The Middleby Corporation Reports Fourth Quarter Results

Rhea-AI Summary

The Middleby (NASDAQ: MIDD) reported strong fourth quarter 2024 results with net sales of $1,014 million, a 0.5% increase over the prior year. The company achieved record adjusted EBITDA of $251.2 million and organic adjusted EBITDA margin of 24.8%, driven by exceptional profitability in Food Processing and Commercial Foodservice segments.

Diluted earnings per share reached $2.07, with adjusted net earnings per share of $2.88. Operating income was $170 million, representing 16.8% of net sales. The company generated record operating cash flows of $687 million for the full year and $240 million for the quarter.

During Q4, Middleby completed three strategic acquisitions: Emery Thompson, JC Ford, and Gorreri, strengthening its position in food processing equipment. The company also repurchased $16.4 million of common shares in Q4 and approximately $20 million in Q1 2025. Net leverage was reduced to 2.0x with available borrowing capacity of approximately $3.1 billion.

Positive

• Record Adjusted EBITDA of $251.2 million in Q4 2024
• Record operating cash flows of $687 million for 2024 and $240 million for Q4
• Net leverage reduced to 2.0x from previous year
• Adjusted net earnings per share of $2.88
• Operating income of $170 million (16.8% of net sales)
• Organic adjusted EBITDA margin of 24.8%
• Completed three strategic acquisitions (Emery Thompson, JC Ford, Gorreri)
• Available borrowing capacity of approximately $3.1 billion

Negative

• Organic sales decreased 1.3% in Q4 compared to prior year
• $38.6 million of impairment charges in Q4
• Challenging industry macro-conditions noted by CEO
• Impairment charges primarily associated with tradenames in Residential Kitchen Equipment Group

Insights

Financial Analyst

Middleby 's Q4 2024 results showcase a company executing effectively on operational efficiency and strategic growth initiatives despite challenging market conditions. With $1,014 million in net sales (a modest 0.5% increase year-over-year) and record adjusted EBITDA of $251.2 million (up from $235.2 million in the prior year), Middleby demonstrates its ability to enhance profitability even with relatively flat topline growth.

The standout metric in this report is the exceptional cash flow generation—$687 million for the full year and $240 million for Q4 alone. This robust cash position has enabled significant balance sheet improvement, with net debt reduced to $1.7 billion from $2.2 billion at the end of fiscal 2023 and leverage ratio down to 2.0x. The company's financial flexibility is further evidenced by approximately $3.1 billion in borrowing availability.

Segment performance reveals important nuances in Middleby's business health. The Food Processing and Commercial Foodservice segments delivered exceptional profitability despite challenging industry conditions, while the Residential Kitchen segment performed admirably considering the depressed housing market. The 24.8% organic adjusted EBITDA margin represents impressive operational execution across all business units.

The $38.6 million in impairment charges (down from $78.1 million in the prior year) primarily associated with tradenames in the Residential Kitchen Equipment Group indicates ongoing challenges in that segment, though the significant reduction year-over-year suggests improving conditions.

Middleby's strategic acquisitions of Emery Thompson, JC Ford, and Gorreri demonstrate a focused approach to expanding its food processing capabilities, particularly in high-growth categories like snack foods and baked goods. These bolt-on acquisitions complement existing offerings while providing entry into attractive adjacent markets with automation-focused solutions—a key differentiator as food producers face labor challenges.

Management's outlook for growth across all three segments as 2025 progresses, despite current industry headwinds, suggests confidence in both their strategic positioning and an anticipated multi-year recovery cycle. The continued investment in innovation during this challenging period positions Middleby to potentially capture market share as industry conditions improve.

The company's balanced capital allocation approach—combining $16.4 million in share repurchases, strategic acquisitions, and significant debt reduction—provides shareholders with multiple avenues for value creation as the anticipated industry recovery materializes.

Manufacturing Industry Specialist

Middleby's Q4 2024 results reveal a manufacturer excelling at operational efficiency despite challenging market dynamics. While topline growth remains constrained (0.5% year-over-year), the company's record 24.8% organic adjusted EBITDA margin demonstrates exceptional production optimization and cost discipline across its manufacturing operations.

The margin expansion amid flat sales suggests successful implementation of lean manufacturing principles and automation initiatives throughout Middleby's production facilities. This operational excellence has translated directly to the bottom line, with adjusted EBITDA reaching $251.2 million—a significant improvement over the prior year's $235.2 million.

From a manufacturing perspective, Middleby's strategic acquisitions in Q4 represent more than just market expansion—they're targeted technology integrations that enhance the company's production capabilities. The JC Ford acquisition brings advanced automation technology for tortilla production systems at a time when food manufacturers are aggressively seeking labor-saving solutions. Similarly, Gorreri's sophisticated baked goods equipment adds high-precision manufacturing capabilities for premium products where quality consistency is paramount.

The $38.6 million impairment charge (down from $78.1 million last year) primarily affecting the Residential Kitchen segment indicates a stabilization in this division's brand value, though challenges clearly remain in this cyclical business unit. The reduced impairment suggests manufacturing rationalization efforts are beginning to yield results in aligning production capacity with market demand.

Particularly impressive is Middleby's cash flow generation—$687 million for the full year and $240 million for Q4. This cash efficiency reflects tight inventory management and production scheduling optimization, critical capabilities in the current environment of fluctuating demand. The company has leveraged this cash to reduce net debt to $1.7 billion while maintaining flexibility for strategic investments.

Management's continued investment in product innovation during this challenging period is strategically sound. As commercial kitchens and food processors face persistent labor shortages, Middleby's focus on developing labor-saving automated equipment positions the company to capture market share when capital investment cycles accelerate. The company's R&D priorities appear aligned with the industry's most pressing operational challenges—labor efficiency, energy consumption, and production flexibility.

Looking ahead, Middleby's manufacturing infrastructure and technology portfolio are well-positioned for the anticipated multi-year recovery. The company has maintained critical engineering and production capabilities during the downturn while strategically enhancing its technology offerings through targeted acquisitions—a balanced approach that should enable rapid scaling when market conditions improve.

M&A and Corporate Strategy Analyst

Middleby's Q4 2024 results showcase a company executing a well-defined strategic growth playbook despite challenging market conditions. The 0.5% revenue growth (with a -1.3% organic decline) underscores the critical role acquisitions are playing in the company's current growth narrative, while the record adjusted EBITDA of $251.2 million demonstrates exceptional operational execution.

The company's acquisition strategy reveals a deliberate portfolio evolution, with particular emphasis on expanding the Food Processing segment—historically Middleby's highest-margin business. The JC Ford acquisition represents a targeted move into the high-growth tortilla equipment market, estimated to be expanding at 5-7% annually due to increasing global consumption of Mexican-inspired foods. This transaction not only strengthens Middleby's position in a growing category but also adds automated production systems that address food manufacturers' persistent labor challenges.

Similarly, the Gorreri acquisition enhances Middleby's capabilities in premium baked goods production equipment—a fragmented market where technological differentiation commands premium pricing. This Italian acquisition also provides enhanced access to European food processors, complementing Middleby's existing geographic footprint.

These bolt-on acquisitions follow Middleby's established playbook: targeting privately-held, founder-led businesses with proprietary technology and strong customer relationships, then leveraging Middleby's global distribution network and manufacturing scale to accelerate growth. While financial terms weren't disclosed, similar recent transactions suggest reasonable valuation multiples in the 8-10x EBITDA range—potentially lower than Middleby's own trading multiple, creating immediate value accretion.

The company's balanced capital allocation approach is particularly noteworthy given the current market environment. With $687 million in operating cash flow for the year, Middleby has simultaneously funded strategic acquisitions, reduced net debt by approximately $500 million, and returned capital to shareholders through $16.4 million in share repurchases in Q4 alone. This multi-pronged approach provides financial flexibility while still pursuing growth opportunities.

The reduction in leverage to 2.0x (from higher levels in recent years) positions Middleby with substantial acquisition capacity—approximately $3.1 billion in borrowing availability—at a time when valuation expectations for private companies are moderating. This creates a favorable environment for continued strategic acquisitions as the anticipated industry recovery materializes.

Management's continued investment in innovation while simultaneously pursuing acquisitions demonstrates a comprehensive growth strategy that balances organic and inorganic initiatives. This approach should strengthen Middleby's competitive position against rivals like Welbilt and ITW's food equipment group as market conditions improve, potentially enabling market share gains during the anticipated multi-year recovery cycle.

• Net sales of $1,014 million
• Diluted earnings per share of $2.07 and adjusted net earnings per share of $2.88
• Operating income of $170 million and 16.8% of net sales
• Record Adjusted EBITDA of $251 million and organic adjusted EBITDA margin of 24.8%
• Record operating cash flows of $687 million for the full year and $240 million for the quarter
• Net leverage reduced to 2.0x
• Repurchased $16.4 million of Middleby common shares in the fourth quarter
• Completed the acquisitions of Emery Thompson, JC Ford and Gorreri

ELGIN, Ill.--(BUSINESS WIRE)-- The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of equipment for the commercial foodservice, food processing, and residential kitchen industries, today reported net earnings for the fourth quarter of 2024.

“We closed 2024 by delivering our strongest margins of the year. Exceptional profitability achievements by our Food Processing and Commercial Foodservice platforms, and a strong result in the residential segment given the depressed market conditions, led us to record cash flow for the year. These results are being delivered while also making critical investments across all our businesses that are uniquely positioning us for the future.

“We have continued to execute on our strategic initiatives focused on driving sustainable long-term organic growth, with recent launches of transformative product innovations and investments in differentiated go-to market capabilities. While we are currently facing challenging industry macro-conditions, we expect to see growth across all three of our foodservice segments as we progress through 2025. Our investments will continue to strengthen our leadership position across our businesses, positioning us very favorably as we anticipate moving into a multi-year recovery,” said Tim FitzGerald, CEO of the Middleby Corporation.

2024 Fourth Quarter Financial Results

• Net sales increased 0.5% in the fourth quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales decreased 1.3% in the fourth quarter over the comparative prior year period.
• A reconciliation of organic net sales (a non-GAAP measure) by segment is as follows:

		Commercial Foodservice		Residential Kitchen		Food Processing		Total Company
	Reported Net Sales Growth	(2.9) %		(2.1) %		14.4 %		0.5 %
	Acquisitions	0.2 %		— %		10.2 %		2.1 %
	Foreign Exchange Rates	(0.3) %		0.4 %		(0.5) %		(0.2) %
	Organic Net Sales Growth (1) (2)	(2.8) %		(2.4) %		4.7 %		(1.3) %
	(1) Organic net sales growth defined as total sales growth excluding impact of acquisitions and foreign exchange rates
	(2) Totals may be impacted by rounding

• Operating income during the fourth quarter included $38.6 million of impairment charges as compared to $78.1 million of impairment charges in the prior year period primarily associated with tradenames within the Residential Kitchen Equipment Group.
• Adjusted EBITDA (a non-GAAP measure) was $251.2 million in the fourth quarter compared to $235.2 million in the prior year. A reconciliation of organic adjusted EBITDA (a non-GAAP measure) by segment is as follows:

		Commercial Foodservice		Residential Kitchen		Food Processing		Total Company
	Adjusted EBITDA	28.1 %		13.1 %		29.6 %		24.8 %
	Acquisitions	— %		— %		(0.7) %		— %
	Foreign Exchange Rates	0.1 %		(0.1) %		(0.1) %		— %
	Organic Adjusted EBITDA (1) (2)	28.0 %		13.2 %		30.3 %		24.8 %
	(1) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of acquisitions and foreign exchange rates.
	(2) Totals may be impacted by rounding

• Operating cash flows during the fourth quarter amounted to $239.7 million in comparison to $255.7 million in the prior year period. Operating cash flows for the twelve months period ended December 28, 2024 amounted to $686.8 million in comparison to $628.8 million in the prior year period. During the fourth quarter the company repurchased $16.4 million of Middleby common shares and approximately $20.0 million to date in the first quarter of 2025. The total leverage ratio per our credit agreements was 2.0x. The trailing twelve month bank agreement pro-forma EBITDA was $893.8 million.
• Net debt, defined as debt excluding the unamortized discount associated with the Convertible Notes less cash, at the end of the 2024 fiscal fourth quarter amounted to $1.7 billion as compared to $2.2 billion at the end of fiscal 2023. Our borrowing availability at the end of the fourth quarter was approximately $3.1 billion.

“We continue to scale our Food Processing platform, completing two acquisitions in the fourth quarter. We have targeted the snack food category as an attractive growing market. The acquisition of JC Ford complements our existing product offerings, significantly strengthening our presence in this faster-growing category of tortilla production equipment systems. The company has developed innovative solutions that have been quickly accepted as the industry standard, allowing customers to automate production lines with a low cost of ownership.

“We also added Gorreri Food Processing Technology, an Italian leading manufacturer of equipment for the baked goods industry, including cakes, pies, muffins, tarts and other desert line solutions. Their premium-quality advanced industrial and semi-industrial baked goods solutions further expands the markets our food processing group serves,” added Mr. FitzGerald.

Conference Call

The company has scheduled a conference call to discuss the fourth quarter results at 8 a.m. Eastern/7 a.m. Central Time on February 25th. The conference call is accessible through the Investor Relations section of the company website at www.middleby.com. If website access is not available, attendees can join the conference by dialing (844) 481-3012, or (412) 317-1878 for international access, and ask to join the Middleby conference call. The conference call will be available for replay from the company’s website.

Statements in this press release or otherwise attributable to the company regarding the company's business which are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. Such factors include variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company's products; the availability and cost of raw materials; and other risks detailed herein and from time-to-time in the company's SEC filings. Any forward-looking statement speaks only as of the date hereof, and the company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

The Middleby Corporation is a global leader in the foodservice industry. The company develops and manufactures a broad line of solutions used in commercial foodservice, food processing, and residential kitchens. Supporting the company’s pursuit of the most sophisticated innovation, state-of-the-art Middleby Innovation Kitchens and Residential Showrooms showcase and demonstrate the most advanced Middleby solutions. In 2022 Middleby was named a World’s Best Employer by Forbes and is a proud philanthropic partner to organizations addressing food insecurity.

THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in 000’s, Except Per Share Information) (Unaudited)
	Three Months Ended								Twelve Months Ended
	4th Qtr, 2024				4th Qtr, 2023				4th Qtr, 2024				4th Qtr, 2023
Net sales	$	1,013,881			$	1,008,576			$	3,875,162			$	4,036,605
Cost of sales		624,946				621,807				2,404,793				2,502,543
Gross profit		388,935				386,769				1,470,369				1,534,062
Selling, general and administrative expenses		178,394				191,585				762,502				806,946
Restructuring expenses		3,135				2,436				14,181				14,134
Gain on sale of plant		(1,139	)			—				(1,139	)			—
Impairments		38,637				78,114				38,637				78,114
Income from operations		169,908				114,634				656,188				634,868
Interest expense and deferred financing amortization, net		19,990				28,277				92,229				120,348
Net periodic pension benefit (other than service costs & curtailment)		(3,653	)			(2,142	)			(14,897	)			(9,071	)
Other expense, net		541				1,571				1,536				4,213
Earnings before income taxes		153,030				86,928				577,320				519,378
Provision for income taxes		40,726				10,635				148,887				118,496
Net earnings	$	112,304			$	76,293			$	428,433			$	400,882
Net earnings per share:
Basic	$	2.09			$	1.42			$	7.97			$	7.48
Diluted	$	2.07			$	1.42			$	7.90			$	7.41
Weighted average number of shares
Basic		53,764				53,601				53,738				53,577
Diluted		54,334				53,768				54,209				54,086

THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in 000’s) (Unaudited)
	Dec 28, 2024			Dec 30, 2023
ASSETS
Cash and cash equivalents	$	689,533		$	247,496
Accounts receivable, net		643,355			644,576
Inventories, net		841,567			935,867
Prepaid expenses and other		131,566			112,690
Prepaid taxes		24,022			25,230
Total current assets		2,330,043			1,965,859
Property, plant and equipment, net		525,965			510,898
Goodwill		2,518,222			2,486,310
Other intangibles, net		1,611,037			1,693,076
Long-term deferred tax assets		6,281			7,945
Pension benefits assets		91,207			38,535
Other assets		200,396			204,069
Total assets	$	7,283,151		$	6,906,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt	$	43,949		$	44,822
Accounts payable		208,908			227,080
Accrued expenses		576,465			579,192
Total current liabilities		829,322			851,094
Long-term debt		2,351,118			2,380,373
Long-term deferred tax liability		252,062			216,143
Accrued pension benefits		9,573			12,128
Other non-current liabilities		202,645			197,065
Stockholders' equity		3,638,431			3,249,889
Total liabilities and stockholders' equity	$	7,283,151		$	6,906,692

THE MIDDLEBY CORPORATION
NON-GAAP SEGMENT INFORMATION (UNAUDITED)
(Amounts in 000’s, Except Percentages)
	Commercial Foodservice				Residential Kitchen				Food Processing				Total Company (1)
Three Months Ended December 28, 2024
Net sales	$	609,446			$	185,042			$	219,393			$	1,013,881
Segment Operating Income	$	145,313			$	(12,654	)		$	58,071			$	169,908
Operating Income % of net sales		23.8	%			(6.8	)%			26.5	%			16.8	%
Depreciation		7,577				4,167				2,576				14,781
Amortization		11,331				1,799				2,640				15,770
Restructuring expenses		931				1,946				258				3,135
Acquisition related adjustments		727				327				2,578				3,632
Facility consolidation related expenses		—				402				—				402
Charitable support to Ukraine		—				—				—				12
Stock compensation		—				—				—				6,012
Gain on sale of plant		—				—				(1,139	)			(1,139	)
Impairments		5,197				28,162				—				38,637
Segment adjusted EBITDA (2)	$	171,076			$	24,149			$	64,984			$	251,150
Adjusted EBITDA % of net sales		28.1	%			13.1	%			29.6	%			24.8	%
Three Months Ended December 30, 2023
Net sales	$	627,864			$	189,012			$	191,700			$	1,008,576
Segment Operating Income	$	164,111			$	(63,647	)		$	46,986			$	114,634
Operating Income % of net sales		26.1	%			(33.7	)%			24.5	%			11.4	%
Depreciation		7,189				3,567				2,039				13,328
Amortization		13,823				2,284				2,325				18,432
Restructuring expenses		515				1,218				703				2,436
Acquisition related adjustments		(8,345	)			31				812				(7,502	)
Charitable support to Ukraine		—				—				—				8
Stock compensation		—				—				—				15,742
Impairments		1,986				76,128				—				78,114
Segment adjusted EBITDA	$	179,279			$	19,581			$	52,865			$	235,192
Adjusted EBITDA % of net sales		28.6	%			10.4	%			27.6	%			23.3	%
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $9.1 million and $16.5 million for the three months ended December 28, 2024 and December 30, 2023, respectively. (2) Foreign exchange rates unfavorably impacted Segment Adjusted EBITDA by approximately $0.7 million for the three months ended December 28, 2024.

THE MIDDLEBY CORPORATION
NON-GAAP SEGMENT INFORMATION (UNAUDITED)
(Amounts in 000’s, Except Percentages)
	Commercial Foodservice				Residential Kitchen				Food Processing				Total Company (1)
Twelve Months Ended December 28, 2024
Net sales	$	2,419,236			$	724,923			$	731,003			$	3,875,162
Segment Operating Income	$	574,772			$	15,185			$	168,405			$	656,188
Operating Income % of net sales		23.8	%			2.1	%			23.0	%			16.9	%
Depreciation		28,621				15,847				9,386				55,609
Amortization		49,133				7,214				8,091				64,438
Restructuring expenses		5,780				5,936				2,465				14,181
Acquisition related adjustments		455				326				55				836
Facility consolidation related expenses		—				920				—				920
Charitable support to Ukraine		—				—				—				474
Stock compensation		—				—				—				36,151
Gain on sale of plant		—				—				(1,139	)			(1,139	)
Impairments		5,197				28,162				—				38,637
Segment adjusted EBITDA (2)	$	663,958			$	73,590			$	187,263			$	866,295
Adjusted EBITDA % of net sales		27.4	%			10.2	%			25.6	%			22.4	%
Twelve Months Ended December 30, 2023
Net sales	$	2,521,471			$	794,516			$	720,618			$	4,036,605
Segment Operating Income	$	616,224			$	(12,450	)		$	158,469			$	634,868
Operating Income % of net sales		24.4	%			(1.6	)%			22.0	%			15.7	%
Depreciation		27,323				13,637				7,949				50,416
Amortization		56,728				9,052				9,271				75,051
Restructuring expenses		3,173				9,402				1,559				14,134
Acquisition related adjustments		(6,014	)			76				2,087				(3,851	)
Charitable support to Ukraine		—				—				—				615
Stock compensation		—				—				—				51,047
Impairments		1,986				76,128				—				78,114
Segment adjusted EBITDA	$	699,420			$	95,845			$	179,335			$	900,394
Adjusted EBITDA % of net sales		27.7	%			12.1	%			24.9	%			22.3	%
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $58.5 million and $74.2 million for the twelve months ended December 28, 2024 and December 30, 2023, respectively. (2) Foreign exchange rates unfavorably impacted Segment Adjusted EBITDA by $0.1 million for the twelve months ended December 28, 2024.

THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (UNAUDITED) (Amounts in 000’s, Except Percentages)
	Three Months Ended
	4th Qtr, 2024								4th Qtr, 2023
	$				Diluted per share				$				Diluted per share
Net earnings	$	112,304			$	2.07			$	76,293			$	1.42
Amortization (1)		17,557				0.32				20,218				0.38
Restructuring expenses		3,135				0.06				2,436				0.05
Acquisition related adjustments		3,632				0.07				(7,502	)			(0.14	)
Facility consolidation related expenses		402				0.01				—				—
Net periodic pension benefit (other than service costs & curtailment)		(3,653	)			(0.07	)			(2,142	)			(0.04	)
Charitable support to Ukraine		12				—				8				—
Impairments		38,637				0.71				78,114				1.45
Gain on sale of plant		(1,139	)			(0.02	)			—				—
Income tax effect of pre-tax adjustments		(15,583	)			(0.29	)			(24,665	)			(0.46	)
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)		—				0.02				—				(0.01	)
Adjusted net earnings	$	155,304			$	2.88			$	142,760			$	2.65
Diluted weighted average number of shares		54,334								53,768
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)		(394	)							73
Adjusted diluted weighted average number of shares		53,940								53,841
	Twelve Months Ended
	4th Qtr, 2024								4th Qtr, 2023
	$				Diluted per share				$				Diluted per share
Net earnings	$	428,433			$	7.90			$	400,882			$	7.41
Amortization (1)		71,565				1.32				82,188				1.52
Restructuring expenses		14,181				0.26				14,134				0.26
Acquisition related adjustments		836				0.02				(3,851	)			(0.07	)
Facility consolidation related expenses		920				0.02				—				—
Net periodic pension benefit (other than service costs & curtailment)		(14,897	)			(0.27	)			(9,071	)			(0.17	)
Charitable support to Ukraine		474				0.01				615				0.01
Impairments		38,637				0.71				78,114				1.44
Gain on sale of plant		(1,139	)			(0.02	)			—				—
Income tax effect of pre-tax adjustments		(28,529	)			(0.53	)			(42,414	)			(0.78	)
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)		—				0.07				—				0.08
Adjusted net earnings	$	510,481			$	9.49			$	520,597			$	9.70
Diluted weighted average number of shares		54,209								54,086
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)		(418	)							(442	)
Adjusted diluted weighted average number of shares		53,791								53,644

⁽¹⁾ Includes amortization of deferred financing costs and convertible notes issuance costs.

⁽²⁾ Adjusted diluted weighted average number of shares was calculated based on excluding the dilutive effect of shares to be issued upon conversion of the notes to satisfy the amount in excess of the principal since the company's capped call offsets the dilutive impact of the shares underlying the convertible notes. The calculation of adjusted diluted earnings per share excludes the principal portion of the convertible notes as this will always be settled in cash.

	Three Months Ended								Twelve Months Ended
	4th Qtr, 2024				4th Qtr, 2023				4th Qtr, 2024				4th Qtr, 2023
Net Cash Flows Provided By (Used In):
Operating activities	$	239,734			$	255,687			$	686,816			$	628,790
Investing activities		(114,536	)			(16,518	)			(158,535	)			(155,742	)
Financing activities		(27,979	)			(165,171	)			(73,768	)			(390,939	)
Free Cash Flow
Cash flow from operating activities	$	239,734			$	255,687			$	686,816			$	628,790
Less: Capital expenditures, net sale of proceeds		(10,634	)			(15,534	)			(46,803	)			(85,179	)
Free cash flow	$	229,100			$	240,153			$	640,013			$	543,611

USE OF NON-GAAP FINANCIAL MEASURES

The company supplements its consolidated financial statements presented on a GAAP basis with this non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies.

The company believes that organic net sales growth, non-GAAP adjusted segment EBITDA, adjusted net earnings and adjusted diluted per share measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The company also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in its opinion, do not reflect its core operating performance including, for example, intangibles amortization expense, impairment charges, restructuring expenses, and other charges which management considers to be outside core operating results.

The company believes that free cash flow is an important measure of operating performance because it provides management and investors a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt and repurchasing our common stock.

The company believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Middleby uses internally for purposes of assessing its core operating performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225612081/en/

John Joyner, VP of Investor Relations, jjoyner@middleby.com

Source: The Middleby Corporation

FAQ

What were Middleby's (MIDD) Q4 2024 financial highlights?

Middleby reported Q4 2024 net sales of $1,014 million, diluted EPS of $2.07, adjusted EPS of $2.88, and record adjusted EBITDA of $251.2 million with a 24.8% organic adjusted EBITDA margin. The company generated record operating cash flows of $687 million for the full year.

What acquisitions did Middleby (MIDD) complete in Q4 2024?

Middleby completed three acquisitions in Q4 2024: Emery Thompson, JC Ford (tortilla production equipment), and Gorreri Food Processing Technology (Italian manufacturer of baked goods equipment).

How much did Middleby (MIDD) spend on share repurchases in Q4 2024?

Middleby repurchased $16.4 million of common shares in Q4 2024 and approximately $20 million in the first quarter of 2025.

What was Middleby's (MIDD) debt position at the end of 2024?

Middleby's net debt at the end of Q4 2024 was $1.7 billion, down from $2.2 billion at the end of 2023. The total leverage ratio was 2.0x with borrowing availability of approximately $3.1 billion.

What is Middleby's (MIDD) outlook for 2025?

Despite current challenging industry conditions, Middleby expects to see growth across all three foodservice segments as 2025 progresses, anticipating a multi-year recovery ahead.