The Middleby Corporation Q4 FY2025 earnings call

• Completed sale of 51% stake in Residential Kitchen business to 26North, with $565 million in immediate cash proceeds. • Reduced share count by approximately 9% in 2025 through $710 million in buybacks. • Plan to complete separation of Food Processing business in second quarter, creating 2 independent pure-play industry leaders. • Commercial Foodservice generated strong revenue in fourth quarter driven by general market, institutional, and emerging chain customers. • Food Processing had strong order rate in fourth quarter, with record backlog driven by Total Line Solution offering and international expansion. • Decentralized culture and innovation centers contribute to growth. • Capital allocation strategy focused on share repurchases, with plan to repurchase approximately $300 million in first quarter of 2026.

Commercial Foodservice: Fourth quarter revenue was approximately $602 million, with a solid EBITDA margin of over 26% (would have exceeded 27% without tariff impacts). Food Processing: Fourth quarter revenues were approximately $265 million, organic EBITDA margin was 23%, organic revenue growth of 1.3% benefited from improvements in international markets. Residential Kitchen: Transaction to sell 51% stake closed on February 2, and is treated as discontinued operations.

• Q1 2026: Total company revenue $760 million to $788 million (Commercial Foodservice $560 million to $578 million, Food Processing $200 million to $210 million), adjusted EBITDA $161 million to $173 million (Commercial Foodservice $142 million to $152 million, Food Processing $37 million to $41 million), adjusted EPS $1.90 to $2.02. • Full year 2026: Total revenues $3.27 billion to $3.36 billion (Commercial Foodservice $2.37 billion to $2.43 billion, Food Processing $895 million to $925 million), adjusted EBITDA $745 million to $780 million (Commercial Foodservice $632 million to $658 million, Food Processing $186 million to $208 million), adjusted EPS $9.20 to $9.36. • Expect Food Processing spinoff to be completed by end of second quarter, with Investor Day on May 12.

Q: Context on CFS segment, return to normal behavior and outlook for general market.

A: Tim and Steve discussed continued strength in dealer market, gaining market share, improved replacement demand, and improving confidence in larger chains as year progresses.

Q: Tariff impact split between segments and confidence in offsetting.

A: Steve said 2/3 to 70% of tariff impact from Commercial Foodservice, pricing taken in back half of 2025 and January 2026 to cover impact, confident in offsetting.

Q: Food Processing order growth and revenue conversion.

A: Mark and Bryan said order growth due to Total Line Solutions and prior slowness balancing, orders take 6 - 12 months to convert to revenue.

Q: Backlog growth and deliverability for Food Processing.

A: Bryan said significant majority of backlog deliverable in 2026, minority in 2027.

Q: Capital allocation and M&A for CFS post split.

A: Tim said focus on share repurchases and organic growth, targeted in innovation and go-to-market strategies.

Q: QSR segment clarity and equipment spend.

A: Steve said waiting for new store builds to firm up and projects to get green light.

Q: Investor Day framework and CFS strategy.

A: Tim said Investor Day on May 12 with deeper dive into strategic initiatives and portfolio.