Latest news with #Middleby
Business Wire
5 days ago
- Business
- Business Wire
The Middleby Corporation Reports Second Quarter Results
ELGIN, Ill.--(BUSINESS WIRE)--The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of equipment for the commercial foodservice, food processing, and residential kitchen industries, today reported net earnings for the second quarter of 2025. Tim FitzGerald, CEO of The Middleby Corporation said, 'Our second quarter results reflect the economic uncertainty our customers continue to navigate in key end markets. Despite these headwinds, I'm proud of our team's continued execution in areas within our control. We're delivering strong operational performance, gaining market share with new product launches, and growing the partnerships with our customers. While these quarterly results reflect our market conditions, they don't appropriately capture the fundamental transformation we've achieved across our business to drive long-term growth, particularly across innovation and go-to-market capabilities. We believe we have created an unmatched platform, and as the market inflects, Middleby is poised for outsized growth as we solve increasingly complex challenges for our growing customer base.' FitzGerald concluded, 'Given our confidence in Middleby's trajectory, earlier this year we chose to allocate the vast majority of our free cash flow toward share repurchases as we do not believe our current market valuation reflects the substantial growth opportunities ahead of us. I am pleased to say we repurchased $323 million in the quarter and expect to continue deploying capital opportunistically. This will create significant leverage in our earnings per share as we execute against our plan.' 2025 Second Quarter Financial Results Net sales decreased 1.4% in the second quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales decreased 5.4% in the second quarter over the comparative prior year period. A reconciliation of organic net sales (a non-GAAP measure) by segment is as follows: Adjusted EBITDA (a non-GAAP measure) was $200.2 million in the second quarter compared to $216.4 million in the prior year. The second quarter Adjusted EBITDA includes an adverse impact of $10 million related to tariffs. A reconciliation of organic adjusted EBITDA (a non-GAAP measure) by segment is as follows: Commercial Foodservice Residential Kitchen Food Processing Total Company Adjusted EBITDA 27.0 % 10.3 % 21.2 % 20.5 % Acquisitions 0.1 % — % — % 0.1 % Foreign Exchange Rates 0.1 % 0.2 % 0.1 % 0.1 % Organic Adjusted EBITDA (1) (2) 26.8 % 10.1 % 21.1 % 20.3 % (1) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of acquisitions and foreign exchange rates. (2) Totals may be impacted by rounding Expand Operating cash flows during the second quarter amounted to $122.0 million in comparison to $149.5 million in the prior year period. During the second quarter the company repurchased $322.7 million of Middleby shares. The total leverage ratio per our credit agreements was 2.3x. The trailing twelve-month bank agreement pro-forma EBITDA was $848.3 million. Net debt, defined as debt excluding the unamortized discount associated with the Convertible Notes less cash, at the end of the 2025 fiscal second quarter amounted to $1.9 billion as compared to $1.7 billion at the end of fiscal 2024. Our borrowing availability at the end of the second quarter was approximately $2.7 billion. 2025 Outlook Management also provided the following expectations for the third quarter of 2025: Total revenue of $950-975 million; Commercial Foodservice revenue of $580-590 million; Residential Kitchen revenue of $170-180 million; Food Processing revenue of $195-205 million; Adjusted EBITDA of $185-195 million; and Adjusted Earnings Per Share of $2.04-2.19 assuming approximately 50.8 million weighted average shares outstanding. Management provided the following expectations for 2025: Total revenue of $3.81-3.87 billion; Adjusted EBITDA of $770-800 million; and Adjusted Earnings Per Share of $8.65-9.05 (1). 1) FY 2025 Adjusted EPS expectation is the sum of the four quarters of Adjusted EPS, with an underlying assumption of Q3 and Q4 QTD shares outstanding of 50.8 million and 51.0 million, respectively, which incorporates July activity. Expand Conference Call The company has scheduled a conference call to discuss the second quarter results at 11 a.m. Eastern/10 a.m. Central Time on August 6th. The conference call is accessible through the Investor Relations section of the company website at If website access is not available, attendees can join the conference by dialing (844) 676-5090, or (412) 634-6754 for international access, and ask to join the Middleby conference call. The conference call will be available for replay from the company's website. 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. 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; 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 the foodservice industry. The company develops and manufactures a broad line of solutions used in commercial foodservice, food processing, and residential kitchens. Supporting the company's pursuit of the most sophisticated innovation, state-of-the-art Middleby Innovation Kitchens and Residential Showrooms showcase and demonstrate the most advanced Middleby solutions. In 2022 Middleby was named a World's Best Employer by Forbes and is a proud philanthropic partner to organizations addressing food insecurity. THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in 000's) (Unaudited) Jun 28, 2025 Dec 28, 2024 ASSETS Cash and cash equivalents $ 511,499 $ 689,533 Accounts receivable, net 665,833 643,355 Inventories, net 888,670 841,567 Prepaid expenses and other 134,168 131,566 Prepaid taxes 59,420 24,022 Total current assets 2,259,590 2,330,043 Property, plant and equipment, net 570,414 525,965 Goodwill 2,592,312 2,518,222 Other intangibles, net 1,614,020 1,611,037 Long-term deferred tax assets 6,768 6,281 Pension benefits assets 104,608 91,207 Other assets 188,171 200,396 Total assets $ 7,335,883 $ 7,283,151 LIABILITIES AND STOCKHOLDERS' EQUITY Current maturities of long-term debt $ 44,010 $ 43,949 Accounts payable 235,746 208,908 Accrued expenses 601,026 576,465 Total current liabilities 880,782 829,322 Long-term debt 2,331,772 2,351,118 Long-term deferred tax liability 303,353 252,062 Accrued pension benefits 9,188 9,573 Other non-current liabilities 188,233 202,645 Stockholders' equity 3,622,555 3,638,431 Total liabilities and stockholders' equity $ 7,335,883 $ 7,283,151 Expand THE MIDDLEBY CORPORATION NON-GAAP SEGMENT INFORMATION (UNAUDITED) (Amounts in 000's, Except Percentages) Commercial Foodservice (3) Residential Kitchen Food Processing (3) Total Company (1) Three Months Ended June 28, 2025 Net sales $ 580,605 $ 181,059 $ 216,195 $ 977,859 Segment Operating Income $ 137,902 $ 9,327 $ 42,677 $ 155,392 Operating Income % of net sales 23.8 % 5.2 % 19.7 % 15.9 % Depreciation 6,911 4,294 3,095 14,998 Amortization 10,952 1,835 2,629 15,416 Restructuring expenses 746 1,601 (59 ) 2,288 Acquisition related adjustments 37 125 (2,496 ) (2,334 ) Facility consolidation related expenses — 1,421 — 1,421 Strategic Transaction Costs — — — 6,788 Stock compensation — — — 6,224 Segment adjusted EBITDA (2) $ 156,548 $ 18,603 $ 45,846 $ 200,193 Adjusted EBITDA % of net sales 27.0 % 10.3 % 21.2 % 20.5 % Three Months Ended June 29, 2024 Net sales $ 609,811 $ 192,763 $ 188,972 $ 991,546 Segment Operating Income $ 149,425 $ 10,132 $ 42,772 $ 175,708 Operating Income % of net sales 24.5 % 5.3 % 22.6 % 17.7 % Depreciation 6,704 3,969 2,478 13,581 Amortization 12,729 1,799 1,760 16,288 Restructuring expenses 2,532 1,953 865 5,350 Acquisition related adjustments 191 (349 ) (2,197 ) (2,187 ) Stock compensation — — — 7,648 Segment adjusted EBITDA $ 171,581 $ 17,504 $ 45,678 $ 216,388 Adjusted EBITDA % of net sales 28.1 % 9.1 % 24.2 % 21.8 % (1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $20.8 million and $18.4 million for the three months ended June 28, 2025 and June 29, 2024, respectively. (2) Foreign exchange rates favorably impacted Segment Adjusted EBITDA by approximately $2.4 million for the three months ended June 28, 2025. (3) Certain prior year amounts have been reclassified to be consistent with current year presentation, including beginning to report the results of a division within its Food Processing segment as a result of a change in internal management and potential synergies in operations to be consistent with the reporting of financial information used to assess performance and allocate resources. These operations were previously reported in the Commercial Foodservice segment and are now managed and reported in the Food Processing segment. All prior period segment disclosures have been recast to reflect this change. Expand THE MIDDLEBY CORPORATION (Amounts in 000's, Except Percentages) Commercial Foodservice Residential Kitchen Food Processing Total Company (1) Six Months Ended June 28, 2025 Net sales $ 1,143,322 $ 357,063 $ 384,101 $ 1,884,486 Segment Operating Income $ 269,976 $ 21,134 $ 66,189 $ 295,990 Operating Income % of net sales 23.6 % 5.9 % 17.2 % 15.7 % Depreciation 13,541 8,304 5,986 29,354 Amortization 22,246 3,619 5,543 31,408 Restructuring expenses 1,883 3,082 52 5,017 Acquisition related adjustments 309 (384 ) (1,858 ) (1,933 ) Facility consolidation related expenses — 3,464 — 3,464 Strategic Transaction Costs — — — 10,261 Stock compensation — — — 8,712 Segment adjusted EBITDA (2) $ 307,955 $ 39,219 $ 75,912 $ 382,273 Adjusted EBITDA % of net sales 26.9 % 11.0 % 19.8 % 20.3 % Six Months Ended June 29, 2024 Net sales $ 1,191,224 $ 366,662 $ 360,586 $ 1,918,472 Segment Operating Income $ 279,537 $ 14,669 $ 76,671 $ 312,841 Operating Income % of net sales 23.5 % 4.0 % 21.3 % 16.3 % Depreciation 13,521 7,774 4,713 26,854 Amortization 26,323 3,601 3,714 33,638 Restructuring expenses 3,448 2,875 2,204 8,527 Acquisition related adjustments 686 (213 ) (1,806 ) (1,157 ) Stock compensation — — — 21,470 Segment adjusted EBITDA $ 323,515 $ 28,706 $ 85,496 $ 402,173 Adjusted EBITDA % of net sales 27.2 % 7.8 % 23.7 % 21.0 % (1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $40.8 million and $35.5 million for the six months ended June 28, 2025 and June 29, 2024, respectively. (2) Foreign exchange rates favorably impacted Segment Adjusted EBITDA by $1.5 million for the six months ended June 28, 2025. (3) Certain prior year amounts have been reclassified to be consistent with current year presentation, including beginning to report the results of a division within its Food Processing segment as a result of a change in internal management and potential synergies in operations to be consistent with the reporting of financial information used to assess performance and allocate resources. These operations were previously reported in the Commercial Foodservice segment and are now managed and reported in the Food Processing segment. All prior period segment disclosures have been recast to reflect this change. Expand THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (UNAUDITED) (Amounts in 000's, Except Percentages) Three Months Ended 2nd Qtr, 2025 2nd Qtr, 2024 $ Diluted per share $ Diluted per share Net earnings $ 105,956 $ 1.99 $ 115,395 $ 2.13 Amortization (1) 17,192 0.32 18,066 0.33 Restructuring expenses 2,288 0.04 5,350 0.10 Acquisition related adjustments (2,334 ) (0.04 ) (2,187 ) (0.04 ) Facility consolidation related expenses 1,421 0.03 — — Net periodic pension benefit (other than service costs & curtailment) (1,580 ) (0.03 ) (3,690 ) (0.07 ) Strategic Transaction Costs 6,788 0.13 — — Income tax effect of pre-tax adjustments (5,825 ) (0.11 ) (4,455 ) (0.08 ) Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) — 0.02 — 0.02 Adjusted net earnings $ 123,906 $ 2.35 $ 128,479 $ 2.39 Diluted weighted average number of shares 53,154 54,072 (2) (511 ) (300 ) Adjusted diluted weighted average number of shares 52,643 53,772 Six Months Ended 2nd Qtr, 2025 2nd Qtr, 2024 $ Diluted per share $ Diluted per share Net earnings $ 198,308 $ 3.68 $ 201,963 $ 3.72 Amortization (1) 34,981 0.65 37,202 0.69 Restructuring expenses 5,017 0.09 8,527 0.16 Acquisition related adjustments (1,933 ) (0.04 ) (1,157 ) (0.02 ) Facility consolidation related expenses 3,464 0.06 — — Net periodic pension benefit (other than service costs & curtailment) (3,077 ) (0.06 ) (7,368 ) (0.14 ) Strategic Transaction Costs 10,261 0.19 — — Income tax effect of pre-tax adjustments (11,935 ) (0.22 ) (9,338 ) (0.17 ) Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) — 0.08 — 0.04 Adjusted net earnings $ 235,086 $ 4.43 $ 229,829 $ 4.28 Diluted weighted average number of shares 53,888 54,233 Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) (769 ) (519 ) Adjusted diluted weighted average number of shares 53,119 53,714 (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. Expand 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. The company believes that organic net sales growth, adjusted EBITDA, non-GAAP adjusted segment 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.
Yahoo
5 days ago
- Business
- Yahoo
Middleby (NASDAQ:MIDD) Exceeds Q2 Expectations
Kitchen product manufacturer Middleby (NYSE:MIDD) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales fell by 1.4% year on year to $977.9 million. On the other hand, next quarter's revenue guidance of $962.5 million was less impressive, coming in 0.8% below analysts' estimates. Its non-GAAP profit of $2.35 per share was 5.3% above analysts' consensus estimates. Is now the time to buy Middleby? Find out in our full research report. Middleby (MIDD) Q2 CY2025 Highlights: Revenue: $977.9 million vs analyst estimates of $972.2 million (1.4% year-on-year decline, 0.6% beat) Adjusted EPS: $2.35 vs analyst estimates of $2.23 (5.3% beat) Adjusted EBITDA: $200.2 million vs analyst estimates of $202.8 million (20.5% margin, 1.3% miss) Revenue Guidance for the full year is $3.84 billion at the midpoint, below analyst estimates of $3.88 billion Adjusted EPS guidance for the full year is $8.85 at the midpoint, missing analyst estimates by 4.4% EBITDA guidance for the full year is $785 million at the midpoint, below analyst estimates of $829.8 million Operating Margin: 15.9%, down from 17.7% in the same quarter last year Free Cash Flow Margin: 10.3%, down from 14% in the same quarter last year Organic Revenue fell 5.4% year on year, in line with the same quarter last year Market Capitalization: $7.74 billion Tim FitzGerald, CEO of The Middleby Corporation said, 'Our second quarter results reflect the economic uncertainty our customers continue to navigate in key end markets. Despite these headwinds, I'm proud of our team's continued execution in areas within our control. We're delivering strong operational performance, gaining market share with new product launches, and growing the partnerships with our customers. While these quarterly results reflect our market conditions, they don't appropriately capture the fundamental transformation we've achieved across our business to drive long-term growth, particularly across innovation and go-to-market capabilities. We believe we have created an unmatched platform, and as the market inflects, Middleby is poised for outsized growth as we solve increasingly complex challenges for our growing customer base.' Company Overview Holding a Guinness World Record for creating the world's fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Middleby grew its sales at a decent 7.6% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Middleby's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.9% over the last two years. Middleby also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Middleby's organic revenue averaged 4.6% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Middleby's revenue fell by 1.4% year on year to $977.9 million but beat Wall Street's estimates by 0.6%. Company management is currently guiding for a 2.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 3% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Middleby has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.5%. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, Middleby's operating margin rose by 1.7 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, Middleby generated an operating margin profit margin of 15.9%, down 1.8 percentage points year on year. Since Middleby's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Middleby's EPS grew at a remarkable 12.1% compounded annual growth rate over the last five years, higher than its 7.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Middleby's earnings can give us a better understanding of its performance. As we mentioned earlier, Middleby's operating margin declined this quarter but expanded by 1.7 percentage points over the last five years. Its share count also shrank by 3.3%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Middleby, its two-year annual EPS growth of 1.2% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Middleby reported adjusted EPS at $2.35, down from $2.39 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 5.3%. Over the next 12 months, Wall Street expects Middleby's full-year EPS of $9.64 to shrink by 1.4%. Key Takeaways from Middleby's Q2 Results It was encouraging to see Middleby beat analysts' EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street's estimates. On the other hand, its full-year EBITDA guidance missed. Overall, this was a weaker quarter. The stock remained flat at $145 immediately after reporting. Big picture, is Middleby a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
7 days ago
- Business
- Yahoo
Earnings To Watch: Middleby (MIDD) Reports Q2 Results Tomorrow
Kitchen product manufacturer Middleby (NYSE:MIDD) will be reporting earnings this Wednesday morning. Here's what investors should know. Middleby missed analysts' revenue expectations by 3.7% last quarter, reporting revenues of $906.6 million, down 2.2% year on year. It was a softer quarter for the company, with a significant miss of analysts' organic revenue estimates and a miss of analysts' EBITDA estimates. Is Middleby a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Middleby's revenue to decline 1.9% year on year to $972.2 million, improving from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.23 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Middleby has missed Wall Street's revenue estimates six times over the last two years. Looking at Middleby's peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lincoln Electric delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 5.1%, and Snap-on reported flat revenue, topping estimates by 2.1%. Lincoln Electric traded up 7.8% following the results while Snap-on was also up 7.4%. Read our full analysis of Lincoln Electric's results here and Snap-on's results here. Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Middleby is down 2.5% during the same time and is heading into earnings with an average analyst price target of $165 (compared to the current share price of $141.81). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
01-08-2025
- Business
- Globe and Mail
Middleby Acquires Frigomeccanica S.p.A
The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of equipment for the commercial foodservice, food processing, and residential kitchen industries, today announced the acquisition of Frigomeccanica S.p.A, expanding its portfolio of Middleby Food Processing equipment innovations. Frigomeccanica is a global leader in equipment solutions for drying, defrosting, fermentation, refrigeration and preservation used in the food processing industry. Based in Parma, Italy, the company has annual revenues of $30 million. The acquisition enhances Middleby offerings of full-line solutions to customers, particularly for the growing protein industry. Frigomeccanica serves categories where Middleby is currently expanding, including dried meats, cured ham and ready-to-eat foods. 'Frigomeccanica brings complementary product expertise and extensive engineering capabilities to our food processing business. Recognized as a technology leader with solutions that offer operational efficiencies, Frigomeccanica advancements allow customers to extend product shelf life and deliver premium food quality to address the growing global demand for protein food sources,' said Tim FitzGerald, Middleby CEO. 'We expect to capitalize on growth opportunities, leveraging the extensive Middleby customer base and our well-established global sales footprint. Our significant Italian and European manufacturing capabilities of complementary brands and products support strong synergies within the group. In addition, the acquisition further strengthens our ability to provide long term shareholder value in the food processing business after the spinoff is completed in 2026.' Visit for more information on the company and their full line processing solutions. ABOUT THE MIDDLEBY CORPORATION The Middleby Corporation is a global leader in the foodservice industry. The company develops and manufactures a broad line of solutions used in commercial foodservice, food processing, and residential kitchens. Middleby showcases its advanced solutions in the Middleby Innovation Kitchens for commercial foodservice, industrial baking and protein Innovation Centers for food processing solutions and state-of-the-art, award-winning Middleby Residential showrooms. For more information about Middleby, please visit
Yahoo
11-07-2025
- Business
- Yahoo
The Top 5 Analyst Questions From Middleby's Q1 Earnings Call
Middleby's first quarter saw a positive market reaction despite revenue coming in below Wall Street's expectations. Management attributed the results to strong cash flow, disciplined cost control, and margin stability, with CEO Timothy FitzGerald emphasizing the company's ability to maintain 'robust cash flows and driven margin performance' even in a challenging market. While food processing experienced revenue declines due to customer-driven delays, the residential segment benefited from growth in outdoor products. Commercial foodservice margins expanded as cost actions and favorable product mix offset muted buying from large chain customers. Is now the time to buy MIDD? Find out in our full research report (it's free). Revenue: $906.6 million vs analyst estimates of $941.7 million (2.2% year-on-year decline, 3.7% miss) Adjusted EPS: $2.08 vs analyst estimates of $1.97 (5.3% beat) Adjusted EBITDA: $182.1 million vs analyst estimates of $185.7 million (20.1% margin, 1.9% miss) Operating Margin: 15.5%, in line with the same quarter last year Organic Revenue fell 3.8% year on year (-8.7% in the same quarter last year) Market Capitalization: $8.03 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Walt Liptak (Seaport) asked about the segment outlook and where the biggest changes in 2025 would occur; CFO Bryan Mittelman highlighted that commercial segment performance will drive the overall results, with muted growth due to macro uncertainty and customer investment delays. Jeff Hammond (KeyBanc) inquired about the rationale behind prioritizing the share buyback program; CEO Timothy FitzGerald detailed that strong cash flow, balance sheet strength, and limited M&A opportunities outside food processing made buybacks the most attractive use of capital. Mircea Dobre (Baird) pressed for detail on the timeline and allocation of tariff costs by segment; Chief Commercial Officer Steve Spittle explained the majority of the impact would hit commercial and residential, with mitigation efforts relying on pricing and operational improvements. Tim Thein (Raymond James) questioned the sustainability of margin improvements from favorable product mix and the geographic distribution of new store openings; Mittelman and Spittle noted positive near-term mix effects and a growing international share of new business, especially in Europe, India, and Brazil. Brian McNamara (Canaccord Genuity) sought specifics on competitive pricing in response to tariffs and updates on Open Kitchen adoption; Spittle said Middleby's planned price increases are below most competitors, and James Pool (CTO) emphasized strong pipeline momentum for Open Kitchen and several new product rollouts. In the quarters ahead, our analysts will monitor (1) Middleby's ability to implement price increases and offset tariff costs without sacrificing customer demand, (2) progress on the food processing spin-off, including leadership appointments and detailed financial disclosures, and (3) adoption rates for new digital kitchen and automation products. Additional attention will be paid to supply chain execution and the evolving competitive landscape in commercial foodservice and residential categories. Middleby currently trades at $150.25, up from $135.38 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
