The Middleby Corporation reported first-quarter 2025 consolidated net sales of $906.6 million, a decrease of 2.2% year-over-year. Organic sales were down 3.8%, primarily due to slower market conditions in Commercial Foodservice and Food Processing.
Despite the sales decline, net earnings for the quarter increased to $92.4 million from $86.6 million in Q1 2024, and diluted EPS rose to $1.69 from $1.59. Adjusted diluted EPS was $2.08, up from $1.89 in the prior year.
Middleby's Board of Directors significantly increased its share repurchase authorization by 7.5 million shares, bringing the total authorized to 11.4 million shares, representing 21% of outstanding equity. The company plans to deploy the vast majority of its free cash flow towards repurchases, signaling confidence in its intrinsic value.
The Commercial Foodservice segment saw organic sales decrease by 2.8%, while the Food Processing segment experienced a 12.9% organic sales decline. The Residential Kitchen segment was a bright spot, posting a 2.0% organic sales increase.
Middleby estimates a preliminary tariff-related cost increase of $150 million to $200 million annually, primarily impacting foreign-sourced componentry. The company expects to fully offset these increases through operational initiatives and pricing actions by year-end 2025, including a planned mid-to-high single-digit price increase in Commercial Foodservice in July 2025.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.