Middleby Raises Annual Forecast After $652.6 Million Third-Quarter Sales Record — Brewing Exit Weighs On Profit
Adjusted earnings per share rose 19%, while brewing shutdown charges helped push operating income below its year-earlier level.
Middleby, which makes and services commercial kitchen equipment, raised its annual forecast Thursday as third-quarter sales set a record for that quarter at $652.6 million. The company’s earnings announcement paired results above its own expectations with lower operating profit, including $26 million of charges to close its brewing businesses.
Brewing Charges Split The Profit Picture
Sales grew 7.7% from the year-earlier quarter, both as reported and excluding currency movements. Middleby also exceeded the upper limits of its forecasts for sales, adjusted earnings before interest, taxes, depreciation and amortization, and adjusted earnings per share.
“We delivered record third quarter net sales and strong organic growth across our commercial foodservice business,” Middleby CEO Tim FitzGerald said in the results release.
Operating income was $99 million, against $124 million a year earlier. The brewing shutdown charges consisted of $20.0 million in non-cash impairments of long-lived assets, $5.5 million in other non-cash asset write-downs and $0.4 million in severance.
Diluted earnings per share from continuing operations dropped to $0.43 from $1.55. On Middleby’s adjusted measure, earnings per share increased 19%, reaching $2.07 versus $1.74. Its adjustments excluded brewing closure costs and losses from an affiliate, among other items.
Adjusted earnings before interest, taxes, depreciation and amortization rose 10% to $155.8 million from $142.2 million. That measure’s margin reached 23.9%, compared with 23.5% a year earlier; excluding brewing, the margin was 24.3%.
A Kitchen-Focused Business Raises Its Targets
Middleby now concentrates on commercial foodservice equipment following the separation of Food Processing into Midera, an independent public company. Its kitchen offerings include ovens, fryers, refrigeration, ice machines and beverage equipment, sold primarily through dealers and distributors to restaurants, retailers, hotels and institutions.
The raised 2026 outlook puts sales at $2.519 billion–$2.534 billion and adjusted earnings at $7.13–$7.29 per share. Management expects currency-excluding sales growth of 7%–8% for the year and adjusted earnings before interest, taxes, depreciation and amortization of $589 million–$593 million.
For the fourth quarter, Middleby expects sales of $621 million–$635 million, adjusted earnings per share of $1.76–$1.92 and adjusted earnings before interest, taxes, depreciation and amortization of $149 million–$153 million. The brewing closures, announced in September, remain scheduled for completion by year-end.
Buybacks Continue As Cash Flow Falls
Cash generated by operations totaled $122.6 million for the quarter, below the year-earlier $141.0 million. Middleby spent $106.5 million buying back 1.0 million shares during the quarter, bringing repurchases for the first nine months to 4.8 million shares.
Quarter-end debt was $1.7 billion, compared with $2.1 billion at fiscal 2025’s end. Debt after subtracting cash fell to $1.6 billion from $2.0 billion; net debt was 2.8 times trailing adjusted earnings before interest, taxes, depreciation and amortization.
Middleby signed an amended five-year secured credit agreement Wednesday totaling $3 billion: a $1.0 billion term loan and a $2.0 billion revolving facility. Borrowing availability was approximately $1.4 billion based on the amended agreement.
MIDD shares jumped about 5% to $136.50 at Friday’s close. Middleby’s market value was $5.9 billion at Friday’s close.
Steve Spittle is scheduled to succeed FitzGerald as CEO on April 1, 2027.
Sources
- 8-K Filing — MIDDLEBY Corp (MIDD) — SEC EDGAR
- Exhibit middex991er-q32026.htm — MIDDLEBY Corp 8-K exhibit — SEC EDGAR
- Middleby outlines 2026 guidance raise to $7.13-$7.29 EPS as CEO transition set for April 1, 2027 (NASDAQ:MIDD) | Seeking Alpha — seekingalpha.com
- Middleby Corp (MIDD) Q3 2026 Earnings Call Transcript - The Globe and Mail — theglobeandmail.com
- The Middleby Corporation Reports Third Quarter Results — businesswire.com
- Middleby Announces Chief Executive Officer Transition — businesswire.com
