Middleby(US:MIDD)2026-02-26 12:03Financial Performance - Q4 2025 net sales reached $866 million, a 5% increase year-over-year, with organic growth marginally positive[5] - Adjusted EBITDA for Q4 2025 was $197 million, down from $226 million in the prior year, impacted by $7 million in tariffs[9] - Net sales for Q4 2025 reached $866.425 million, a 4.5% increase from $828.838 million in Q4 2024[18] - Gross profit for Q4 2025 was $336.220 million, slightly up from $331.341 million in Q4 2024, maintaining a stable gross margin[18] - Net earnings from continuing operations for Q4 2025 were $86.086 million, down 26.9% from $117.838 million in Q4 2024[18] - The company reported a net loss of $277.731 million for the twelve months ended January 3, 2026, compared to a net profit of $428.433 million for the previous year[18] - Adjusted net earnings from continuing operations for Q4 2025 were $106,886, down 21.8% from $136,708 in Q4 2024[26] - Total net earnings attributable to Middleby for the twelve months ended Q4 2025 were $479,491, a decrease of 6.1% from $510,481 in the previous year[26] Segment Performance - The Food Processing segment generated $265 million in revenue, while the Commercial Foodservice segment delivered $602 million, showing double-digit growth in the dealer channel[4] - Segment income from continuing operations for the Commercial Foodservice segment was $544.389 million, accounting for 23.2% of its net sales for the twelve months ended January 3, 2026[24] Cash Flow and Leverage - Q4 operating cash flows were $178.5 million, compared to $209.9 million in the prior year, reflecting strategic transaction costs and tariff impacts[10] - Free cash flow for Q4 2025 was $165,516, a decrease of 17.3% compared to $200,255 in Q4 2024[27] - Net cash provided by operating activities for Q4 2025 was $178,468, down 15.0% from $209,857 in Q4 2024[27] - The total leverage ratio at the end of Q4 2025 was 2.5x, with net debt amounting to $2.0 billion[11] - Long-term debt decreased to $2.129 billion from $2.351 billion year-over-year, indicating improved financial leverage[20] Shareholder Actions - The company repurchased 4.9 million shares (9.1% of equity) in 2025 and 1.7 million shares (3.5% of equity) year-to-date 2026[4] Future Outlook - The company anticipates organic growth of 1-3% in Commercial Foodservice and 4-6% in Food Processing for 2026[12] - The company expects full-year 2026 adjusted EPS to be in the range of $9.20 to $9.36[12] Asset Management - Total assets decreased to $6.315 billion as of January 3, 2026, down from $7.283 billion on December 28, 2024[20] - The company’s cash and cash equivalents dropped significantly to $222.239 million from $638.766 million in the prior year[20] Capital Expenditures and Investments - Capital expenditures for Q4 2025 were $12,952, an increase from $9,602 in Q4 2024[27] - The company invested approximately $18 million in food processing innovation centers for the twelve months ended January 3, 2026[27] Restructuring and Strategic Costs - The company incurred restructuring expenses of $3.270 million for the twelve months ended January 3, 2026, compared to $8.245 million in the previous year[24] - The company incurred strategic transaction costs of $4.8 million for Q4 2025 related to business portfolio review[27]