The Middleby Corporation (MIDD) Q2 2026 earnings summary

Executive summary

• Completed major portfolio transformation, including the spin-off of the Food Processing business as Midera and the sale of a 51% stake in the Residential Kitchen Equipment Group, focusing on Commercial Foodservice.

• Q2 2026 net sales increased 9.9% year-over-year to $875.5M, with Commercial Foodservice organic sales up 8.3% and strong new product adoption.

• Adjusted EBITDA for Q2 2026 was $193 million (6.4% increase), and adjusted EPS rose to $2.35 (6.8% increase), both exceeding guidance.

• Share repurchases totaled 1.4 million shares in Q2 2026 and 3.8 million shares YTD, with 8.7 million shares repurchased since 2025 (~16% of shares outstanding).

• Net earnings from continuing operations were $54.2M for Q2 2026, impacted by higher tax rates and equity losses from affiliate.

Financial highlights

• Q2 2026 net sales: $875.5M (+9.9% YoY); Commercial Foodservice sales: $630.6M (+8.6% YoY); Food Processing sales: $244.9M (+13.3% YoY).

• Gross profit: $335.1M (38.3% margin); operating income: $147.7M, including $14.5M in strategic transaction costs.

• Adjusted EBITDA: $193.2M (22.1% margin); adjusted EPS: $2.35; diluted GAAP EPS: $1.20.

• Operating cash flow for Q2 2026 was $100 million; free cash flow was $89 million.

• Net debt at Q2 2026 end was $1.8 billion, down from $2.0 billion at FY 2025 end.

Outlook and guidance

• FY 2026 guidance: net sales $2.48–$2.53 billion (7% organic growth), adjusted EBITDA $572–$588 million, adjusted EPS $6.73–$6.89.

• Q3 2026 guidance: net sales $620–$640 million (4% organic growth), adjusted EBITDA $143–$150 million, adjusted EPS $1.67–$1.83.

• Three-year targets: organic net sales CAGR 3–6%, adjusted EBITDA CAGR 6–9%, adjusted EPS CAGR 10–15%.

• Food Processing business will be reflected as discontinued operations starting Q3 2026.

• Management remains focused on operational efficiencies and mitigating inflationary and supply chain pressures.