Middleby (NASDAQ:MIDD) Issues Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Middleby (NASDAQ:MIDD) posted its quarterly earnings results on Thursday. The industrial products company reported $2.42 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.15, Briefing.com reports. Middleby had a positive return on equity of 14.66% and a negative net margin of 5.22%.The company had revenue of $866.43 million for the quarter, compared to analysts’ expectations of $1.01 billion. During the same period in the previous year, the firm earned $2.88 EPS. The firm’s revenue was up 4.5% compared to the same quarter last year. Middleby updated its FY 2026 guidance to 9.200-9.360 EPS and its Q1 2026 guidance to 1.900-2.020 EPS.

Here are the key takeaways from Middleby’s conference call:

• The company sold a 51% stake in its Residential Kitchen business to 26North at an $885 million enterprise valuation, receiving approximately $565 million in cash proceeds while retaining a 49% stake and treating the JV as discontinued operations going forward.
• Middleby executed aggressive capital returns, repurchasing $710 million of stock in 2025 (reducing shares outstanding by ~9%) and repurchasing an additional ~$250 million in early 2026, with plans to continue buybacks into 2026.
• Management plans to separate Food Processing into an independent public company by the end of Q2, positioning Commercial Foodservice to operate with ~27% segment EBITDA margins and Food Processing as a growth platform targeting >20% segment EBITDA margins.
• Operational momentum: combined revenue for the two core segments was ~$866 million in Q4 with adjusted EBITDA of ~$197 million (adjusted EPS $2.14 for the quarter), while Food Processing reported strong order intake (Q4 orders ~$322 million) and a record backlog of ~$410 million.
• Headwinds remain from tariffs and higher interest costs — tariffs reduced Q4 EBITDA by ~$7 million and timing will likely cause margin dilution in H1 2026 despite pricing actions, while higher post-maturity interest expense creates an approximate $0.34 EPS headwind for full-year 2026.

Middleby Trading Up 5.8%

Shares of MIDD traded up $9.22 during midday trading on Thursday, hitting $167.00. The stock had a trading volume of 1,159,920 shares, compared to its average volume of 520,049. The stock’s 50 day moving average is $154.54 and its 200 day moving average is $139.16. The firm has a market cap of $8.41 billion, a PE ratio of -37.95 and a beta of 1.40. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.07 and a quick ratio of 1.10. Middleby has a 1 year low of $110.82 and a 1 year high of $168.85.

Insider Buying and Selling

In other news, Director Robert A. Nerbonne acquired 780 shares of Middleby stock in a transaction that occurred on Tuesday, December 9th. The shares were bought at an average cost of $128.52 per share, with a total value of $100,245.60. Following the transaction, the director directly owned 21,471 shares of the company’s stock, valued at $2,759,452.92. This trade represents a 3.77% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Insiders own 6.18% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Middleby by 90.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 432 shares of the industrial products company’s stock worth $66,000 after acquiring an additional 205 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Middleby by 6.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,149 shares of the industrial products company’s stock worth $23,884,000 after purchasing an additional 9,936 shares during the period. Focus Partners Wealth lifted its position in shares of Middleby by 344.7% during the first quarter. Focus Partners Wealth now owns 2,228 shares of the industrial products company’s stock worth $339,000 after purchasing an additional 1,727 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of Middleby by 280.2% during the second quarter. EverSource Wealth Advisors LLC now owns 327 shares of the industrial products company’s stock valued at $47,000 after purchasing an additional 241 shares during the period. Finally, Cresset Asset Management LLC bought a new position in shares of Middleby in the second quarter worth about $202,000. Institutional investors own 98.55% of the company’s stock.

Key Middleby News

Here are the key news stories impacting Middleby this week:

• Positive Sentiment: Quarterly earnings beat — Middleby reported EPS of $2.42 vs. consensus $2.27, showing continued profitability improvement and helping sentiment despite tougher revenue comparisons. Middleby (MIDD) Beats Q4 Earnings Estimates
• Positive Sentiment: Spin‑off and leadership clarity — Management announced the Food Processing Group will become an independent public company in Q2 2026 and named Mark Salman CEO of that business (Mark Bowie as COO). That reduces conglomerate complexity and gives investors clearer, pure‑play options. Middleby Names Mark Salman to Lead Food Processing Business as Chief Executive Officer; Mark Bowie Named Chief Operating Officer
• Positive Sentiment: Portfolio optimization and revenue target — Management outlined a focused FY2026 revenue target ($3.27B–$3.36B) as it accelerates portfolio optimization, which supports a narrative of disciplined capital allocation and higher margin mix. Middleby outlines $3.27B–$3.36B 2026 revenue target as portfolio optimization accelerates
• Neutral Sentiment: Short interest fell meaningfully in February (down ~19%), reducing a potential source of selling pressure and compressing a bearish tail risk. What’s Behind a New $6.5 Million Bet on Middleby With Stock Down 5% in One Year?
• Neutral Sentiment: Net sales growth but mixed metrics — Q4 revenue rose ~4–5% year‑over‑year (reported ~$866.4M), showing top‑line growth but the dollar figure missed analyst revenue estimates. The Middleby Corp Net Sales Grow 5% in Q4
• Negative Sentiment: Revenue miss and downward guidance — Q4 revenue came in below Street estimates (~$866M vs. ~$1.01B est.) and management issued lighter revenue guidance for Q1 and FY2026 (FY revenue ~$3.3B–$3.4B vs. consensus ~ $4.0B), which is the main near‑term headwind for the stock. Middleby (NASDAQ:MIDD) Reports Sales Below Analyst Estimates In Q4 CY2025 Earnings
• Neutral Sentiment: Full earnings materials and call transcript are available for investors who want detail on segment performance and margin drivers. Middleby (MIDD) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Index/fund flow note — Fiscal adjustments tied to Middleby can affect Nasdaq index fund weightings; this is a technical factor that may amplify moves but is not a fundamental driver. Middleby (NASDAQ:MIDD) Fiscal Adjustments Influence Nasdaq Index Fund Trends

Wall Street Analysts Forecast Growth

Several research firms have recently commented on MIDD. Zacks Research downgraded shares of Middleby from a “strong-buy” rating to a “hold” rating in a report on Monday, January 26th. JPMorgan Chase & Co. boosted their price target on shares of Middleby from $125.00 to $140.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Wall Street Zen raised shares of Middleby from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Middleby in a report on Monday, December 29th. Finally, Canaccord Genuity Group set a $187.00 target price on Middleby and gave the stock a “buy” rating in a research report on Tuesday. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $165.83.

About Middleby

Middleby Corporation is a global manufacturer and distributor of commercial foodservice and food processing equipment. The company designs, engineers and markets a wide range of cooking, baking, refrigeration, warewashing, holding and dispensing solutions. Middleby’s products serve restaurants, hotels, convenience stores, institutional cafeterias, cruise ships and other foodservice operators.

The company’s portfolio spans multiple well-known brands, including Blodgett ovens, TurboChef rapid‐cook ovens, Southbend ranges and broilers, Pitco fryers, and Viking residential and commercial kitchen appliances.