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    MIDD
    Earnings call· Mar 2026(Q1 FY26)

    MIDDLEBY Q1 FY26 earnings call MIDD

    May 7, 2026 Source

    Executive summary

    Middleby Q1 FY26 — Strong Q1 Results, Raised Guidance, and Spin-off Progress

    The Middleby Corporation reported strong Q1 FY26 results, exceeding expectations across both Commercial Foodservice and Food Processing segments, leading to raised full-year guidance. The company is progressing towards the separation of its two segments into independent public companies, with an Investor Day planned to detail future visions. Despite macroeconomic headwinds impacting consumer spending, strategic investments and market share gains are driving performance, complemented by aggressive share repurchases.

    Highlights

    6

    • Total revenue of approximately $840 million exceeded expectations.

    • Adjusted EPS from continuing operations was $2.16.

    • Commercial Foodservice revenue of approximately $616 million, with double-digit growth in general market/dealer partners.

    • Food Processing delivered its best first quarter ever, with 25% organic revenue growth and record order intake.

    • Food Processing achieved its fifth consecutive quarter of book-to-bill above 1.

    • Repurchased 2.4 million shares (5% of outstanding equity) for $366 million in Q1, plus an additional 1.1 million shares (2%) for $154 million in Q2.

    Concerns

    4

    • Industry conditions remain challenging, especially as consumer wallets became increasingly strained in March and April.

    • Tariffs remained a headwind on a percentage margin basis in Q1 and are expected to continue in Q2.

    • New inflationary pressures, particularly around shipping costs and electronic controls, are anticipated to be a headwind.

    • Commercial Foodservice EBITDA margin was down year-over-year in Q1 and is guided down again in Q2.

    Guidance & targets

    17
    CategoryTargetConfidence
    Total Company Revenue
    $815 million to $850 million
    high materiality
    High
    Commercial Foodservice Revenue
    $600 million to $620 million
    medium materiality
    High
    Food Processing Revenue
    $215 million to $230 million
    medium materiality
    High
    Total Company Adjusted EBITDA
    $180 million and $192 million
    high materiality
    High
    Commercial Foodservice Adjusted EBITDA
    $154 million to $164 million
    medium materiality
    High
    Food Processing Adjusted EBITDA
    $45 million to $49 million
    medium materiality
    High
    Adjusted EPS
    $2.27 to $2.39
    high materiality
    High
    Total Company Revenues
    $3.36 billion to $3.44 billion
    high materiality
    High
    Commercial Foodservice Revenues
    $2.44 billion to $2.49 billion
    medium materiality
    High
    Food Processing Revenues
    $915 million to $945 million
    medium materiality
    High
    Total Adjusted EBITDA
    $758 million to $790 million
    high materiality
    High
    Commercial Foodservice Adjusted EBITDA
    $645 million to $668 million
    medium materiality
    High
    Food Processing Adjusted EBITDA
    $186 million to $208 million
    medium materiality
    High
    Adjusted EPS
    $9.54 to $9.70
    high materiality
    High
    Middleby RemainCo Net Leverage Ratio
    approximately 2.5x
    high materiality
    High
    Food Processing Net Leverage Ratio
    approximately 1.25x
    high materiality
    High
    Commercial Foodservice Pricing Increase
    low single digits
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Commercial Foodservice
    Revenue exceeded expectations, driven by organic revenue growth. Positive impacts were seen from general market, institutional, and emerging customer segments, with chain business performing better than expected. Double-digit growth with dealer partners continued.
    Organic adjusted EBITDA margins: 25.8%
    		$616 million8.1%—25.8%
    Food Processing
    Record first quarter revenues, driven by organic revenue growth. Positive impacts were seen from improvement in international markets. Margins included a modest headwind from the timing of a new product introduction not expected to recur.
    Organic adjusted EBITDA margins: 19.5%
    		$224 million25%—19.5%

    Operational metrics

    9
    Adjusted EBITDA
    $181 million
    Q1 FY26

    Total company adjusted EBITDA for the first quarter.

    Adjusted EPS from continuing operations
    $2.16
    Q1 FY26

    Adjusted EPS expansion was achieved through organic EPS growth, share repurchases, and carryover from 2025 activity, offset by increased interest costs and higher stock compensation.

    Leverage ratio (per credit agreement)
    2.3x
    Q1 FY26 end

    Leverage ratio at quarter's end.

    Share repurchases
    $366 million
    Q1 FY26

    Amount of shares repurchased during the first quarter.

    Share repurchases
    $154 million
    start of Q2 FY26

    Additional shares repurchased at the start of the second quarter.

    Shares outstanding reduction
    approximately 7%
    2026 YTD

    Reduction in shares outstanding so far in 2026, on top of 9% reduction in 2025.

    Shares outstanding reduction
    9%
    2025

    Reduction in shares outstanding during 2025.

    New inflationary pressures margin impact
    approximately 1%
    Q3 FY26

    Anticipated margin headwind from new inflationary pressures for each segment.

    Food Processing H1 organic growth
    9%
    H1 FY26

    Organic growth for the first half of the year for Food Processing, including guidance.

    Industry KPIs

    2
    MetricValueDetails
    Tariff cost impactoffset the dollar impact, headwindUSD, %
    Order backlog order intake by segment$231 million (orders), $416 million (backlog)USD

    Orderbook & backlog

    3
    Food Processing orders$231 millionQ1 FY26

    record order intake

    Food Processing backlog$416 millionQ1 FY26 end

    further increase versus the end of the year

    Food Processing book-to-billabove 1Q1 FY26

    fifth consecutive quarter

    Deals & partnerships

    1
    GorreriAcquisition of an Italian company to expand total line solutions in the cake category.

    Acquired 18 months ago, Gorreri has enabled Middleby Food Processing to offer unmatched solutions to customers.

    Risks & headwinds

    3
    Consumer wallets increasingly strainedMarch and April 2026

    Macroeconomic conditions affecting consumer spending in March and April.

    Mitigation: Remaining prudently cautious, well-positioned for environment to improve, chain customers adapting to macroeconomic environment.

    Tariff impact on percentage marginQ1 FY26, Q2 FY26

    Remained a headwind in Q1 FY26, expected to continue in Q2 FY26.

    Mitigation: Lapping the impact of prior year second half pricing and tariff mitigation strategies.

    New inflationary pressuresQ3 FY26 onwards

    Approximately 1% margin headwind for each segment.

    Mitigation: Proactively working to get ahead through operating initiatives and targeted/strategic price increases (low single digits for Commercial Foodservice in Q3, prudent contract/parts pricing for Food Processing).

    What to watch in Q2 FY26

    5

    Commercial Foodservice Margin Recovery

    Q3/Q4 FY26
    CurrentQ1 margin down YoY, Q2 guided down
    TargetReturn to YoY growth

    Why it matters

    Indicates effectiveness of pricing actions and improved mix in the Commercial Foodservice segment.

    Do you expect to return to year-over-year growth in 3Q with pricing kicking in? Or is that going to happen in 4Q as pricing takes full hold?

    Q&A highlights

    6

    Seeking clarification on recent macroeconomic comments and order rates, noting a potential tone change regarding consumer strain.

    Management acknowledged macroeconomic pressures (fuel prices, consumer strain) but stated order rates remained positive, with momentum continuing from late last year into Q2. They noted chain customers are performing better due to initiatives like menu pricing and profitable categories (poultry, beverage).

    “I mean I think things have continued well for us early into second quarter. Remember, our lead times are not all that long, but I think a lot of the momentum that we've seen that started in the back half of last year and carried into the first quarter, we have not seen that change thus far.”

    asked by Jeffrey Hammond · answered by Timothy FitzGerald

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Separation and Future Vision

    The Middleby Corporation is advancing with the separation of its Commercial Foodservice and Food Processing segments into two independent public companies. An upcoming Investor Day will detail the long-term visions for both entities, aiming to enable focused execution and accelerate growth opportunities. This strategic move is expected to create a scaled commercial foodservice leader with 26% segment EBITDA margins and an independent Food Processing growth platform with over 20% EBITDA margins.

    02

    Commercial Foodservice Performance Drivers

    The Commercial Foodservice segment exceeded expectations in Q1 FY26, driven by double-digit growth with dealer partners and improving replacement activity from chain customers. Strategic alignment with dealer partners and a strong pipeline of new opportunities, particularly in beverage offerings, are key contributors to market share gains. The company is capitalizing on industry momentum in beverages, leveraging past investments in IoT, automation, and beverage technologies.

    03

    Food Processing Record Quarter

    The Food Processing segment delivered its best first quarter ever, achieving 25% organic revenue growth and record order intake. This marks its fifth consecutive quarter of book-to-bill above 1. Growth is attributed to investments in international markets, enabling a broader global reach for its total line solutions. The acquisition strategy, exemplified by Gorreri, continues to unlock opportunities and expand the order pipeline.

    04

    Capital Allocation and Share Repurchases

    Middleby maintains an aggressive capital allocation strategy, executing significant share repurchases. In Q1 FY26, the company repurchased 2.4 million shares for $366 million, reducing outstanding equity by 5%. An additional 1.1 million shares were repurchased for $154 million at the start of Q2, further reducing equity by 2%. The company plans to allocate a substantial portion of its free cash flow to repurchases throughout the year.

    05

    Tariff and Inflationary Headwinds

    While the dollar impact of tariffs was successfully offset in Q1, tariffs continued to be a percentage margin headwind and are expected to persist into Q2. New inflationary pressures, particularly in shipping costs and electronic controls, are anticipated to create a ~1% margin headwind for each segment. To mitigate these, targeted low single-digit price increases have been announced for Q3 in Commercial Foodservice, alongside prudent pricing in Food Processing contracts and parts.

    06

    New Leadership and Team Build-out

    Brittany Cerwin has been appointed as the new CFO for The Middleby Corporation, bringing 15 years of experience to the role. The Food Processing segment has also completed its management team build-out in preparation for its spin-off, appointing Mark Bowie as COO, Matt Fuchsen as Chief Strategy Officer, and Amy Campbell as CFO, all with extensive industry experience.

    AI-generated summary of the company’s earnings call. Not investment advice.