MIDD

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 10 a.m. ET Chief Executive Officer-Timothy J. FitzGerald Chief Financial Officer-Brittany Cerwin Operator: Good day, and welcome to the Middleby Corporation's Second Quarter 26 Earnings Conference Call. All participants will be in listen only mode. On today's call are Timothy J. FitzGerald, CEO and Brittany Cerwin, CFO. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Timothy J. FitzGerald. Please go ahead. Timothy J. FitzGerald: Good morning, and thank you for joining today's call. Darcy last year, we set out to separate our 3 leading foodservice into independent companies. To best position each business for long-term growth, and to unlock value for all of our shareholders. We completed the first step in Q1 of this year. Selling a controlling stake in the residential kitchen business to 26 North. And on July 6th, we completed the spin off of our food processing business, launching MDF as a separately publicly traded company. MDF now as a stand-alone business is extremely well positioned as a best in class leader in the growing food processing equipment industry. We are confident that business and the MDF team have a very bright future ahead. With that, the transformation is complete. I am proud of how our teams work together and in the execution. Is a significant milestone and achievement in the history of our company. In parallel with our business transformation, we returned $1.3 billion to shareholders through repurchases. Including $200 million in the second quarter reducing our outstanding share count by 16% over the past 6 quarters. We are very pleased with the strategic allocation of capital that we believe has delivered substantial value to our shareholders during a pivotal time. We are now embarking on a new, exciting chapter for Middleby. Middleby now moves forward as a focused solutions provider and as the innovation leader in commercial food service. We are extremely well positioned with our leading brands best in class innovations and momentum in equipment categories that deliver the highest ROI for our customers. The strategic investments we have made in our business are gaining traction, and we are seeing the benefits in our top line. We continue to set the pace in the industry. Bringing next generation solutions that have practical application and meaningful impact to our customers. Our go-to-market strategy that has been underway for the past several years has put us closer to our customers than ever before. And we are viewed as a strategic partner. Our more recent investments in our operations are at early stages but are starting to take hold. And we are confident these initiatives will drive margin expansion and operational excellence over the next several years. Taken together, these investments are what underpin the 3-year targets we have laid out at our Investor Day in May. Net sales organic growth of 3% to 6% adjusted EBITDA growth of 6% to 9%, and adjusted EPS growth of 10% to 15%. We are confident in our ability to deliver against these targets. Turning to our Q2 results for Commercial Foodservice, the quarter reflected strong execution against our strategy as we delivered over 8% organic revenue growth. This marked the second consecutive quarter of organic sales growth in a challenging macro backdrop, a trend we expect to continue in the third and fourth quarters. Also represented the second largest quarter for revenue in the history of Middleby Commercial Foodservice. The growth in the quarter was broad based as we saw strength across channels and customer types, including with our chain customers and also in the general market with our dealer partners. We were pleased also to realize growth across geographies, with increases in both North America and international. We continue to make inroads on the back of our go-to-market investments and new product innovations, and we are seeing the benefits of targeting newer markets including ice and beverage. Where we have an even greater pipeline geared toward next year. The current industry backdrop is not ideal however, Middleby has continued to drive year over year organic revenue growth. Turning to our second half outlook, industry conditions remain challenging particularly with traffic at the QSR segment and customers are being more selective on their capital plans for the back half of the year. Within that, we are seeing replacement spend stable relative to our prior thoughts. With unit growth being pushed out modestly by some larger chains. That said, we are carrying momentum into the second half with global chains and we have visibility into the pipeline of opportunities into 2027. This momentum gives us confidence to raise our revenue guidance expectations for the second half of the year. We also saw year over year EBITDA growth in the quarter, although our margin percentage was below our expectations driven by a few key areas. The revenue growth included better than expected strength in our ice and beverage platform, which has margins approximately 400 basis points lower than our longer established cooking platform. Additionally, inflationary costs, particularly ocean freight shipping and steel surcharges, accelerated faster than anticipated driven by the recent broader macro. Our investments in the ICE and Beverage platform weigh on margins in the near term as we ramp production for new product launches to support 2027 customer demand in the pipeline. Although we anticipate these margin pressures to persist through the second half, we expect to see sequential margin improvements in both the third and the fourth quarter. We have a number of operating initiatives currently in progress including product simplification, lean manufacturing, and mixed profitability. While these are longer term initiatives, they will partly offset recent accelerated inflationary pressures and support sequential improvement in margins ahead of larger benefits as we move into 2027. In addition, we are confident of increased margins at our ICE and beverage platform, particularly as we move beyond the initial investment phase in 2026. We are excited about this new chapter for Middleby. With the portfolio transformation now behind us, we will benefit from greater focus on the execution of our strategic plans, both top line and bottom line, team has a lot of momentum and we are looking forward to accelerating it. With that, now turn it over to Brittany to discuss our financial performance in greater detail guidance for the third quarter and full year. Brittany Cerwin: Thanks, Timothy. Today's conversation will be focused on commercial food service. Given the spin off of MDF did not occur until July 6, food processing results are included in our continuing operations for Q2. For details on food processing, we invite you to join MDF's inaugural earnings call on Thursday, August 13th. Turning to the results for Commercial Foodservice second quarter revenues were approximately $631 million driven by organic revenue growth of 8.3%. As Tim mentioned, positive impacts were broad based and seen across all channels and both domestically and internationally. Organic adjusted EBITDA margins were 25.8%. In terms of margins, Timothy laid out the drivers to our second quarter results. And the implications for the remainder of the year. During the second quarter, we experienced a total margin headwind of nearly 100 basis points which is driven by the higher than expected inflationary impact partially offset by the benefit of a tariff refund of $5 million For the remainder of the year, we expect an incremental inflationary margin pressures of approximately $10 million to $15 million relative to our prior expectations. From a margin percentage perspective, we expect sequential improvement in the back half as we begin to benefit from the operational improvements Timothy laid out including product simplification, mix, and lean manufacturing. On a consolidated basis, total company adjusted EBITDA for the second quarter was approximately $193 million and adjusted EPS from continuing operations was $2.35. Adjusted EPS expansion was achieved primarily through organic EPS growth, 2026 share repurchase activity, Share repurchases utilizing the proceeds from the residential transaction and carryover from 2025 share repurchase activity. This was offset by increased interest costs associated with the maturity of our convertible notes and a higher tax rate associated with discrete foreign tax items and nondeductible expenses as compared to the prior year. Adjusted EPS excluding food for the second quarter is estimated to be $1.74 as compared to the prior year of $1.40 This presentation of adjusted EPS is aligned with how we expect to report Middleby results on a post spin basis with food processing as discontinued operations starting in the third quarter. Please refer to Slide 11 of the presentation we have posted online for a complete adjusted EPS bridge for the second quarter as reported and Slides 17 and 18 for post spin adjusted EPS bridges for Q1 and Q2. Second quarter operating cash flow was approximately $100 million and free cash flow was approximately $89 million Our leverage ratio per our credit agreement at quarter's end was 2.4x. At spin, our estimated pro forma leverage ratio was 2.7x. As stated at our Investor Day in May, we expect to delever to approximately 2.5x by the end of the year, and anticipate debt pay down will be the primary use of excess capital in the second half of the year. Regarding capital allocation during the second quarter, we repurchased 1.4 million shares or approximately 3% of our outstanding shares for $200 million at an average purchase price of approximately $142 per share on a pre spin basis. Let me walk you through our third quarter and full year outlook, starting with the third quarter. For the third quarter, on a post-spin, total company basis, we expect to achieve the following. Revenue of $620 million to $640 million equating to organic revenue growth of approximately 4% adjusted EBITDA is forecasted to be between $143 million and $150 million Adjusted EPS is projected to be in the range of $1.67 to $1.83 assuming approximately 45.2 million weighted average shares outstanding. For the full year, on a post-spin total company basis, we expect to achieve the following: revenues of $2.48 billion to $2.53 billion equating to organic revenue growth of approximately 7% adjusted EBITDA of $572 million to $588 million Adjusted EPS is projected to be in the range of $6.73 to $6.89 assuming approximately 45.8 million weighted average shares outstanding. Please refer to Slide 14 and 15 of the presentation we have posted online at our Investor Relations website for full details. That concludes our prepared remarks, and we are now ready to take your questions. Operator: We will now begin the question and answer session. To ask a question, If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press * then 2. We will pause momentarily to assemble our roster. The first question comes from Jeffrey Hammond with KeyBanc. Please go ahead. Jeff Hammond: Hey, good morning. So, growth has been, you know, quite impressive, year to date. I mean, the macro still seems pretty choppy. You do have kind of a step down, and I am just wondering if you know, it is less easy comps or if, you know, the first half had, you know, more kind of program, maybe beverage wins in there, just a little more color on the cadence. Timothy J. FitzGerald: I think last year, we talked about the double digit growth from our dealers. So we still see, you know, strength across the market, and Steven can chime in on both dealers as well as chains, but there was some you know, we are not expecting the continued double digit growth at the dealers. So I think we see it moderating in the back half of the year, but we still have momentum and robust demand as I mentioned, kind of in the opening comments. Steven Spittle: Yeah. I would just build on that. This is Steven. I mean, the growth we have seen within our dealer channel has been pretty much sustained for the last 4 quarters now. And even though, as Timothy said, the comp is tougher for the back half of the year, we still expect growth within the dealer channel. So that is really the primary difference. We are seeing, and it is what we saw in the first and second quarter, your pickup has really been within the chain space, specifically the QSRs. A large portion of that has been driven by, you know, new product adoption as they look to expand menus, expand dayparts, and certainly beverage and ice, as we have commented on before, has been a big driver within that space, and we expect that to continue in the back half of the year. And that is actually where the predominant portion of growth we expect comes in the third and fourth quarter. Jeff Hammond: Okay. Great. And then, yeah, I understand a lot of kind of inflation pressures. Can you just speak maybe unpack what really drives the sequential margin improvement? Is that you know, is there any mix in there? Is it just getting this price through? And then are you contemplating any additional 301 tariff refunds next? Brittany Cerwin: Sorry. This is Brittany. I can comment on that. First, in regards to the 301 tariffs, we mentioned $5 million in the second quarter. And we expect a similar dollar range of about $5 million potentially in the back half. To be received. As for the step-up that we are expecting. As it relates to the sequential margin, as we go from second quarter and into the back half I think that is a mix of a few items. We are expecting a little bit of mix improvement So in the second quarter, as it relates to mix and as we mentioned, new product innovation and the launching of manufacturing around the new beverage equipment. That was a headwind in the quarter to margins. Of about a 150 basis points, which we will start to see reduce a little bit as we get into the back half. Along with some improved mix The pricing that we have mentioned primarily will not start to benefit us until the fourth quarter. So that is why we are kind of expecting some sequential as we move from Q2 to Q3 to Q4 improvement. Along with the operating initiatives that Timothy commented on. In the prepared comments. Timothy J. FitzGerald: Yeah. Jeffrey, I would just say, you know, we obviously laid out at Investor Day a lot of the new capabilities that we have built up over the last year plus. Very similar to what we have done innovation, go to market. So you can see that taking hold on the top line. A lot of the operating initiatives that are in flight so we really are just starting to get traction, we think, in the back half of the year. So we feel like we have got pretty good line of sight to that 200- to 400-basis-point improvement that we talked about. You know, Investor Day. But we are at the very early stage of that, some of that will bake in to the year as it as we kind of progress, particularly in the fourth quarter. Okay. Operator: Thank you. The next question is from Timothy Thein with Raymond James. Please go ahead. Tim Thein: Great. Thank you. Good morning. Just to come back, Brittany, on the comments on, I think you mentioned earlier, $10 million to $15 million of incremental costs that you had not foreseen I guess, 90 days or so ago. Is the how are you expecting the yield on that the pricing, how that plays through, and how much and then that is some offset presumably that you are expecting. And I guess a lot of that comes in the fourth quarter, but I guess that is part 1 of the question. The second is just thoughts around the pricing strategy as you go into 2027. I think, you know, normally, those pricing actions are taken around the start of the year. Does this kind of adjust that or alter that potential strategy as you look into next year? Brittany Cerwin: Yeah. So I will start with a little bit on the margin headwind. So as we wrapped up the first quarter, obviously, we had some inflation. And as we sit here 90 days later, that inflation has accelerated, and that is what we have anticipated here in the back half of that incremental $10 million to $15 million. When we put in the pricing, obviously, that is general market pricing, which has to be announced well ahead of the 8/1 effective date that we had. So that was really to start to partially offset the cost and inflation that we are seeing at that time. So and as mentioned, we will start to see some of that benefit roll through on the pricing in the fourth quarter. So it will be a headwind for us on this inflation. Into Q3 and some of Q4 as well. Tim Thein: Okay. And then you know, ice and beverage called out a couple times. I and I think maybe, Timothy, as you were going through the initial comments, you mentioned just more of a pipeline building, and I think you mentioned that into kind of more that hits in 2027 on top of that. Any I know we touched on a lot of this at the Investor Day, but, I mean, is the size of that pipeline as you think about contribution to what that can mean for 2027? Any further clarity on that in terms of you know, meaningful that could be? Timothy J. FitzGerald: I do not-- yeah, I do not think we are gonna lay out the magnitude in terms of top line, but I would say it is, you know, just positive. Right? Like, I mean, I think that is an a big addressable market that we have identified. We have made a lot of investments. We continue to make those investments. We have got momentum. it is part of know, the revenue growth that we are seeing now. And there is more to come because we have new products that we are launching going into 2027. Those are some of the investments we are making right now. The size of that pipeline has been expanding a bit ahead of some of the products that we will be launching next year, and those are some of the continuing investments that we are making right now. So but, I mean, I think that gives us, you know, confidence in our growth outlook and algorithm for the next several years because ice and beverage will continue to play a part of it. Got it. Alright. Operator: Thank you. The next question is from Tami Zakaria with JPMorgan. Please go ahead. Tami Zakaria: Hi, good morning. Thank you so much. My first question is organic growth. Can you clarify what your organic growth outlook is for CFS? I think when you started the year, you said 4% to 6%. I am guessing it is now higher, more like 6% to 7% or whatever. So can you clarify what that number is for the year? And within that number, how much is driven by price versus volume? And is there any headwind embedded in terms of from the product line simplification initiative that you spoke to. So if you could parse out the organic growth outlook for CFS, that would be helpful. Brittany Cerwin: Yeah. I can speak, Tami, to the full year guidance that we have given for commercial foodservice that has now increased. To be between 6% to 8% for the full year. Steven Spittle: Yeah. Tami, this is Steven. I in terms of the price volume dynamic, the predominant driver this year has been on volume. You know, we have we took some, low single digit pricing toward the end of last year, into the beginning of this year, we just put forward, as Brittany talked about, another, low single digit in general market in early August. But the predominant driver is on the volume side And, that is coming through a lot of new product adoption from our chain customers. that is what gives us the confidence, and that is volume versus price. In terms of the product line simplification, that we highlighted at the Investor Day, we are certainly still early days in that process, so really have not seen or do not expect much of a headwind from a top line volume perspective. The rest of this year. Understood. that is very helpful. Tami Zakaria: And second question is on tariffs. I wanted to clarify your tariff headwind is now expected to be, it seems, $77.5 million for the full year. Net of the additional increases and reductions under Section 301 that you called out, So can you clarify how much of that $77.5 million is already absorbed in Q1 and Q2, and how much is expected in Q3 versus Q4? Brittany Cerwin: Sorry. With regards to that, the range that you provided, that is our gross tariff exposure as we look at the commercial foodservice business on a continuing basis. As we look to kind of the spread between the quarters, I would say it is pretty-- it is starting to be more evenly split between the first half and the second half. Obviously, we are gonna have a little bit of a step up, as we mentioned, with the new 301 tariff. That will start here toward the later part of the second half. But that is the $2.6 million annualized is an annualized number. That will start here in the back half of gross exposure on those. Understood. Operator: Thank you. Again, if you have a question, please press *. The next question is from Ian Zaffino with Oppenheimer. Please go ahead. Analyst: Hi. Great. Thank you very much. I want to just drill down a little bit more to QSR growth. You know, I know that you mentioned that there is been some menu changes, but you know, is there demand coming from anywhere else? Like, are you starting to see like, a replacement cycle yet or at least the start of a replacement cycle? I know the age of the plant is quite old and quite past replacement. So wonder if you are seeing anything there. Thanks. Steven Spittle: Yeah. Thanks, Steven, and good morning. it is Steven. As I think about we think about, you know, QSR segment and the key drivers for demand, I will bucket it maybe into 3 different areas of where, you know, demand comes from. So, historically, you have new store opening growth, which has been relatively flat year over year this year. Do have pretty good visibility to that pipeline, into next year, which chains are expecting growth, but we also know there is been ebbs and flows of push outs there. So second area is what you just highlighted is the replacement demand, which has, we feel like, been muted over the last, really, 5 to 7 years, and we feel like there is a pent up, you know, demand replacement demand cycle that is coming. We have seen that pick up as this year has gone forward. I would not say it is quite off to the races, but compared to where we were a year ago, we have seen chains start to go back and replace their aging equipment. But, really, the third bucket is where we have seen the growth this year and really where we would expect the growth to continue to accelerate next year. And that is within your new product adoption for additional menu items, driving dayparts, we talk a lot about beverage And ice, but anything that is helping them fuel throughput, consistency, labor efficiency, in new products. that is really been the primary driver this year and into next year within the QSR space. Okay. Thanks. And then just on international, can you maybe just talk about the growth there? How much of it is just deeper penetration? How much of it is more of these, like, you know, very innovative products like, you know, KFC Quench or something along those lines. You know? So how much is something like that? Or in that bucket be driving that? And then just given the success that you have had in that area, what should we expect as you maybe kind of bring some of those solutions to the US? Thanks. Yeah. Great question. Thanks for highlighting international. We have in all international markets over the last several years, we have reinvented, our teams, our processes. We have opened innovation kitchens, across the world. You know, I would highlight you know, I think 1 of the biggest changes, I will maybe call it Europe specifically, but it is really true of all of our international markets. Is historically, we only sold a handful of our portfolio within international markets. So it is very heavy in fryers, very heavy in heavy in ovens, and it was very focused on large global chains. So our global chains are going to continue to grow in international markets, and we are very well positioned to grow with them. But, really, the biggest change that is happening in real time is selling the broader portfolio. And it really is selling the technology brands. it is moving beyond just fryers and ovens, but selling a complete Middleby package that now includes areas like beverage and ice. So that really is the biggest I would say, step change we have seen in our international markets is selling the complete portfolio not just relying on global chains, but by selling a complete solution, you can obviously penetrate into, you know, more emerging chains and local markets and really just those local customers. So that is the primary driver that we have seen, and we will expect that to continue certainly in the next year within pretty much every international market that we are in today. Okay. Thank you very much. Appreciate the color. Operator: The next question is from Mircea Dobre with Baird. Please go ahead. Analyst: Good morning, guys. This is Peter Kalimkaryian on for Mircea this morning. Thank you for taking my questions. Timothy, you mentioned initiatives in ice and beverage, and I appreciate it. and Brittany, the commentary on the 150-basis-point drag from investment there in the second quarter. Is there any detail you could provide on the specific initiatives that you have ongoing in that and the timeline for some of these investments to come online? Timothy J. FitzGerald: Yeah. Great question. So we have highlighted a lot of the new products that we have been launching, particularly products such as the Fizz, which is kind of our automated beverage machine, gravity, which got a lot of interest from customers. Those are ramping in terms of production. So we are actually bringing up a facility in the back half of this year. We do have significant customer interest, and there are tests going on. So we are investing not only in the production, but in testing and product approval. So we see a lot of that coming online kind of right at the tail end of the year, really not impactful to this year, but starting to become impactful in 2027. Thanks for that, Timothy. And I guess the follow-up here on beverages as we think about 2027. You know, what is the right way to think about that 400-basis-point margin gap? Does that close significantly, or is that more of a longer term story? I think it will close over time. And we will first start to move past the investment stage, which, I think, you know, we will start gaining traction or kind of move into revenue in 2027. And then kind of along with that, we have got a lot of operating initiatives are across the entire platform with all the beverage companies and the ice companies because, you know, that is a big part of the story as well. We have we have acquired some new companies there. We are consolidating the platform. And certainly benefiting from lean manufacturing, SKU simplification that some of our larger brands. So we see that kind of continuing to gain momentum including in the latter stages of this year and then kind of expanding as we go through 2027 and 2028 as part of the 3-year plan. But I will just kind of, you know, underline again those initiatives are underway. So lot of the capabilities we have built over the last 12 to 18 months, a lot of the initiatives were really started at the back end of last year. So that is kinda why we feel like we have got a high degree of confidence in line of sight of those gaining momentum particularly as we go into next year. Great. Thanks, Timothy. Operator: The next question is from Christopher Senyek with Wolfe. Please go ahead. Chris Senyek: Yes. Hi, good morning. Great quarter. So, kind of following on the margin opportunity in ice and beverage. Yeah, I know structurally it is it is lower than the hot side of the business. But is there anything that could close that gap further over time in terms of pricing action, competitiveness because you can offer, you know, customers now are not just buying, you know, sort of 3 products perhaps, but they are buying 5 or 6, and you can bundle things and price better that way. So I guess over the next couple years, is it that ice and beverage is just structurally lower margins or are there pricing opportunities, bundling opportunities, obviously, cost efficiencies you talked about that over the next 3 years, that you can kind of close that gap even further or above and beyond, you know, efficiencies from higher production. Timothy J. FitzGerald: Yes. There is nothing structurally within that platform that would cause those margins to be lower than the cooking side. There is a lot of innovation and technology there. I think it is I would really kind of chalk it up to where are we at in the journey. Right? Like, we have been at it with cooking and warming for a long time, which, by the way, there are opportunities there as well as we kind of execute on the operating initiatives and some of the things to leverage the scale of the platform. You know, it is still a relatively early stage platform, and we are mid twenties. Right? So I think, you know, and we are making significant investment in innovation R&D. So I mean, I think that is 1 of the things that excites us is if you look at some of the more mature companies within that platform, they are actually you know, I will say at or above our target margins right now. So, I mean, I think it is really just where we are at in the journey as we kind of move forward to scaling some of the new products that we are launching Some of the operating initiatives underway including some of, I will say, the integration of some of the new businesses and then execution of kind of the operating initiatives. I mean, you know, we have got a high degree of confidence that those businesses kind of get to the target margin that we have, which are, you know, I will say very similar to what we think we are at and can achieve in cooking and warming. Okay. Great. Chris Senyek: And then another question on QSR visibility. You know, QSR stuff's improved. Is there any more visibility and line of sight through the year end this year than you have had in the last couple years in terms of, you know, their store rollout and openings or as we kind of get to this back half of the year that there is still risk like there is been for the last couple years and beyond that you could see potential pushouts toward the end of the year, or do you think that is stabilized better than in the last few years where you were comping negative In terms of new store openings, we have we have had very good visibility over the last several years. Timothy J. FitzGerald: I think it is greatly improved as we went through some of the supply chain challenges from, you know, 2022 and 2023. That said, I think the new store opening pipeline, the rest of this year is fairly stable. I mean, there is gonna be push outs, but there have been push outs really over the last year or 2. So I think it is pretty consistent. I think where we have, more visibility is in just some of the new projects that we have been talking about that are starting to get freed up more and more, and they are starting to be green lighted more and more. And so I think that is where from a pipeline perspective, we are more excited about where we are today versus, say, where we were a year ago. Is in that new product pipeline. Okay. Great. Super helpful. Thanks. Operator: The next question is a follow-up from Timothy Thein with Raymond James. Please go ahead. Tim Thein: Thank you. Sorry to come back here. Maybe 2 for Steven that I will package together. The first is the mix within the product mix. And I guess this is probably more of a general market question. But you know, just as operator budgets continue to get stretched, I am just curious if you have seen that show up in terms of you know, features and content within items or, you know, opting for lower price units, things like that. I am just curious if the you talked about mix from the standpoint of hot versus cold, but I am curious if you have seen it more pronounced in terms of features and specs. And then the second part is on the organic growth, call it, you know, percent in the first half to in the back half, I you know, the comps get a little tougher, but is it is it the rollout that may be, you know, getting pushed? Is there because you have got, presumably, maybe a little bit more pricing that kicks in. So I am just curious if or none of the above just in terms of I guess, how we go from the first half organic run rate to what we are modeling for the second. Thank you. Steven Spittle: Yeah. Thanks, Timothy. I will try to take a pass at both. You know, it is really interesting in terms of your first question and especially within the QSR space. We know that, you know, the-- the end-user operator, the franchisee is certainly watching costs more than ever before. There is a very clear delineation, I think, in chains that are winning in the market versus the ones that are not. And it is tied to, are they trying to buy the same products they always have and just trying to buy them at a cheaper price? Like, that is 1 approach. And that approach is currently tied to, I think, chains that are not doing as well versus the chains that are investing in the new products, the new equipment, that is giving them operational improvements, that is fueling throughput consistency. Giving them new additional dayparts. So in spite of what how you teed up the question of it is a challenging environment from a cost perspective. I actually think it is leading QSRs to actually invest in better technologies with more features and benefits because it gives them a greater ROI which has become probably the most important metric that they are looking at for their franchisees. In terms of the second question, the rest of this year, Timothy, it really is a function of you know, we grew so much the back half of last year within the dealer segment in the US. Again, it was double-digit growth in both the third and fourth quarter. That growth is continuing to be positive. it is just not growing at the same pace it was, you know, a year ago. So that really is the big change in the back half of the year. So dealers remain positive, just not at the same level. But, really, the growth is coming from again, the continued growth in chain customers, predominantly the QSR. So it is really not a function of anybody slowing down. it is more a function of you know, how it compares to the back half of last year. Got it. Thank you, Steven. Operator: This concludes our question and answer session. I would like to turn the conference back over to Timothy J. FitzGerald for any closing remarks. Timothy J. FitzGerald: Thank you, everybody, for joining today's call. I also want to thank all of the Middleby team members around the world who contributed to what has been a major milestone and significant achievement with the execution of the separation of our businesses into the 3 leading platforms, That was a heavy effort from many across the organization and through the entire transformation, the team stayed focused on moving our core commercial business ahead. With many exciting initiatives that have us positioned stronger than ever. I am thankful for all of those efforts and very proud of the team. So with that, thank you all for joining today's call, and we look forward to speaking with you next quarter. Operator: The conference has now concluded. Thank you for attending today's presentation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Middleby. The Motley Fool has a disclosure policy. Middleby (MIDD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Completed separation from The Middleby Corporation on July 6, 2026 Strong demand with orders up 16% year-over-year Raises Full-Year 2026 Guidance ROSEMONT, Ill., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Midera Food Processing, Inc. (Nasdaq: MFP) (“Midera,” the “Company,” “we,” “our,” or “us”), a leading global pure-play food processing technology company, today reported financial results for its fiscal second quarter ended July 4, 2026, its first report as an independent, publicly traded company following its separation (the “Spin-off” or “Separation”) from The Middleby Corporation (“Middleby”) on July 6, 2026. Second Quarter 2026 Highlights Net sales of $245 million increased 13.2% over the prior year period; 1.2% increase on an organic basis1 Net earnings of $11 million compared to $29 million in the prior year period Estimated Standalone Adjusted EBITDA1, 2 of $42 million, an increase of 10.6% from the prior year period and above the high end of the previously provided guidance range of $37 million to $41 million when including $8 million for estimated quarterly standalone public company costs Total debt of $259 million, Net debt1 of $208 million and Net leverage ratio1 of approximately 1.3x as of quarter-end Strong demand with orders up 16% over the prior year period to $275 million, and record backlog of $446 million at quarter-end Raised full-year 2026 guidance. The midpoint of the updated guidance range reflects net sales growth of 11%, organic net sales growth1 of 6%, and Estimated Standalone Adjusted EBITDA1, 2 growth of 20% over the prior year period “Launching as an independent public company validates the strength of the platform we built as a part of Middleby over the last two decades and reinforces our confidence in the significant opportunities ahead as a pure-play food processing technology leader,” said Mark Salman, Chief Executive Officer of Midera. “We saw continued momentum in the second quarter, with orders up 16% and the backlog reaching $446 million, underscoring the increasing value we strive to deliver as a trusted partner throughout the production lifecycle. Importantly, the acquisitions we have integrated over the past year are already positively contributing, a reflection of the disciplined M&A and integration playbook that built our platform.” ______________________ 1 Non-GAAP financial measure. For further information, please refer to the “Non-GAAP Financial Measures” section of this press release.2 Estimated Standalone Adjusted EBITDA includes estimated annual standalone public company costs of $32 million. Mr. Salman continued, “As a standalone company, we believe we have the focus, agility, and capital allocation flexibility to accelerate our growth framework. Our updated guidance reflects continued margin expansion this year, driven by a healthy backlog and the benefits of the Midera Operating System. Our capital allocation priorities remain unchanged: invest first in organic growth opportunities; pursue disciplined strategic acquisitions that strengthen our platform; and maintain a prudent balance sheet with a net leverage ratio1 below 3.0x. With substantial liquidity and a robust acquisition pipeline, we believe we are well positioned to generate long-term shareholder value through a balanced combination of organic and inorganic growth.” Second Quarter 2026 Financial Results Midera operated as the Food Processing segment of Middleby for the entire second quarter of 2026, prior to separation from Middleby on July 6, 2026. The financial information presented has been derived from Middleby’s accounting records and is presented on a carve-out basis as if Midera had operated as a standalone company for all periods presented. Net sales were $245.4 million in the second quarter of 2026, an increase of 13.2% compared to $216.7 million in the prior year period. Net sales from the acquisitions of Frigomeccanica and Oka accounted for $23.9 million of the year-over-year increase in the second quarter. Organic net sales growth1 was 1.2%, primarily driven by increases in aftermarket parts and service in the protein and bakery categories, partially offset by delayed equipment shipments in the snack category. Net earnings were $10.8 million for the second quarter of 2026 as compared to $29.1 million in the prior year period. Adjusted EBITDA1 was $42.3 million for the second quarter of 2026 as compared to $39.1 million in the prior year period. Estimated Standalone Adjusted EBITDA1, 2 was $41.8 million in the second quarter of 2026, up $4.0 million as compared to $37.8 million in the prior year period, driven primarily by higher sales of aftermarket parts and services and higher equipment sales, including recent acquisitions, partially offset by the impact of cost inflation, including tariffs. Financial Position On June 29, 2026, the Company entered into a five-year, $1.0 billion credit agreement in connection with the Spin-off. At the end of the quarter, the Company's Net debt1 was $208.1 million, consisting of total debt of $258.6 million and cash and cash equivalents of $50.5 million. As a result, the Company’s Net leverage ratio1 was 1.3x based on last twelve months Estimated Standalone Adjusted EBITDA1,2 . Total liquidity was $822.5 million, including cash and cash equivalents and $772.0 million of availability under the Company's revolving credit facility. Capital expenditures were $3.2 million for the second quarter of 2026 as compared to $6.4 million in the prior year period. ______________________ 1 Non-GAAP financial measure. For further information, please refer to the “Non-GAAP Financial Measures” section of this press release.2 Estimated Standalone Adjusted EBITDA includes estimated annual standalone public company costs of $32 million. Guidance The Company is updating its full-year 2026 guidance to reflect an increase in the midpoints of its expected ranges for Net sales and Estimated Standalone Adjusted EBITDA1, 2: The Company is also providing the following modeling assumptions for full-year 2026: Depreciation and Amortization: $26 million to $28 million Interest expense, net6: $7 million to $8 million Diluted Weighted Average Shares Outstanding: 45 to 46 million Share Repurchase Program On August 10, 2026, the Company's Board of Directors authorized a share repurchase program, which expires on August 10, 2029, pursuant to which the Company may repurchase up to $50 million of its common stock. The primary purpose of the share repurchase program is to mitigate stockholder dilution from equity awards. The timing and amount of any shares repurchased will be determined by the Company based on its evaluation of market conditions and other factors, and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate share repurchases under this authorization. The Company is not obligated to purchase any shares under the program, and the program may be suspended or discontinued at any time. The actual timing, number, and share price of shares repurchased will depend on a number of factors, including the market price of the Company's common stock, general market and economic conditions, alternative investment or acquisition opportunities, and applicable legal requirements. Conference Call Details The Company has scheduled a conference call to discuss its fiscal second quarter 2026 financial results at 4:00 PM Central Time (5:00 PM Eastern Time) today. The live audio webcast of the conference call will be accessible in the News & Events section on the Company's Investor Relations website at https://investors.midera.com. An archived replay of the webcast will also be available shortly after the live event has concluded. ______________________ 1 Non-GAAP financial measure. For further information, please refer to the “Non-GAAP Financial Measures” section of this press release.2 Estimated Standalone Adjusted EBITDA includes estimated annual standalone public company costs of $32 million.3 Middleby Food Processing segment guidance as of May 7, 2026 reduced by estimated annual standalone public company costs of $32 million.4 Change at the midpoint of guidance for Net sales and Estimated Standalone Adjusted EBITDA.5 The midpoint of the guidance for change in organic net sales excludes ~4% related to acquisitions and ~1% related to changes in foreign exchange rates.6 Interest expense, net in the first half of 2026 includes insignificant net interest expense of $0.4 million as the Company entered into its credit agreement on June 29, 2026. About Midera Food Processing Midera Food Processing provides food processing equipment and automation solutions for industrial protein, bakery, and snack producers, delivering total line solutions from preparation and thermal processing through packaging. With a portfolio of 30+ industry-leading brands reaching customers across six continents, Midera helps food processors produce safer, more consistent products while improving efficiency and reducing waste at scale. Headquartered in Rosemont, Illinois, Midera employs approximately 2,800 people worldwide. For more information about Midera, please visit www.midera.com. Cautionary Statement Regarding Forward-Looking Statements This press release contains “forward-looking statements” subject to the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s expectations with respect to the Company's future performance, strategy, growth opportunities and value creation following the completed Spin-off from Middleby. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phrases of similar meaning. The Company cautions investors that such statements are estimates and are highly dependent upon a variety of factors. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause the Company's actual results, performance or outcomes to differ materially from those expressed or implied in the forward-looking statements. The following are some of the important factors that could cause the Company's actual results, performance or outcomes to differ materially from those discussed in the forward-looking statements: changing market conditions; volatility in earnings resulting from goodwill impairment losses, which may occur irregularly and in varying amounts; variability in financing costs and interest rates; quarterly variations in operating results; dependence on key customers; risks associated with the Company's foreign operations, including international exposure, political risks affecting international sales, market acceptance and demand for the Company's products and the Company's ability to manage the risk associated with the exposure to foreign currency exchange rate fluctuations; the Company's ability to protect its trademarks, copyrights and other intellectual property; changing market conditions, including inflation; the impact of competitive products and pricing; the impact of announced management and organizational changes; intense competition in the Company's business including the impact of both new and established global competitors; unfavorable tax law changes and tax authority rulings; cybersecurity attacks and other breaches in security; the continued ability to realize profitable growth through the sourcing and completion of strategic acquisitions; the timely development and market acceptance of the Company's products; the availability and cost of raw materials; the potential that the Company does not realize all of the expected benefits of the Spin-off; the failure of the Spin-off to qualify for the expected tax treatment; potential adverse effects of the Spin-off, including on the ability of the Company to develop and maintain relationships with personnel, customers, suppliers and others with whom it does business or the Company's business, financial condition, results of operations and financial performance; and other risks detailed in the Company's U.S. Securities and Exchange Commission (“SEC”) filings. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date hereof and, except as required by federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Contacts: Investors Rob FaganVP, FP&A and Investor [email protected] Media Michael [email protected] Non-GAAP Financial Measures The Company uses non-GAAP financial measures to supplement the financial measures presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP. In addition, the non-GAAP financial measures do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. The Company believes that its presentation of non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that it uses internally for purposes of assessing its core operating and financial performance. The Company has not provided a reconciliation of forward-looking Estimated Standalone Adjusted EBITDA to the most directly comparable GAAP financial measure, net earnings, because certain items cannot be reasonably estimated at this time without unreasonable effort. These items include, but are not limited to, restructuring charges and the impact of changes in foreign exchange rates. The timing and magnitude of these items are uncertain and could have a material impact on the Company's results reported in accordance with GAAP. Definitions of the non-GAAP financial measures presented are as follows: Change in Organic net sales is defined as the change in net sales adjusted to exclude the impact of acquisitions and foreign exchange rates. Adjusted EBITDA is defined as net earnings before interest, income taxes, depreciation and intangible amortization, or EBITDA, adjusted to exclude restructuring, acquisition related adjustments, impairment charges, stock compensation and other items which management considers to be outside core operating results. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Estimated Standalone Adjusted EBITDA is defined as Adjusted EBITDA less estimated incremental recurring costs for the Company to operate certain corporate support functions as a standalone public company (executive management, finance, accounting, tax, treasury, information technology and legal, among others). Estimated Standalone Adjusted EBITDA margin is defined as Estimated Standalone Adjusted EBITDA divided by net sales. Net debt is defined as current maturities of long-term debt and long-term debt less cash and cash equivalents. Net leverage ratio is defined as net debt divided by last twelve months Estimated Standalone Adjusted EBITDA. The Company believes change in Organic net sales, Adjusted EBITDA, Adjusted EBITDA margin, Estimated Standalone Adjusted EBITDA, and Estimated Standalone Adjusted EBITDA margin are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The Company believes net debt and net leverage ratio are useful to investors in understanding our overall financial condition. (1) Last twelve months ("LTM").(2) Other expense (income), net consists of foreign exchange gains and losses and other non-operating items which management considers to be outside core operating results.(3) Restructuring expenses relate primarily to headcount reductions and facility consolidations.(4) Acquisition related adjustments consist of changes in the fair value of contingent consideration and inventory step-up charges.(5) Separation costs consist of professional services fees, including legal counsel, financial advisors and accounting and tax advisors, and other third party costs associated with the separation of Midera into a standalone public company.(6) Estimated incremental recurring costs for Midera to operate certain corporate support functions as a standalone public company (executive management, finance, accounting, tax, treasury, information technology and legal, among others).

The Middleby Corporation MIDD reported second-quarter 2026 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. The bottom line increased 6.8% year over year. Net sales of $876 million topped the consensus estimate of $835 million by 4.6% and rose 9.9% year over year. Commercial Foodservice remained the key growth engine, with organic sales up 8.3% on strong U.S. dealer demand and replacement activity. Total revenues and adjusted EBITDA also exceeded management’s guided ranges. Commercial Foodservice sales increased 8.6% year over year to $630.6 million. U.S. and Canada revenues rose 5.9% to $436.8 million, while international sales advanced 15.4% to $193.8 million. Management highlighted QSR sales benefited from new product adoptions and higher replacement demand. The U.S. dealer channel also maintained growth, supported by solid market demand, institutional customers and emerging chains. Global order activity for ice and beverage equipment increased ahead of planned menu expansion in 2026. Food Processing revenues climbed 13.3% year over year to $244.9 million, while organic sales increased 1.3%. U.S. and Canada sales edged up 0.8% to $126 million, whereas international revenues jumped 30.4% to $118.9 million. Adjusted EBITDA for the segment increased 8.6% to $49.8 million. The adjusted EBITDA margin contracted to 20.3% from 21.2% a year earlier. Middleby completed the Food Processing spin-off on July 6, 2026, launching Midera as a standalone public company. Estimated post-spin adjusted earnings for the quarter were $1.74 per share compared with $1.40 a year earlier. The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote Cost of sales increased 12.4% year over year to $540.5 million, while gross profit rose 6% to $335.1 million. Gross margin narrowed 140 basis points to 38.3%. Selling, general and administrative expenses rose 11.3% to $186.6 million. Operating income was nearly flat at $147.7 million, with operating margin declining to 16.9% from 18.6%. Adjusted EBITDA increased 6.4% to $193.2 million, but its margin fell 70 basis points to 22.1% as a less favorable mix, tariffs, inflation and new-product investments pressured profitability. Operating cash flow increased to $99.7 million from $91.8 million in the prior-year quarter. Capital expenditures were $10.7 million, resulting in free cash flow of $89 million compared with $77.2 million in the year-ago quarter.Middleby ended the second quarter with $159.2 million in cash and cash equivalents, down from $222.2 million as of Jan 3. 2026. Long-term debt declined to $1.94 billion from $2.13 billion. The company repurchased 1.4 million shares during the quarter, representing 2.9% of shares outstanding, and ended the quarter with net leverage of 2.4 times. For the third quarter of 2026, Middleby expects revenues of $620-$640 million, adjusted EBITDA of $143-$150 million and adjusted earnings of $1.67-$1.83 per share. At the midpoints, these imply growth of 4%, 3% and 2%, respectively, from the comparable 2025 period. Management expects continued adoption of new products among chain customers and higher replacement equipment demand. Sequential margin improvement is also anticipated, though inflationary pressures are expected to limit organic gains. Operational initiatives at Taylor and lean-manufacturing investments are expected to support margin expansion. For full-year 2026, MIDD now expects post-spin revenues of $2.48-$2.53 billion, adjusted EBITDA of $572-$588 million and adjusted earnings of $6.73-$6.89 per share. At the midpoints, the ranges imply growth of 7%, 5% and 12%, respectively, versus 2025. The company estimates annual tariff costs for continuing operations at $70-$80 million. It also expects $10-$15 million of inflationary costs in the second half of 2026, driven by steel, copper, controls and higher ocean and trucking costs. An additional third-quarter price increase is planned to partly offset inflation and freight pressures. The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:Applied Industrial Technologies AIT carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.IDEX Corporation IEX presently carries a Zacks Rank of 2. IDEX’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.7%. In the past 60 days, the Zacks Consensus Estimate for IEX’s 2026 earnings has increased 2.1%.DNOW Inc. DNOW currently carries a Zacks Rank of 2. DNOW’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 0.8%. In the past 60 days, the Zacks Consensus Estimate for DNOW’s 2026 earnings has increased 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Middleby Corporation (MIDD) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report DNOW Inc. (DNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Middleby (MIDD) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.07%. A quarter ago, it was expected that this food preparation equipment company would post earnings of $1.94 per share when it actually produced earnings of $2.16, delivering a surprise of +11.34%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Middleby, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $875.55 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.63%. This compares to year-ago revenues of $977.86 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Middleby shares have lost about 12.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While Middleby has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Middleby was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.42 on $831.49 million in revenues for the coming quarter and $9.54 on $3.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Applied Industrial Technologies (AIT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This industrial products company is expected to post quarterly earnings of $2.92 per share in its upcoming report, which represents a year-over-year change of +4.3%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. Applied Industrial Technologies' revenues are expected to be $1.29 billion, up 5.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Middleby Corporation (MIDD) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Commercial Foodservice Revenue: Approximately $631 million in Q2, with organic revenue growth of 8.3%. Organic Adjusted EBITDA Margin: 25.8% for Commercial Foodservice in Q2. Total Company Adjusted EBITDA: Approximately $193 million for Q2. Adjusted EPS (Continuing Operations): $2.35 for Q2. Adjusted EPS (Excluding Food Processing): Estimated at $1.74 for Q2, compared to $1.40 in the prior year. Operating Cash Flow: Approximately $100 million in Q2. Free Cash Flow: Approximately $89 million in Q2. Leverage Ratio: 2.4 times at quarter's end; estimated pro forma leverage ratio of 2.7 times at spin. Share Repurchases: Repurchased 1.4 million shares (approximately 3% of outstanding shares) for $200 million in Q2, at an average price of approximately $142 per share. Q3 Revenue Guidance (Post-Spin): Expected to be $620 million to $640 million, equating to organic revenue growth of approximately 4%. Q3 Adjusted EBITDA Guidance (Post-Spin): Forecasted between $143 million and $150 million. Q3 Adjusted EPS Guidance (Post-Spin): Projected in the range of $1.67 to $1.83. Full Year Revenue Guidance (Post-Spin): Expected to be $2.48 billion to $2.53 billion, equating to organic revenue growth of approximately 7%. Full Year Adjusted EBITDA Guidance (Post-Spin): Forecasted between $572 million and $588 million. Full Year Adjusted EPS Guidance (Post-Spin): Projected in the range of $6.73 to $6.89. Warning! GuruFocus has detected 4 Warning Sign with MIDD. Is MIDD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Middleby Corp (NASDAQ:MIDD) completed the spin-off of its Food Processing business into Midera, marking a successful portfolio transformation and positioning the company as a focused commercial foodservice leader. The company delivered strong organic revenue growth of 8.3% in Q2 2026, marking the second consecutive quarter of growth and the second largest revenue quarter in Commercial Foodservice history. Growth was broad-based across channels, customer types, and geographies, with strength in both North America and international markets, driven by new product innovations and go-to-market investments. The company raised its full-year organic revenue growth guidance for Commercial Foodservice to 6%-8%, reflecting momentum and confidence in the second half of the year. The company returned $1.3 billion to shareholders through share repurchases over the past six quarters, reducing outstanding share count by 16% and demonstrating strong capital allocation. The company experienced margin pressure in Q2, with adjusted EBITDA margins below expectations due to higher-than-anticipated inflationary costs, particularly ocean freight and steel surcharges. The ice and beverage platform, which showed better-than-expected growth, has margins approximately 400 basis points lower than the established cooking platform, negatively impacting overall margins. Investments in the ice and beverage platform, including production ramp-up for new product launches, are expected to weigh on margins in the near term, with pressures persisting through the second half of 2026. The company faces incremental inflationary margin pressures of approximately $10 million to $15 million in the back half of the year relative to prior expectations. Industry conditions remain challenging, with QSR traffic soft and customers being more selective on capital plans, leading to modest pushouts in unit growth by some larger chains. Q: Can you clarify your organic growth outlook for Commercial Foodservice (CFS) for the full year, and how much of that growth is driven by price versus volume?A: CFO Brittany Cerwin confirmed that the full-year organic growth guidance for CFS has been increased to 6% to 8%. Chief Compliance Officer Steven Spittle added that the predominant driver of growth this year has been volume, fueled by new product adoption from chain customers. The company took low single-digit pricing at the end of last year and another low single-digit increase in early August, but volume remains the primary growth engine. Q: What is driving the sequential margin improvement expected in the second half of the year, and are you anticipating any additional IEEPA tariff refunds?A: CFO Brittany Cerwin stated that the company expects a similar tariff refund of about $5 million in the back half. The sequential margin improvement will be driven by a mix of factors, including a reduction in the 150 basis point headwind from new beverage equipment manufacturing investments, improved product mix, and the benefit of pricing actions that will begin to take effect in the fourth quarter. CEO Tim FitzGerald added that the company has a good line of sight to the 200 to 400 basis point margin improvement target laid out at Investor Day, with early traction expected in the back half. Q: Can you provide more color on the growth cadence, given the impressive first-half results and the step-down expected in the second half?A: CEO Tim FitzGerald explained that the moderation is due to tougher comparisons, as the dealer channel experienced double-digit growth in the back half of last year. Steven Spittle added that while dealer growth is expected to continue, it won't be at the same pace. The primary growth driver in the second half will be the chain and QSR space, driven by new product adoption, menu expansion, and the beverage and ice platform. Q: What are the specific drivers of demand within the QSR segment, and are you seeing the start of a replacement cycle?A: Steven Spittle broke down QSR demand into three buckets: new store openings (relatively flat), replacement demand (picking up after being muted for 5-7 years, with chains starting to replace aging equipment), and new product adoption (the primary growth driver). The latter includes items that help chains fuel throughput, consistency, and labor efficiency, such as beverage and ice equipment. Q: Can you elaborate on the growth in international markets and the potential to bring successful solutions like KFC Kwench to the US?A: Steven Spittle highlighted that international growth is driven by selling a broader portfolio beyond just fryers and ovens. The company has reinvented its international teams and opened innovation kitchens globally. The biggest change is selling a complete Middleby package, including beverage and ice, which allows penetration into emerging chains and local markets. This strategy is expected to continue driving growth across all international markets. Q: What are the specific initiatives in the ice and beverage platform, and what is the timeline for these investments to come online?A: CEO Tim FitzGerald mentioned new products like the Fizz automated beverage machine and Gravity, which are ramping in production. The company is bringing up a new facility in the back half of the year and investing in testing and product approval. These investments are expected to become impactful in 2027, with significant customer interest and ongoing tests. Q: Is the 400 basis point margin gap between the ice and beverage platform and the cooking platform structural, and can it close over time?A: CEO Tim FitzGerald stated that there is nothing structurally preventing the ice and beverage platform from achieving margins similar to the cooking side. The current lower margins are due to the early stage of the platform and significant investments in innovation and R&D. As the company scales new products and executes operating initiatives, it has high confidence that these businesses will reach target margins comparable to the cooking and warming segment. Q: How are operator budget constraints affecting product mix and features, and is there a trend toward lower-priced units?A: Steven Spittle noted a clear delineation between chains that are winning and those that aren't. Winning chains are investing in new equipment with more features and benefits to improve ROI, throughput, and consistency, despite cost pressures. In contrast, chains trying to buy the same products at cheaper prices are not performing as well. This is leading QSRs to invest in better technologies rather than opting for lower-priced units. Q: What is the visibility into the QSR pipeline for the rest of the year, and is there risk of further pushouts?A: CEO Tim FitzGerald stated that the new store opening pipeline for the rest of the year is fairly stable, with pushouts consistent with the last year or two. However, the company has more visibility and excitement around the new product pipeline, which is starting to be greenlighted more frequently. This is where the company sees more opportunity compared to a year ago. Q: Can you provide details on the incremental $10 million to $15 million in inflationary margin pressures and the impact of pricing actions?A: CFO Brittany Cerwin explained that inflation accelerated faster than anticipated 90 days ago, leading to the incremental $10 million to $15 million headwind in the back half. The company announced general market pricing effective August 1 to partially offset these costs, with benefits expected to roll through in the fourth quarter. The inflation will remain a headwind into Q3 and part of Q4. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 2026 results exceeded high end of guidance range for revenue and Adjusted EBITDA Organic sales growth of +8% in Commercial Foodservice Raises FY 2026 Guidance; Revenue growth of +6-8% in Commercial Foodservice Food Processing Spin completed on July 6, 2026 Repurchased 1.4 million shares (2.9% of shares outstanding) in Q2 2026 and 3.8 million shares (7.8% of shares outstanding) YTD 2026 SECOND QUARTER CONTINUING OPERATIONS HIGHLIGHTS All results reflect Food Processing as continuing operations, unless otherwise stated, given reporting of Food Processing historical financials under discontinued operations will be reflected starting in Q3 2026 Net Sales of $876 million increased 10% over prior year; 6% on organic basis Operating income of $148 million as compared to $148 million in prior year, includes $14 million for strategic transaction costs associated with the business portfolio transformation Adjusted EBITDA of $193 million as compared to $182 million in prior year Diluted GAAP EPS of $1.20 as compared to $1.91 in prior year Adjusted EPS of $2.35 as compared to $2.20 in prior year Q2 ending net leverage at 2.4x ELGIN, Ill., August 11, 2026--(BUSINESS WIRE)--The Middleby Corporation (NASDAQ: MIDD), a global leader in commercial foodservice solutions, today reported net earnings for the second quarter of 2026. Tim FitzGerald, CEO of the Middleby Corporation said, "The second quarter marked a transformational milestone for our company as we successfully completed the separation of our Food Processing business and launched Midera as an independent, publicly traded leader in food processing equipment. With this separation, Middleby is now a pure-play commercial foodservice company, focused on driving innovation and growth across the global foodservice industry. Throughout this transformation, we remained committed to disciplined capital allocation, repurchasing approximately 1.4 million shares, or 3% of our outstanding shares, during the second quarter and 8.7 million shares, or 16% of our outstanding shares, over the past six quarters. These actions underscore our confidence in the strength of our business and our commitment to creating long-term shareholder value." Tim FitzGerald continued, "We delivered strong second quarter results at our commercial foodservice business with 8% organic growth that was broad-based across channels, customer types, and regions. The strategic investments we have made in recent years are delivering results, and we continue to define the future of commercial foodservice through industry-leading innovation and customer-focused solutions. These results give us great confidence as we begin our journey as a pure-play commercial foodservice leader." 2026 Second Quarter Financial Results All results presented are on the reported second quarter continuing operations basis, inclusive of Food Processing unless otherwise noted. Net sales increased 9.9% in the second quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales increased 6.4% in the second quarter over the comparative prior year period. A reconciliation of organic net sales (a non-GAAP measure) by segment is as follows: Adjusted EBITDA (a non-GAAP measure) was $193.2 million in the second quarter compared to $181.6 million in the prior year. A reconciliation of organic adjusted EBITDA (a non-GAAP measure) by segment is as follows: Operating cash flows during the second quarter amounted to $99.7 million compared to $91.8 million in the prior year. Operating cash flows during the second quarter also include $7.5 million of payments of strategic transaction costs associated with the business portfolio transformation. Adjusted EPS excluding Food Processing is estimated to be $1.74 for second quarter compared to $1.40 in the prior year. These are preliminary estimates and will be finalized in Q3 2026 as the company reports the historical Food Processing results within discontinued operations. The growth in Adjusted EPS includes an increase related to organic growth, benefits from share repurchases and a discrete benefit related to foreign currency as part of the separation of the Food Processing business, partially offset by higher interest costs associated with the convertible notes maturity and a higher tax rate. Please reference the guidance section of the earnings release and our earnings slides for further details. The total leverage ratio per our credit agreements was 2.4x. The trailing twelve-month bank agreement pro-forma EBITDA was $787.7 million. Post spin the estimated total leverage ratio per our credit agreement was 2.7x. Net debt, defined as debt less cash, at the end of the 2026 fiscal second quarter amounted to $1.8 billion as compared to $2.0 billion at the end of fiscal 2025. Our borrowing availability at the end of the second quarter was approximately $2.6 billion. 2026 Outlook Management also provided the following expectations for the third quarter and full year 2026 for the total company post-spin of the Food Processing business and excluding Residential: Beginning in the third quarter of 2026, the historical financial results of the Food Processing business for periods prior to the spin-off will be reflected in the company’s consolidated financial statements as discontinued operations. The below amounts represent Middleby excluding Food Processing and Residential which are to be considered preliminary and could change as the company finalizes discontinued operations. Conference Call The company has scheduled a conference call to discuss the second quarter results at 10 a.m. Eastern/9 a.m. Central Time on August 11th. The conference call is accessible through the Investor Relations section of the company website at www.middleby.com. If website access is not available, attendees can join the conference by dialing (844) 676-5090, or (412) 634-6754 for international access. The conference call will be available for replay from the company’s website. Cautionary Statement Regarding Forward-Looking Statements Statements in this press release or otherwise attributable to the company regarding the company's business which are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations with respect to our future performance and the outcome of our strategic review. The company cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. Such factors include variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company's products; the availability and cost of raw materials; any variation between the preliminary and final historical results of the Food Processing business; and other risks detailed herein and from time-to-time in the company's SEC filings. Any forward-looking statement speaks only as of the date hereof, and the company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. The Middleby Corporation is a global leader in commercial foodservice solutions. The well-known Middleby brands develop and manufacture a broad portfolio of innovative products for commercial kitchens worldwide. Middleby serves a diverse customer base with equipment and technology offerings that include cooking, warming, beverage, ice and IoT while proudly showcasing its advanced foodservice solutions in five state-of-the-art Middleby Innovation Kitchens across North America and Europe. USE OF NON-GAAP FINANCIAL MEASURES The company supplements its consolidated financial statements presented on a GAAP basis with this non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. The company believes that organic net sales growth, adjusted EBITDA, organic adjusted EBITDA, segment adjusted EBITDA, net debt, net leverage, adjusted net earnings and adjusted diluted per share measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The company also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in its opinion, do not reflect its core operating performance including, for example, intangibles amortization expense, impairment charges, restructuring expenses, and other charges which management considers to be outside core operating results. The company believes that free cash flow is an important measure of operating performance because it provides management and investors with a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt and repurchasing our common stock. The company believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Middleby uses internally for purposes of assessing its core operating performance. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811523406/en/ Contacts Investor relations inquiries: Rebecca EllinSVP of Corporate Development and Investor [email protected] Media inquiries: Darcy BretzVP of Corporate [email protected] Kate SchneidermanManaging Director, [email protected]

Interested in The Middleby Corporation? Here are five stocks we like better. Middleby completed its transformation into a focused commercial foodservice equipment company after selling a controlling stake in its residential kitchen business and spinning off Midera, its food processing unit. Commercial foodservice revenue rose 8.3% organically to approximately $631 million in Q2, prompting the company to raise its full-year organic growth outlook for the segment to 6%–8%. Margins faced pressure from inflation, freight, steel surcharges and investments in ice and beverage products, but Middleby expects sequential improvement; it also repurchased $200 million of shares and plans to prioritize debt repayment in the second half. Middleby Is Betting a Leaner Business Can Unlock More Value Middleby (NASDAQ:MIDD) said its transformation into a focused commercial foodservice equipment company is complete after the company sold a controlling stake in its residential kitchen business and spun off its food processing operations. Chief Executive Officer Tim FitzGerald said Middleby completed the sale of a controlling interest in its residential kitchen business to 26North during the first quarter. On July 6, the company completed the spin-off of its food processing business, Midera, which now trades as a separate public company. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Insiders Spent Millions on These 3 Stocks Over the Past 2 Months “With that, the transformation is complete,” FitzGerald said. He said the remaining Middleby business will move forward as a focused provider of commercial foodservice solutions, supported by its brands, product innovation and investments in customer-facing and operational capabilities. Middleby’s commercial foodservice segment generated approximately $631 million in second-quarter revenue, with organic revenue growth of 8.3%. The company said growth was broad-based across customer channels, including chain customers and dealer partners, as well as across North American and international markets. → 3 Dividend Champion Utilities for a Market That Can't Sit Still FitzGerald said the quarter marked the segment’s second consecutive period of organic sales growth despite what he characterized as a challenging macroeconomic backdrop. It was also the second-largest quarterly revenue period in the history of Middleby Commercial Foodservice, according to the company. The company said momentum has been supported by its go-to-market investments and product innovation, particularly in ice and beverage equipment. Middleby is expanding its pipeline in those categories ahead of expected customer demand in 2027. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War During the question-and-answer session, Steve, a company executive, said dealer-channel growth has remained positive but is expected to moderate in the second half compared with the double-digit growth reported in the second half of the prior year. He said expected growth in the third and fourth quarters will be driven primarily by chain customers, especially quick-service restaurants. Middleby said quick-service restaurant demand is being supported by new product adoption, as operators seek equipment that can support expanded menus, additional dayparts, higher throughput, consistency and labor efficiency. Steve said new restaurant openings have been relatively flat year over year, while replacement demand has improved from prior periods but has not fully accelerated. Organic adjusted EBITDA margin in the commercial foodservice segment was 25.8% in the second quarter. Middleby said margins were below its expectations because of a combination of product mix, inflationary costs and investments in its ice and beverage platform. FitzGerald said ice and beverage products carry margins approximately 400 basis points below the company’s longer-established cooking platform. The company also cited accelerated costs for ocean freight shipping and steel surcharges. Chief Financial Officer Brittany Cerwin said the company experienced a total margin headwind of nearly 100 basis points during the quarter. That included higher-than-expected inflationary effects, partly offset by an approximately $5 million tariff refund. Cerwin said Middleby expects an additional $10 million to $15 million of inflation-related margin pressure during the remainder of the year relative to its prior expectations. The company expects a similar roughly $5 million amount of tariff refunds in the second half. Middleby expects sequential margin improvement in both the third and fourth quarters, although inflationary and investment-related pressures are expected to continue through the second half. The company cited product simplification, lean manufacturing, pricing and mix improvement as factors expected to support progress. Cerwin said investments associated with new beverage equipment represented about a 150-basis-point margin headwind in the second quarter. Middleby expects that effect to lessen in the second half, while benefits from recently announced pricing are expected to begin contributing primarily in the fourth quarter. FitzGerald said the ice and beverage platform is still in an investment phase, with the company ramping manufacturing capacity, customer testing and product approvals for offerings including FizzBot and Gravity. He said these initiatives are not expected to materially affect 2026 revenue, but are expected to begin contributing in 2027. On a consolidated basis, Middleby reported second-quarter adjusted EBITDA of approximately $193 million and adjusted earnings per share from continuing operations of $2.35. Adjusted EPS excluding food processing was estimated at $1.74, compared with $1.40 in the prior-year period. The company said adjusted EPS growth reflected organic earnings growth and the effect of share repurchases, partly offset by higher interest expense related to the maturity of convertible notes and a higher tax rate associated with foreign tax items and nondeductible expenses. Second-quarter operating cash flow totaled approximately $100 million, while free cash flow was approximately $89 million. Middleby ended the quarter with a leverage ratio of 2.4 times under its credit agreement. Its estimated pro forma leverage ratio at the time of the Midera spin-off was 2.7 times. The company repurchased 1.4 million shares during the second quarter for $200 million, at an average pre-spin price of approximately $142 per share. FitzGerald said Middleby has returned $1.3 billion to shareholders through repurchases, including $200 million in the second quarter, reducing its share count by 16% over the past six quarters. Cerwin said debt repayment is expected to be the primary use of excess capital during the second half, as the company targets leverage of about 2.5 times by year-end. Middleby raised its full-year organic growth outlook for its commercial foodservice business to 6% to 8%. The company said it expects replacement spending to remain stable, though some larger chains have modestly pushed out unit-growth plans amid continued pressure on quick-service restaurant traffic and more selective capital spending. For the third quarter, on a post-spin total-company basis, Middleby forecast: Revenue of $620 million to $640 million, representing approximately 4% organic growth. Adjusted EBITDA of $143 million to $150 million. Adjusted EPS of $1.67 to $1.83, based on approximately 45.2 million weighted-average shares outstanding. For the full year, Middleby projected post-spin revenue of $2.48 billion to $2.53 billion, representing approximately 7% organic growth. It expects adjusted EBITDA of $572 million to $588 million and adjusted EPS of $6.73 to $6.89, based on approximately 45.8 million weighted-average shares outstanding. FitzGerald reiterated the company’s three-year targets, which call for 3% to 6% organic sales growth, 6% to 9% adjusted EBITDA growth and 10% to 15% adjusted EPS growth. He said Middleby expects its commercial foodservice focus, new-product pipeline and operating initiatives to support those objectives. Middleby Corporation is a global manufacturer and distributor of commercial foodservice and food processing equipment. The company designs, engineers and markets a wide range of cooking, baking, refrigeration, warewashing, holding and dispensing solutions. Middleby's products serve restaurants, hotels, convenience stores, institutional cafeterias, cruise ships and other foodservice operators. The company's portfolio spans multiple well-known brands, including Blodgett ovens, TurboChef rapid‐cook ovens, Southbend ranges and broilers, Pitco fryers, and Viking residential and commercial kitchen appliances. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Middleby Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the multi-step separation of residential and food processing businesses, positioning Middleby as a pure-play commercial foodservice solutions provider. Organic revenue growth of 8.3% in Q2 was driven by broad-based strength across global channels, particularly within the QSR segment and dealer partners. Performance was bolstered by strategic investments in the ice and beverage platform, which is seeing rapid adoption as customers seek to expand menus and dayparts. Management attributed the second consecutive quarter of organic growth to a go-to-market strategy that emphasizes strategic partnerships and next-generation innovation. Operating margins were pressured by a mix shift toward the newer ice and beverage platform, which currently carries margins approximately 400 basis points lower than legacy cooking products. External headwinds included accelerated inflationary costs for ocean freight and steel surcharges, which outpaced management's initial expectations for the quarter. Capital allocation focused on shareholder returns, with $1.3 billion returned via repurchases over six quarters, reducing outstanding share count by 16%. Raised full-year organic revenue guidance to 6%-8% based on sustained momentum with global chains and a robust pipeline extending into 2027. Expect sequential margin improvement in Q3 and Q4 as operational initiatives like product simplification and lean manufacturing begin to offset inflationary pressures. Anticipate incremental inflationary margin pressure of $10 million to $15 million in the second half of the year relative to prior expectations. Strategic focus for 2027 includes scaling new automated beverage production and closing the margin gap in the ice and beverage platform as it moves past the initial investment phase. Management expects to delever the balance sheet to approximately 2.5x by year-end, prioritizing debt pay-down as the primary use of excess capital. The spin-off of the food processing business (MDF) was completed on July 6, marking the final step in the corporate transformation. Realized a $5 million tariff refund in Q2, with an additional $5 million expected in the second half of the year to partially mitigate gross tariff exposure. Identified a 150-basis-point margin headwind in Q2 specifically related to investments and manufacturing ramps for new beverage equipment. Noted that while QSR traffic remains challenging, the replacement cycle for aging equipment is beginning to show signs of stabilization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Improvement will be driven by a combination of better product mix and the realization of price increases effective August 1st, which will primarily benefit Q4. Operational excellence initiatives, including SKU simplification, are in early stages but are expected to gain traction in the latter half of the year. Winning QSR chains are shifting away from buying cheaper versions of old products and are instead investing in high-feature technology that improves labor efficiency and ROI. While new store openings remain relatively flat, demand is being fueled by new product adoption for menu expansion and throughput consistency. Growth in international markets is shifting from a narrow focus on fryers and ovens for global chains to selling the full Middleby technology portfolio to local emerging chains. The company has opened innovation kitchens globally to demonstrate complete solutions, including beverage and ice, which were historically underrepresented in international sales. Management stated there is no structural reason for ice and beverage margins to remain lower than cooking; the current gap is due to the platform's early stage in the investment cycle. Confidence in reaching target margins is supported by mature brands within the platform that already perform at or above corporate targets.