The Middleby 2025 Q2 Earnings Mixed Performance as Net Income Declines 8.2%

The Middleby reported fiscal 2025 Q2 earnings on August 6, 2025, with results showing a decline in both revenue and net income. The company missed expectations with a 1.4% drop in revenue and revised its outlook downward for the quarter.

Revenue

The Middleby's total revenue for Q2 2025 fell 1.4% year-over-year to $977.86 million. The Commercial Foodservice segment remained the company’s largest revenue driver, generating $580.61 million, while the Food Processing segment reported revenue of $216.19 million. The Residential Kitchen segment contributed $181.06 million to the total. Collectively, these segments reflected a broad-based slowdown in growth amid challenging market conditions.

Earnings/Net Income

Earnings per share (EPS) for the Middleby declined 6.5% year-over-year to $2.01 in Q2 2025, while net income dropped to $105.96 million from $115.39 million a year ago, representing an 8.2% decline. The fall in both metrics signals a challenging performance for the company during the quarter.

Price Action

The Middleby’s stock experienced significant volatility in the period following the earnings report, with a 18.04% drop on the latest trading day, an 18.23% decline for the week, and an 18.63% slide month-to-date.

Post-Earnings Price Action Review

Despite a post-earnings strategy of buying MIDD when earnings beat and holding for 30 days yielding a 51.26% return, the approach underperformed compared to the 84.41% return of the benchmark. The Sharpe ratio of 0.26 indicated reasonable risk-adjusted returns, although the absence of any maximum drawdown suggested the strategy avoided losses but failed to capitalize on broader market gains.

CEO Commentary

Tim FitzGerald, CEO of The Middleby Corporation, noted ongoing economic uncertainty in key markets but highlighted the company’s strong operational execution, market share growth, and innovation-driven transformation. He emphasized confidence in Middleby’s long-term positioning and announced $323 million allocated to share repurchases to drive EPS growth.

Guidance

The company expects Q3 2025 total revenue of $950–975 million, with Adjusted EBITDA projected at $185–195 million and Adjusted EPS of $2.04–2.19. For full-year 2025, management anticipates total revenue of $3.81–3.87 billion, Adjusted EBITDA of $770–800 million, and Adjusted EPS of $8.65–9.05.

Additional News

The Middleby announced a $323 million share repurchase program aimed at enhancing shareholder value, reflecting its commitment to capital deployment. No major mergers or acquisitions were reported during the period. The CEO, Tim FitzGerald, remained in his position, with no recent C-level executive changes disclosed. The company has not declared a dividend but remains focused on strategic initiatives to improve profitability and market position.