Middleby's Q3 Earnings and Sales Beat Estimates, Increase Y/Y

Core Insights - Middleby Corporation (MIDD) reported third-quarter 2025 adjusted earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of $2.03, with a year-over-year increase of 3% despite lower sales [1] - Net sales reached $982 million, surpassing the consensus estimate of $957 million, marking a 4.2% year-over-year increase, although organic sales decreased by 0.1% [1] - The company anticipates fourth-quarter sales between $990 million and $1.02 billion, with adjusted earnings projected to be in the range of $2.19 to $2.34 per share [9][10] Segment Performance - The Commercial Foodservice Equipment Group, accounting for 61.7% of net sales, generated $606 million, a 2.4% increase year over year, with organic sales up 1.6% [2] - The Residential Kitchen Equipment Group reported sales of $174.8 million, a 0.9% increase year over year, while organic sales decreased by 0.6% [3] - The Food Processing Equipment Group saw sales of $201.3 million, a significant 13.2% increase year over year, despite a 5.6% decline in organic sales [4] Financial Metrics - Cost of sales rose by 5.7% year over year to $620.8 million, with gross profit increasing by 1.7% to $361.3 million, resulting in a gross margin of 36.8%, down 90 basis points from the previous year [5] - Adjusted EBITDA decreased by 7.8% year over year to $196.4 million, with an adjusted EBITDA margin of 20.0%, down 260 basis points [6] - Cash and cash equivalents at the end of the third quarter were $175.1 million, down from $689.5 million at the end of December 2024, while long-term debt decreased to $2.03 billion [7] Future Outlook - For 2025, Middleby expects total sales between $3.85 billion and $3.89 billion, with adjusted EBITDA forecasted at $779 million to $789 million and adjusted earnings projected to be between $8.99 and $9.14 per share [11]