McCormick & Co. Inc (Non Voting)
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.18%.
Did MKC Beat Earnings? Q3 2025 Results
McCormick posted a solid beat across both top and bottom lines in Q3 2025, delivering adjusted diluted EPS of $0.85 against a consensus estimate of $0.82, a 4.15% positive surprise, while revenue of $1.72 billion edged past the $1.71 billion estimate and grew 2.7% year over year. The standout driver was the Consumer segment, which expanded 3.8% to $973 million on volume gains and expanded distribution, even as gross margin contracted 130 basis points to 37.4% under pressure from higher commodity costs and tariffs. Effective SG&A management helped adjusted operating income grow 1.8% to $293.60 million, partially cushioning the margin headwind. Looking ahead, McCormick reaffirmed its fiscal 2025 net sales growth outlook of 0% to 2%, but trimmed its adjusted EPS guidance to $3.00 to $3.05 from $3.03 to $3.08, reflecting escalating tariff and commodity cost pressures. With shares down roughly 12% year to date, investors are weighing the company's durable brand momentum against a more cautious profitability outlook.
- Fifth consecutive quarter of volume-led growth
- Continued investments in brands, expanded distribution, and innovation
- CCI program cost savings offsetting gross margin pressure
- Lower SG&A expenses driven by reduced employee-related benefit costs and CCI streamlining
- Consumer segment organic sales growth of 2.6% driven by volume and product mix
- 1% favorable currency impact on net sales
“Our third quarter results marked our fifth consecutive quarter of volume-led growth, reflecting our differentiation and the benefit of continued investments in our brands, expanded distribution, and innovation. As a result of the dynamic global trade environment, our gross margin was further pressured by rising costs; however, we continued to drive operating profit growth through the effective execution of our cost savings initiatives. We remain disciplined on actions within our control and agile in adapting to external dynamics, positioning McCormick for sustained long-term growth.”
McCormick CEO, on the earnings call
Forward Guidance & Outlook
McCormick reaffirmed its fiscal 2025 net sales growth outlook of 0% to 2% as reported (1% to 3% organic/constant currency), with volume-led total growth and gradual improvement expected in China Consumer. However, the company lowered its profitability guidance to reflect rising commodity costs and incremental tariffs currently in place. Adjusted operating income growth is now expected at 2% to 4% (previously 3% to 5%), and adjusted EPS is guided to $3.00–$3.05 (previously $3.03–$3.08). GAAP EPS is expected at $2.95–$3.00. Special charges of approximately $20 million are anticipated, impacting EPS by $0.05. The company expects foreign currency to unfavorably impact net sales by 1%, adjusted operating income by 1%, and adjusted EPS by 2%. The tax rate is projected at approximately 22%. Income from unconsolidated operations is expected to decline at a high-single digit rate year-over-year due to U.S. dollar strengthening versus the Mexican peso. The outlook is based on tariffs in place as of August 1, 2025 and does not factor in potential new or retaliatory tariffs.
MKC YoY Financials
MKC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.