What Middleby (MIDD) Said on Its Q3 Earnings Call

Key Points

• Middleby beat its third-quarter guidance, with revenue rising 7.7% organically to $652.6 million and adjusted EPS up 19% to $2.07. The company raised its 2026 adjusted EPS outlook to $7.13–$7.29.
• Restaurant and quick-service chains led growth, while international revenue increased 14% to 30% of sales. Middleby plans to build on momentum through expanded product sales and lean-manufacturing improvements, targeting 25%–27% adjusted EBITDA margins by 2028.
• President Steve Spittle will succeed Timothy FitzGerald as CEO on April 1, 2027; FitzGerald will remain in the role through March 31 to support the transition.

Middleby NASDAQ: MIDD raised its 2026 earnings outlook after reporting record quarterly revenue for its commercial foodservice business and named President Steve Spittle to succeed Timothy FitzGerald as CEO next year.

The company reported third-quarter revenue of $652.6 million, up from $606 million a year earlier, with organic growth of 7.7%. Adjusted earnings per share rose 19% to $2.07, while adjusted EBITDA increased to $156 million from $142 million. Revenue, adjusted EBITDA and adjusted EPS all exceeded the high end of the company’s guidance.

The results are presented on a continuing-operations basis, with prior-year comparisons restated, CFO Brittany Cerwin said. The quarter was Middleby’s first reporting food processing as discontinued operations following the public spin-off of Midera Food Processing. Middleby also sold a controlling stake in its residential business to 26North earlier this year.

CEO Transition and Growth Strategy

Spittle, who was immediately elevated to president, will become CEO and join the board on April 1, 2027. FitzGerald said he will remain CEO through March 31 to support the transition.

Spittle said the company’s strategy and three-year targets announced at its May investor day remain in place. Those include annual targets for organic sales growth of 3% to 6%, adjusted EBITDA growth of 6% to 9% and adjusted EPS growth of 10% to 15%, along with 200 to 400 basis points of margin expansion.

Spittle said he plans to visit plants and customers globally as Middleby seeks to translate its sales momentum into higher margins. The company plans to extend lean manufacturing practices across its 35 manufacturing sites, starting with Taylor after an initial effort at Pitco.

At Pitco, daily output has increased about 25%, lead times have fallen 30% and inventory has declined by roughly 25 days on hand, Spittle said. The company also avoided building a planned facility by improving the flow of existing operations.

Chains and International Sales Drive Growth

Restaurant chains and quick-service restaurants were the largest contributors to third-quarter growth, driven mainly by new-product adoption and replacement activity, Cerwin said. Sales increased in both ice and beverage and cooking and warming equipment, while the dealer channel was roughly flat against double-digit growth a year earlier.

International revenue grew 14% and accounted for 30% of the total, despite challenging conditions in parts of Asia and the Middle East. Spittle said Middleby sees opportunities to sell more of its product portfolio internationally and expand beyond large global chains to emerging chains and local customers.

Spittle said beverage programs and restaurant remodels could provide a multiyear tailwind. “We don’t view what we’ve delivered this year as being one-off or having one specific project or rollout drive the growth,” he said.

Higher Outlook and Margin Initiatives

For 2026, Middleby now expects revenue of $2.519 billion to $2.534 billion, adjusted EBITDA of $589 million to $593 million and adjusted EPS of $7.13 to $7.29. Its previous forecasts were $2.48 billion to $2.53 billion in revenue, $572 million to $588 million in adjusted EBITDA and $6.73 to $6.89 in adjusted EPS.

Third-quarter adjusted EBITDA margin was 23.9%, up from 23.5% a year earlier and 23% in the second quarter. Cerwin said the quarter benefited from higher sales volume, operating initiatives, pricing and $5 million in tariff refunds. Product mix and inflation offset some potential margin expansion.

Middleby expects further sequential margin improvement in the fourth quarter as an August price increase begins to flow through and facility consolidations and manufacturing initiatives provide initial benefits. The company also expects to complete its exit from brewing by year-end, adding roughly 40 basis points to its margin relative to 2026 beginning in the first quarter of 2027.

Cerwin reaffirmed Middleby’s target of a 25% to 27% adjusted EBITDA margin by 2028. She said investments in beverage innovation are currently reducing total-company margins by approximately 100 basis points, but should become a tailwind as production scales and sales grow. The company has not specified how much of that benefit it expects in 2027 versus 2028.

Share Repurchases and Financing

Middleby generated $123 million in operating cash flow and $117 million in free cash flow during the quarter, with net leverage of 2.8 times. It repurchased approximately $106 million of stock in the third quarter and another $76 million so far in the fourth quarter. Year to date, it has purchased 5.5 million shares, representing 11% of shares outstanding.

The company also refinanced its credit facility with a five-year, $3 billion senior secured agreement comprising a $1 billion term loan and a $2 billion revolving facility. Cerwin said Middleby continues to expect to return the vast majority of its free cash flow to shareholders through repurchases.

About Middleby (NASDAQ:MIDD)

The Middleby Corporation NASDAQ: MIDD designs, manufactures and sells commercial, residential and food processing equipment. Its commercial foodservice products include conveyor, deck, combi and convection ovens; ranges, fryers, steam-cooking equipment, refrigeration systems, ventilation products and kitchen automation technologies. These products are used by restaurants, hotels, institutional kitchens, convenience stores, supermarkets and other foodservice operators.

Middleby also offers equipment and appliances for residential kitchens, including cooking products, refrigeration, ventilation and outdoor cooking systems.

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