Middleby raises 2026 forecast as Q3 profit tops estimates
Q3 adjusted EPS of $2.07 beat the $1.78 consensus estimate, and the full-year 2026 adjusted EPS forecast rose to $7.13 to $7.29. Net sales of $652.58 million were in line with the $646.71 million estimate.
Key takeaways
- Middleby (MIDD) reported third-quarter adjusted earnings of $2.07 per share, above the $1.78 consensus estimate, and raised its full-year 2026 adjusted EPS forecast to $7.13 to $7.29. Net sales were $652.58 million, in line with the $646.71 million estimate. Tim FitzGerald will be succeeded as CEO by Steve Spittle on April 1, 2027.
Middleby (MIDD) posted third-quarter adjusted earnings of $2.07 per share and raised its full-year 2026 forecast. Net sales of $652.58 million were in line with the $646.71 million estimate.
Shares rose 2.0% at 3:59 p.m. ET, from a $127.55 close.
Here's how the company did:
- Adjusted EPS: $2.07 vs. $1.74 a year earlier, against the $1.78 consensus estimate
- Diluted GAAP EPS: $0.43 vs. $1.55 a year earlier
- Net sales: $652.58 million vs. $606.00 million a year earlier
Net sales rose 7.7%, with organic growth also 7.7% and an immaterial foreign exchange effect. Adjusted EBITDA rose 10% to $155.8 million from $142.2 million, a 23.9% margin, up from 23.5%.
Raised 2026 guidance
Full-year 2026 net sales are now expected at $2.519 billion to $2.534 billion, against the previous $2.48 billion to $2.53 billion forecast given Aug. 11. Adjusted EPS is now expected at $7.13 to $7.29, up from $6.73 to $6.89 in August. Adjusted EBITDA is expected at $589 million to $593 million, from $572 million to $588 million. Organic net sales growth is now expected at 7.5%, from 7%.
For the fourth quarter, the company expects net sales of $621 million to $635 million, adjusted EBITDA of $149 million to $153 million and adjusted EPS of $1.76 to $1.92.
Charges and operating income
Operating income was $99 million, compared with $124 million a year earlier, including $26 million of charges tied to the closure of the Brewing businesses, announced in September. The closure remains on track for completion by year end.
Steve Spittle will succeed Tim FitzGerald as CEO on April 1, 2027.
Cash and capital returns
The company repurchased 1.0 million shares for $106.5 million in the third quarter, and 4.8 million shares year to date.
Operating cash flow was $122.6 million, compared with $141.0 million a year earlier. Free cash flow was $116.8 million, down from $133.7 million.
Total debt was $1.7 billion at the end of the quarter, down from $2.1 billion at the end of fiscal 2025. Net leverage was 2.8x.
On Nov. 4, the company entered into an amended and restated five-year, $3 billion multicurrency senior secured credit agreement, consisting of a $1.0 billion term loan and a $2.0 billion revolving multicurrency credit facility. Borrowing availability was about $1.4 billion at the end of the quarter.