v3.26.1
Segment Information
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
Segment Information
(12)
SEGMENT INFORMATION

The Company has one operating and reportable segment which reflects the manner in which the Company’s Chief Operating Decision Maker (the “CODM”), the Middleby Chief Executive Officer, reviews and assesses the performance of the business and allocates resources. The Company determined that the Chief Executive Officer of Middleby is the CODM who possesses the ultimate authority with respect to assessment of performance, allocation of resources, and all strategic actions of the Company. In performing this responsibility, the CODM regularly reviews key internal management reports, financial information, and quarterly results.

In accordance with ASC 280-10, Segment Reporting, the Company is reported as a single operating segment, encompassing all business activities and financial reporting for the Company. The CODM does not evaluate the performance of the Company or allocate resources at any level below the combined level or based on the Company’s assets or liabilities.

Adjusted EBITDA is the profitability metric reported to the CODM for purposes of making decisions about allocation of resources and assessing performance. The Company defines Adjusted EBITDA as net earnings before interest, income taxes, depreciation, and intangible amortization, or EBITDA, less restructuring, acquisition related adjustments, impairment charges, stock compensation and other items which management considers to be outside core operating results. The CODM reviews this metric regularly to assess profitability, identify trends, and evaluate requirements for additional resources or strategic adjustments. The CODM uses Adjusted EBITDA to support the allocation of resources predominantly in the annual budget and forecasting process. The Company believes that investors find this measure useful in comparing our operating performance to that of other companies in our industry because this measure generally illustrates the underlying performance of the business.

The following table summarizes the results of operations for the Company’s business segment:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in millions)

 

July 4, 2026

 

 

June 28, 2025

 

 

July 4, 2026

 

 

June 28, 2025

 

Net sales

 

$

245.4

 

 

$

216.7

 

 

$

470.4

 

 

$

385.2

 

Cost of sales

 

 

158.7

 

 

 

135.8

 

 

 

306.3

 

 

 

243.3

 

Other segment items (1)

 

 

44.4

 

 

 

41.8

 

 

 

87.6

 

 

 

76.7

 

Segment adjusted EBITDA (2)

 

 

42.3

 

 

 

39.1

 

 

 

76.5

 

 

 

65.2

 

Depreciation expense (3)

 

 

4.3

 

 

 

3.2

 

 

 

8.2

 

 

 

6.3

 

Amortization expense

 

 

2.6

 

 

 

2.6

 

 

 

5.3

 

 

 

5.5

 

Capital expenditures

 

 

3.2

 

 

 

6.4

 

 

 

6.6

 

 

 

25.7

 

 

(1)
Other segment items includes operating expenses, which primarily consists of selling, general and administrative expenses. Other segment items excludes the impact of depreciation, intangible amortization, restructuring, stock compensation and other items that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.
(2)
Excludes the impacts mentioned in Other segment items.
(3)
Includes amortization of finance lease right-of-use assets.

A reconciliation of segment Adjusted EBITDA to net earnings is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in millions)

 

July 4, 2026

 

 

June 28, 2025

 

 

July 4, 2026

 

 

June 28, 2025

 

Adjusted EBITDA

 

$

42.3

 

 

$

39.1

 

 

$

76.5

 

 

$

65.2

 

Less: Other segment operating expenses (1)

 

 

18.6

 

 

 

12.8

 

 

 

34.4

 

 

 

23.3

 

Income from operations

 

 

23.7

 

 

 

26.3

 

 

 

42.1

 

 

 

41.9

 

Interest expense (income), net

 

 

0.4

 

 

 

(0.6

)

 

 

0.4

 

 

 

(1.0

)

Other expense (income), net

 

 

2.0

 

 

 

(10.6

)

 

 

1.4

 

 

 

(11.0

)

Earnings before income taxes

 

 

21.3

 

 

 

37.5

 

 

 

40.3

 

 

 

53.9

 

Provision for income taxes

 

 

10.5

 

 

 

8.4

 

 

 

15.2

 

 

 

12.6

 

Net earnings

 

$

10.8

 

 

$

29.1

 

 

$

25.1

 

 

$

41.3

 

 

(1)
Consists of the impact of depreciation, intangible amortization, restructuring, stock compensation and other items that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.

Total assets for the Company’s segment were $1,407.0 million and $1,461.0 million as of July 4, 2026 and January 3, 2026, respectively.