This is an accounting-driven valuation adjustment and does not reflect any change in our confidence in the segment's underlying strength. Total revenue of $980 million exceeded the top end of our guidance range. This top-line performance drove adjusted EBITDA of $196 million and adjusted EPS of $2.37, both exceeding the upper end of our guidance. Our ice and beverage platform remains a core area of opportunity and is expected to be a meaningful growth driver in the years ahead.
While broader market conditions remain mixed, our long-term strategic focus has positioned Middleby to capture outsized growth when markets normalize. At our Commercial Foodservice segment, we returned to positive organic growth in sales for the first time since the third quarter of 2023. Growth was driven by the general market, institutional customers, and with emerging restaurant chains, offset in part by ongoing softness among large QSR customers facing lower traffic and cost pressures. By partnering and educating our dealer base on the performance advantages of our technologies, we are capturing market share and outpacing overall industry growth in this area.
We are particularly excited about the growing pipeline of opportunities of our ice and beverage solutions. At the residential segment, we have continued to make significant progress both strategically and operationally. During the quarter, we saw healthy growth with our premium indoor brands. This growth was offset by tariff-related headwinds impacting our outdoor product sales.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | Q4 2025 | $990M to $1,020M (new quarterly outlook (Commercial Foodservice $570M to $580M, Residential $180M to $190M, Food Processing $240M to $250M)) |
| Adjusted EBITDA | Q4 2025 | $200M to $210M (new quarterly outlook, the strongest quarter of the year) |
| Adjusted EPS | Q4 2025 | $2.19 to $2.34 (new quarterly outlook, assuming approximately 50.4 million weighted average shares) |
| Total revenue | FY2025 | $3.85B to $3.89B (raised on third-quarter outperformance) |
| Adjusted EBITDA | FY2025 | $779M to $789M (narrowed within the prior range) |
| Adjusted EPS | FY2025 | $8.99 to $9.14 (raised on stronger results) |
| Metric | YoY | Note |
|---|---|---|
| Commercial Foodservice revenue | organic growth of 1.6% to $606 million | general-market, institutional, and fast-casual strength offset by ongoing large-QSR softness |
| Residential revenue | nearly $175 million | premium indoor growth offset by tariff-driven declines in outdoor products |
| Food Processing revenue | exceeded $201 million | improving international markets offset by continued U.S. softness, with short-term lumpiness |
| Total company adjusted EBITDA | over $196 million | all three segments beating guidance, with a $0.15 stock-comp benefit in EPS |
| Adjusted EPS | $2.37 | revenue outperformance plus a $0.15 positive impact from stock compensation |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Portfolio strategic review | Food Processing spin announced for Q2 2026 | expanded to include a review of options for Residential Kitchen, including a potential separation, alongside the Food Processing spin | — |
| Commercial Foodservice demand | organic declines with QSR pressure | returned to positive organic growth of 1.6% on dealer, institutional, and fast-casual strength, though QSR remains challenged | — |
| Food Processing orders | soft start to the year on tariff and food-cost uncertainty | order rate inflected positive, skewing to protein, automation, and washing solutions, with a strong Q4 expected | — |
| Ice and beverage platform | growing pipeline of opportunities | remains a core growth driver at attractive mid-20s margins expected to be accretive over time | — |