Middleby Corporation — Q3 2026 Earnings Summary

Financial Performance:

• Net sales reached a record $652.6 million in Q3 2026, a 7.7% increase year-over-year, with organic net sales growth of 7.7%.
• Adjusted EBITDA increased 10% to $155.8 million in Q3 2026 from $142.2 million in the prior year period; Adjusted EBITDA margin expanded to 23.9% from 23.5%.
• Operating income was $99 million in Q3 2026, compared to $124 million in the prior year, impacted by $26 million in charges related to the closure of the Brewing businesses.
• Diluted GAAP EPS was $0.43 in Q3 2026, down from $1.55 in the prior year period.
• Adjusted EPS increased 19% to $2.07 in Q3 2026 from $1.74 in the prior year period.
• Operating cash flow for Q3 2026 was $122.6 million, compared to $141.0 million in the prior year.
• Free cash flow for Q3 2026 was $116.8 million, compared to $133.7 million in the prior year.
• Total debt at the end of Q3 2026 was $1.7 billion, down from $2.1 billion at the end of fiscal 2025; net debt was $1.6 billion, down from $2.0 billion.
• Net leverage ratio was 2.8x at the end of Q3 2026.
• Foreign exchange rates had an immaterial impact on the year-over-year net sales comparison.

Guidance and Future Outlook:

• Raised full-year 2026 guidance for organic net sales growth to +7-8%.
• Full-year 2026 net sales guidance is $2.519 billion to $2.534 billion.
• Full-year 2026 Adjusted EBITDA guidance is $589 million to $593 million.
• Full-year 2026 Adjusted EPS guidance is $7.13 to $7.29.
• Q4 2026 net sales guidance is $621 million to $635 million.
• Q4 2026 Adjusted EBITDA guidance is $149 million to $153 million.
• Q4 2026 Adjusted EPS guidance is $1.76 to $1.92.

Business Segments and Product Lines:

• Middleby is now a focused, pure-play commercial foodservice leader following the successful separation of its Food Processing business and the launch of Midera as an independent public company.
• The closure of the Brewing businesses, announced in September, remains on track for completion by year-end.
• Brewing closure-related charges in Q3 2026 included $20.0 million of non-cash impairments of long-lived assets, $5.5 million of non-cash other asset write-downs, and $0.4 million of severance.
• Adjusted EBITDA margin excluding Brewing businesses was 24.3% in Q3 2026.

Market and Competitive Landscape:

• The company serves a diverse customer base with equipment and technology offerings including cooking, warming, beverage, ice, and IoT.
• The company showcases advanced foodservice solutions in four state-of-the-art Middleby Innovation Kitchens across North America and Europe.

Risks and Challenges:

• Forward-looking statements are subject to risks including variability in financing costs, quarterly operating result variations, dependence on key customers, international exposure, foreign exchange and political risks, changing market conditions, competitive product pricing, product development and acceptance, and raw material availability and cost.
• Specific risks include the costs, profitability, timing, and financial impact of the discontinuing of the brewing businesses.

Management Commentary and Tone:

• CEO Tim FitzGerald stated the company delivered record third-quarter net sales and strong organic growth, exceeding the high end of guidance ranges for net sales, Adjusted EBITDA, and Adjusted EPS.
• Management expressed confidence in raising full-year 2026 guidance due to strong third-quarter performance and continued business momentum.
• Management emphasized a commitment to disciplined capital allocation and strategic investments in customer-driven solutions and innovation.

Other Key Points:

• Announced CEO transition: Steve Spittle will succeed Tim FitzGerald as CEO on April 1, 2027.
• Repurchased 1.0 million shares (2.0% of shares outstanding) in Q3 2026 for $106.5 million; year-to-date Q3 2026 repurchases totaled 4.8 million shares (9.7% of shares outstanding).
• Entered into an amended and restated five-year, $3 billion multicurrency senior secured credit agreement on November 4, 2026, consisting of a $1.0 billion term loan facility and a $2.0 billion revolving multicurrency credit facility.
• Borrowing availability at the end of Q3 2026 was approximately $1.4 billion based on the new credit facility.
• Proceeds from the sale of a 51% interest in the Residential Kitchen Equipment Group were $564.6 million for the nine months ended October 3, 2026.