's SEC filings. Any forward-looking statement speaks only as of the date hereof, and the company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
The Middleby Corporation is a global leader in commercial foodservice solutions. The well-known Middleby brands develop and manufacture a broad portfolio of innovative products for commercial kitchens worldwide. Middleby serves a diverse customer base with equipment and technology offerings that include cooking, warming, beverage, ice and IoT while proudly showcasing its advanced foodservice solutions in five state-of-the-art Middleby Innovation Kitchens across North America and Europe.
THE MIDDLEBY CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
(Amounts in 000’s, Except Per Share Information) | |||||||||||||||
(Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
2nd Qtr,
|
|
2nd Qtr,
|
|
2nd Qtr,
|
|
2nd Qtr,
| ||||||||
Net sales | $ | 875,549 |
|
| $ | 796,799 |
|
| $ | 1,715,457 |
|
| $ | 1,527,422 |
|
Cost of sales |
| 540,468 |
|
|
| 480,697 |
|
|
| 1,057,186 |
|
|
| 918,742 |
|
Gross profit |
| 335,081 |
|
|
| 316,102 |
|
|
| 658,271 |
|
|
| 608,680 |
|
Selling, general and administrative expenses |
| 186,601 |
|
|
| 167,598 |
|
|
| 374,898 |
|
|
| 329,407 |
|
Restructuring expenses |
| 732 |
|
|
| 687 |
|
|
| 2,271 |
|
|
| 1,935 |
|
Income from continuing operations |
| 147,748 |
|
|
| 147,817 |
|
|
| 281,102 |
|
|
| 277,338 |
|
Interest expense and deferred financing amortization, net |
| 25,969 |
|
|
| 20,256 |
|
|
| 51,449 |
|
|
| 39,077 |
|
Net periodic pension benefit |
| (2,428 | ) |
|
| (1,601 | ) |
|
| (4,857 | ) |
|
| (3,117 | ) |
Other (income)/expense, net |
| (2,177 | ) |
|
| 2,128 |
|
|
| (4,798 | ) |
|
| 3,088 |
|
Earnings from continuing operations before income taxes |
| 126,384 |
|
|
| 127,034 |
|
|
| 239,308 |
|
|
| 238,290 |
|
Provision for income taxes |
| 43,275 |
|
|
| 25,368 |
|
|
| 70,915 |
|
|
| 51,561 |
|
Earnings from continuing operations before equity in net losses of affiliate |
| 83,109 |
|
|
| 101,666 |
|
|
| 168,393 |
|
|
| 186,729 |
|
Equity in losses of affiliate, net of tax |
| (28,895 | ) |
|
| — |
|
|
| (28,895 | ) |
|
| — |
|
Net earnings from continuing operations |
| 54,214 |
|
|
| 101,666 |
|
|
| 139,498 |
|
|
| 186,729 |
|
Earnings/(loss) from discontinued operations, net of tax |
| 598 |
|
|
| 4,290 |
|
|
| (134,759 | ) |
|
| 11,579 |
|
Net earnings | $ | 54,812 |
|
| $ | 105,956 |
|
| $ | 4,739 |
|
| $ | 198,308 |
|
|
|
|
|
|
|
|
| ||||||||
Net earnings/(loss) per share(1): |
|
|
|
|
|
|
| ||||||||
Basic from continuing operations | $ | 1.20 |
|
| $ | 1.93 |
|
| $ | 3.01 |
|
| $ | 3.52 |
|
Basic from discontinued operations |
| 0.01 |
|
|
| 0.08 |
|
|
| (2.91 | ) |
|
| 0.22 |
|
Basic earnings per share | $ | 1.21 |
|
| $ | 2.01 |
|
| $ | 0.10 |
|
| $ | 3.73 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted from continuing operations | $ | 1.20 |
|
| $ | 1.91 |
|
| $ | 3.01 |
|
| $ | 3.47 |
|
Diluted from discontinued operations |
| 0.01 |
|
|
| 0.08 |
|
|
| (2.91 | ) |
|
| 0.21 |
|
Diluted earnings per share | $ | 1.21 |
|
| $ | 1.99 |
|
| $ | 0.10 |
|
| $ | 3.68 |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average number of shares |
|
|
|
|
|
|
| ||||||||
Basic |
| 45,326 |
|
|
| 52,616 |
|
|
| 46,279 |
|
|
| 53,105 |
|
Diluted |
| 45,343 |
|
|
| 53,154 |
|
|
| 46,293 |
|
|
| 53,888 |
|
|
|
|
|
|
|
|
| ||||||||
(1) Earnings/(loss) per share amounts for continuing operations and discontinued operations are calculated independently and may not sum to total earnings per share due to rounding. | |||||||||||||||
THE MIDDLEBY CORPORATION | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Amounts in 000’s) | |||||
(Unaudited) | |||||
| Jul 4, 2026 |
| Jan 3, 2026 | ||
ASSETS |
|
|
| ||
Cash and cash equivalents | $ | 159,178 |
| $ | 222,239 |
Accounts receivable, net |
| 601,178 |
|
| 573,039 |
Inventories, net |
| 737,633 |
|
| 692,589 |
Prepaid expenses and other |
| 111,222 |
|
| 111,176 |
Prepaid taxes |
| 22,761 |
|
| 41,159 |
Current assets held for sale - discontinued operations |
| 11,836 |
|
| 1,102,441 |
Total current assets |
| 1,643,808 |
|
| 2,742,643 |
Property, plant and equipment, net |
| 423,052 |
|
| 431,622 |
Goodwill |
| 1,794,299 |
|
| 1,799,649 |
Other intangibles, net |
| 1,030,987 |
|
| 1,061,192 |
Long-term deferred tax assets |
| 6,729 |
|
| 8,209 |
Pension benefits assets |
| 112,235 |
|
| 106,444 |
Equity method investment |
| 109,724 |
|
| — |
Note receivable |
| 86,879 |
|
| — |
Other assets |
| 152,940 |
|
| 165,407 |
Total assets | $ | 5,360,653 |
| $ | 6,315,166 |
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
| ||
Current maturities of long-term debt | $ | 44,101 |
| $ | 44,420 |
Accounts payable |
| 224,281 |
|
| 206,666 |
Accrued expenses |
| 549,383 |
|
| 574,810 |
Current liabilities held for sale - discontinued operations |
| 9,522 |
|
| 242,335 |
Total current liabilities |
| 827,287 |
|
| 1,068,231 |
Long-term debt |
| 1,935,423 |
|
| 2,128,582 |
Long-term deferred tax liability |
| 212,184 |
|
| 156,723 |
Accrued pension benefits |
| 7,308 |
|
| 7,629 |
Other non-current liabilities |
| 168,497 |
|
| 177,772 |
Stockholders' equity |
| 2,209,954 |
|
| 2,776,229 |
Total liabilities and stockholders' equity | $ | 5,360,653 |
| $ | 6,315,166 |
THE MIDDLEBY CORPORATION | |||||||||||
NON-GAAP SEGMENT INFORMATION | |||||||||||
(Amounts in 000’s, Except Percentages) | |||||||||||
(Unaudited) | |||||||||||
|
Commercial
|
|
Food
|
|
Total
| ||||||
Three Months Ended July 4, 2026 |
|
|
|
|
| ||||||
Net sales | $ | 630,613 |
|
| $ | 244,936 |
|
| $ | 875,549 |
|
Segment income from continuing operations | $ | 143,564 |
|
| $ | 43,978 |
|
| $ | 147,748 |
|
Income from continuing operations % of net sales |
| 22.8 | % |
|
| 18.0 | % |
|
| 16.9 | % |
Depreciation |
| 7,302 |
|
|
| 4,197 |
|
|
| 12,040 |
|
Amortization |
| 10,558 |
|
|
| 2,541 |
|
|
| 13,099 |
|
Restructuring expenses |
| 571 |
|
|
| 161 |
|
|
| 732 |
|
Acquisition related adjustments |
| (297 | ) |
|
| (1,063 | ) |
|
| (3,000 | ) |
Facility consolidation related expenses |
| 828 |
|
|
| — |
|
|
| 828 |
|
Strategic transaction costs |
| — |
|
|
| — |
|
|
| 14,479 |
|
Stock compensation |
| — |
|
|
| — |
|
|
| 7,253 |
|
Segment adjusted EBITDA from continuing operations(2) | $ | 162,526 |
|
| $ | 49,814 |
|
| $ | 193,179 |
|
Adjusted EBITDA from continuing operations % of net sales |
| 25.8 | % |
|
| 20.3 | % |
|
| 22.1 | % |
|
|
|
|
|
| ||||||
Three Months Ended June 28, 2025 |
|
|
|
|
| ||||||
Net sales | $ | 580,605 |
|
| $ | 216,194 |
|
| $ | 796,799 |
|
Segment income from continuing operations | $ | 137,946 |
|
| $ | 42,679 |
|
| $ | 147,817 |
|
Income from continuing operations % of net sales |
| 23.8 | % |
|
| 19.7 | % |
|
| 18.6 | % |
Depreciation |
| 6,911 |
|
|
| 3,095 |
|
|
| 10,705 |
|
Amortization |
| 10,952 |
|
|
| 2,629 |
|
|
| 13,581 |
|
Restructuring expenses |
| 745 |
|
|
| (58 | ) |
|
| 687 |
|
Acquisition related adjustments |
| 37 |
|
|
| (2,496 | ) |
|
| (2,335 | ) |
Strategic transaction costs |
| — |
|
|
| — |
|
|
| 5,591 |
|
Stock compensation |
| — |
|
|
| — |
|
|
| 5,590 |
|
Segment adjusted EBITDA from continuing operations | $ | 156,591 |
|
| $ | 45,849 |
|
| $ | 181,636 |
|
Adjusted EBITDA from continuing operations % of net sales |
| 27.0 | % |
|
| 21.2 | % |
|
| 22.8 | % |
|
|
|
|
|
| ||||||
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $19.2 million and $20.8 million for the three months ended July 4, 2026 and June 28, 2025, respectively. | |||||||||||
(2) Foreign exchange rates favorably impacted Segment Adjusted EBITDA by approximately $0.3 million for the three months ended July 4, 2026. | |||||||||||
THE MIDDLEBY CORPORATION | |||||||||||
NON-GAAP SEGMENT INFORMATION | |||||||||||
(Amounts in 000’s, Except Percentages) | |||||||||||
(Unaudited) | |||||||||||
|
Commercial
|
|
Food
|
|
Total
| ||||||
Six Months Ended July 4, 2026 |
|
|
|
|
| ||||||
Net sales | $ | 1,246,149 |
|
| $ | 469,308 |
|
| $ | 1,715,457 |
|
Segment income from continuing operations | $ | 283,230 |
|
| $ | 78,343 |
|
| $ | 281,102 |
|
Income from continuing operations % of net sales |
| 22.7 | % |
|
| 16.7 | % |
|
| 16.4 | % |
Depreciation |
| 14,546 |
|
|
| 7,902 |
|
|
| 23,540 |
|
Amortization |
| 21,181 |
|
|
| 5,262 |
|
|
| 26,443 |
|
Restructuring expenses |
| 1,260 |
|
|
| 104 |
|
|
| 2,271 |
|
Acquisition related adjustments |
| (119 | ) |
|
| (374 | ) |
|
| (2,133 | ) |
Facility consolidation related expenses |
| 828 |
|
|
| — |
|
|
| 828 |
|
Strategic transaction costs |
| — |
|
|
| — |
|
|
| 24,424 |
|
Stock compensation |
| — |
|
|
| — |
|
|
| 17,327 |
|
Segment adjusted EBITDA from continuing operations(2) | $ | 320,926 |
|
| $ | 91,237 |
|
| $ | 373,802 |
|
Adjusted EBITDA from continuing operations % of net sales |
| 25.8 | % |
|
| 19.4 | % |
|
| 21.8 | % |
|
|
|
|
|
| ||||||
Six Months Ended June 28, 2025 |
|
|
|
|
| ||||||
Net sales | $ | 1,143,322 |
|
| $ | 384,100 |
|
| $ | 1,527,422 |
|
Segment Income from Continuing Operations | $ | 270,042 |
|
| $ | 66,189 |
|
| $ | 277,338 |
|
Income from continuing operations % of net sales |
| 23.6 | % |
|
| 17.2 | % |
|
| 18.2 | % |
Depreciation |
| 13,541 |
|
|
| 5,986 |
|
|
| 21,051 |
|
Amortization |
| 22,246 |
|
|
| 5,543 |
|
|
| 27,789 |
|
Restructuring expenses |
| 1,883 |
|
|
| 52 |
|
|
| 1,935 |
|
Acquisition related adjustments |
| 309 |
|
|
| (1,858 | ) |
|
| (1,933 | ) |
Strategic transaction costs |
| — |
|
|
| — |
|
|
| 9,063 |
|
Stock compensation |
| — |
|
|
| — |
|
|
| 7,878 |
|
Segment adjusted EBITDA from continuing operations | $ | 308,021 |
|
| $ | 75,912 |
|
| $ | 343,121 |
|
Adjusted EBITDA from continuing operations % of net sales |
| 26.9 | % |
|
| 19.8 | % |
|
| 22.5 | % |
|
|
|
|
|
| ||||||
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $38.4 million and $40.8 million for the six months ended July 4, 2026 and June 28, 2025, respectively. | |||||||||||
(2) Foreign exchange rates favorably impacted Segment Adjusted EBITDA by $2.6 million for the six months ended July 4, 2026. | |||||||||||
THE MIDDLEBY CORPORATION | |||||||||||||||
NON-GAAP INFORMATION | |||||||||||||||
(Amounts in 000’s, Except Per Share Information) | |||||||||||||||
(Unaudited) | |||||||||||||||
| Three Months Ended | ||||||||||||||
| 2nd Qtr, 2026 |
| 2nd Qtr, 2025 | ||||||||||||
| $ |
|
Diluted per
|
| $ |
|
Diluted per
| ||||||||
Net earnings from continuing operations | $ | 54,214 |
|
| $ | 1.20 |
|
| $ | 101,666 |
|
| $ | 1.91 |
|
Amortization(1) |
| 13,724 |
|
|
| 0.30 |
|
|
| 15,357 |
|
|
| 0.29 |
|
Restructuring expenses |
| 732 |
|
|
| 0.02 |
|
|
| 687 |
|
|
| 0.01 |
|
Acquisition related adjustments |
| (3,000 | ) |
|
| (0.07 | ) |
|
| (2,335 | ) |
|
| (0.04 | ) |
Facility consolidation related expenses |
| 828 |
|
|
| 0.02 |
|
|
| — |
|
|
| — |
|
Net periodic pension benefit |
| (2,428 | ) |
|
| (0.05 | ) |
|
| (1,601 | ) |
|
| (0.03 | ) |
Strategic transaction costs |
| 14,479 |
|
|
| 0.32 |
|
|
| 5,591 |
|
|
| 0.11 |
|
Change in fair value of note receivable |
| (2,693 | ) |
|
| (0.06 | ) |
|
| — |
|
|
| — |
|
Equity in losses of affiliate, net |
| 28,895 |
|
|
| 0.64 |
|
|
| — |
|
|
| — |
|
Discrete tax impact of Spin related transactions |
| 4,629 |
|
|
| 0.10 |
|
|
| — |
|
|
| — |
|
Income tax effect of pre-tax adjustments |
| (2,964 | ) |
|
| (0.07 | ) |
|
| (3,540 | ) |
|
| (0.07 | ) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
| — |
|
|
| — |
|
|
| — |
|
|
| 0.02 |
|
Adjusted net earnings from continuing operations | $ | 106,416 |
|
| $ | 2.35 |
|
| $ | 115,825 |
|
| $ | 2.20 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted weighted average number of shares |
| 45,343 |
|
|
|
|
| 53,154 |
|
|
| ||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
| — |
|
|
|
|
| (511 | ) |
|
| ||||
Adjusted diluted weighted average number of shares |
| 45,343 |
|
|
|
|
| 52,643 |
|
|
| ||||
|
|
|
|
|
|
|
| ||||||||
| Six Months Ended | ||||||||||||||
| 2nd Qtr, 2026 |
| 2nd Qtr, 2025 | ||||||||||||
| $ |
|
Diluted per
|
| $ |
|
Diluted per
| ||||||||
Net earnings from continuing operations | $ | 139,498 |
|
| $ | 3.01 |
|
| $ | 186,729 |
|
| $ | 3.47 |
|
Amortization(1) |
| 27,694 |
|
|
| 0.60 |
|
|
| 31,362 |
|
|
| 0.58 |
|
Restructuring expenses |
| 2,271 |
|
|
| 0.05 |
|
|
| 1,935 |
|
|
| 0.04 |
|
Acquisition related adjustments |
| (2,133 | ) |
|
| (0.05 | ) |
|
| (1,933 | ) |
|
| (0.04 | ) |
Facility consolidation related expenses |
| 828 |
|
|
| 0.02 |
|
|
| — |
|
|
| — |
|
Net periodic pension benefit |
| (4,857 | ) |
|
| (0.10 | ) |
|
| (3,117 | ) |
|
| (0.06 | ) |
Strategic transaction costs |
| 24,424 |
|
|
| 0.53 |
|
|
| 9,063 |
|
|
| 0.17 |
|
Change in fair value of note receivable |
| (4,499 | ) |
|
| (0.10 | ) |
|
| — |
|
|
| — |
|
Equity in losses of affiliate, net |
| 28,895 |
|
|
| 0.62 |
|
|
| — |
|
|
| — |
|
Discrete tax impact of Spin related transactions |
| 4,629 |
|
|
| 0.10 |
|
|
| — |
|
|
| — |
|
Income tax effect of pre-tax adjustments |
| (8,817 | ) |
|
| (0.19 | ) |
|
| (8,059 | ) |
|
| (0.15 | ) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
| — |
|
|
| — |
|
|
| — |
|
|
| 0.06 |
|
Adjusted net earnings from continuing operations | $ | 207,933 |
|
| $ | 4.49 |
|
| $ | 215,980 |
|
| $ | 4.07 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted weighted average number of shares |
| 46,293 |
|
|
|
|
| 53,888 |
|
|
| ||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
| — |
|
|
|
|
| (769 | ) |
|
| ||||
Adjusted diluted weighted average number of shares |
| 46,293 |
|
|
|
|
| 53,119 |
|
|
| ||||
|
|
|
|
|
|
|
| ||||||||
(1) Includes amortization of deferred financing costs and convertible notes issuance costs. | |||||||||||||||
(2) Adjusted diluted weighted average number of shares was calculated based on excluding the dilutive effect of shares to be issued upon conversion of the notes to satisfy the amount in excess of the principal since the company's capped call offsets the dilutive impact of the shares underlying the convertible notes. The calculation of adjusted diluted earnings per share excludes the principal portion of the convertible notes as this will always be settled in cash. Given the settlement of the convertible notes in the third quarter of 2025 the weighted average number of shares will no longer require an adjustment in 2026. | |||||||||||||||
| |||||||||||||||
THE MIDDLEBY CORPORATION | |||||||||||||||
NON-GAAP INFORMATION | |||||||||||||||
(Amounts in 000’s) | |||||||||||||||
(Unaudited) | |||||||||||||||
| Three Months Ended |
| Six Months Ended | ||||||||||||
| 2nd Qtr, 2026 |
| 2nd Qtr, 2025 |
| 2nd Qtr, 2026 |
| 2nd Qtr, 2025 | ||||||||
Net Cash Flows Provided By (Used In): |
|
|
|
|
|
|
| ||||||||
Operating activities(1) | $ | 99,714 |
|
| $ | 91,761 |
|
| $ | 187,526 |
|
| $ | 229,047 |
|
Investing activities(2) |
| (11,649 | ) |
|
| (18,101 | ) |
|
| 544,878 |
|
|
| (45,669 | ) |
Financing activities |
| (102,803 | ) |
|
| (346,368 | ) |
|
| (787,468 | ) |
|
| (403,459 | ) |
|
|
|
|
|
|
|
| ||||||||
Free Cash Flow |
|
|
|
|
|
|
| ||||||||
Cash flow from operating activities(1) | $ | 99,714 |
|
| $ | 91,761 |
|
| $ | 187,526 |
|
| $ | 229,047 |
|
Less: Capital expenditures(3) |
| (10,695 | ) |
|
| (14,584 | ) |
|
| (18,634 | ) |
|
| (41,064 | ) |
Free cash flow | $ | 89,019 |
|
| $ | 77,177 |
|
| $ | 168,892 |
|
| $ | 187,983 |
|
|
|
|
|
|
|
|
| ||||||||
(1) Includes payments of strategic transaction costs of $7.5 million and $15.2 million for the three and six months ended July 4, 2026. | |||||||||||||||
(2) Includes proceeds from sale of 51% interest in Residential Kitchen Equipment Group, net of cash transferred, of $564.6 million for the six months ended July 4, 2026. | |||||||||||||||
(3) Includes purchase of previously leased food processing manufacturing facility for the six months ended June 28, 2025. | |||||||||||||||
| |||||||
THE MIDDLEBY CORPORATION | |||||||
NON-GAAP INFORMATION(1) | |||||||
(Amounts in 000’s) | |||||||
(Unaudited) | |||||||
| 1st Qtr, 2026 |
| 2nd Qtr, 2026 | ||||
Net sales | $ | 839,908 |
|
| $ | 875,549 |
|
Less: Food Processing |
| (224,372 | ) |
|
| (244,936 | ) |
Net sales excluding Food Processing | $ | 615,536 |
|
| $ | 630,613 |
|
|
|
|
| ||||
Income from continuing operations | $ | 133,354 |
|
| $ | 147,748 |
|
Less: Food Processing |
| (22,685 | ) |
|
| (26,850 | ) |
Income from continuing operations excluding Food Processing | $ | 110,669 |
|
| $ | 120,898 |
|
Depreciation |
| 7,795 |
|
|
| 7,843 |
|
Amortization |
| 10,623 |
|
|
| 10,558 |
|
Restructuring expenses |
| 1,596 |
|
|
| 571 |
|
Acquisition related adjustments |
| 178 |
|
|
| (1,937 | ) |
Facility consolidation related expenses |
| — |
|
|
| 828 |
|
Stock compensation |
| 8,531 |
|
|
| 6,004 |
|
Adjusted EBITDA from continuing operations excluding Food Processing | $ | 139,392 |
|
| $ | 144,765 |
|
| 1st Qtr, 2025 |
| 2nd Qtr, 2025 |
| 3rd Qtr, 2025 |
| 4th Qtr, 2025 |
| Full Year 2025 | ||||||||||
Net sales | $ | 730,623 |
|
| $ | 796,799 |
|
| $ | 807,355 |
|
| $ | 866,425 |
|
| $ | 3,201,202 |
|
Less: Food Processing |
| (167,906 | ) |
|
| (216,195 | ) |
|
| (201,353 | ) |
|
| (264,701 | ) |
|
| (850,155 | ) |
Net sales excluding Food Processing | $ | 562,717 |
|
| $ | 580,604 |
|
| $ | 606,002 |
|
| $ | 601,724 |
|
| $ | 2,351,047 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from continuing operations | $ | 129,521 |
|
| $ | 147,817 |
|
| $ | 147,718 |
|
| $ | 149,835 |
|
| $ | 574,891 |
|
Less: Food Processing |
| (21,547 | ) |
|
| (32,783 | ) |
|
| (24,088 | ) |
|
| (40,939 | ) |
|
| (119,357 | ) |
Income from continuing operations excluding Food Processing | $ | 107,974 |
|
| $ | 115,034 |
|
| $ | 123,630 |
|
| $ | 108,896 |
|
| $ | 455,534 |
|
Depreciation |
| 7,455 |
|
|
| 7,610 |
|
|
| 7,646 |
|
|
| 8,277 |
|
|
| 30,988 |
|
Amortization |
| 11,294 |
|
|
| 10,952 |
|
|
| 10,657 |
|
|
| 10,654 |
|
|
| 43,557 |
|
Restructuring expenses |
| 1,137 |
|
|
| 746 |
|
|
| 349 |
|
|
| 519 |
|
|
| 2,751 |
|
Acquisition related adjustments |
| (237 | ) |
|
| 161 |
|
|
| 283 |
|
|
| (1,878 | ) |
|
| (1,671 | ) |
Stock compensation |
| 2,001 |
|
|
| 4,661 |
|
|
| (495 | ) |
|
| 4,699 |
|
|
| 10,866 |
|
Impairments |
| — |
|
|
| — |
|
|
| — |
|
|
| 9,298 |
|
|
| 9,298 |
|
Adjusted EBITDA from continuing operations excluding Food Processing | $ | 129,624 |
|
| $ | 139,164 |
|
| $ | 142,070 |
|
| $ | 140,465 |
|
| $ | 551,323 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
(1) These amounts represent Middleby excluding Food Processing and Residential which are to be considered preliminary and could change as the company finalizes discontinued operations. | |||||||||||||||||||
Investor relations inquiries:
Rebecca Ellin
SVP of Corporate Development and Investor Strategy
rellin@middleby.com
Media inquiries:
Darcy Bretz
VP of Corporate Communications
dbretz@middleby.com
Kate Schneiderman
Managing Director, ICR
middleby@icrinc.com
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