McCORMICK REPORTS STRONG SECOND QUARTER PERFORMANCE AND REAFFIRMS 2026 OUTLOOK
Rhea-AI Summary
McCormick (NYSE:MKC) reported second quarter 2026 net sales up 16.7%, including 2.7% currency benefit and 1.7% organic growth. Gross margin rose 270 bps to 40.2%. Adjusted operating income grew 30.1% to $336 million and adjusted EPS increased to $0.80, while GAAP EPS declined to $0.56 due to special charges.
The company reaffirmed its 2026 outlook, guiding net sales growth of 13–17% and adjusted EPS of $3.05–$3.13. McCormick highlighted accretion from the McCormick de Mexico acquisition and ongoing planning for its proposed combination with Unilever Foods, which is expected to deliver substantial cost synergies and EPS accretion.
AI-generated analysis. Not financial advice.
Positive
- Net sales up 16.7% year-over-year, with 1.7% organic growth
- Gross profit margin expanded 270 bps to 40.2%
- Adjusted operating income increased 30.1% to $336 million
- Adjusted diluted EPS rose 15.9% to $0.80
- Consumer segment net sales grew 23% to $1,143 million
- McCormick de Mexico contributed 12% of quarterly sales increase
- 2026 guidance reaffirmed: net sales growth 13–17%, organic 1–3%
- 2026 adjusted EPS guided to $3.05–$3.13, up 2–5%
- Planned Unilever Foods combination targets ~$600 million annual cost synergies
- Expected mid- to high-teens adjusted EPS accretion in Year 3 post-close
Negative
- GAAP diluted EPS declined 13.8% to $0.56
- Net income attributable to McCormick fell 14.2% to $150.1 million
- Consumer segment organic sales up 1% with 2% volume/mix decline
- Americas Consumer volume/mix decreased 3.6%
- Special charges reduced EPS by $0.24 in the quarter
- Outlook includes higher tax rate of ~24% vs. 21.5% in 2025
- Guidance reflects higher net interest expense from McCormick de Mexico deal
- Increased costs from inflation and Middle East conflict expected to offset tariff refund benefit
Key Figures
Peers on Argus
MKC was modestly higher ahead of this release, while major packaged food peers showed mixed but mostly positive moves. With no peers flagged in the momentum scanner, the setup appears more company-specific than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jun 23 | Dividend declaration | Positive | +0.5% | Announced $0.48 quarterly dividend, extending 102-year dividend payment record. |
| Jun 05 | ESG / sustainability | Positive | +1.3% | Released 2025 Purpose-led Performance Report highlighting completed sustainability and PLP commitments. |
| Jun 01 | Earnings date set | Neutral | -1.7% | Scheduled June 25, 2026 call to discuss second quarter 2026 financial results. |
| May 26 | Board appointment | Positive | +1.6% | Added tech-focused director Cindy Hoots, expanding board to 12 with 11 independent. |
| May 18 | Conference participation | Neutral | +0.8% | Announced participation in Deutsche Bank dbAccess Global Consumer Conference on June 2, 2026. |
Recent MKC headlines have generally produced modestly positive stock reactions, with only one recent event showing a negative divergence.
Regulatory & Risk Context
Short interest sits at a moderate level, suggesting some potential for volatility and short-covering dynamics but not an extreme squeeze setup based on current positioning.
An effective S-3ASR shelf from February 2026 allows McCormick to issue common, non-voting common, or debt securities in one or more future offerings, giving flexibility for financing that could include equity dilution.
Market Pulse Summary
This announcement highlights robust Q2 execution, with net sales up 16.7% and gross margin expanding 270 bps, while reaffirming 2026 guidance and detailing the Unilever Foods combination. Investors may watch acquisition integration and any future securities issuance under the S-3 shelf.
Key Terms
organic sales growth financial
adjusted operating income financial
non-gaap financial measures financial
ieepa tariff regulatory
AI-generated analysis. Not financial advice.
- Net Sales increased
16.7% in the second quarter and included a2.7% favorable impact from currency. Organic sales growth was1.7% . - Operating income was
$276 million $246 million $336 million $259 million - Earnings per share was
$0.56 $0.65 $0.80 $0.69 - For fiscal year 2026, McCormick reaffirmed its sales growth, adjusted operating income and adjusted earnings per share outlook.
- McCormick is making strong progress on integration planning for the proposed Unilever Foods combination and remains confident in delivering the expected strategic and financial benefits, including significant earnings per share accretion.
Chairman, President, and CEO's Remarks
Brendan M. Foley, Chairman, President, and CEO, stated, "Second quarter results demonstrate the continued strength and resilience of our business in a dynamic operating environment. Total organic growth was driven by accelerated momentum in Flavor Solutions, with gains across Flavors and Branded Foodservice customers, highlighting the benefits of our diversified flavor focused portfolio. We also effectively managed elevated inflation and incremental costs related to the
"We are also advancing integration planning for the proposed combination with Unilever Foods. This transformative combination accelerates our growth strategy and reinforces our continued focus on flavor. It creates a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them. Our teams are working with focus and discipline to ensure we are well positioned to realize the anticipated strategic and financial benefits after the close.
"Looking ahead to the rest of the year, we expect to sustain the momentum in Flavor Solutions and increase reinvestment to improve Consumer volume trends and organic sales. Our enhanced margin profile and operational rigor position us well to deliver a virtuous cycle of growth through continued investment in our brands, capabilities, and innovation that drive long-term value creation. Our fundamentals remain strong, supported by our advantaged categories and disciplined execution, giving us confidence in our ability to deliver on our 2026 outlook."
"Finally, I want to recognize the dedication of our employees. Their continued commitment to serving consumers, customers, and one another reflects the strength of our Power of People culture and supports our sustained performance. I appreciate our teams' focus and collaboration across the business as they advance our priorities, including the ongoing integration planning for the proposed combination with Unilever Foods. Our strong culture will remain our foundation, as we build a future-ready organization to drive our long-term growth."
Second Quarter 2026 Results
Sales Metrics
Second Quarter 2026 | |||||||||
As Reported | Organic(1) | Acquisition | Constant | ||||||
% Change | Volume/ | Price | % Change | % Change | % Change | ||||
Total Net Sales | 16.7 % | (0.5) % | 2.2 % | 1.7 % | 12.3 % | 14.0 % | |||
Total Consumer | 22.8 % | (1.9) % | 2.7 % | 0.8 % | 19.6 % | 20.4 % | |||
28.0 % | (3.6) % | 3.4 % | (0.2) % | 27.9 % | 27.7 % | ||||
EMEA | 10.7 % | 1.9 % | 1.4 % | 3.3 % | — % | 3.3 % | |||
APAC | 10.0 % | 2.4 % | 0.5 % | 2.9 % | — % | 2.9 % | |||
Total Flavor Solutions | 8.9 % | 1.4 % | 1.5 % | 2.9 % | 3.0 % | 5.9 % | |||
10.0 % | 2.1 % | 1.8 % | 3.9 % | 4.2 % | 8.1 % | ||||
EMEA | 5.4 % | (1.2) % | 1.6 % | 0.4 % | — % | 0.4 % | |||
APAC | 7.5 % | 0.8 % | (0.6) % | 0.2 % | — % | 0.2 % | |||
(1) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Profitability Metrics
Second Quarter 2026 | |||||
(in millions except per share data) | As Reported | Adjusted | |||
Q2 2026 | vs. 2025 | Q2 2026 | vs. 2025 | ||
Gross profit | $ 778.2 | 25.0 % | $ 778.2 | 25.0 % | |
Gross profit margin | 40.2 % | 270 bps | 40.2 % | 270 bps | |
Operating income | $ 276.4 | 12.4 % | $ 336.4 | 30.1 % | |
Operating income margin | 14.3 % | (50) bps | 17.4 % | 180 bps | |
Net income attributable to McCormick | $ 150.1 | (14.2) % | $ 215.9 | 16.8 % | |
Earnings per share - diluted | $ 0.56 | (13.8) % | $ 0.80 | 15.9 % | |
Second Quarter 2026 Results
Net sales increased
- Consumer segment net sales increased
23% from the second quarter of 2025 to$1,143 million 20% contribution from McCormick deMexico and a2% favorable impact from currency. Organic sales increased1% , driven by a3% increase from price partially offset by a2% decline in volume and product mix. - Flavor Solutions segment net sales increased
9% from the second quarter of 2025 to$794 million 3% favorable impact from currency and3% contribution from McCormick deMexico . Organic sales increased3% , driven nearly equally by both price and volume and product mix.
Gross profit for the second quarter increased by
The IEEPA tariff refund reduced costs of goods sold by
Operating income was
- Consumer segment operating income, excluding special charges, increased
33% in the second quarter of 2026 compared to the year-ago period to$217 million 31% in constant currency. The increase was driven by higher gross profit, partially offset by increased SG&A expenses including investments in brand marketing and technology. - Flavor Solutions segment operating income, excluding special charges, increased
26% in the second quarter of 2026 compared to the year-ago period to$120 million 22% in constant currency. The increase was driven by higher gross profit, partially offset by increased SG&A expenses including investments in technology.
Earnings per share was
Fiscal Year 2026 Financial Outlook
McCormick's fiscal 2026 outlook continues to reflect the Company's prioritized investments in key categories to sustain its volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies and the conflict in the
Current Guide(1) June 2026 | ||
Reported | Constant | |
Net sales growth | ||
Contribution from acquisition of McCormick de | ||
Organic sales growth(2) | --- | |
Adjusted operating income | ||
Adjusted Earnings per share (EPS) | ||
(1) | Amounts are rounded with percentages calculated from the underlying amounts |
(2) | Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Current Guide - Expectations
Net Sales:
- Sustained total volume growth and increased pricing benefits relative to the prior year.
Adjusted Operating Income:
- Adjusted gross margin is now expected to expand by 100 to 120 basis points from 2025. Favorable impacts from organic sales growth, McCormick de
Mexico accretion, and the Company's CCI program. - The benefit of the IEEPA tariff refund will be offset with increased inflationary costs, including costs related to the
Middle East conflict, as well as continued investments in business growth. - SG&A expenses impacted by cost headwinds including digital transformation and build back of incentive compensation, as well as growth investments. In addition, SG&A is expected to benefit from the Company's CCI program, inclusive of streamlining initiatives.
Adjusted Earnings per Share:
- Adjusted operating income growth partially offset by:
- Tax rate of approximately
24.0% vs.21.5% in 2025. - Higher net interest expense, primarily associated with the McCormick de
Mexico transaction. - Income from unconsolidated operations no longer reflects ownership interest in McCormick de
Mexico subsequent to the January 2026 acquisition. - The acquisition of the additional ownership interest resulted in the consolidation of McCormick de
Mexico's financial results in the Company's financial statements from the date of acquisition. Income attributable to noncontrolling interest reflects elimination of the25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez.
- Tax rate of approximately
The Company expects foreign currency rates to favorably impact net sales by
For fiscal 2026, the Company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
The Company's outlook for 2026 adjusted operating income and adjusted earnings per share are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results. The Company does not provide guidance on a GAAP basis as it cannot predict certain items included in GAAP results such as special charges, including transaction and integration expenses.
McCormick Combination with Unilever Foods
In March 2026, the Company announced the agreement to combine McCormick with Unilever's Foods business, excluding
The combined company is expected to realize approximately
The Company expects to reach several key transaction milestones in the coming months. It expects to announce the location of a secondary listing on a European exchange by the end of July 2026. By the end of September 2026, the Company expects to share further detail on the operating model, cost and growth synergies, and the scope of the Transition Services Agreement (TSA). Lastly, the Company will provide an update on the two parallel workstreams to support separation of financial reports and regulatory filings.
1 Transaction excludes Unilever's food business in |
2 Combined sales figure represents McCormick's net sales for the fiscal year ended November 30, 2025, and Unilever Foods' net sales for the fiscal year ended December 31, 2025. Unilever Foods' financials based on 2025 reported financials, prepared under IFRS adjusted for the separated Foods business and translated from EUR to USD at the Unilever 2025 average rate of 1.124. |
Non-GAAP Financial Measures
The following tables include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared as a complement to our financial results prepared in accordance with
- Special charges - Special charges consist of expenses and income associated with certain actions undertaken by us to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee. Expenses associated with the approved actions are classified as special charges upon recognition and monitored on an ongoing basis through completion. Included in special charges are transaction and integration costs incurred in conjunction with acquisitions.
- Gain on remeasurement of previously held equity interest - On January 2, 2026, we completed the acquisition of an additional
25% ownership interest in McCormick deMexico which increased our ownership to a75% controlling interest. Prior to the acquisition of the additional ownership interest, we accounted for our50% ownership interest as an equity method investment. The acquisition of the additional ownership interest resulted in the consolidation of McCormick deMexico's financial results. As a result of the consolidation, the carrying value of our previously held50% ownership interest was remeasured to fair value resulting in a gain.
We believe that these non-GAAP financial measures are important. The exclusion of the items noted above provides additional information that enables enhanced comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.
These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP; however, they should not be viewed as a substitute for, or superior to, GAAP results. Furthermore, these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, as they may calculate them differently than we do. We intend to continue providing these non-GAAP financial measures as part of our future earnings discussions, ensuring consistency in our financial reporting.
A reconciliation of these non-GAAP financial measures to the related GAAP financial measures follows:
(in millions except per share data) | Three Months Ended | Six Months Ended | |||||
5/31/2026 | 5/31/2025 | 5/31/2026 | 5/31/2025 | ||||
Gross profit | $ 778.2 | $ 622.8 | $ 1,487.1 | $ 1,226.8 | |||
Impact of Special charges included in | — | — | 15.0 | — | |||
Adjusted gross profit | $ 778.2 | $ 622.8 | $ 1,502.1 | $ 1,226.8 | |||
Gross profit margin(1) | 40.2 % | 37.5 % | 39.0 % | 37.6 % | |||
Impact of Special charges(1) | — % | — % | 0.4 % | — % | |||
Adjusted gross profit margin(1) | 40.2 % | 37.5 % | 39.4 % | 37.6 % | |||
Operating income | $ 276.4 | $ 245.8 | $ 503.9 | $ 471.0 | |||
Impact of Special charges | 60.0 | 12.8 | 100.1 | 12.8 | |||
Adjusted operating income | 336.4 | 258.6 | 604.0 | 483.8 | |||
Operating income margin(2) | 14.3 % | 14.8 % | 13.2 % | 14.4 % | |||
Impact of Special charges(2) | 3.1 % | 0.8 % | 2.7 % | 0.4 % | |||
Adjusted operating income margin(2) | 17.4 % | 15.6 % | 15.9 % | 14.8 % | |||
Income tax expense | $ 63.5 | $ 49.3 | $ 112.2 | $ 90.9 | |||
Impact of Special charges | 1.0 | 3.0 | 10.9 | 3.0 | |||
Adjusted income tax expense | $ 64.5 | $ 52.3 | $ 123.1 | $ 93.9 | |||
Income tax rate(3) | 28.8 % | 24.1 % | 27.7 % | 23.2 % | |||
Impact of Special charges | (6.3) % | — % | (3.7) % | — % | |||
Adjusted income tax rate(3) | 22.5 % | 24.1 % | 24.0 % | 23.2 % | |||
Net income attributable to McCormick | $ 150.1 | $ 175.0 | $ 1,166.3 | $ 337.3 | |||
Impact of Special charges, net of non- | 65.8 | 9.8 | 93.3 | 9.8 | |||
Gain on remeasurement of previously | — | — | (866.8) | — | |||
Adjusted net income | $ 215.9 | $ 184.8 | $ 392.8 | $ 347.1 | |||
Earnings per share – diluted | $ 0.56 | $ 0.65 | $ 4.33 | $ 1.25 | |||
Impact of Special charges | 0.24 | 0.04 | 0.35 | 0.04 | |||
Gain on remeasurement of previously | — | — | (3.22) | — | |||
Adjusted earnings per share – diluted | $ 0.80 | $ 0.69 | $ 1.46 | $ 1.29 | |||
(1) | Gross profit margin, impact of special charges, and adjusted gross profit margin are calculated as gross profit, impact of special charges, and adjusted gross profit as a percentage of net sales for each period presented. The impact of special charges included in cost of goods sold represents the step-up of acquired inventory recognized in cost of goods sold as the related inventory was sold. |
(2) | Operating income margin, impact of special charges, and adjusted operating income margin are calculated as operating income, impact of special charges, and adjusted operating income as a percentage of net sales for each period presented. |
(3) | Income tax rate is calculated as income tax expense as a percentage of income from consolidated operations before income taxes. Adjusted income tax rate is calculated as adjusted income tax expense as a percentage of income from consolidated operations before income taxes excluding special charges of |
(4) | The impact of special charges, net of noncontrolling interests, for six months ended May 31, 2026 includes a |
(5) | The impact of special charges, net of noncontrolling interests, for three and six months ended May 31, 2026 includes a net income impact of |
Because we are a multi-national company, we are subject to variability of our reported
We provide organic net sales growth rates for our consolidated net sales and segment net sales. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, and divestitures, as applicable, have on year-to-year comparability. A reconciliation of these measures from reported net sales growth rates, the relevant GAAP measures, are included in the tables set forth below.
Percentage changes in sales and adjusted operating income expressed on a constant currency basis are presented excluding the impact of foreign currency exchange. To present this information for historical periods, current period results for entities reporting in currencies other than the
Rates of constant currency and organic growth (decline) follow:
Three Months Ended May 31, 2026 | |||||
Percentage | Impact of | Percentage | Impact of | Percentage | |
Total Net Sales | 16.7 % | 2.7 % | 14.0 % | 12.3 % | 1.7 % |
Total Consumer | 22.8 % | 2.4 % | 20.4 % | 19.6 % | 0.8 % |
28.0 % | 0.3 % | 27.7 % | 27.9 % | (0.2) % | |
EMEA | 10.7 % | 7.4 % | 3.3 % | — % | 3.3 % |
APAC | 10.0 % | 7.1 % | 2.9 % | — % | 2.9 % |
Total Flavor Solutions | 8.9 % | 3.0 % | 5.9 % | 3.0 % | 2.9 % |
10.0 % | 1.9 % | 8.1 % | 4.2 % | 3.9 % | |
EMEA | 5.4 % | 5.0 % | 0.4 % | — % | 0.4 % |
APAC | 7.5 % | 7.3 % | 0.2 % | — % | 0.2 % |
Six Months Ended May 31, 2026 | |||||
Percentage | Impact of | Percentage | Impact of | Percentage | |
Total Net Sales | 16.7 % | 2.9 % | 13.8 % | 12.4 % | 1.4 % |
Total Consumer | 23.7 % | 2.7 % | 21.0 % | 19.7 % | 1.3 % |
29.1 % | 0.3 % | 28.8 % | 28.4 % | 0.4 % | |
EMEA | 13.1 % | 9.6 % | 3.5 % | — % | 3.5 % |
APAC | 8.0 % | 5.5 % | 2.5 % | — % | 2.5 % |
Total Flavor Solutions | 7.6 % | 3.2 % | 4.4 % | 2.7 % | 1.7 % |
8.1 % | 1.9 % | 6.2 % | 3.8 % | 2.4 % | |
EMEA | 6.3 % | 6.4 % | (0.1) % | — % | (0.1) % |
APAC | 6.3 % | 6.0 % | 0.3 % | — % | 0.3 % |
Three Months Ended May 31, 2026 | ||||||
Percentage change | Impact of foreign | Percentage change on | ||||
Adjusted operating income: | ||||||
Consumer segment | 32.6 % | 1.9 % | 30.7 % | |||
Flavor Solutions segment | 25.8 % | 4.4 % | 21.4 % | |||
Total adjusted operating income | 30.1 % | 2.8 % | 27.3 % | |||
Six Months Ended May 31, 2026 | ||||||
Percentage change | Impact of foreign | Percentage change on | ||||
Adjusted operating income: | ||||||
Consumer segment | 27.8 % | 1.9 % | 25.9 % | |||
Flavor Solutions segment | 19.6 % | 4.5 % | 15.1 % | |||
Total adjusted operating income | 24.8 % | 2.8 % | 22.0 % | |||
To present the percentage change in projected 2026 net sales, adjusted operating income, and adjusted earnings per share (diluted) on a constant currency basis, the projected local currency net sales, adjusted operating income, and adjusted net income for entities reporting in currencies other than the
Projections for the Year Ending | |||||
Percentage change in net sales | |||||
Impact of favorable foreign currency exchange | 1 % | ||||
Percentage change in net sales in constant currency | |||||
Impact of acquisition | |||||
Percentage change in organic net sales | |||||
Percentage change in adjusted operating income | |||||
Impact of favorable foreign currency exchange | 1 % | ||||
Percentage change in adjusted operating income in constant | |||||
Percentage change in adjusted earnings per share - diluted | |||||
Impact of favorable foreign currency exchange | 1 % | ||||
Percentage change in adjusted earnings per share in constant | |||||
Live Webcast
As previously announced, McCormick will hold a conference call with analysts today at 8:00 a.m. ET. A live audio webcast of the call along with the accompanying presentation materials will be available on the McCormick website, ir.mccormick.com.
Forward-Looking Information
Certain information contained in this release, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, including transaction and integration expenses, mergers, acquisitions, brand marketing support, volume and product mix, income tax expense, tariff-related matters, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe," "plan," and similar expressions. These statements may relate to: the anticipated benefits and timing of, and our plans, strategies and objectives relating to, the pending transaction with Unilever Foods, including: due to the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the pending transaction, including changes in relevant tax and other applicable laws; the failure to obtain necessary regulatory approvals, approval of our shareholders, anticipated tax treatment or any required financing, or to satisfy any of the other conditions to the pending transaction; the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies could impact the value or expected benefit of, timing or pursuit of the pending transaction; the risks and costs of the pursuit and/or implementation of the anticipated separation of Unilever Foods business prior to closing, including the anticipated timing required to complete the separation, any adjustment to the terms of the separation and any changes to the configuration of the businesses included in the separation if implemented; the financing of the pending transaction, including with respect to the Bridge Facility, the Term Loan Facility, and any other subsequent financing; the effectiveness of a registration statement on Form S-4 and our receipt of shareholder approval for the pending transaction and certain related matters; the anticipated ownership percentages of McCormick shareholders, Unilever shareholders and Unilever following the closing of the pending transaction; the effect of the announcement or pendency of the pending transaction on Unilever Foods' or McCormick's business relationships, competition, business, financial condition and operating results; the ability of McCormick to successfully integrate Unilever Foods' operations and implement its plans, forecasts and other expectations with respect to Unilever Foods' business or the combined business after the closing of the pending transaction; the ability of McCormick to manage additional debt and successfully de-lever following the transaction; general economic and industry conditions, including consumer spending rates, recessions, interest rates, and availability of capital; expectations regarding sales growth potential in various geographies and markets, including the impact of brand marketing support, product innovation, and customer, channel, category, heat platform, and e-commerce expansion; the expected results of operations of businesses acquired, including the additional
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the Company's ability to drive revenue growth; the Company's ability to increase pricing to offset, or partially offset, inflationary pressures on the cost of our products; damage to the Company's reputation or brand name; loss of brand relevance; increased private label use; the Company's ability to offset cost pressures or business impacts related to trade policies such as tariffs, including relating to tariff refunds; the Company's ability to drive productivity improvements, including those related to our CCI program and other streamlining actions; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crises; issues affecting the Company's supply chain and procurement of raw materials, including fluctuations in the cost and availability of raw and packaging materials; labor shortage, turnover and labor cost increases; the impact of changing political and geopolitical conditions, including the ongoing conflicts between
Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
About McCormick
McCormick & Company, Incorporated is a global leader in flavor. With approximately
Founded in 1889 and headquartered in
To learn more, visit: www.mccormickcorporation.com or follow McCormick & Company on Instagram and LinkedIn.
For information contact:
Investor Relations:
Faten Freiha - faten_freiha@mccormick.com
Global Communications:
Jill Marvin – jill_marvin@mccormick.com
(Financial tables follow)
Second Quarter Report | McCormick & Company, Incorporated | ||||||||||
Consolidated Income Statement (Unaudited) | |||||||||||
(in millions except per share data) | |||||||||||
Three months ended | Six months ended | ||||||||||
May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||
Net sales | $ 1,936.6 | $ 1,659.5 | $ 3,810.5 | $ 3,265.0 | |||||||
Cost of goods sold | 1,158.4 | 1,036.7 | 2,323.4 | 2,038.2 | |||||||
Gross profit | 778.2 | 622.8 | 1,487.1 | 1,226.8 | |||||||
Selling, general and administrative expense | 441.8 | 364.2 | 898.1 | 743.0 | |||||||
Special charges | 60.0 | 12.8 | 85.1 | 12.8 | |||||||
Operating income | 276.4 | 245.8 | 503.9 | 471.0 | |||||||
Interest expense | 62.7 | 51.0 | 110.0 | 99.5 | |||||||
Other income, net | 6.5 | 9.8 | 11.3 | 19.6 | |||||||
Income from consolidated operations before income taxes | 220.2 | 204.6 | 405.2 | 391.1 | |||||||
Income tax expense | 63.5 | 49.3 | 112.2 | 90.9 | |||||||
Net income from consolidated operations | 156.7 | 155.3 | 293.0 | 300.2 | |||||||
Income from unconsolidated operations | 3.5 | 20.7 | 889.5 | 39.2 | |||||||
Net income | 160.2 | 176.0 | 1,182.5 | 339.4 | |||||||
Net income attributable to noncontrolling interests | 10.1 | 1.0 | 16.2 | 2.1 | |||||||
Net income attributable to McCormick & Company | $ 150.1 | $ 175.0 | $ 1,166.3 | $ 337.3 | |||||||
Earnings per share – basic | $ 0.56 | $ 0.65 | $ 4.34 | $ 1.26 | |||||||
Earnings per share – diluted | $ 0.56 | $ 0.65 | $ 4.33 | $ 1.25 | |||||||
Average shares outstanding – basic | 269.2 | 268.6 | 269.0 | 268.5 | |||||||
Average shares outstanding – diluted | 269.2 | 269.4 | 269.3 | 269.5 | |||||||
Cash dividends paid per share – voting and non-voting | $ 0.48 | $ 0.45 | $ 0.96 | $ 0.90 | |||||||
Second Quarter Report | McCormick & Company, Incorporated | |||
Consolidated Balance Sheet (Unaudited) | ||||
(in millions) | ||||
May 31, 2026 | November 30, | |||
ASSETS | ||||
Cash and cash equivalents | $ 331.2 | $ 95.9 | ||
Trade accounts receivable, net of allowances | 709.4 | 628.9 | ||
Inventories, net | 1,408.6 | 1,272.0 | ||
Prepaid expenses and other current assets | 339.6 | 141.3 | ||
Total current assets | 2,788.8 | 2,138.1 | ||
Property, plant and equipment, net | 1,504.2 | 1,448.8 | ||
Goodwill | 6,291.9 | 5,301.3 | ||
Intangible assets, net | 4,937.5 | 3,293.1 | ||
Other long-term assets | 954.7 | 1,019.1 | ||
Total assets | $ 16,477.1 | $ 13,200.4 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Short-term borrowings and current portion of long-term debt | $ 1,336.1 | $ 890.5 | ||
Trade accounts payable | 1,515.1 | 1,259.4 | ||
Other accrued liabilities | 720.6 | 912.3 | ||
Total current liabilities | 3,571.8 | 3,062.2 | ||
Long-term debt | 3,597.4 | 3,105.8 | ||
Deferred taxes | 1,327.0 | 835.8 | ||
Other long-term liabilities | 407.6 | 428.5 | ||
Total liabilities | 8,903.8 | 7,432.3 | ||
Shareholders' equity | ||||
Common stock | 585.1 | 582.4 | ||
Common stock non-voting | 1,729.0 | 1,700.8 | ||
Retained earnings | 4,842.9 | 3,816.4 | ||
Accumulated other comprehensive loss | (161.4) | (363.1) | ||
Total McCormick & Company shareholders' equity | 6,995.6 | 5,736.5 | ||
Non-controlling interests | 577.7 | 31.6 | ||
Total shareholders' equity | 7,573.3 | 5,768.1 | ||
Total liabilities and shareholders' equity | $ 16,477.1 | $ 13,200.4 | ||
Second Quarter Report | McCormick & Company, Incorporated | |||
Consolidated Cash Flow Statement (Unaudited) | ||||
(in millions) | ||||
Six months ended | ||||
May 31, 2026 | May 31, 2025 | |||
Operating activities | ||||
Net income | $ 1,182.5 | $ 339.4 | ||
Adjustments to reconcile net income to net cash flow provided | ||||
Depreciation and amortization | 136.5 | 110.9 | ||
Stock-based compensation | 29.3 | 29.6 | ||
Amortization of inventory fair value adjustments associated | 15.0 | — | ||
Deferred income tax benefit | (11.3) | (12.1) | ||
Income from unconsolidated operations | (22.7) | (39.2) | ||
Gain on remeasurement of previously held equity interest | (866.8) | — | ||
Changes in operating assets and liabilities (net of effect of | ||||
Trade accounts receivable | 129.4 | 23.2 | ||
Inventories | (6.3) | (19.1) | ||
Trade accounts payable | 30.2 | (74.5) | ||
Other assets and liabilities | (199.6) | (219.4) | ||
Dividends from unconsolidated affiliates | 14.5 | 22.6 | ||
Net cash flow provided by operating activities | 430.7 | 161.4 | ||
Investing activities | ||||
Acquisition of business, net of cash acquired | (729.9) | (19.8) | ||
Capital expenditures (including software) | (75.2) | (85.4) | ||
Other investing activities | — | — | ||
Net cash flow used in investing activities | (805.1) | (105.2) | ||
Financing activities | ||||
Short-term borrowings, net | 945.2 | 116.0 | ||
Long-term debt borrowings (net of debt issuance costs of | 497.7 | 0.9 | ||
Debt financing fees paid | (51.0) | — | ||
Long-term debt repayments | (504.4) | (13.6) | ||
Proceeds from exercised stock options | 13.6 | 13.3 | ||
Taxes withheld and paid on employee stock awards | (11.9) | (12.6) | ||
Common stock acquired by purchase | (10.9) | (26.5) | ||
Dividends paid | (257.9) | (241.5) | ||
Dividends paid to joint venture partner | (8.4) | — | ||
Other financing activities | (9.3) | 21.1 | ||
Net cash flow provided by (used in) financing activities | 602.7 | 602.7 | ||
Effect of exchange rate changes on cash and cash equivalents | 7.0 | 24.7 | ||
Increase (decrease) in cash and cash equivalents | 235.3 | (62.0) | ||
Cash and cash equivalents at beginning of period | 95.9 | 186.1 | ||
Cash and cash equivalents at end of period | $ 331.2 | $ 124.1 | ||
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SOURCE McCormick & Company, Incorporated