Middleby (NASDAQ:MIDD) Issues 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.15, Briefing.com reports. The firm had revenue of $866.43 million during the quarter, compared to analyst estimates of $1.01 billion. Middleby had a negative net margin of 5.22% and a positive return on equity of 14.66%. The company’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.88 earnings per share. 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 trading hours on Thursday, reaching $167.00. The stock had a trading volume of 1,159,920 shares, compared to its average volume of 520,049. The firm has a 50-day moving average of $154.54 and a 200 day moving average of $139.16. The company has a quick ratio of 1.10, a current ratio of 2.07 and a debt-to-equity ratio of 0.69. The company has a market cap of $8.41 billion, a P/E ratio of -37.95 and a beta of 1.40. Middleby has a 52 week low of $110.82 and a 52 week high of $168.85.

Middleby News Roundup

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

Insider Activity

In other Middleby news, Director Robert A. Nerbonne acquired 780 shares of the business’s stock in a transaction dated Tuesday, December 9th. The shares were acquired at an average price of $128.52 per share, for a total transaction of $100,245.60. Following the acquisition, the director directly owned 21,471 shares of the company’s stock, valued at approximately $2,759,452.92. This trade represents a 3.77% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 6.18% of the stock is owned by company insiders.

Institutional Trading of Middleby

A number of institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD grew its holdings in shares of Middleby by 49.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,772,249 shares of the industrial products company’s stock worth $858,161,000 after buying an additional 1,902,957 shares in the last quarter. Invesco Ltd. grew its stake in shares of Middleby by 1,046.4% during the 3rd quarter. Invesco Ltd. now owns 1,018,536 shares of the industrial products company’s stock worth $135,394,000 after acquiring an additional 929,688 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in shares of Middleby by 4,256.3% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 722,137 shares of the industrial products company’s stock valued at $107,361,000 after purchasing an additional 705,560 shares during the last quarter. Marshall Wace LLP lifted its position in shares of Middleby by 260.0% in the third quarter. Marshall Wace LLP now owns 419,936 shares of the industrial products company’s stock worth $55,822,000 after purchasing an additional 303,293 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in Middleby by 92.9% during the fourth quarter. Morgan Stanley now owns 600,687 shares of the industrial products company’s stock worth $89,304,000 after purchasing an additional 289,326 shares during the last quarter. 98.55% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts recently commented on the company. Weiss Ratings restated a “sell (d)” rating on shares of Middleby in a research report on Monday, December 29th. Wall Street Zen upgraded Middleby from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Barclays set a $168.00 target price on shares of Middleby and gave the company an “overweight” rating in a research note on Tuesday, November 11th. Canaccord Genuity Group set a $187.00 price target on shares of Middleby and gave the company a “buy” rating in a report on Tuesday. Finally, JPMorgan Chase & Co. raised their price objective on shares of Middleby from $125.00 to $140.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $165.83.

Middleby Company Profile

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.