In anticipation of the proceeds from the deal, we will immediately put this capital to work for our shareholders. Combined with our ongoing share repurchase program, we reduced our overall share count in 2025 by approximately 9% through $710 million in buybacks, one of the most aggressive capital return programs in our industry. This reflects our conviction that Middleby shares remain significantly undervalued relative to our earnings power and growth prospects. Each business will emerge with enhanced focus, optimized capital structures, and the resources to maximize growth in their respective markets.
Turning to our fourth quarter results, our total revenue of approximately $866 million for our remaining two segments exceeded our expectations. Through a combination of these operational results and the substantial share repurchases we made in 2025, this translated to adjusted EPS of $2.14 for the quarter and $8.39 for the full year. For today's discussion on segment-level results and trends, I will be discussing the Commercial Foodservice results and outlook. Starting with Commercial Foodservice, we generated revenue approximately $602 million, which exceeded our expectations during the fourth quarter.
The outperformance was driven primarily by the general market with our dealer partners, which had double-digit growth in the quarter. We attribute the second half momentum to improved demand with independents and in the institutional market, along with continued growth with emerging chains. We have seen our customers address menu pricing, return to limited time offers, and launch new beverage programs to reposition against the challenging backdrop with a focus to drive customer traffic. Our guidance assumes a relatively consistent environment relative to what we are currently experiencing as we await larger chain customers to firm up their plans for the year, particularly in the second half.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2026 | $3.27B to $3.36B (initial full-year outlook (Commercial Foodservice $2.37B to $2.43B, Food Processing $895M to $925M)) |
| Adjusted EBITDA | FY2026 | $745M to $780M (initial full-year outlook (Commercial Foodservice $632M to $658M, Food Processing $186M to $208M)) |
| Adjusted EPS | FY2026 | $9.20 to $9.36 (initial full-year outlook, reflecting buyback benefit from residential sale proceeds) |
| Total revenue | Q1 2026 | $760M to $788M (new quarterly outlook (Commercial Foodservice $560M to $578M, Food Processing $200M to $210M)) |
| Adjusted EBITDA | Q1 2026 | $161M to $173M (new quarterly outlook) |
| Adjusted EPS | Q1 2026 | $1.90 to $2.02 (new quarterly outlook, assuming approximately 47.7 million weighted average shares) |
| Metric | YoY | Note |
|---|---|---|
| Commercial Foodservice revenue | approximately $602 million | general-market, institutional, and emerging-chain strength offset by large QSR and C-store declines |
| Food Processing revenue | organic growth of 1.3% to approximately $265 million | improvements in international markets, with strong late-year order momentum |
| Commercial Foodservice EBITDA margin | over 26% | would have exceeded 27% if not for tariff impacts |
| Total company adjusted EBITDA | approximately $197 million | top-line outperformance across both remaining segments |
| Adjusted EPS | $2.14 for the quarter, $8.39 full year | operational results plus substantial 2025 share repurchases |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Residential Kitchen | under strategic review with a $709 million impairment recorded | 51% stake sold to 26North, treated as discontinued operations and excluded from adjusted results going forward | — |
| QSR demand | challenged by lower traffic and cost pressures | still challenging but customers are addressing menu pricing, returning to limited time offers, and launching beverage programs heading into 2026 | — |
| Food Processing spin-off | targeted for first half of 2026 | on track for completion by the end of the second quarter, with a registration statement expected in April and Mark Salman named CEO of the SpinCo | — |
| Ice and beverage platform | a targeted growth area | generating early traction with some of the largest customers as a significant growth opportunity | — |