McCormick & Co. Inc (Non Voting)
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.82%.
Did MKC Beat Earnings? Q2 2025 Results
McCormick & Company served up a solid second quarter for fiscal 2025, posting adjusted earnings per share of $0.69 that beat the $0.65 consensus estimate by 5.70%, even as revenue of $1.66 billion came in essentially in line with expectations, edging just 0.11% below forecasts while still notching 1.0% year-over-year growth. The key driver behind the earnings beat was a 10% surge in adjusted operating income to $258.60 million, fueled by lower SG&A expenses tied to a timing shift in stock-based compensation and ongoing savings from the company's CCI cost program. The Consumer segment led the way, with net sales climbing 3% to $931.00 million on volume and product mix gains, a result consistent with reports of consumers increasingly cooking at home and trading up to larger seasoning sizes. McCormick reaffirmed its full-year fiscal 2025 guidance, targeting adjusted EPS of $3.03 to $3.08 and adjusted operating income growth of 3% to 5%, with management expressing confidence in its ability to offset tariff-related headwinds through sourcing analytics and revenue growth management.
- Volume-driven organic sales growth of 2% in Q2
- Consumer segment organic sales growth of 3% driven by volume and product mix with share gains across core categories
- CCI program cost savings driving SG&A reductions and operating margin expansion
- Timing shift of stock-based compensation from Q2 into Q1 reduced SG&A in the quarter
- Adjusted operating income grew 10% (11% constant currency)
“We are pleased with our strong results for the first half of the year, as we are managing in a dynamic environment. Our continued volume-driven performance and share gains across core categories reflect the success of our prioritized investments in the areas that are driving the greatest value and will sustain our momentum for the remainder of 2025 and beyond.”
McCormick CEO, on the earnings call
Forward Guidance & Outlook
McCormick reaffirmed its fiscal 2025 outlook: reported net sales growth of 0% to 2% (1% to 3% constant currency/organic), adjusted operating income growth of 3% to 5% (4% to 6% constant currency), GAAP EPS of $2.98 to $3.03, and adjusted EPS of $3.03 to $3.08 (3% to 5% reported growth, 5% to 7% constant currency). The outlook reflects plans to offset tariff-related costs currently in place (10% on all U.S. imports plus incremental 30% on Chinese goods) through sourcing plans supported by advanced analytics, cost savings initiatives, and revenue growth management. Most U.S. imports from Mexico and Canada are USMCA-compliant. The outlook does not factor in potential new tariffs. Foreign currency is expected to unfavorably impact net sales by 1%, adjusted operating income by 1%, and adjusted EPS by 2%. The company expects a tax rate of 22%-23% versus 20.5% in 2024, and a high-single-digit year-over-year decline in income from unconsolidated operations. Special charges are expected to impact EPS by $0.05 in 2025. 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.
MKC YoY Financials
MKC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.