Middleby Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did MIDD Beat Earnings? Q2 2025 Results
Middleby Corporation delivered a modest but meaningful beat in Q2 2025, posting adjusted diluted EPS of $2.35 against a consensus estimate of $2.23, a 5.29% positive surprise, even as the broader topline picture remained challenged. Revenue came in at $977.86 million, edging past estimates by 0.31% but still falling 1.4% year-over-year, with organic sales declining 5.4% as all three business segments faced pressure from cautious customers and an estimated $10 million tariff headwind in the quarter. Operating margins compressed to 15.9% from 17.7% a year ago, underscoring how much the company is leaning on cost discipline and aggressive share buybacks, including $322.70 million repurchased in Q2 alone, to support per-share metrics. The headline story, however, may be structural: management announced plans to spin off the Food Processing segment in the first half of 2026, a move investors greeted warmly. Looking ahead, Middleby guided Q3 revenue to $950 million to $975 million with adjusted EPS of $2.04 to $2.19, and set full-year 2025 revenue guidance at $3.81 billion to $3.87 billion with adjusted EPS of $8.65 to $9.05.
- Organic net sales declined 5.4% due to economic uncertainty in key end markets
- Tariffs adversely impacted Q2 adjusted EBITDA by approximately $10 million
- Food Processing reported revenue growth of 14.4%, driven by 15.4% acquisition contribution
- Foreign exchange rates favorably impacted segment adjusted EBITDA by approximately $2.4 million
- Residential Kitchen organic sales declined 7.8%, the weakest segment organically
- Commercial Foodservice organic sales declined 5.5%
“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.”
Middleby CEO, on the earnings call
Forward Guidance & Outlook
Management initiated Q3 2025 guidance with total revenue of $950-975 million (Commercial Foodservice $580-590M, Residential Kitchen $170-180M, Food Processing $195-205M), adjusted EBITDA of $185-195 million, and adjusted EPS of $2.04-2.19 assuming approximately 50.8 million weighted average shares. Full year 2025 guidance calls for total revenue of $3.81-3.87 billion, adjusted EBITDA of $770-800 million, and adjusted EPS of $8.65-9.05. The full-year EPS assumption incorporates Q3 and Q4 weighted average shares outstanding of 50.8 million and 51.0 million, respectively, reflecting July repurchase activity.
MIDD YoY Financials
MIDD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.