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.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2026 | $3.36B to $3.44B (raised on first-quarter outperformance and momentum in both segments) |
| Adjusted EBITDA | FY2026 | $758M to $790M (raised alongside the revenue increase) |
| Adjusted EPS | FY2026 | $9.54 to $9.70 (raised on operational results and continued share repurchases) |
| Total revenue | Q2 2026 | $815M to $850M (new quarterly outlook (Commercial Foodservice $600M to $620M, Food Processing $215M to $230M)) |
| Adjusted EBITDA | Q2 2026 | $180M to $192M (new quarterly outlook) |
| Adjusted EPS | Q2 2026 | $2.27 to $2.39 (new quarterly outlook, assuming approximately 45.8 million weighted average shares) |
| Metric | YoY | Note |
|---|---|---|
| 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 |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Food Processing spin-off | planned separation targeted for Q2 2026 | culminating this quarter, with Form 10 filed, management team fully built out, and Investor Day set for May 12 | — |
| Chain (QSR) demand | declining and a challenged part of the business | inflecting and better than expected as chains reset menu pricing and add beverage day parts | — |
| Ice and beverage platform | early traction with largest customers | showing up meaningfully in results as a one-stop beverage solution, with the biggest product disruptions expected in 2027 and 2028 | — |
| Tariffs | a net EBITDA drag being offset by pricing | dollar impact fully offset in Q1 but still a roughly 1% margin headwind per segment, with new low-single-digit Q3 pricing announced | — |