Core Viewpoint - McCormick's quarterly earnings of $0.86 per share fell short of the Zacks Consensus Estimate of $0.87 per share, marking an earnings surprise of -1.29% [1]. Financial Performance - The company reported revenues of $1.85 billion for the quarter ended November 2025, which was below the Zacks Consensus Estimate by 0.46%, compared to $1.8 billion in the same quarter last year [2]. - Over the last four quarters, McCormick has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2]. Stock Performance - McCormick shares have declined approximately 2.3% since the beginning of the year, while the S&P 500 has gained 0.4% [3]. - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $1.78 billion, and for the current fiscal year, it is $3.21 on revenues of $7.63 billion [7]. - The estimate revisions trend for McCormick was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]. Industry Context - The Food - Miscellaneous industry, to which McCormick belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8].

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4th Quarter 2025 McCormick & Company, Inc. Business Update, Financial Results, and Outlook | January 22, 2026 The following slides accompany a January 22, 2026 earnings release conference call. This information should be read in conjunction with the press release issued on that date. FORWARD-LOOKING INFORMATION Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges inc ...

Financial Performance - Net sales increased by 3% in Q4 2025, with organic sales growing by 2% and a 1% favorable impact from currency[1] - For fiscal year 2025, total net sales rose by 2%, with organic sales remaining flat due to minimal currency impact; earnings per share was $2.93, up from $2.92 in 2024[1] - Operating income for Q4 2025 was $311 million, a 1.6% increase from the previous year, while adjusted operating income rose to $317 million[3] - The consumer segment net sales increased by 4% in Q4 2025 to $1,127 million, with organic sales up by 3% driven by price and volume[4] - Cash flow from operations for fiscal year 2025 was $962 million, an increase from $922 million in 2024[5] - Gross profit margin for fiscal year 2025 was 37.9%, a contraction of 60 basis points compared to the previous year[5] - Adjusted gross profit for the year ended November 30, 2025, was $2,594.3 million, maintaining a gross profit margin of 37.9%[8] - Adjusted operating income for the year ended November 30, 2025, was $1,094.0 million, reflecting a 2.3% increase compared to the previous year[8] - Net income for the year ended November 30, 2025, was $789.4 million, with an adjusted net income of $807.1 million, a 1.4% increase year-over-year[8] - The company's gross profit for the year ended November 30, 2025, was $2,592.2 million, slightly up from $2,591.0 million in the previous year[14] - Operating income for the year increased to $1,070.8 million, compared to $1,060.3 million in 2024, reflecting a growth of 1.5%[14] - Net income for the year was $789.4 million, a marginal increase from $788.5 million in 2024[14] - Earnings per share (diluted) for the year remained stable at $2.93, compared to $2.92 in the previous year[14] Future Outlook - Fiscal year 2026 outlook projects net sales growth of 13% to 17%, with organic sales growth expected to be between 1% to 3%[6] - Adjusted earnings per share for fiscal year 2026 is forecasted to be between $3.05 and $3.13, reflecting a growth of 2% to 5%[6] - The acquisition of a controlling interest in McCormick de Mexico is expected to contribute 11% to 13% to net sales growth in 2026[6] - Projected net sales growth for the year ending November 30, 2026, is expected to be between 13% to 17%, with an impact of favorable foreign currency exchange of 1%[11] - Adjusted operating income is projected to increase by 16% to 20% for the same period, with a constant currency increase of 15% to 19%[11] - Adjusted earnings per share (diluted) is expected to rise by 2% to 5%, with a constant currency increase of 1% to 4%[11] Assets and Liabilities - Total assets as of November 30, 2025, were $13,200.4 million, up from $13,070.3 million in 2024[15] - Total liabilities decreased to $7,432.3 million from $7,753.5 million in the previous year, indicating improved financial health[15] - Cash and cash equivalents at the end of the year were $95.9 million, down from $186.1 million at the beginning of the year[16] - The company invested $221.8 million in capital expenditures during the year, compared to $274.9 million in 2024[16] Strategic Initiatives - The company plans to continue investing in core categories to sustain volume trends and drive long-term profitable growth[2] - McCormick's commitment to innovation and market expansion continues to drive its strategy, focusing on consumer demand for flavor[13] - The company plans to continue providing non-GAAP financial measures to enhance comparisons to prior periods and facilitate future projections[7]

Core Viewpoint - McCormick forecasts fiscal 2026 profit below analysts' estimates due to higher costs from tariffs and commodities, which are squeezing margins amid macroeconomic uncertainty [1] Company Summary - McCormick is facing increased costs that are impacting its profit margins, primarily due to tariffs and rising commodity prices [1] - The company's profit forecast for fiscal 2026 is lower than what analysts had anticipated, indicating potential challenges ahead [1] Industry Summary - The food industry, particularly companies like McCormick, is experiencing margin pressures due to macroeconomic factors, including tariffs and commodity price fluctuations [1]

Core Insights - McCormick reported quarterly earnings that fell short of expectations, indicating challenges in meeting financial targets for the period [1] - The company provided a mixed outlook for fiscal 2026, suggesting uncertainty in future performance [1] Financial Performance - The earnings report revealed a decline in revenue, with a year-over-year decrease of 5% [1] - Adjusted earnings per share (EPS) were reported at $0.60, missing analysts' expectations of $0.65 [1] Outlook and Guidance - McCormick's guidance for fiscal 2026 includes a projected revenue growth range of 1% to 3%, which is lower than previous forecasts [1] - The company highlighted ongoing inflationary pressures and supply chain challenges as factors impacting future performance [1]

Core Insights - McCormick & Co. reported higher sales in its fiscal fourth quarter, indicating positive momentum expected to continue into the current year [1] - The company is facing higher costs that are impacting profit margins [1] Financial Performance - The fiscal fourth quarter showed an increase in sales, reflecting strong demand for McCormick's products [1] - Despite the sales growth, the company is struggling with rising costs that are eroding profitability [1]

Core Viewpoint - CHARBONE CORPORATION has initiated the sale of clean Ultra High Purity hydrogen in Ontario to support the film and entertainment production industry, marking a significant step in the commercialization of hydrogen for practical applications [1][2][5]. Group 1: Hydrogen Supply and Application - The company has begun supplying clean UHP hydrogen to fuel cell-powered generator systems for film production sets, providing a sustainable energy solution [2][3]. - This initiative aims to reduce emissions, noise, and logistical complexities associated with traditional diesel generators in the film production ecosystem [3][5]. - The hydrogen supply will be supported by CHARBONE's distribution capabilities, ensuring reliable service for production crews with strict scheduling needs [4]. Group 2: Strategic Direction - The sale into the film-related power segment reflects CHARBONE's strategy to expand hydrogen commercialization beyond traditional industrial uses into mobile and temporary power applications [5]. - The CEO emphasized that hydrogen is transitioning from a concept to an operational solution, showcasing its value in providing low-emission energy [6]. Group 3: Company Overview - CHARBONE is focused on developing a network of clean hydrogen production facilities across North America, starting with its flagship project in Sorel-Tracy, Quebec [7]. - The company's integrated model aims to reduce risk and enhance scalability while diversifying revenue streams through partnerships in specialty gases [7].

Core Insights - McCormick & Company reported strong financial performance for fiscal year 2025, demonstrating resilience despite inflationary pressures and rising costs [2][4] - The company achieved organic sales growth and operating profit growth, supported by strategic investments and acquisitions, particularly the controlling interest in McCormick de Mexico [2][19] - The outlook for fiscal year 2026 indicates continued growth, with expectations for net sales growth of 13% to 17% and adjusted earnings per share growth of 2% to 5% [20][40] Financial Performance - In Q4 2025, total net sales increased by 3% year-over-year, with organic sales growing by 2% [4][7] - Earnings per share for Q4 2025 was $0.84, up from $0.80 in Q4 2024, while adjusted earnings per share rose to $0.86 from $0.80 [10][4] - For the full fiscal year 2025, net sales increased by 2%, with organic sales also up by 2%, driven by volume and pricing [11][4] Profitability Metrics - Gross profit for Q4 2025 was $720.3 million, with a gross profit margin of 38.9%, reflecting a contraction of 130 basis points compared to the previous year [6][8] - Operating income for Q4 2025 was $311 million, a slight increase from $306 million in Q4 2024, with adjusted operating income at $317 million [9][4] - For fiscal year 2025, operating income was $1,071 million, compared to $1,060 million in 2024, with adjusted operating income at $1,094 million [13][4] Segment Performance - The Consumer segment net sales increased by 4% in Q4 2025, while the Flavor Solutions segment sales rose by 2% [14][16] - Consumer segment operating income, excluding special charges, increased by 1% to $231 million in Q4 2025, while Flavor Solutions segment operating income grew by 7% to $86 million [15][25] - For fiscal year 2025, Consumer segment net sales were $3,950 million, and Flavor Solutions segment net sales were $2,890 million [16][25] Strategic Outlook - The company plans to continue investing in core categories to sustain volume trends and drive long-term profitable growth [19][22] - The acquisition of McCormick de Mexico is expected to contribute significantly to growth in 2026, with an anticipated impact of 11% to 13% on net sales [20][40] - The company is focused on leveraging its Comprehensive Continuous Improvement (CCI) program to enhance operational efficiency and margin expansion [19][26]

Core Insights - McCormick & Company, Incorporated (MKC) is expected to report growth in both revenue and earnings for the fourth quarter of 2025, with revenue estimates at $1.85 billion, reflecting a 2.6% increase year-over-year [1][9] - The earnings consensus has slightly decreased to 88 cents per share, indicating a 10% increase from the previous year's quarter [2][9] Factors Influencing Results - Steady consumer demand in McCormick's core portfolio of spices, seasonings, and condiments is anticipated to drive volume-led growth, supported by effective brand marketing and seasonal promotions [3] - Expanded distribution channels, including traditional retail, e-commerce, and club channels, are likely to enhance sales performance in key markets [3] - The company's focus on brand execution and product innovation, including new offerings and improved packaging, is expected to enhance shelf visibility and consumer engagement [4] - In the Global Flavor Solutions segment, demand trends are mixed, with support from quick-service restaurant demand in the Americas and Asia Pacific, while certain large CPG customers may face pressure [5] Cost and Margin Considerations - McCormick is likely to experience elevated commodity and tariff-related pressures, which may constrain margin performance despite pricing actions and productivity savings [6] Earnings Prediction Insights - Current models do not predict a definitive earnings beat for McCormick, with an Earnings ESP of -0.17% and a Zacks Rank of 2 (Buy) [7]