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The Middleby Corporation MIDD reported first-quarter 2025 adjusted earnings of $2.08 per share, which beat the Zacks Consensus Estimate of $1.94. The bottom line increased 10.1% year over year due to lower costs.

Net revenues of $906.6 million missed the consensus estimate of $941 million. The top line decreased 2.2% year over year. Organic sales decreased 3.8%. Acquired assets increased sales by 2.4%, while movements in foreign currencies had a negative impact of 0.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

MIDD’s Segmental Results

Sales from the Commercial Foodservice Equipment Group segment (representing 62.1% of net sales) were $562.7 million, down 3.2% year over year. Our estimate was $594.8 million. Organic sales decreased 2.8%. Buyouts had a positive impact of 0.4% on sales, while foreign-currency translation had an adverse impact of 0.8%.

Sales from the Residential Kitchen Equipment Group segment (19.4%) totaled $176 million, up 1.2% year over year. Our estimate was $172.7 million. Organic sales increased 2%. Foreign-currency translation had an adverse impact of 0.8%.

Sales from the Food Processing Equipment Group segment (18.5%) summed $167.9 million, down 2.2% year over year. We expected the metric to be $171.2 million. Organic sales decreased 12.9% year over year. Acquisitions boosted sales by 11.8%, while foreign currency movements had an unfavorable impact of 1%.

The Middleby Corporation Price, Consensus and EPS Surprise

The Middleby Corporation price-consensus-eps-surprise-chart | The Middleby Corporation Quote

Middleby’s Margin Profile

Middleby’s cost of sales decreased 3.4% year over year to $560.7 million. Gross profit inched down 0.1% to $345.9 million. The gross margin was 38.2%, up 80 basis points (bps) from the year-ago quarter.

Selling, general and administrative expenses decreased 1.7% year over year to $202.6 million. Operating income increased 2.5% year over year to $140.6 million. Operating margin increased 70 bps to 15.5%.

Adjusted EBITDA decreased 2% year over year to $182.1 million. Adjusted EBITDA margin increased 10 bps to 20.1%.

MIDD’s Balance Sheet and Cash Flow

Exiting the first quarter, Middleby had cash and cash equivalents of $745.1 million compared with $689.5 million at the end of December 2024. Long-term debt was $2.34 billion at the end of the first quarter compared with $2.35 billion at 2024-end.

In the first three months of 2025, Middleby generated net cash of $141.1 million from operating activities compared with $140.9 million in the year-ago period.

Capital expenditure totaled $33.7 million compared with $13.7 million in the year-ago period. Free cash flow was $107.4 million compared with $127.2 million in the year-ago period.

Spin-Off of Middleby’s Food-Processing Business

Middleby remains on track to separate its food processing business into a standalone public company, Middleby Food Processing. The tax-free spin-off is expected to be completed by early 2026.

This move aims to create two independent companies, namely, The Middleby Corporation (Middleby RemainCo), which will be focused on commercial foodservice and residential kitchens, and Middleby Food Processing, targeting industrial food markets. The move is expected to unlock value by enabling heightened strategic focus, capital optimization and M&A opportunities for both entities.

MIDD’s Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Enerpac Tool Group EPAC currently carries a Zacks Rank #2 (Buy). In the past 60 days, the Zacks Consensus Estimate for Enerpac Tool’s 2025 earnings has been stable.

Unifirst Corporation UNF currently carries a Zacks Rank of 2. UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.

AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

MRC Global Inc. MRC reported first-quarter 2025 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of eight cents. In the year-ago quarter, it reported earnings of 21 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $712 million surpassed the consensus estimate of $710 million. The top line decreased 8.4% year over year due to the lower volume of sales in the Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors.

MRC Global Inc. Price, Consensus and EPS Surprise

MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote

MRC’s Revenues by Product Line

Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 22.5% year over year to $162 million. Revenues from valves, automation, measurement and instrumentation were down 0.7% year over year to $277 million.

Gas product revenues were relatively stable year over year at $187 million. Sales of general products fell 28.1% to $46 million. Sales of stainless steel, alloy pipe and fittings increased 5.3% to $40 million.

MRC’s Revenues by Sector

Based on the sectors served, revenues from Gas Utilities increased 3% year over year to $273 million, while DIET sales were down 17.7% to $220 million. Sales from the PTI sector decreased 10.6% year over year to $219 million.

MRC Global’s Revenues by Segment

Sales generated from the U.S. segment (representing 83% of revenues) totaled $591 million, down 11.4% year over year. The downtick was due to reduced demand in the DIET and PTI sectors.

Sales from the International segment (17%) grew 10% year over year to $121 million, driven by higher revenues from the PTI sector.

MRC’s Margin Profile

MRC Global’s cost of sales declined 7.8% year over year to $570 million. The adjusted gross profit was down 10% year over year to $153 million. The adjusted gross margin was 21.5% compared with 21.9% in the year-ago period.

Selling, general and administrative expenses were up 3.3% year over year to $124 million. Adjusted EBITDA decreased 36.8% year over year to $36 million.

MRC Global’s Balance Sheet and Cash Flow

Exiting first-quarter 2025, MRC had a cash balance of $63 million, relatively stable from the figure reported at the end of December 2024. Long-term debt (including the current portion) was $367 million and net debt was $308 million at the end of the quarter.

In the first three months of 2025, the company generated net cash of $14 million from operating activities compared with $38 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $9 million, up 50% on a year-over-year basis.

In the period, the company did not pay dividends on preferred stock compared with $6 million in the year-ago period.

2025 Outlook

MRC Global expects its second-quarter 2025 revenues to increase in high-single to low-double-digit sequentially, driven by growth across its three business sectors.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below:

Insteel Industries IIIN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IIIN delivered a trailing four-quarter average earnings surprise of 122.4%. In the past 60 days, the Zacks Consensus Estimate for Insteel Industries’ fiscal 2025 earnings has increased 34.8%.

Unifirst Corporation UNF currently carries a Zacks Rank #2 (Buy). UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.

AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Johnson Controls International plc JCI reported second-quarter fiscal 2025 (ended March 2025) adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate of 79 cents. The bottom line increased 19% year over year.

Total revenues (continuing operations) of $5.68 billion surpassed the consensus estimate of $5.64 billion. The top line increased 1.4% year over year, whereas organic revenues increased 7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Johnson Controls International Price, Consensus and EPS Surprise

Johnson Controls International price-consensus-eps-surprise-chart | Johnson Controls International Quote

Q2 Segmental Results

Building Solutions North America: Revenues were $2.92 billion, up 6% year over year. Our estimate was $2.70 billion. Organic sales also increased 7%, driven by the strong performance of the applied heating, ventilation and air conditioning (HVAC) and controls businesses. Adjusted EBITA increased 5% year over year to $390 million.

Building Solutions Europe, Middle East, Africa/Latin America: Revenues totaled $1.09 billion, up 2% year over year. Our estimate was $1.07 billion. Organic sales climbed 5% due to growth in the service and fire and security businesses. Adjusted EBITA was $136 million, up 53% year over year.

Building Solutions Asia Pacific: Revenues increased 10% to $542 million. Our estimate was $531.5 million. Sales grew 13% organically, driven by growth in the service and systems businesses. Adjusted EBITA was $79 million, up 46% year over year.

Global Products: The segment reported revenues of $1.13 billion, down 13% year over year. Our estimate was $1.34 billion. Organic sales were up 8%, supported by strength in the Applied HVAC business and positive price and volume growth. Adjusted EBITA was $343 million, up 9% year over year.

JCI’s Margin Profile

In the fiscal second quarter, Johnson Controls’ cost of sales decreased 1.9% year over year to approximately $3.6 billion. Gross profit increased 7.5% year over year to $2.1 billion and the margin rose 220 basis points (bps) to 36.5%. Selling, general and administrative expenses were $1.4 billion, down 30.9% year over year.

Financial Position

Johnson Controls had cash and cash equivalents of $795 million as of March 31, 2025, compared with $606 million at the end of fiscal 2024 (ended Sept. 30, 2024). Long-term debt was $8.2 billion compared with $8 billion at the end of fiscal 2024.

In the first six months of fiscal 2025, the company generated net cash of $799 million from operating activities against $437 million used in the year-ago period. It reported a free cash flow of $589 million in the same period against a free cash outflow of $647 million in the year-ago period.

The company repurchased 8.2 million shares for approximately $660 million in the first six months of fiscal 2025.

JCI’s Q3 Guidance

Johnson Controls anticipates mid-single-digit organic revenue growth from the year-ago level. Adjusted segment EBITA margin is estimated to be approximately 17.5%. JCI expects adjusted earnings to be in the range of $0.97-$1.00 per share.

FY25 Guidance

Johnson Controls anticipates organic revenue growth to be in the mid-single-digit range from the prior-year level. Adjusted segment EBITA margin is expected to improve 90 bps from the year-ago actual. JCI expects adjusted earnings to be about $3.60 per share. It expects adjusted free cash flow conversion of approximately 100%.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:

Insteel Industries IIIN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IIIN delivered a trailing four-quarter average earnings surprise of 122.4%. In the past 60 days, the Zacks Consensus Estimate for Insteel Industries’ fiscal 2025 earnings has increased 34.8%.

Unifirst Corporation UNF currently carries a Zacks Rank #2 (Buy). UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst’s fiscal 2025 (ending August 2025) earnings has increased 4.1%.

AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 2.5%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research