Middleby Reports Strong Q3 Despite Challenges

The Middleby ((MIDD)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for The Middleby Company painted a picture of robust performance, with several segments surpassing expectations and strategic investments yielding positive outcomes. However, the company also faced notable challenges, including a significant impairment charge and tariff-related obstacles, resulting in a mixed overall outlook.

Exceeding Revenue and EPS Expectations

The Middleby Company reported total revenue of $980 million for the third quarter of 2025, surpassing the upper end of its guidance. Adjusted EBITDA reached $196 million, and adjusted EPS was $2.37, both exceeding expectations and highlighting the company’s strong financial performance.

Positive Organic Growth in Commercial Foodservice

The Commercial Foodservice segment experienced a return to positive organic growth, with sales increasing by 1.6%. This growth was driven by gains in the general market, institutional customers, and emerging restaurant chains, marking a significant turnaround for the segment.

Strong Order Growth in Food Processing

The Food Processing segment saw a robust order rate, particularly in international markets. This positions Middleby to capitalize on deferred capital projects and indicates a strong potential for future growth in this segment.

Significant Share Repurchases

Middleby repurchased over 3.5 million shares, reducing its share count by 6.4% during 2025. This move reflects the company’s confidence in the undervaluation of its shares and its commitment to enhancing shareholder value.

New Facility and Innovation Center Openings

The company opened a new state-of-the-art facility in Greenville, Michigan, and a flagship innovation center in Venice, Italy. These openings are aimed at enhancing manufacturing capabilities, fostering customer collaboration, and driving technology development.

Noncash Impairment Charge

A $709 million noncash impairment charge was recorded for the Residential Kitchen business as part of a strategic review. This charge reflects the company’s efforts to maximize shareholder value despite the significant financial impact.

Tariff-Related Headwinds

Tariff impacts negatively affected revenue, particularly in the Residential segment’s outdoor products, with a net EBITDA impact of approximately $12 million in Q3. This challenge underscores the ongoing external pressures faced by the company.

Challenges with Large QSR Customers

The Commercial Foodservice segment faced ongoing softness among large QSR customers due to lower traffic and cost pressures. This challenge continues to impact the segment’s performance despite other areas of growth.

Forward-Looking Guidance

Looking ahead, Middleby anticipates continued growth driven by strategic investments and innovations, particularly in its ice and beverage platform. The company expects Q4 revenue between $990 million and $1,020 million, with adjusted EBITDA of $200 million to $210 million and EPS ranging from $2.19 to $2.34. For the full year, Middleby forecasts revenues of $3.85 billion to $3.89 billion, adjusted EBITDA of $779 million to $789 million, and adjusted EPS of $8.99 to $9.14.

In summary, The Middleby Company’s earnings call highlighted a strong performance with several segments exceeding expectations. Despite facing significant challenges such as a large impairment charge and tariff-related headwinds, the company remains optimistic about future growth. Strategic investments and innovations are expected to drive continued success, positioning Middleby favorably in the market.