Core Insights - The Middleby Corporation (MIDD) reported adjusted earnings of $2.35 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $2.20, although the earnings decreased by 1.7% year over year due to lower sales [1] - Net sales reached $977.9 million, surpassing the consensus estimate of $975 million, but showed a decline of 1.4% year over year, with organic sales down by 5.4% [1][10] - The company is on track to spin off its food processing business into a standalone public company by the first half of 2026, aiming to enhance strategic focus and capital optimization for both entities [11][12] Financial Performance - The Commercial Foodservice Equipment Group segment, accounting for 59.4% of net sales, reported sales of $580.6 million, down 4.8% year over year, with organic sales decreasing by 5.5% [2] - The Residential Kitchen Equipment Group segment, representing 18.5% of total sales, saw a decline to $181.1 million, down 6.1% year over year, with organic sales down by 7.8% [3] - The Food Processing Equipment Group segment, which makes up 22.1% of total sales, experienced a 14.4% increase in sales to $216.2 million, driven by acquisitions, despite a 2.9% decline in organic sales [4] Margin and Cost Analysis - Cost of sales decreased by 0.9% year over year to $606.6 million, while gross profit fell by 2.2% to $371.3 million, resulting in a gross margin of 38%, down 30 basis points from the previous year [5] - Selling, general and administrative expenses rose by 7.5% year over year to $213.6 million, leading to an operating income decrease of 11.6% to $155.4 million and an operating margin decline of 180 basis points to 15.9% [5] Cash Flow and Capital Expenditure - As of the end of Q2 2025, Middleby had cash and cash equivalents of $511.5 million, down from $689.5 million at the end of December 2024, with long-term debt slightly reduced to $2.33 billion [7] - In the first half of 2025, net cash generated from operating activities was $263.1 million, compared to $290.4 million in the same period last year, while capital expenditure increased to $54.7 million from $24.7 million [8] Future Guidance - For Q3 2025, Middleby expects total sales to be between $950 million and $975 million, with segment-specific projections for Commercial Foodservice, Residential Kitchen, and Food Processing [13] - The company anticipates adjusted EBITDA in the range of $185 million to $195 million and adjusted earnings per share between $2.04 and $2.19 [14] - For the full year 2025, total sales are projected to be between $3.81 billion and $3.87 billion, with adjusted EBITDA forecasted at $770 million to $800 million and adjusted earnings per share expected to be between $8.65 and $9.05 [15]

Financial Data and Key Metrics Changes - In Q2, the company reported revenues of over $580 million with a strong EBITDA margin of 27% [12] - Adjusted EBITDA for Q2 was $200 million, and adjusted EPS was $2.35 [14] - Free cash flow for Q2 was $101 million, with a leverage ratio of 2.3 times [17] Business Line Data and Key Metrics Changes - Commercial Foodservice revenues were below prior year levels but showed sequential growth, driven by demand for leading technologies [12] - Residential segment revenues grew sequentially to over $181 million, with an EBITDA margin exceeding 10% [13] - Food Processing revenues exceeded $216 million in Q2, with an EBITDA margin over 21% [13] Market Data and Key Metrics Changes - The company experienced growth in the indoor appliance markets in the US and UK, while facing challenges in the outdoor segment due to tariff pressures [13][9] - The snack category within Food Processing is growing rapidly, indicating a large market opportunity ahead [10] Company Strategy and Development Direction - The company has made strategic investments over the past three years to enhance innovation, go-to-market capabilities, and operational excellence [3] - Focus on expanding into new market adjacencies, particularly in ice and beverage categories, which are seen as transformational growth opportunities [5][6] - The company plans to continue share repurchases while maintaining financial flexibility for strategic growth investments [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory despite current economic challenges, emphasizing a strong foundation for long-term growth [3] - The outlook for Q3 anticipates a slight step back in revenues compared to Q2, with expectations for Q4 to be the strongest of the year [20] - Management noted that the commercial foodservice segment is under pressure but remains optimistic about future recovery [92] Other Important Information - The company expects to complete a food processing spinoff in 2026, which is anticipated to operate efficiently and independently [23] - The company has a robust pipeline for M&A activities, particularly in the food processing segment [61] Q&A Session Summary Question: Can you provide more details on the EBITDA guidance by segment? - Management indicated that margins will likely decrease slightly in Q3 due to revenue stepping down, but will improve in Q4 as revenues increase [31] Question: What is the current run rate for grill revenues and how are tariffs impacting this segment? - Grill revenues are in the $100 to $150 million range, but tariffs have caused channel partners to reduce inventory levels significantly [33][36] Question: What is the outlook for large QSR customers in the second half? - Management noted that traffic through QSRs has been down, leading to delays in new store openings and impacting replacement orders [44] Question: How is the tariff impact distributed across segments? - Approximately 60-65% of the tariff impact is felt in the commercial segment, with residential at 20-25% and food processing at 10-15% [55] Question: What are the expectations for sustainable growth in the commercial foodservice segment? - Management believes that the chains will eventually recover, and the company is well-positioned to benefit from this recovery [95] Question: How are new products introduced at NAFEM performing? - New products are gaining traction in the market, with expectations for significant revenue growth in 2026 and beyond [102]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of over $580 million with a strong EBITDA margin of 27% [12] - Total company adjusted EBITDA for Q2 was $200 million, and adjusted EPS was $2.35 [14] - Free cash flow for Q2 was $101 million, with a leverage ratio of 2.3 times [16] Business Line Data and Key Metrics Changes - Commercial Foodservice revenues were below prior year levels but showed sequential growth, driven by demand for leading technologies [12][14] - Residential segment revenues grew sequentially to over $181 million, with an EBITDA margin exceeding 10% [12] - Food Processing revenues exceeded $216 million in Q2, with an EBITDA margin of over 21% [13] Market Data and Key Metrics Changes - The company experienced reduced demand from large chain customers in the Commercial Foodservice segment due to lower traffic and cost pressures [4][12] - The residential outdoor segment faced significant challenges from tariff-related pressures, leading to reduced inventories by channel partners [9] - The food processing segment showed improvement in sales and orders, particularly in the protein and bakery segments [10] Company Strategy and Development Direction - The company is focused on long-term growth through strategic investments in innovation, market capabilities, and operational excellence [3][5] - There is a strong emphasis on expanding into new market adjacencies, particularly in the ice and beverage categories [5][6] - The company plans to continue share repurchases while maintaining financial flexibility for strategic growth investments [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory despite current economic challenges, citing a fundamentally stronger business than ever before [3][5] - The outlook for Q3 includes expected total revenue of $950 to $975 million, with a stronger Q4 anticipated [20][22] - Management noted that market conditions for food processing are modestly improving, while residential market conditions are stable [20] Other Important Information - The company plans to complete a food processing spin-off in 2026, with activities on track for a successful transaction [23][24] - The company has repurchased over 2.2 million shares for nearly $323 million in Q2, with continued buybacks in July [17][18] Q&A Session Summary Question: Can you provide more details on the EBITDA guidance by segment? - Management indicated that margins will likely decrease in Q3 due to a slight revenue step down, but expect a recovery in Q4 [32] Question: What is the current run rate for grill revenues and margin performance? - The grill business is operating in the $100 to $150 million range, but tariffs have impacted growth [34] Question: What is the impact of tariffs on different business segments? - Approximately 60-65% of the tariff impact is from the commercial segment, 20-25% from residential, and 10-15% from food processing [57][58] Question: What is the outlook for large QSR customers in the second half? - Management noted that traffic has been down significantly, affecting new store development and replacement orders [46][48] Question: How is the company addressing the tariff impacts? - The company is focusing on supply chain improvements and operational initiatives to mitigate tariff impacts [49][50] Question: What is the capital allocation strategy moving forward? - The company will continue with share buybacks while evaluating M&A opportunities, particularly in food processing [111][115]

Financial Performance - Q2 2025 - Net sales decreased by 1.4% to $977.9 million compared to $991.6 million in Q2 2024[4] - Gross profit decreased by 2.2% to $371.3 million, with a gross profit margin of 38.0%[4] - Operating income decreased by 11.6% to $155.4 million[4] - Net earnings decreased by 8.1% to $106.0 million[4] - Adjusted EBITDA decreased by 7.5% to $200.2 million, representing 20.5% of net sales[4] - Operating cash flow decreased by 18.4% to $122.0 million[4] Segment Performance - Q2 2025 - Commercial Foodservice net sales decreased by 4.8% to $580.6 million, with organic net sales declining by 5.5%[8] - Residential Kitchen net sales decreased by 6.1% to $181.1 million, with organic net sales declining by 7.8%[10] - Food Processing net sales increased by 14.4% to $216.2 million, but organic net sales decreased by 2.9%[13] Revenue Breakdown - YTD 2025 - Commercial Foodservice accounted for 61% of total revenue, Food Processing 20%, and Residential Kitchen 19%[6] - The United States and Canada accounted for 67% of total revenue, Europe and the Middle East 23%, Asia 6%, and Latin America 4%[7] Financial Outlook - The company projects total revenue of $950-975 million for Q3 2025 and $3.81-3.87 billion for the full year 2025[16] - Adjusted EBITDA is projected to be $185-195 million for Q3 2025 and $770-800 million for the full year 2025[16] Capital Allocation - The company repurchased 3.1 million shares, representing 5.7% of equity, for $449 million YTD 2025[18, 20]

Group 1 - Middleby reported revenue of $977.86 million for the quarter ended June 2025, a year-over-year decline of 1.4%, with EPS of $2.35 compared to $2.39 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $974.87 million by +0.31%, while the EPS surprise was +6.82% against a consensus estimate of $2.20 [1] - Over the past month, Middleby shares returned -2.3%, contrasting with the Zacks S&P 500 composite's +0.5% change, and the stock holds a Zacks Rank 3 (Hold) [3] Group 2 - Revenue from the Commercial Foodservice segment was $580.61 million, below the average estimate of $592.51 million, representing a year-over-year decline of -6.3% [4] - Revenue from the Residential Kitchen segment was $181.06 million, also below the average estimate of $185.38 million, reflecting a -6.1% year-over-year change [4] - Revenue from the Food Processing segment was $216.2 million, surpassing the average estimate of $197.92 million, with a year-over-year increase of +20.5% [4] - Segment Operating Income for Commercial Foodservice was $137.9 million, exceeding the average estimate of $136.13 million [4] - Segment Operating Income for Residential Kitchen was $9.33 million, below the average estimate of $11.11 million [4] - Segment Operating Income for Food Processing was $42.68 million, above the average estimate of $40.23 million [4]

Company Performance - Middleby (MIDD) reported quarterly earnings of $2.35 per share, exceeding the Zacks Consensus Estimate of $2.20 per share, but down from $2.39 per share a year ago, representing an earnings surprise of +6.82% [1] - The company posted revenues of $977.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.31%, but down from $991.55 million year-over-year [2] - Over the last four quarters, Middleby has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - Middleby shares have increased approximately 6.8% since the beginning of the year, compared to the S&P 500's gain of 7.1% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $2.24 on revenues of $971.84 million, and for the current fiscal year, it is $9.19 on revenues of $3.89 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which Middleby belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Middleby's stock performance [5]

[Press Release Overview](index=1&type=section&id=1.%20Press%20Release%20Overview) This section provides an overview of Middleby Corporation's Q2 2025 net earnings report, including company information and CEO commentary [Company Information](index=1&type=section&id=1.1%20Company%20Information) Middleby Corporation (NASDAQ: MIDD), a global leader in commercial foodservice, food processing, and residential kitchen equipment, released its second-quarter 2025 net earnings report - Middleby Corporation (NASDAQ: MIDD) is a global leader in commercial foodservice, food processing, and residential kitchen equipment[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Tim FitzGerald highlighted strong operational performance, new product launches, and customer collaboration despite economic uncertainties, emphasizing the company's fundamental transformation for long-term growth and significant share repurchases due to undervalued market perception - The CEO noted strong operational performance, new product launches, and customer collaboration despite economic uncertainties[3](index=3&type=chunk) - The company has undergone a fundamental business transformation to drive long-term growth, particularly in innovation and market expansion capabilities, positioning it for outsized growth post-market rebound[3](index=3&type=chunk) - The company repurchased **$323 million** in stock this quarter and expects to continue opportunistically deploying capital to enhance EPS, believing current market valuation does not reflect its significant growth opportunities[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=2.%20Second%20Quarter%202025%20Financial%20Highlights) This section summarizes Middleby's overall financial performance, segment-specific organic sales and adjusted EBITDA, and cash flow with capital allocation for Q2 2025 [Overall Performance Summary](index=1&type=section&id=2.1%20Overall%20Performance%20Summary) Middleby's Q2 2025 net sales decreased by 1.4% year-over-year, with organic net sales down 5.4%, while adjusted EBITDA fell to **$200.2 million**, including a **$10 million** tariff headwind, and operating income also declined Overall Performance Summary (in millions USD) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :----------- | | Net Sales | $977.86 | $991.55 | (1.4%) | | Operating Income | $155.39 | $175.71 | (11.6%) | | Adjusted EBITDA | $200.2 | $216.4 | (7.5%) | - Adjusted EBITDA for Q2 2025 includes a **$10 million** tariff headwind[4](index=4&type=chunk) [Segment Organic Sales and Adjusted EBITDA](index=1&type=section&id=2.2%20Segment%20Organic%20Sales%20and%20Adjusted%20EBITDA) In Q2 2025, all segments experienced a decline in organic net sales, with Residential Kitchen showing the largest decrease at **7.8%**, while Food Processing reported a **14.4%** net sales increase driven by acquisitions, though its organic sales also declined, and all segments saw a year-over-year decrease in adjusted EBITDA as a percentage of net sales Segment Performance (Q2 2025) | Segment | Reported Net Sales Growth (Q2 2025) | Organic Net Sales Growth (Q2 2025) | Adjusted EBITDA as % of Net Sales (Q2 2025) | Adjusted EBITDA as % of Net Sales (Q2 2024) | | :---------------- | :--------------------------------- | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | Commercial Foodservice | (4.8)% | (5.5)% | 27.0% | 28.1% | | Residential Kitchen | (6.1)% | (7.8)% | 10.3% | 9.1% | | Food Processing | 14.4% | (2.9)% | 21.2% | 24.2% | | Total Company | (1.4)% | (5.4)% | 20.5% | 21.8% | - Food Processing segment's reported net sales growth of **14.4%** was primarily driven by acquisitions (**15.4%**), while its organic net sales decreased by **2.9%**[4](index=4&type=chunk) [Cash Flow and Capital Allocation](index=1&type=section&id=2.3%20Cash%20Flow%20and%20Capital%20Allocation) Operating cash flow in Q2 2025 decreased to **$122 million** from **$149.5 million** in the prior year, with the company repurchasing **$322.7 million** in stock, resulting in a net leverage ratio of **2.3x**, and net debt increasing to **$1.9 billion** by quarter-end from **$1.7 billion** at FY2024 end Cash Flow and Capital Allocation (in millions USD) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :----------- | | Operating Cash Flow | $122.0 | $149.5 | (18.4%) | | Stock Repurchases (Q2) | $322.7 | N/A | N/A | - Net leverage ratio was **2.3x** as of the end of Q2 2025[5](index=5&type=chunk)[11](index=11&type=chunk) - Net debt increased to **$1.9 billion** as of the end of Q2 2025, up from **$1.7 billion** at the end of fiscal year 2024[11](index=11&type=chunk) [2025 Outlook](index=2&type=section&id=3.%202025%20Outlook) This section provides Middleby's financial guidance for the third quarter and full year of 2025 [Third Quarter 2025 Guidance](index=2&type=section&id=3.1%20Third%20Quarter%202025%20Guidance) Middleby projects Q3 2025 total revenue between **$950 million** and **$975 million**, adjusted EBITDA between **$185 million** and **$195 million**, and adjusted EPS between **$2.04** and **$2.19** Q3 2025 Guidance (in millions USD, except EPS) | Metric | Q3 2025 Guidance | | :----- | :--------------- | | Total Revenue | $950-975 million | | Commercial Foodservice Revenue | $580-590 million | | Residential Kitchen Revenue | $170-180 million | | Food Processing Revenue | $195-205 million | | Adjusted EBITDA | $185-195 million | | Adjusted EPS | $2.04-2.19 | [Full Year 2025 Guidance](index=2&type=section&id=3.2%20Full%20Year%202025%20Guidance) The company forecasts full-year 2025 total revenue between **$3.81 billion** and **$3.87 billion**, adjusted EBITDA between **$770 million** and **$800 million**, and adjusted EPS between **$8.65** and **$9.05** Full Year 2025 Guidance (in billions/millions USD, except EPS) | Metric | Full Year 2025 Guidance | | :----- | :--------------- | | Total Revenue | $3.81-3.87 billion | | Adjusted EBITDA | $770-800 million | | Adjusted EPS | $8.65-9.05 | [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=4.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of earnings, balance sheets, and cash flows for Middleby Corporation [Statements of Earnings](index=4&type=section&id=4.1%20Statements%20of%20Earnings) Net sales for Q2 2025 were **$977.86 million**, down from **$991.55 million** in Q2 2024, with net earnings decreasing to **$105.96 million** (**$1.99** diluted EPS) from **$115.40 million** (**$2.13** diluted EPS) in the prior year Statements of Earnings (in thousands USD, except EPS) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net Sales | $977,859 | $991,546 | $1,884,486 | $1,918,472 | | Gross Profit | $371,291 | $379,642 | $717,224 | $726,000 | | Operating Income | $155,392 | $175,708 | $295,990 | $312,841 | | Net Earnings | $105,956 | $115,395 | $198,308 | $201,963 | | Diluted EPS | $1.99 | $2.13 | $3.68 | $3.72 | [Balance Sheets](index=5&type=section&id=4.2%20Balance%20Sheets) Total assets as of June 28, 2025, were **$7.34 billion**, a slight increase from **$7.28 billion** at December 28, 2024, with cash and cash equivalents decreasing while receivables and inventory rose, and total liabilities also increased, though long-term debt remained relatively stable Balance Sheets (in thousands USD) | Metric | June 28, 2025 | December 28, 2024 | | :----- | :----------- | :----------- | | Total Assets | $7,335,883 | $7,283,151 | | Cash and Cash Equivalents | $511,499 | $689,533 | | Accounts Receivable, Net | $665,833 | $643,355 | | Inventories, Net | $888,670 | $841,567 | | Total Current Assets | $2,259,590 | $2,330,043 | | Total Current Liabilities | $880,782 | $829,322 | | Long-Term Debt | $2,331,772 | $2,351,118 | | Total Stockholders' Equity | $3,622,555 | $3,638,431 | [Statements of Cash Flows](index=9&type=section&id=4.3%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities in Q2 2025 was **$122 million**, down from **$149.5 million** in Q2 2024, with **$24.4 million** used in investing activities and **$346.4 million** in financing activities, primarily for stock repurchases, resulting in **$101.1 million** in free cash flow for the quarter Statements of Cash Flows (in thousands USD) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Operating Activities | $122,003 | $149,516 | $263,137 | $290,417 | | Investing Activities | $(24,419) | $(14,228) | $(59,256) | $(30,317) | | Financing Activities | $(346,368) | $(14,117) | $(403,459) | $(42,675) | | Free Cash Flow | $101,084 | $138,579 | $208,486 | $265,737 | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=5.%20Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details Middleby's non-GAAP financial metrics, including segment information and reconciliations to GAAP measures, along with an explanation of their use [Non-GAAP Segment Information](index=6&type=section&id=5.1%20Non-GAAP%20Segment%20Information) This section presents non-GAAP financial data by segment, including net sales, operating income, and adjusted EBITDA for the three and six months ended June 28, 2025, compared to prior periods, also noting the reclassification of the Food Processing segment - To align with current year presentation, certain prior year amounts have been reclassified, including the performance of a segment previously reported within Commercial Foodservice now being reported within Food Processing[19](index=19&type=chunk)[21](index=21&type=chunk) [Three Months Ended June 28, 2025](index=6&type=section&id=5.1.1%20Three%20Months%20Ended%20June%2028%2C%202025) In Q2 2025, the Commercial Foodservice segment had the highest net sales and adjusted EBITDA, though its adjusted EBITDA as a percentage of net sales slightly decreased year-over-year, while Residential Kitchen saw an increase in this percentage despite lower net sales, and Food Processing experienced a decline Segment Performance (Q2 2025, in thousands USD) | Segment | Net Sales (Q2 2025) | Segment Operating Income (Q2 2025) | Adjusted EBITDA (Q2 2025) | Adjusted EBITDA as % of Net Sales (Q2 2025) | | :---------------- | :------------------ | :------------------------------- | :------------------------ | :--------------------------------------- | | Commercial Foodservice | $580,605 | $137,902 | $156,548 | 27.0% | | Residential Kitchen | $181,059 | $9,327 | $18,603 | 10.3% | | Food Processing | $216,195 | $42,677 | $45,846 | 21.2% | | Total Company | $977,859 | $155,392 | $200,193 | 20.5% | [Six Months Ended June 28, 2025](index=7&type=section&id=5.1.2%20Six%20Months%20Ended%20June%2028%2C%202025) For the first six months of 2025, Commercial Foodservice remained the largest segment in terms of net sales and adjusted EBITDA, with all segments experiencing a slight year-over-year decrease in adjusted EBITDA as a percentage of net sales Segment Performance (H1 2025, in thousands USD) | Segment | Net Sales (H1 2025) | Segment Operating Income (H1 2025) | Adjusted EBITDA (H1 2025) | Adjusted EBITDA as % of Net Sales (H1 2025) | | :---------------- | :------------------- | :-------------------------------- | :------------------------- | :--------------------------------------- | | Commercial Foodservice | $1,143,322 | $269,976 | $307,955 | 26.9% | | Residential Kitchen | $357,063 | $21,134 | $39,219 | 11.0% | | Food Processing | $384,101 | $66,189 | $75,912 | 19.8% | | Total Company | $1,884,486 | $295,990 | $382,273 | 20.3% | [Reconciliation of Net Earnings to Adjusted Net Earnings](index=8&type=section&id=5.2%20Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20Net%20Earnings) This section reconciles GAAP net earnings and diluted EPS to adjusted net earnings and adjusted diluted EPS by excluding non-recurring or non-core items such as amortization, restructuring charges, acquisition-related adjustments, and strategic transaction costs [Three Months Ended June 28, 2025](index=8&type=section&id=5.2.1%20Three%20Months%20Ended%20June%2028%2C%202025) In Q2 2025, adjusted net earnings were **$123.91 million** and adjusted diluted EPS was **$2.35**, compared to GAAP net earnings of **$105.96 million** and diluted EPS of **$1.99**, with key adjustments including amortization, restructuring charges, and strategic transaction costs Net Earnings Reconciliation (Q2, in thousands USD, except EPS) | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | Q2 2024 (GAAP) | Q2 2024 (Adjusted) | | :----- | :------------- | :----------------- | :------------- | :----------------- | | Net Earnings | $105,956 | $123,906 | $115,395 | $128,479 | | Diluted EPS | $1.99 | $2.35 | $2.13 | $2.39 | | Amortization Adjustment | $17,192 | | $18,066 | | | Restructuring Charges Adjustment | $2,288 | | $5,350 | | | Strategic Transaction Costs Adjustment | $6,788 | | — | | [Six Months Ended June 28, 2025](index=8&type=section&id=5.2.2%20Six%20Months%20Ended%20June%2028%2C%202025) For the first six months of 2025, adjusted net earnings were **$235.09 million** and adjusted diluted EPS was **$4.43**, compared to GAAP net earnings of **$198.31 million** and diluted EPS of **$3.68** Net Earnings Reconciliation (H1, in thousands USD, except EPS) | Metric | H1 2025 (GAAP) | H1 2025 (Adjusted) | H1 2024 (GAAP) | H1 2024 (Adjusted) | | :----- | :-------------- | :------------------ | :-------------- | :------------------ | | Net Earnings | $198,308 | $235,086 | $201,963 | $229,829 | | Diluted EPS | $3.68 | $4.43 | $3.72 | $4.28 | | Amortization Adjustment | $34,981 | | $37,202 | | | Restructuring Charges Adjustment | $5,017 | | $8,527 | | | Strategic Transaction Costs Adjustment | $10,261 | | — | | [Use of Non-GAAP Financial Measures Explanation](index=9&type=section&id=5.3%20Use%20of%20Non-GAAP%20Financial%20Measures%20Explanation) The company utilizes non-GAAP financial measures such as organic net sales growth, adjusted EBITDA, net debt, adjusted net earnings, and free cash flow to provide deeper insights, enhance transparency, and aid management decision-making, as these metrics help assess core operating performance and facilitate period-over-period comparisons by excluding items not reflective of core operations - Non-GAAP measures (organic net sales growth, adjusted EBITDA, net debt, adjusted net earnings, and adjusted diluted EPS) are intended to provide deeper insights, enhance transparency, and assist management in financial and operational decision-making[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) - Free cash flow is considered an important measure of operating performance as it provides cash generated from operating activities available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt, and repurchasing common stock[27](index=27&type=chunk) [Additional Information](index=2&type=section&id=6.%20Additional%20Information) This section provides details on Middleby's upcoming conference call, forward-looking statements, and company profile with contact information [Conference Call](index=2&type=section&id=6.1%20Conference%20Call) Middleby has scheduled a conference call for August 6 at 11 AM ET/10 AM CT to discuss Q2 results, accessible via the company's investor relations website or by phone - The company has scheduled a conference call for August 6 at 11 AM ET/10 AM CT to discuss Q2 results, accessible via www.middleby.com or by calling (844) 676-5090[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=6.2%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to various risks and uncertainties, including financing costs, operating performance fluctuations, reliance on key customers, international risks, market conditions, and raw material costs, with no obligation to update these statements unless legally required - Statements in the press release that are not historical facts are forward-looking statements, subject to various significant factors including financing costs, quarterly fluctuations in operating results, reliance on key customers, international risks, foreign exchange and political risks, changes in market conditions, competitive product and pricing impacts, timely product development and market acceptance, and raw material availability and costs[10](index=10&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements unless required by law[10](index=10&type=chunk) [Company Profile and Contact](index=3&type=section&id=6.3%20Company%20Profile%20and%20Contact) Middleby Corporation is a global leader in the foodservice industry, providing solutions for commercial foodservice, food processing, and residential kitchens, known for innovation and philanthropic partnerships, with investor relations contact information provided - Middleby Corporation is a global leader in the foodservice industry, developing and manufacturing a wide range of solutions for commercial foodservice, food processing, and residential kitchens, and prides itself on its state-of-the-art innovation and philanthropic partnerships[12](index=12&type=chunk) - Contact information for John Joyner, Vice President of Investor Relations, is jjoyner@middleby.com[13](index=13&type=chunk)

Company Performance - Graham reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.33 per share a year ago, representing an earnings surprise of +80.00% [1] - The company achieved revenues of $55.49 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.57% and increasing from $49.95 million year-over-year [2] - Over the last four quarters, Graham has consistently surpassed consensus EPS estimates and topped revenue estimates three times [2] Stock Movement and Outlook - Graham shares have increased approximately 29.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] - The future performance of Graham's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $58.6 million, and for the current fiscal year, it is $1.23 on revenues of $230.3 million [7] Industry Context - The Manufacturing - General Industrial industry, to which Graham belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Graham's stock performance [5][6]

Group 1 - The Middleby Corporation (NASDAQ: MIDD) was identified as an attractive investment opportunity due to its continued growth and low share price [1] - The company has been highlighted for its potential value and growth prospects in the market [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - Subscribers have access to a stock model account, in-depth cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Core Insights - The Middleby Corporation reported first-quarter 2025 adjusted earnings of $2.08 per share, exceeding the Zacks Consensus Estimate of $1.94, marking a year-over-year increase of 10.1% due to lower costs [1] - Net revenues for the quarter were $906.6 million, falling short of the consensus estimate of $941 million, representing a year-over-year decrease of 2.2% [2] Financial Performance - The Commercial Foodservice Equipment Group segment, accounting for 62.1% of net sales, generated $562.7 million, down 3.2% year over year, with organic sales decreasing by 2.8% [2] - The Residential Kitchen Equipment Group segment, representing 19.4% of total sales, reported $176 million, an increase of 1.2% year over year, with organic sales up by 2% [3] - The Food Processing Equipment Group segment, making up 18.5% of sales, totaled $167.9 million, down 2.2% year over year, with organic sales decreasing by 12.9% [4] Margin and Cost Analysis - Cost of sales decreased by 3.4% year over year to $560.7 million, while gross profit slightly declined by 0.1% to $345.9 million, resulting in a gross margin of 38.2%, an increase of 80 basis points from the previous year [5] - Selling, general and administrative expenses fell by 1.7% year over year to $202.6 million, leading to a 2.5% increase in operating income to $140.6 million, with an operating margin increase of 70 basis points to 15.5% [5] Cash Flow and Balance Sheet - As of the end of the first quarter, Middleby had cash and cash equivalents of $745.1 million, up from $689.5 million at the end of December 2024, with long-term debt slightly decreasing to $2.34 billion [7] - The company generated net cash of $141.1 million from operating activities in the first three months of 2025, compared to $140.9 million in the same period last year [7] - Capital expenditure for the quarter was $33.7 million, significantly higher than $13.7 million in the year-ago period, while free cash flow decreased to $107.4 million from $127.2 million [8] Strategic Developments - Middleby is on track to spin off its food processing business into a standalone public company, expected to be completed by early 2026, aiming to create two independent companies focused on different market segments [9][10]