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MIDDLEBY Corp (MIDD)·Q3 2026 Earnings Summary

Executive Summary

  • Q3 2026 earnings materials are not yet available as of Nov 20, 2025; this recap synthesizes Middleby’s latest reported quarter (Q3 2025), prior quarters, and management guidance and commentary to frame trajectory into 2026, alongside Wall Street consensus from S&P Global for forward periods .
  • Q3 2025 delivered net sales of $982.1M, adjusted EBITDA $196.4M, and adjusted EPS $2.37; results exceeded high-end guidance, while a $709.1M non-cash impairment tied to the Residential Kitchen strategic review drove GAAP EPS to $(10.15) .
  • Q4 2025 guidance was raised/narrowed: revenue $990–$1,020M, adj. EBITDA $200–$210M, adj. EPS $2.19–$2.34; FY 2025 revenue raised to $3.85–$3.89B and adj. EPS to $8.99–$9.14, reflecting operational momentum and pricing actions amid tariff headwinds .
  • Management reiterated Food Processing spin timing (target effectiveness May 2026) and ongoing strategic review of Residential Kitchen, while emphasizing share repurchases (3.5M shares YTD; ~$500M) as a key EPS lever .

What Went Well and What Went Wrong

What Went Well

  • Exceeded guidance: “Total revenue of ~$980M… adjusted EBITDA of $196M and adjusted EPS of $2.37, both exceeding the upper end of our guidance” .
  • Commercial Foodservice organic growth returned positive: “We delivered $606M of revenue and a solid EBITDA margin of nearly 27%… would have exceeded 28% if not for tariff impacts” .
  • Strengthening innovation and beverage/ice pipeline: “We are leading in next-generation automation and IoT… growing pipeline of opportunities of our ice and beverage solutions” .

What Went Wrong

  • Tariffs pressured margins and segments: adverse EBITDA impact of ~$12M in Q3; Q4 expected $5–$10M headwind .
  • Residential outdoor sales impacted by tariffs; EBITDA margin “slightly below 10%” and >150 bps drag from tariffs .
  • QSR demand softness and deferred replacement/upgrades constrained Commercial Foodservice growth, with large chains revising down new store pipelines into 2026 .

Financial Results

Quarterly performance vs prior periods and consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)906.6 977.9 982.1
Revenue Consensus Mean ($USD Millions)*939.7974.9961.2
GAAP Diluted EPS ($)1.69 1.99 (10.15)
Adjusted EPS ($)2.08 2.35 2.37
EPS Consensus Mean ($)*1.972.232.07
Adjusted EBITDA ($USD Millions)182.1 200.2 196.4
Adjusted EBITDA Margin (%)20.1% 20.5% 20.0%

Values with asterisks retrieved from S&P Global.

Beats/misses highlights:

  • Q3 2025 Revenue: $982.1M vs $961.2M consensus — bold beat *.
  • Q3 2025 Adjusted EPS: $2.37 vs $2.07 consensus — bold beat *.
  • Q3 2025 GAAP EPS impacted by $709.1M non-cash impairment in Residential Kitchen .

Segment breakdown

SegmentQ3 2024 Net Sales ($M)Q3 2025 Net Sales ($M)Q3 2024 Adj. EBITDA %Q3 2025 Adj. EBITDA %
Commercial Foodservice591.7 606.0 27.6% 26.7%
Residential Kitchen173.2 174.8 12.0% 9.8%
Food Processing177.9 201.4 24.1% 18.7%
Total Company942.8 982.1 22.6% 20.0%

KPIs

KPIQ3 2024Q3 2025
Operating Cash Flow ($M)156.7 176.3
Free Cash Flow ($M)145.2 156.1
Net Leverage (x)—2.3x
Net Debt ($B)—1.9
Shares Repurchased ($M in Q3)—148.6

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueQ4 2025Not provided previously$990–$1,020M New
Commercial Foodservice RevenueQ4 2025Not provided previously$570–$580M New
Residential Kitchen RevenueQ4 2025Not provided previously$180–$190M New
Food Processing RevenueQ4 2025Not provided previously$240–$250M New
Adjusted EBITDAQ4 2025Not provided previously$200–$210M New
Adjusted EPSQ4 2025Not provided previously$2.19–$2.34 New
Total RevenueFY 2025$3.81–$3.87B $3.85–$3.89B Raised
Adjusted EBITDAFY 2025$770–$800M $779–$789M Narrowed
Adjusted EPSFY 2025$8.65–$9.05 $8.99–$9.14 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Tariffs/macroInitial annualized cost impact ~$150–$200M; plan to offset via pricing/operations Q3 EBITDA headwind $10–$15M; Q4 $5–$10M; actions to offset by 2026 Q3 EBITDA headwind ~$12M; still volatile; pricing/ops to offset by 2026 Headwind moderating into 2026
Food Processing spinAnnounced separation plan; capital allocation pivot to buybacks Spin targeted 1H 2026; Investor Day timing shifted to new year SEC audit by Mar 2026; registration; anticipated effectiveness May 2026 On track; increasing detail
Residential strategyIndoor brands momentum; Michigan refrigeration CoE build Outdoor tariffs pressuring; consolidation impacts shipments Strategic review announced; $709M impairment; premium indoor growth; outdoor tariffs headwind Portfolio actions accelerating
Commercial Foodservice demandDealer/general market resilient; QSR softness Sequential growth; pricing and tariffs shaping trend Positive organic growth; QSR traffic headwinds; emerging chains/international opportunity Mix shift; share gains in select channels
IoT/Automation/ControlsMiddleby One Touch, Open Kitchen rollout momentum New products seeding; connected wins; beverage automation pipeline “Leading next-gen automation and IoT”; customers engaging for efficiency Building adoption

Management Commentary

  • “Total revenue of $980 million exceeded the top end of our guidance range… adjusted EBITDA of $196 million and adjusted EPS of $2.37” — Tim Fitzgerald, CEO .
  • “At Commercial Foodservice… EBITDA margin nearly 27%… would have exceeded 28% if not for tariff impacts” — Bryan Mittelman, CFO .
  • “We recorded a non-cash impairment charge of $709 million… This is an accounting-driven valuation adjustment and does not reflect any change in our confidence in the segment's underlying strength” — Tim Fitzgerald .
  • “Tariffs… adverse net impact to EBITDA in Q3 was approximately $12 million… estimate Q4 impact will be $5–$10 million” — Bryan Mittelman .
  • “We expect to complete the spinoff in the first half of 2026… anticipated in May of 2026” — Bryan Mittelman .

Q&A Highlights

  • Strategic review scope and spin readiness: Management affirmed core strength in Commercial Foodservice and spin execution progress, with more details expected ahead of 2026 effectiveness .
  • Commercial Foodservice trajectory: QSR softness persists; dealer/emerging chain/international channels offset; expectation for better QSR trends into 2026 as dayparts and beverage strategies ramp .
  • Tariff mitigation: Pricing, insourcing, supply-chain diversification (e.g., Nogales, Mexico), footprint shifts out of China; full offset expected as 2026 begins .
  • Food Processing margins: Tariffs (~100 bps) and pricing dynamics pressured margins; outlook improving with mix/order conversion; margin trend positive into 2026 .
  • Buybacks & EPS leverage: ~$500M repurchases YTD, ~3.5M shares; management expects EPS growth high-single to low-double digits on normalized conditions aided by buybacks .

Estimates Context

  • Recent quarters vs S&P Global consensus:
MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($M)906.6 977.9 982.1
Revenue Consensus Mean ($M)*939.7974.9961.2
Adjusted EPS Actual ($)2.08 2.35 2.37
Primary EPS Consensus Mean ($)*1.972.232.07

Values with asterisks retrieved from S&P Global.

  • Forward consensus snapshot (entering 2026/2027):
    Q4 2026 Revenue $1,045.7M*, EPS $2.676*, EBITDA $235.9M*; Q1 2027 Revenue $983.2M*, EPS $2.30*; Q2 2027 Revenue $1,044.6M*, EPS $2.81*; Q3 2027 Revenue $1,029.2M*, EPS $2.77*. Values retrieved from S&P Global.

Implications: Street expects continued revenue scale and EPS resilience into late 2026 and 2027, consistent with management’s view that pricing/operational actions offset tariff cost headwinds beginning in 2026 .

Key Takeaways for Investors

  • Q3 2025 operational beat on revenue and adjusted EPS underscores execution amid tariffs; expect pricing/operations to fully neutralize tariff impact by 2026, supporting margin recovery .
  • Food Processing spin remains a 1H 2026 catalyst (anticipated May), with improving orders/backlog into Q4 and 2026 — potential multiple re-rating as standalone entity forms .
  • Residential Kitchen strategic review (with $709M impairment) signals portfolio optimization; premium indoor momentum offsets outdoor tariff exposure; footprint shifts should aid 2026 margins .
  • Commercial Foodservice mix shift toward dealers/emerging chains and beverage/ice solutions positions Middleby for share gains as QSR traffic stabilizes and daypart strategies extend .
  • Aggressive buybacks (~6.4% of equity YTD) create EPS leverage through cycle, complementing normalized GDP-plus growth and product-driven margin expansion .
  • FY 2025 guidance raised for revenue and EPS; near-term Q4 2025 outlook suggests strong finish to the year; watch tariff volatility, interest expense step-up post convertible maturity .
  • Absent Q3 2026 materials today, use Q4 2026 Street consensus as directional anchor; the narrative into 2026 hinges on tariff offset realization, spin execution, and QSR demand normalization *.

Values with asterisks retrieved from S&P Global.