The Middleby Corporation Q1 FY2026 earnings call

Tim introduced the excellent first quarter results, welcomed new CFO Brittany Serwin. Mark Salmon discussed food processing's best first quarter ever with strong organic growth, international market improvements, and acquisition strategy. Capital allocation strategy remains aggressive with share repurchases.

Commercial food service: First quarter revenues were approximately $616 million, driven by organic revenue growth of 8.1%. Organic adjusted EBITDA margins were 25.8%. Food processing: First quarter revenues were approximately $224 million, driven by organic revenue growth of 25%. Organic adjusted EBITDA margins were 19.5%. Q1 orders reached $231 million and backlog grew to $416 million.

Second quarter: Total company revenue of 815 million to 850 million, adjusted EBITDA between 180 million and 192 million, adjusted EPS in the range of $2.27 to $2.39. Full year: Total revenues of 3.36 billion to 3.44 billion, adjusted EBITDA of 758 million to 790 million, adjusted EPS in the range of $9.54 to $9.70.

Tariffs remained a headwind in the first quarter and expected to continue in the second quarter before lapping prior year strategies. Inflationary pressures around shipping costs and electronic controls are also risks.

Q: Unpack the March - April trend comment and order standpoint.

A: Commented on macro economic conditions, order rates remained positive with momentum from last year continuing but remaining cautious.

Q: Lumpiness in 1Q food processing, one - time new product intro cost impact, and M&A pipeline.

A: Look at business over two or three quarters, organic growth guidance at 9%, remain active in M&A.

Q: What's resonating with CFS customers and drives future growth?

A: Innovation, replacement business picking up, beverage category demand.

Q: Impact of Section 232 tariffs and cost inputs.

A: Tariff exposure remains relatively same, expecting inflationary headwind and announcing pricing.

Q: Organic growth in CFS, sustainability.

A: Investments made are bearing fruit, confident in execution.

Q: Price increases in food processing and CFS, EBITDA margin.

A: Price contracts based on cost, margin impacted by tariffs, expecting improvement in back half.

Q: Driving strength in ice and beverage, lumpiness.

A: Growth in dealer and chain business, not much lumpiness, robust pipeline for beverage.