That starts today with sharing the excellent results achieved across both segments of the business and raising our guidance for the year. Following this transaction, Middleby will operate as a focused commercial foodservice leader with a scaled portfolio of best-in-class brands, accelerating innovation and industry-leading 26% segment-level EBITDA margins. While Food Processing becomes an independent growth platform with segment-level EBITDA margins over 20% and significant expansion opportunities through both organic and acquisition growth initiatives. The separation will allow for focused execution across both companies with significant growth opportunities ahead.

While we're only discussing the near-term outlook on today's call, we look forward to showcasing our long-term vision next week. Turning to our first quarter results, our total revenue of approximately $840 million for Commercial Foodservice and Food Processing exceeded our expectations. Through a combination of these operational results and substantial share repurchases over the past 12 months, this translated to adjusted EPS from continuing operations of $2.16. Starting with Commercial Foodservice, we generated revenue of approximately $616 million, which exceeded our expectations during the first quarter.

The outperformance was driven primarily by the general market with our dealer partners, which again had double-digit growth during the quarter, maintaining the strength we saw to end 2025. The broad-based strength we saw in the general market was complemented by better-than-expected growth with the chains. Replacement activity is improving given deferrals in the prior years, and more importantly, we have a strong pipeline of new opportunities which are converting. And the strategic investments that we have made over the past several years position us for growth and an exciting next chapter.

What went well
  • Total revenue of approximately $840 million for Commercial Foodservice and Food Processing exceeded expectations, driving adjusted EBITDA of approximately $181 million and adjusted EPS from continuing operations of $2.16.
  • Commercial Foodservice delivered organic revenue growth of 8.1% to approximately $616 million, led by double-digit growth with dealer partners in the general market plus better-than-expected chain performance.
  • Food Processing had its best first quarter ever, with organic revenue growth of 25% to approximately $224 million, record order intake of $231 million, backlog growing to $416 million, and a fifth consecutive quarter of book-to-bill above one.
  • Management raised full-year 2026 guidance, taking adjusted EPS to a range of $9.54 to $9.70 and total revenue to $3.36 billion to $3.44 billion.
  • Capital returns stayed aggressive, with over $520 million allocated to share repurchases so far in 2026 (reducing shares outstanding approximately 7%), on top of the 9% reduction achieved in 2025.
What went wrong
  • Food Processing organic adjusted EBITDA margin of 19.5% included a modest headwind from the timing of a new product introduction, which management does not expect to recur.
  • Tariffs remained a percentage-margin headwind in the first quarter (estimated about a 1% hit on each segment) and are expected to continue in the second quarter before prior-year pricing and mitigation actions are lapped.
  • Consumer wallets became increasingly strained in March and April, and management flagged that overall industry conditions remain challenging with pressure from fuel prices on consumer traffic.
  • Commercial Foodservice EBITDA margin was down year over year, pressured by lapping the 2025 tariff impact and by unfavorable mix that is not expected to improve until the back half of the year.

Guidance Changes

MetricPeriodCurrent guidance
Total revenueFY2026$3.36B to $3.44B (raised on first-quarter outperformance and momentum in both segments)
Adjusted EBITDAFY2026$758M to $790M (raised alongside the revenue increase)
Adjusted EPSFY2026$9.54 to $9.70 (raised on operational results and continued share repurchases)
Total revenueQ2 2026$815M to $850M (new quarterly outlook (Commercial Foodservice $600M to $620M, Food Processing $215M to $230M))
Adjusted EBITDAQ2 2026$180M to $192M (new quarterly outlook)
Adjusted EPSQ2 2026$2.27 to $2.39 (new quarterly outlook, assuming approximately 45.8 million weighted average shares)

Performance Breakdown

MetricYoYNote
Commercial Foodservice revenue organic growth of 8.1% double-digit general-market dealer growth plus better-than-expected chain business
Food Processing revenue organic growth of 25% improvement in international markets, including a first meaningful order in Kenya, on Total Line Solutions strategy
Commercial Foodservice organic adjusted EBITDA margin 25.8% strong volume offset by tariff lapping and mix headwinds
Total company adjusted EBITDA approximately $181 million top-line outperformance across both segments
Adjusted EPS from continuing operations $2.16 organic EPS growth plus share repurchases, offset by higher interest from convertible-note maturity and higher stock comp

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Food Processing spin-offplanned separation targeted for Q2 2026culminating this quarter, with Form 10 filed, management team fully built out, and Investor Day set for May 12—
Chain (QSR) demanddeclining and a challenged part of the businessinflecting and better than expected as chains reset menu pricing and add beverage day parts—
Ice and beverage platformearly traction with largest customersshowing up meaningfully in results as a one-stop beverage solution, with the biggest product disruptions expected in 2027 and 2028—
Tariffsa net EBITDA drag being offset by pricingdollar impact fully offset in Q1 but still a roughly 1% margin headwind per segment, with new low-single-digit Q3 pricing announced—

Q&A Summary

What is behind the cautious March and April trend commentary, and what are you seeing on orders?
Tim FitzGerald said it reflects macro conditions such as higher fuel prices pressuring the consumer, but order rates have stayed positive and the momentum from late 2025 carried into the second quarter with no change so far; chain customers are performing better on menu pricing and shifts to poultry and beverage.
Was there lumpiness in Food Processing's strong first quarter, and how actionable is the M&A pipeline?
Mark Salman said the business is best viewed over two to three quarters given six-to-18-month order-to-revenue conversion; first-half organic growth is guided to about 9%, and the M&A pipeline remains very active as a core thesis of the spin.
In Commercial Foodservice, what is resonating with customers and driving future growth?
Steve Spittle said it is all of the above, but especially beverage: QSRs that were never in beverage are adding platforms powered by Middleby, driving new day parts, traffic, and quick franchisee ROI, and Middleby can supply the full solution from ice to dispense.
How do the updated Section 232 tariff changes affect exposure to steel, aluminum, and resin inputs?
Brittany Cerwin said overall tariff exposure remains relatively the same after the IEEPA elimination and 232/122 changes; the company is putting through low-to-mid-single-digit pricing on the commercial side and estimates about a 1% margin headwind for each segment.
Commercial Foodservice organic growth stood out well above recent trends; what changed and were there any one-time or pre-buy items?
Tim FitzGerald said there was nothing one-time or unusual; the change was chains starting to pick up while dealers and general market kept growing double digits, so both parts of the business are now up instead of one offsetting the other.
Is roughly 5% Commercial Foodservice organic growth sustainable, and are you back to sustained mid-single-digit growth?
Tim FitzGerald said the company is confident in what it can control given its now-completed investments in go-to-market and innovation, and is optimistic the industry is improving after a very disrupted period, positioning Middleby better than ever for the next three years.
Commercial Foodservice EBITDA margin was down year over year and guided down in Q2; when does it return to year-over-year growth?
Brittany Cerwin said the first half is still lapping the 2025 tariff impact and some mix challenges, but with tariff lapping and further pricing to cover new inflationary costs, margins should begin to benefit in the back half.
What is driving the ice and beverage momentum, and was there front-end loading of rollouts?
Steve Spittle said there is no meaningful pre-buy lumpiness; growth comes from dealer market-share gains packaging Middleby brands together and from QSRs newly adding beverage, and the company is only starting to scratch the surface with much of the product pipeline still coming to market.

More on MIDDLEBY Corp

Reported 2026-05-07 · figures from the MIDDLEBY Corp Q1 2026 earnings call.

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