Middleby Corporation Reports Decrease in Q2 Financial Performance, Plans Spin-Off of Food Processing Business

The Middleby Corporation reported a decrease in financial performance for the second quarter of fiscal 2025, with net sales of $977.9 million, down 1.4% from $991.5 million in the same period last year. For the first half of the fiscal year, net sales totaled $1.88 billion, a decline of 1.8% compared to $1.92 billion in the prior year. The decrease in sales was attributed to slower market conditions, particularly in the Commercial Foodservice Equipment Group, which saw a 4.8% drop in sales. The Food Processing Equipment Group, however, experienced a 14.4% increase in sales, largely due to contributions from recent acquisitions.

Gross profit for the second quarter was $371.3 million, down from $379.6 million a year earlier, reflecting lower sales volumes. The gross margin rate slightly decreased to 38.0% from 38.3%. Selling, general, and administrative expenses rose to $213.6 million, or 21.9% of net sales, compared to 20.0% in the prior year, driven by increased costs associated with acquisitions and strategic transaction costs. The company reported net earnings of $105.96 million, a decrease from $115.4 million in the same quarter last year, resulting in diluted earnings per share of $1.99.

In terms of operational developments, Middleby announced its intention to spin off its Food Processing business into a separate publicly traded entity, targeting completion by the first half of 2026. This strategic move is expected to be tax-free for U.S. federal income tax purposes. The company also reported a significant increase in its treasury stock, with repurchases totaling $365.7 million during the first half of 2025, reflecting ongoing efforts to enhance shareholder value.

The company’s total assets increased to $7.34 billion as of June 28, 2025, compared to $7.28 billion at the end of the previous fiscal year. Current liabilities rose to $880.8 million, up from $829.3 million, while long-term debt decreased slightly to $2.33 billion. The company’s cash and cash equivalents decreased to $511.5 million from $689.5 million, primarily due to stock repurchases and increased inventory levels.

Looking ahead, Middleby remains focused on navigating the challenges posed by inflation, supply chain constraints, and market conditions. The company is actively exploring strategies to mitigate the impact of rising costs and is committed to maintaining operational efficiencies. Despite the current headwinds, Middleby aims to achieve long-term revenue and cash flow growth, while continuing to monitor the evolving economic landscape and its potential effects on business performance.