The Middleby Corporation Reports Third Quarter Results
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Raises Full-Year Guidance
- Q3 2026 results exceeded high end of guidance range for net sales, Adjusted EBITDA and Adjusted EPS
-
Raises FY 2026 guidance; now expects organic net sales growth of +7
-8% -
Record Q3 net sales of
$653 million 7.7% year over year; organic net sales growth of7.7% - Announces CEO transition: Steve Spittle will succeed Tim FitzGerald as CEO on April 1, 2027
-
Repurchased 1.0 million shares (
2.0% of shares outstanding) in Q3 2026 and 4.8 million shares (9.7% of shares outstanding) Q3 YTD 2026 -
Operating income of
$99 million $124 million $26 million -
Adjusted EBITDA increased
10% to$156 million $142 million -
Adjusted EBITDA margin expanded to
23.9% in Q3 of 2026 from23.5% in the prior year period -
Diluted GAAP EPS of
$0.43 $1.55 -
Adjusted EPS increased
19% to$2.07 $1.74 - Q3 2026 net leverage of 2.8x
- Closure of Brewing businesses, announced in September, remains on track for completion by year end
Tim FitzGerald, CEO of the Middleby Corporation said, “We delivered record third quarter net sales and strong organic growth across our commercial foodservice business. Adjusted EBITDA increased
Tim FitzGerald continued, “Following the successful separation of our Food Processing business and the launch of Midera as an independent public company, Middleby is now a focused, pure-play commercial foodservice leader. We remain committed to disciplined capital allocation and repurchased 1.0 million shares during the third quarter and 4.8 million shares year to date. Our strong third quarter performance and continued business momentum give us confidence to raise our full year 2026 guidance.”
2026 Third Quarter Financial Results
Unless otherwise noted, all results presented are on a reported third quarter continuing operations basis.
-
Net sales increased
7.7% in the third quarter compared to the prior year period. Foreign exchange rates had an immaterial impact on the year over year comparison. - A reconciliation of organic net sales (a non-GAAP measure) by segment is as follows:
($ in millions) |
Total
|
||
Net Sales |
$ |
652.6 |
|
|
|
||
Reported Net Sales Growth |
|
7.7 |
% |
Foreign Exchange Rates |
|
— |
% |
Organic Net Sales Growth(1)(2) |
|
7.7 |
% |
|
|
||
(1) Organic net sales growth defined as total sales growth excluding impact of foreign exchange rates. |
|||
(2) Totals may be impacted by rounding. |
|||
-
Adjusted EBITDA (a non-GAAP measure) was
$155.8 million $142.2 million - A reconciliation of organic adjusted EBITDA (a non-GAAP measure) is as follows:
($ in millions) |
Total
|
||
Adjusted EBITDA |
$ |
155.8 |
|
|
|
||
Adjusted EBITDA % |
|
23.9 |
% |
Foreign Exchange Rates |
|
— |
% |
Organic Adjusted EBITDA %(2)(3)(4) |
|
23.9 |
% |
|
|
||
(1) Includes corporate and other general company expenses, which impact Adjusted EBITDA, and amounted to |
|||
(2) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of foreign exchange rates. |
|||
(3) Totals may be impacted by rounding. |
|||
(4) Adjusted EBITDA % excluding Brewing businesses was |
|||
-
On November 4, 2026, the company entered into an amended and restated five-year,
$3 billion $1.0 billion $2.0 billion -
Operating cash flows during the third quarter amounted to
$122.6 million $141.0 million -
1.0 million shares were repurchased for
$106.5 million -
Total debt at the end of the 2026 fiscal third quarter amounted to
$1.7 billion $2.1 billion $1.6 billion $2.0 billion $1.4 billion
2026 Outlook
Management also provided the following expectations for the fourth quarter and full year 2026:
|
4th Qtr, 2026 |
|
Full Year 2026 |
Net sales |
|
|
|
Organic Growth |
|
|
|
Adjusted EBITDA(1) |
|
|
|
Adjusted EPS(2) |
|
|
|
|
|
|
|
(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. |
|||
Conference Call
The company has scheduled a conference call to discuss the third quarter results at 10 a.m. Eastern/9 a.m. Central Time on November 5th. 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. 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; the costs, profitability, timing and the financial impact of, and charges associated with, the company’s discontinuing of its brewing businesses; 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.
About The Middleby Corporation
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 four state-of-the-art Middleby Innovation Kitchens across
THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in 000’s, Except Per Share Information) (Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
3rd Qtr,
|
|
3rd Qtr,
|
|
3rd Qtr,
|
|
3rd Qtr,
|
||||||||
Net sales |
$ |
652,575 |
|
|
$ |
606,001 |
|
|
$ |
1,898,724 |
|
|
$ |
1,749,323 |
|
Cost of sales |
|
402,904 |
|
|
|
368,025 |
|
|
|
1,154,927 |
|
|
|
1,044,536 |
|
Gross profit |
|
249,671 |
|
|
|
237,976 |
|
|
|
743,797 |
|
|
|
704,787 |
|
Selling, general and administrative expenses |
|
128,095 |
|
|
|
113,836 |
|
|
|
389,044 |
|
|
|
355,691 |
|
Restructuring expenses |
|
2,456 |
|
|
|
349 |
|
|
|
4,623 |
|
|
|
2,232 |
|
Impairments |
|
20,394 |
|
|
|
— |
|
|
|
20,394 |
|
|
|
— |
|
Income from continuing operations |
|
98,726 |
|
|
|
123,791 |
|
|
|
329,736 |
|
|
|
346,864 |
|
Interest expense and deferred financing amortization, net |
|
22,875 |
|
|
|
25,299 |
|
|
|
73,898 |
|
|
|
64,371 |
|
Net periodic pension benefit |
|
(2,449 |
) |
|
|
(1,597 |
) |
|
|
(7,306 |
) |
|
|
(4,714 |
) |
Other expense/(income), net |
|
1,101 |
|
|
|
(2,026 |
) |
|
|
(4,972 |
) |
|
|
11,890 |
|
Earnings from continuing operations before income taxes |
|
77,199 |
|
|
|
102,115 |
|
|
|
268,116 |
|
|
|
275,317 |
|
Provision for income taxes |
|
19,167 |
|
|
|
23,131 |
|
|
|
68,362 |
|
|
|
63,617 |
|
Earnings from continuing operations before equity in net losses of affiliate |
|
58,032 |
|
|
|
78,984 |
|
|
|
199,754 |
|
|
|
211,700 |
|
Equity in losses of affiliate, net of tax |
|
(38,664 |
) |
|
|
— |
|
|
|
(67,559 |
) |
|
|
— |
|
Net earnings from continuing operations |
|
19,368 |
|
|
|
78,984 |
|
|
|
132,195 |
|
|
|
211,700 |
|
Loss from discontinued operations, net of tax |
|
(20,983 |
) |
|
|
(591,962 |
) |
|
|
(129,071 |
) |
|
|
(526,370 |
) |
Net (loss)/earnings |
$ |
(1,615 |
) |
|
$ |
(512,978 |
) |
|
$ |
3,124 |
|
|
$ |
(314,670 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss)/earnings per share(1): |
|
|
|
|
|
|
|
||||||||
Basic from continuing operations |
$ |
0.43 |
|
|
$ |
1.56 |
|
|
$ |
2.89 |
|
|
$ |
4.05 |
|
Basic from discontinued operations |
|
(0.47 |
) |
|
|
(11.72 |
) |
|
|
(2.82 |
) |
|
|
(10.08 |
) |
Basic (loss)/earnings per share |
$ |
(0.04 |
) |
|
$ |
(10.15 |
) |
|
$ |
0.07 |
|
|
$ |
(6.02 |
) |
|
|
|
|
|
|
|
|
||||||||
Diluted from continuing operations |
$ |
0.43 |
|
|
$ |
1.55 |
|
|
$ |
2.88 |
|
|
$ |
4.00 |
|
Diluted from discontinued operations |
|
(0.47 |
) |
|
|
(11.63 |
) |
|
|
(2.82 |
) |
|
|
(9.95 |
) |
Diluted (loss)/earnings per share |
$ |
(0.04 |
) |
|
$ |
(10.08 |
) |
|
$ |
0.07 |
|
|
$ |
(5.95 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares |
|
|
|
|
|
|
|
||||||||
Basic |
|
44,871 |
|
|
|
50,521 |
|
|
|
45,810 |
|
|
|
52,244 |
|
Diluted |
|
44,900 |
|
|
|
50,908 |
|
|
|
45,829 |
|
|
|
52,895 |
|
|
|
|
|
|
|
|
|
||||||||
(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) |
|||||
|
|||||
|
Oct 3, 2026 |
|
Jan 3, 2026 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
104,327 |
|
$ |
131,657 |
Accounts receivable, net |
|
418,158 |
|
|
357,729 |
Inventories, net |
|
522,373 |
|
|
501,855 |
Prepaid expenses and other |
|
43,370 |
|
|
37,398 |
Prepaid taxes |
|
23,786 |
|
|
40,548 |
Current assets of discontinued operations |
|
11,809 |
|
|
1,673,456 |
Total current assets |
|
1,123,823 |
|
|
2,742,643 |
Property, plant and equipment, net |
|
263,525 |
|
|
270,587 |
Goodwill |
|
1,293,539 |
|
|
1,297,332 |
Other intangibles, net |
|
844,203 |
|
|
887,936 |
Long-term deferred tax assets |
|
5,777 |
|
|
6,992 |
Pension benefits assets |
|
114,147 |
|
|
106,444 |
Equity method investment |
|
73,405 |
|
|
— |
Note receivable |
|
84,053 |
|
|
— |
Other assets |
|
128,165 |
|
|
140,527 |
Non-current assets of discontinued operations |
|
— |
|
|
862,705 |
Total assets |
$ |
3,930,637 |
|
$ |
6,315,166 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current maturities of long-term debt |
$ |
40,320 |
|
$ |
40,431 |
Accounts payable |
|
156,054 |
|
|
132,354 |
Accrued expenses |
|
355,491 |
|
|
361,814 |
Current liabilities of discontinued operations |
|
9,928 |
|
|
533,632 |
Total current liabilities |
|
561,793 |
|
|
1,068,231 |
Long-term debt |
|
1,708,352 |
|
|
2,101,075 |
Long-term deferred tax liability |
|
180,356 |
|
|
119,390 |
Accrued pension benefits |
|
7,147 |
|
|
7,629 |
Other non-current liabilities |
|
141,972 |
|
|
141,072 |
Non-current liabilities of discontinued operations |
|
— |
|
|
101,540 |
Stockholders' equity |
|
1,331,017 |
|
|
2,776,229 |
Total liabilities and stockholders' equity |
$ |
3,930,637 |
|
$ |
6,315,166 |
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s, Except Percentages) (Unaudited) |
|||
|
|||
|
Total Company(1) |
||
Three Months Ended October 3, 2026 |
|
||
Net sales |
$ |
652,575 |
|
Income from continuing operations |
$ |
98,726 |
|
Income from continuing operations % of net sales |
|
15.1 |
% |
Depreciation |
|
7,929 |
|
Amortization |
|
11,285 |
|
Restructuring expenses |
|
2,012 |
|
Acquisition related adjustments |
|
(996 |
) |
Facility consolidation related expenses |
|
2,796 |
|
Strategic transaction costs |
|
2,331 |
|
Stock compensation |
|
5,755 |
|
Brewing closure-related charges(2) |
|
25,946 |
|
Adjusted EBITDA from continuing operations(3) |
$ |
155,784 |
|
Adjusted EBITDA from continuing operations % of net sales |
|
23.9 |
% |
|
|
||
Three Months Ended September 27, 2025 |
|
||
Net sales |
$ |
606,001 |
|
Income from continuing operations |
$ |
123,791 |
|
Income from continuing operations % of net sales |
|
20.4 |
% |
Depreciation |
|
7,646 |
|
Amortization |
|
10,657 |
|
Restructuring expenses |
|
349 |
|
Acquisition related adjustments |
|
282 |
|
Stock compensation |
|
(494 |
) |
Adjusted EBITDA from continuing operations |
$ |
142,231 |
|
Adjusted EBITDA from continuing operations % of net sales |
|
23.5 |
% |
|
|
||
(1) Includes corporate and other general company expenses, which impact Adjusted EBITDA, of |
|||
(2) Brewing closure-related charges for the three months ended October 3, 2026 included |
|||
(3) Foreign exchange rates unfavorably impacted Adjusted EBITDA by approximately |
|||
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s, Except Percentages) (Unaudited) |
|||
|
|||
|
Total Company(1) |
||
Nine Months Ended October 3, 2026 |
|
||
Net sales |
$ |
1,898,724 |
|
Income from continuing operations |
$ |
329,736 |
|
Income from continuing operations % of net sales |
|
17.4 |
% |
Depreciation |
|
23,567 |
|
Amortization |
|
32,466 |
|
Restructuring expenses |
|
4,179 |
|
Acquisition related adjustments |
|
(2,755 |
) |
Facility consolidation related expenses |
|
3,624 |
|
Strategic transaction costs |
|
2,741 |
|
Stock compensation |
|
20,290 |
|
Brewing closure-related charges(2) |
|
25,946 |
|
Adjusted EBITDA from continuing operations(3) |
$ |
439,794 |
|
Adjusted EBITDA from continuing operations % of net sales |
|
23.2 |
% |
|
|
||
Nine Months Ended September 27, 2025 |
|
||
Net sales |
$ |
1,749,323 |
|
Income from continuing operations |
$ |
346,864 |
|
Income from continuing operations % of net sales |
|
19.8 |
% |
Depreciation |
|
22,710 |
|
Amortization |
|
32,903 |
|
Restructuring expenses |
|
2,232 |
|
Acquisition related adjustments |
|
207 |
|
Stock compensation |
|
6,168 |
|
Adjusted EBITDA from continuing operations |
$ |
411,084 |
|
Adjusted EBITDA from continuing operations % of net sales |
|
23.5 |
% |
|
|
||
(1) Includes corporate and other general company expenses, which impact Adjusted EBITDA, of |
|||
(2) Brewing closure-related charges for the nine months ended October 3, 2026 included |
|||
(3) Foreign exchange rates favorably impacted Adjusted EBITDA by |
|||
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s, Except Per Share Information) (Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
||||||||||||||
|
3rd Qtr, 2026 |
|
3rd Qtr, 2025 |
||||||||||||
|
$ |
|
Diluted
|
|
$ |
|
Diluted
|
||||||||
Net earnings from continuing operations |
$ |
19,368 |
|
|
$ |
0.43 |
|
|
$ |
78,984 |
|
|
$ |
1.55 |
|
Amortization(1) |
|
11,910 |
|
|
|
0.27 |
|
|
|
12,724 |
|
|
|
0.25 |
|
Restructuring expenses |
|
2,012 |
|
|
|
0.04 |
|
|
|
349 |
|
|
|
0.01 |
|
Acquisition related adjustments |
|
(996 |
) |
|
|
(0.02 |
) |
|
|
282 |
|
|
|
0.01 |
|
Facility consolidation related expenses |
|
2,796 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
Net periodic pension benefit |
|
(2,449 |
) |
|
|
(0.05 |
) |
|
|
(1,597 |
) |
|
|
(0.03 |
) |
Strategic transaction costs |
|
2,331 |
|
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
Change in fair value of note receivable |
|
2,826 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
Equity in losses of affiliate, net |
|
38,664 |
|
|
|
0.86 |
|
|
|
— |
|
|
|
— |
|
Brewing closure-related charges(2) |
|
25,946 |
|
|
|
0.58 |
|
|
|
— |
|
|
|
— |
|
Income tax effect of pre-tax adjustments |
|
(9,519 |
) |
|
|
(0.21 |
) |
|
|
(2,669 |
) |
|
|
(0.05 |
) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted net earnings from continuing operations |
$ |
92,889 |
|
|
$ |
2.07 |
|
|
$ |
88,073 |
|
|
$ |
1.74 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of shares |
|
44,900 |
|
|
|
|
|
50,908 |
|
|
|
||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(3) |
|
— |
|
|
|
|
|
(334 |
) |
|
|
||||
Adjusted diluted weighted average number of shares |
|
44,900 |
|
|
|
|
|
50,574 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended |
||||||||||||||
|
3rd Qtr, 2026 |
|
3rd Qtr, 2025 |
||||||||||||
|
$ |
|
Diluted
|
|
$ |
|
Diluted
|
||||||||
Net earnings from continuing operations |
$ |
132,195 |
|
|
$ |
2.88 |
|
|
$ |
211,700 |
|
|
$ |
4.00 |
|
Amortization(1) |
|
34,342 |
|
|
|
0.75 |
|
|
|
38,543 |
|
|
|
0.73 |
|
Restructuring expenses |
|
4,179 |
|
|
|
0.09 |
|
|
|
2,232 |
|
|
|
0.04 |
|
Acquisition related adjustments |
|
(2,755 |
) |
|
|
(0.06 |
) |
|
|
207 |
|
|
|
— |
|
Facility consolidation related expenses |
|
3,624 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
Net periodic pension benefit |
|
(7,306 |
) |
|
|
(0.16 |
) |
|
|
(4,714 |
) |
|
|
(0.09 |
) |
Strategic transaction costs |
|
2,741 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
Change in fair value of note receivable |
|
(1,673 |
) |
|
|
(0.04 |
) |
|
|
— |
|
|
|
— |
|
Equity in losses of affiliate, net |
|
67,559 |
|
|
|
1.47 |
|
|
|
— |
|
|
|
— |
|
Brewing closure-related charges(2) |
|
25,946 |
|
|
|
0.57 |
|
|
|
— |
|
|
|
— |
|
Income tax effect of pre-tax adjustments |
|
(13,541 |
) |
|
|
(0.29 |
) |
|
|
(8,378 |
) |
|
|
(0.16 |
) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
Adjusted net earnings from continuing operations |
$ |
245,311 |
|
|
$ |
5.35 |
|
|
$ |
239,590 |
|
|
$ |
4.58 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of shares |
|
45,829 |
|
|
|
|
|
52,895 |
|
|
|
||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(3) |
|
— |
|
|
|
|
|
(624 |
) |
|
|
||||
Adjusted diluted weighted average number of shares |
|
45,829 |
|
|
|
|
|
52,271 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(1) Includes amortization of deferred financing costs and convertible notes issuance costs. |
|||||||||||||||
(2) Brewing closure-related charges for the three and nine months ended October 3, 2026 included |
|||||||||||||||
(3) 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 |
|
Nine Months Ended |
||||||||||||
|
3rd Qtr, 2026 |
|
3rd Qtr, 2025 |
|
3rd Qtr, 2026 |
|
3rd Qtr, 2025 |
||||||||
Net Cash Flows Provided By (Used In): |
|
|
|
|
|
|
|
||||||||
Operating activities |
$ |
122,597 |
|
|
$ |
140,955 |
|
|
$ |
258,291 |
|
|
$ |
298,748 |
|
Investing activities(1) |
|
(5,801 |
) |
|
|
(7,241 |
) |
|
|
546,209 |
|
|
|
(27,196 |
) |
Financing activities |
|
(80,823 |
) |
|
|
(457,932 |
) |
|
|
(854,053 |
) |
|
|
(853,848 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|
|
|
|
|
|
|
||||||||
Cash flow from operating activities |
$ |
122,597 |
|
|
$ |
140,955 |
|
|
$ |
258,291 |
|
|
$ |
298,748 |
|
Less: Capital expenditures |
|
(5,801 |
) |
|
|
(7,283 |
) |
|
|
(18,366 |
) |
|
|
(22,624 |
) |
Free cash flow |
$ |
116,796 |
|
|
$ |
133,672 |
|
|
$ |
239,925 |
|
|
$ |
276,124 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes proceeds from sale of |
|||||||||||||||
|
Oct 3, 2026 |
|
Jan 3, 2026 |
||||
Current maturities of long-term debt |
$ |
40,320 |
|
|
$ |
40,431 |
|
Long-term debt |
|
1,708,352 |
|
|
|
2,101,075 |
|
Total debt |
|
1,748,672 |
|
|
|
2,141,506 |
|
Less: Cash and cash equivalents |
|
(104,327 |
) |
|
|
(131,657 |
) |
Net debt |
$ |
1,644,345 |
|
|
$ |
2,009,849 |
|
|
|
|
|
||||
LTM Adjusted EBITDA |
|
579,737 |
|
|
|
||
Net Leverage Ratio |
2.8x |
|
|
||||
|
Three Months
|
||
Net sales |
$ |
652,575 |
|
Less: Brewing businesses |
|
(5,392 |
) |
Net sales excluding Brewing businesses |
$ |
647,183 |
|
|
|
||
Income from continuing operations |
$ |
98,726 |
|
Less: Brewing businesses |
|
27,705 |
|
Income from continuing operations excluding Brewing businesses |
$ |
126,431 |
|
Depreciation |
|
7,895 |
|
Amortization |
|
10,954 |
|
Restructuring expenses |
|
2,012 |
|
Acquisition related adjustments |
|
(996 |
) |
Facility consolidation related expenses |
|
2,796 |
|
Strategic transaction costs |
|
2,331 |
|
Stock compensation |
|
5,755 |
|
Adjusted EBITDA from continuing operations excluding Brewing businesses |
$ |
157,178 |
|
|
|
||
Adjusted EBITDA from continuing operations as % of net sales excluding Brewing businesses |
|
24.3 |
% |
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s) (Unaudited) |
||||||
|
||||||
|
1st Qtr, 2026 |
|
2nd Qtr,
|
|||
Net sales |
$ |
615,536 |
|
$ |
630,613 |
|
|
|
|
|
|||
Income from continuing operations |
$ |
110,669 |
|
$ |
120,341 |
|
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 |
|
Strategic transaction costs |
|
— |
|
|
410 |
|
Stock compensation |
|
8,531 |
|
|
6,004 |
|
Adjusted EBITDA from continuing operations |
$ |
139,392 |
|
$ |
144,618 |
|
|
1st Qtr, 2025 |
|
2nd Qtr,
|
|
3rd Qtr,
|
|
4th Qtr,
|
|
Full Year
|
|||||||||
Net sales |
$ |
562,717 |
|
|
$ |
580,605 |
|
$ |
606,001 |
|
|
$ |
601,724 |
|
|
$ |
2,351,047 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from continuing operations |
$ |
108,063 |
|
|
$ |
115,010 |
|
$ |
123,791 |
|
|
$ |
108,374 |
|
|
$ |
455,238 |
|
Depreciation |
|
7,455 |
|
|
|
7,609 |
|
|
7,646 |
|
|
|
8,277 |
|
|
|
30,987 |
|
Amortization |
|
11,294 |
|
|
|
10,952 |
|
|
10,657 |
|
|
|
10,654 |
|
|
|
43,557 |
|
Restructuring expenses |
|
1,137 |
|
|
|
746 |
|
|
349 |
|
|
|
519 |
|
|
|
2,751 |
|
Acquisition related adjustments |
|
(237 |
) |
|
|
162 |
|
|
282 |
|
|
|
(1,877 |
) |
|
|
(1,670 |
) |
Stock compensation |
|
2,001 |
|
|
|
4,661 |
|
|
(494 |
) |
|
|
4,698 |
|
|
|
10,866 |
|
Impairments |
|
— |
|
|
|
— |
|
|
— |
|
|
|
9,298 |
|
|
|
9,298 |
|
Adjusted EBITDA from continuing operations |
$ |
129,713 |
|
|
$ |
139,140 |
|
$ |
142,231 |
|
|
$ |
139,943 |
|
|
$ |
551,027 |
|
|
1st Qtr, 2026 |
|
2nd Qtr, 2026 |
||||||||||||
|
$ |
|
Diluted per
|
|
$ |
|
Diluted per
|
||||||||
Net earnings from continuing operations |
$ |
67,807 |
|
|
$ |
1.44 |
|
|
$ |
45,020 |
|
|
$ |
0.99 |
|
Amortization(1) |
|
11,247 |
|
|
|
0.24 |
|
|
|
11,183 |
|
|
|
0.25 |
|
Restructuring expenses |
|
1,596 |
|
|
|
0.03 |
|
|
|
571 |
|
|
|
0.01 |
|
Acquisition related adjustments |
|
178 |
|
|
|
— |
|
|
|
(1,937 |
) |
|
|
(0.04 |
) |
Facility consolidation related expenses |
|
— |
|
|
|
— |
|
|
|
828 |
|
|
|
0.02 |
|
Strategic transaction costs |
|
— |
|
|
|
— |
|
|
|
410 |
|
|
|
0.01 |
|
Net periodic pension benefit |
|
(2,429 |
) |
|
|
(0.05 |
) |
|
|
(2,428 |
) |
|
|
(0.05 |
) |
Change in fair value of note receivable |
|
(1,806 |
) |
|
|
(0.04 |
) |
|
|
(2,693 |
) |
|
|
(0.06 |
) |
Equity in losses of affiliate, net |
|
— |
|
|
|
— |
|
|
|
28,895 |
|
|
|
0.64 |
|
Income tax effect of pre-tax adjustments |
|
(2,578 |
) |
|
|
(0.05 |
) |
|
|
(2,041 |
) |
|
|
(0.05 |
) |
Adjusted net earnings from continuing operations |
$ |
74,015 |
|
|
$ |
1.57 |
|
|
$ |
77,808 |
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of shares |
|
47,243 |
|
|
|
|
|
45,343 |
|
|
|
||||
Adjusted diluted weighted average number of shares |
|
47,243 |
|
|
|
|
|
45,343 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(1) Includes amortization of deferred financing costs and convertible notes issuance costs. |
|||||||||||||||
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s, Except Per Share Information) (Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
1st Qtr, 2025 |
|
2nd Qtr, 2025 |
||||||||||||
|
$ |
|
Diluted per
|
|
$ |
|
Diluted per
|
||||||||
Net earnings from continuing operations |
$ |
69,143 |
|
|
$ |
1.27 |
|
|
$ |
63,573 |
|
|
$ |
1.20 |
|
Amortization(1) |
|
13,091 |
|
|
|
0.24 |
|
|
|
12,728 |
|
|
|
0.24 |
|
Restructuring expenses |
|
1,137 |
|
|
|
0.02 |
|
|
|
746 |
|
|
|
0.01 |
|
Acquisition related adjustments |
|
(237 |
) |
|
|
— |
|
|
|
162 |
|
|
|
— |
|
Net periodic pension benefit |
|
(1,516 |
) |
|
|
(0.03 |
) |
|
|
(1,601 |
) |
|
|
(0.03 |
) |
Income tax effect of pre-tax adjustments |
|
(2,831 |
) |
|
|
(0.05 |
) |
|
|
(2,900 |
) |
|
|
(0.05 |
) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.01 |
|
Adjusted net earnings from continuing operations |
$ |
78,787 |
|
|
$ |
1.47 |
|
|
$ |
72,708 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of shares |
|
54,621 |
|
|
|
|
|
53,154 |
|
|
|
||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
|
(1,028 |
) |
|
|
|
|
(511 |
) |
|
|
||||
Adjusted diluted weighted average number of shares |
|
53,593 |
|
|
|
|
|
52,643 |
|
|
|
||||
|
3rd Qtr, 2025 |
|
4th Qtr, 2025 |
||||||||||||
|
$ |
|
Diluted per
|
|
$ |
|
Diluted per
|
||||||||
Net earnings from continuing operations |
$ |
78,984 |
|
|
$ |
1.56 |
|
|
$ |
62,202 |
|
|
$ |
1.24 |
|
Amortization(1) |
|
12,724 |
|
|
|
0.25 |
|
|
|
11,323 |
|
|
|
0.23 |
|
Restructuring expenses |
|
349 |
|
|
|
0.01 |
|
|
|
519 |
|
|
|
0.01 |
|
Acquisition related adjustments |
|
282 |
|
|
|
0.01 |
|
|
|
(1,877 |
) |
|
|
(0.04 |
) |
Net periodic pension benefit |
|
(1,597 |
) |
|
|
(0.03 |
) |
|
|
(1,580 |
) |
|
|
(0.03 |
) |
Impairments |
|
— |
|
|
|
— |
|
|
|
9,298 |
|
|
|
0.19 |
|
Income tax effect of pre-tax adjustments |
|
(2,669 |
) |
|
|
(0.05 |
) |
|
|
(3,819 |
) |
|
|
(0.08 |
) |
Adjusted net earnings from continuing operations |
$ |
88,073 |
|
|
$ |
1.74 |
|
|
$ |
76,066 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average number of shares |
|
50,908 |
|
|
|
|
|
50,032 |
|
|
|
||||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
|
(334 |
) |
|
|
|
|
— |
|
|
|
||||
Adjusted diluted weighted average number of shares |
|
50,574 |
|
|
|
|
|
50,032 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(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. |
|||||||||||||||
THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (Amounts in 000’s, Except Per Share Information) (Unaudited) |
|||||||
|
|||||||
|
Full Year 2025 |
||||||
|
$ |
|
Diluted per
|
||||
Net earnings from continuing operations |
$ |
273,902 |
|
|
$ |
5.25 |
|
Amortization(1) |
|
49,866 |
|
|
|
0.96 |
|
Restructuring expenses |
|
2,751 |
|
|
|
0.05 |
|
Acquisition related adjustments |
|
(1,670 |
) |
|
|
(0.03 |
) |
Net periodic pension benefit |
|
(6,294 |
) |
|
|
(0.12 |
) |
Impairments |
|
9,298 |
|
|
|
0.18 |
|
Income tax effect of pre-tax adjustments |
|
(12,289 |
) |
|
|
(0.24 |
) |
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
|
— |
|
|
|
0.05 |
|
Adjusted net earnings from continuing operations |
$ |
315,564 |
|
|
$ |
6.10 |
|
|
|
|
|
||||
Diluted weighted average number of shares |
|
52,179 |
|
|
|
||
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings(2) |
|
(468 |
) |
|
|
||
Adjusted diluted weighted average number of shares |
|
51,711 |
|
|
|
||
|
|
|
|
||||
(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. |
|||||||
USE OF NON-GAAP FINANCIAL MEASURES
The company supplements its consolidated financial statements presented on a GAAP basis with this non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. Reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not available because the timing and magnitude of certain items cannot be reasonably estimated at this time without unreasonable effort.
The company believes that organic net sales growth, adjusted EBITDA, organic adjusted EBITDA, net debt, net leverage, adjusted net earnings and adjusted diluted per share measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The company also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in its opinion, do not reflect its core operating performance including, for example, intangibles amortization expense, impairment charges, restructuring expenses, and other charges which management considers to be outside core operating results.
The company believes that free cash flow is an important measure of operating performance because it provides management and investors with a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt and repurchasing our common stock.
The company believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Middleby uses internally for purposes of assessing its core operating performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261105839817/en/
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
Source: The Middleby Corporation