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Middleby's Q3 Earnings and Sales Beat Estimates, Increase Y/Y
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Key Takeaways
Middleby's Q3 EPS of $2.37 topped estimates and rose 3% despite lower organic sales.
Net sales grew 4.2% to $982M, driven by acquisitions and favorable currency impacts.
MIDD expects Q4 sales of up to $1.02B and 2025 EPS as high as $9.14, signaling steady growth.
The Middleby Corporation (MIDD - Free Report) reported third-quarter 2025 adjusted earnings of $2.37 per share, which beat the Zacks Consensus Estimate of $2.03. The bottom line increased 3% year over year due to lower sales.
Net sales of $982 million beat the consensus estimate of $957 million. The top line increased 4.2% year over year. Organic sales decreased 0.1%. Acquired assets increased sales by 3.3%, while movements in foreign currencies had a positive impact of 1%.
MIDD’s Segmental Results
Sales from the Commercial Foodservice Equipment Group segment (representing 61.7% of net sales) were $606 million, up 2.4% year over year. Our estimate was $589.9 million. Organic sales increased 1.6%. Buyouts had a positive impact of 0.3% on sales, while foreign-currency translation had a positive impact of 0.5%.
Sales from the Residential Kitchen Equipment Group segment (17.8) totaled $174.8 million, up 0.9% year over year. Our estimate was $172.7 million. Organic sales decreased 0.6%. Foreign-currency translation had a favorable impact of 1.5%.
Sales from the Food Processing Equipment Group segment (20.5%) totaled $201.3 million, up 13.2% year over year. We expected the metric to be $195.0 million. Organic sales decreased 5.6% year over year. Acquisitions boosted sales by 3.3%, while foreign currency movements had a favorable impact of 1%.
The Middleby Corporation Price, Consensus and EPS Surprise
Middleby’s cost of sales increased 5.7% year over year to $620.8 million. Gross profit inched up 1.7% to $361.3 million. The gross margin was 36.8%, down 90 basis points (bps) from the year-ago quarter.
Selling, general and administrative expenses increased 13.6% year over year to $203.6 million. Operating income decreased 10.7% year over year to $154.9 million. Operating margin decreased 260 bps to 18.4%.
Adjusted EBITDA decreased 7.8% year over year to $196.4 million. Adjusted EBITDA margin decreased 260 bps to 20.0%.
MIDD’s Balance Sheet and Cash Flow
Exiting the third quarter, Middleby had cash and cash equivalents of $175.1 million compared with $689.5 million at the end of December 2024. Long-term debt was $2.03 billion at the end of the third quarter compared with $2.35 billion at 2024-end.
In the first nine months of 2025, Middleby generated net cash of $439.5 million from operating activities compared with $447.1 million in the year-ago period.
In the first nine months, its capital expenditure totaled $74.9 million compared with $36.2 million in the year-ago period. Free cash flow was $364.6 million compared with $410.9 million in the year-ago period.
Middleby’s Q4 Outlook
For the fourth quarter, the company expects total sales to be in the range of $990 million-$1.02 billion. It expects sales from the Commercial Foodservice segment to be in the band of $570-$580 million, while sales from the Residential Kitchen segment are anticipated to be $180-$190 million. Sales from the Food Processing are projected to be about $240-$250 million.
While adjusted EBITDA is projected to be $200-210 million, adjusted earnings are anticipated to be in the band of $2.19-2.34 per share.
2025 Outlook
For 2025, Middleby expects total sales to be in the range of $3.85-3.89 billion. While adjusted EBITDA is forecasted to be $779-789 million, adjusted earnings are likely to be $8.99-9.14 per share.
MIDD’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.
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Middleby's Q3 Earnings and Sales Beat Estimates, Increase Y/Y
Key Takeaways
The Middleby Corporation (MIDD - Free Report) reported third-quarter 2025 adjusted earnings of $2.37 per share, which beat the Zacks Consensus Estimate of $2.03. The bottom line increased 3% year over year due to lower sales.
Net sales of $982 million beat the consensus estimate of $957 million. The top line increased 4.2% year over year. Organic sales decreased 0.1%. Acquired assets increased sales by 3.3%, while movements in foreign currencies had a positive impact of 1%.
MIDD’s Segmental Results
Sales from the Commercial Foodservice Equipment Group segment (representing 61.7% of net sales) were $606 million, up 2.4% year over year. Our estimate was $589.9 million. Organic sales increased 1.6%. Buyouts had a positive impact of 0.3% on sales, while foreign-currency translation had a positive impact of 0.5%.
Sales from the Residential Kitchen Equipment Group segment (17.8) totaled $174.8 million, up 0.9% year over year. Our estimate was $172.7 million. Organic sales decreased 0.6%. Foreign-currency translation had a favorable impact of 1.5%.
Sales from the Food Processing Equipment Group segment (20.5%) totaled $201.3 million, up 13.2% year over year. We expected the metric to be $195.0 million. Organic sales decreased 5.6% year over year. Acquisitions boosted sales by 3.3%, while foreign currency movements had a favorable impact of 1%.
The Middleby Corporation Price, Consensus and EPS Surprise
The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote
Middleby’s Margin Profile
Middleby’s cost of sales increased 5.7% year over year to $620.8 million. Gross profit inched up 1.7% to $361.3 million. The gross margin was 36.8%, down 90 basis points (bps) from the year-ago quarter.
Selling, general and administrative expenses increased 13.6% year over year to $203.6 million. Operating income decreased 10.7% year over year to $154.9 million. Operating margin decreased 260 bps to 18.4%.
Adjusted EBITDA decreased 7.8% year over year to $196.4 million. Adjusted EBITDA margin decreased 260 bps to 20.0%.
MIDD’s Balance Sheet and Cash Flow
Exiting the third quarter, Middleby had cash and cash equivalents of $175.1 million compared with $689.5 million at the end of December 2024. Long-term debt was $2.03 billion at the end of the third quarter compared with $2.35 billion at 2024-end.
In the first nine months of 2025, Middleby generated net cash of $439.5 million from operating activities compared with $447.1 million in the year-ago period.
In the first nine months, its capital expenditure totaled $74.9 million compared with $36.2 million in the year-ago period. Free cash flow was $364.6 million compared with $410.9 million in the year-ago period.
Middleby’s Q4 Outlook
For the fourth quarter, the company expects total sales to be in the range of $990 million-$1.02 billion. It expects sales from the Commercial Foodservice segment to be in the band of $570-$580 million, while sales from the Residential Kitchen segment are anticipated to be $180-$190 million. Sales from the Food Processing are projected to be about $240-$250 million.
While adjusted EBITDA is projected to be $200-210 million, adjusted earnings are anticipated to be in the band of $2.19-2.34 per share.
2025 Outlook
For 2025, Middleby expects total sales to be in the range of $3.85-3.89 billion. While adjusted EBITDA is forecasted to be $779-789 million, adjusted earnings are likely to be $8.99-9.14 per share.
MIDD’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.