Middleby Corporation reported third‑quarter 2025 results that included $982.1 million in revenue, $196.4 million in adjusted EBITDA, and a net loss of $512.98 million. The loss was largely a one‑time $709.1 million impairment charge related to its Residential Kitchen business, while operating performance remained solid enough to deliver an adjusted earnings‑per‑share of $2.37—$0.24 above the consensus range of $2.03 to $2.11, a 14.5% to 16.8% beat.
Revenue grew 4.2% year‑over‑year, driven by a 13.2% increase in the Food Processing segment and modest growth in Commercial Foodservice. The Commercial Foodservice platform, which accounts for 61% of revenue, posted 1.6% organic growth, supported by institutional and emerging chain customers, but was partially offset by weakness at large quick‑service restaurants. The Residential Kitchen segment, representing 19% of revenue, saw a decline in adjusted EBITDA and was the source of the impairment charge. Overall, the three platforms combined to lift revenue while margin pressure from tariffs and cost inflation compressed profitability.
Adjusted EBITDA margin fell to 20.0% from 22.6% in Q3 2024. The decline reflects higher input costs, tariff impacts on the Residential Kitchen line, and a less favorable geographic mix in Food Processing. Despite the margin squeeze, the company maintained a healthy operating cash flow and a net leverage ratio of 2.3x, indicating manageable debt levels.
Management raised its full‑year 2025 guidance, projecting revenue of $3.85 billion to $3.89 billion and adjusted EPS of $9.07 at the midpoint—an increase of 2.4% from the prior guidance. For Q4, revenue is expected to be $990 million to $1.02 billion, and adjusted EPS $2.19 to $2.34. CEO Tim FitzGerald highlighted a strategic review of the Residential Kitchen unit, the planned spin‑off of the Food Processing business in Q2 2026, and ongoing share‑repurchase activity as key initiatives to unlock value.
The earnings beat and raised guidance generated a positive market reaction, with investors citing the strong adjusted EPS performance and revenue growth as evidence of operational resilience. Concerns remained around the $709 million impairment, the modest Q4 revenue outlook, and the strategic review of the Residential Kitchen business, which some market participants view as a potential drag on near‑term profitability.
Overall, Middleby’s Q3 results demonstrate that while the company is navigating headwinds—tariff costs, a strategic review, and a significant impairment—it continues to generate solid revenue growth and maintain a clear path toward profitability through portfolio optimization and capital deployment. The company’s focus on innovation and cost discipline positions it to capitalize on opportunities in its core Commercial Foodservice platform while managing the transition of its Residential Kitchen and Food Processing units.
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