Slides
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1 www.middleby.com www.middleby.com February 2025 Q4 Earnings Update
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2 www.middleby.com www.middleby.com MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms • 120+ industry-leading brands • Three synergistic foodservice segments • Technology and innovation leader • Differentiated go-to-market capabilities • Proven track record of strategic M&A • Long-standing history of profitability and cash flow • Positioned to capture rapidly evolving market trends * Revenues adjusted to depict estimated results if ownership of acquired businesses was effective for the entire year. 2024 YTD PROFORMA REVENUE BY SEGMENT * 2024 YTD PROFORMA REVENUE BY REGION * Commercial 61% Food Processing 21% Residential 18% United States and Canada 67% Asia 7% Europe & Middle East 21% Latin America 5%
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3 www.middleby.com www.middleby.com ADJUSTED EBITDA MARGINSALES (BN) ADJUSTED EBITDA (MM) ADJUSTED EPS ROLLING 5-YR FREE CASH FLOW (BN) LEVERAGE RATIO FIVE-YEAR COMPARATIVE OPERATING PERFORMANCE +30% $3.0 $3.9 2019 2024 21.6% 22.4% 2019 2024 +35% $7.02 $9.49 2019 2024 +64% $1.4 $2.3 2019 2024 2.7x 2.0x Q4 2019 Q4 2024 +36% $638 $866 2019 2024
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4 www.middleby.com www.middleby.com FINANCIAL RESULTS Q4 2024 Financial Results (in millions, except percentages) Q4 ’24 Q4 ’23 Change Net Sales $1,013.9 $1,008.6 0.5% Gross Profit % of Net Sales 388.9 38.4% 386.8 38.4% 0.5% Operating Income* 208.5 192.7 8.2% Net Earnings* 140.7 134.9 4.3% Adjusted EBITDA % of Net Sales 251.2 24.8% 235.2 23.3% 6.8% LTM Bank EBITDA as defined in credit agreement 893.8 921.8 -3.0% Operating Cash Flow 239.7 255.7 -6.3% Results Commentary • Organic revenue growth by segment: • Commercial Foodservice -2.8% • Residential Kitchen -2.4% • Food Processing 4.7% • Q4 ’24 organic adjusted EBITDA of 24.8% • Q4 ’24 organic adjusted EBITDA by segment: • Commercial Foodservice 28.0% • Residential Kitchen 13.2% • Food Processing 30.3% *Operating Income and Net Earnings are adjusted to exclude impairment charges of $38.6 and $28.4 million, net of taxes, for FY24 and $78.1 million and $58.6 million, net of taxes, for FY23, respectively
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5 www.middleby.com www.middleby.com COMMERCIAL FOODSERVICE Q4 2024 Financial Results (in millions, except percentages) Q4 ’24 Q4 ’23 Change Net Sales $609.4 $627.9 -2.9% Adjusted EBITDA 171.1 179.3 -4.6% Adjusted EBITDA as % of Net Sales 28.1% 28.6% Organic Adjusted EBITDA as % of Net Sales 28.0% REVENUE AND GROWTH U.S. and Canada 421.9 -4.7% International 187.5 1.1% Results Commentary • Sequential revenue growth over Q3 ‘24 • Margins remain resilient on lower volumes due to profitability initiatives • Achieved $50 million annual growth target from ice brands • International revenue growth in Europe with increased market penetration and beverage gains • Full year Net Sales and Adjusted EBITDA • Cooking products $1.7 billion at 29% • Beverage and ice products $750 million at 24% • Seven Middleby products selected for WHAT’S HOT, WHAT’S COOL at the upcoming 2025 NAFEM Show
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6 www.middleby.com www.middleby.com RESIDENTIAL KITCHEN Q4 2024 Financial Results (in millions, except percentages) Q4 ’24 Q4 ’23 Change Net Sales $185.1 $189.0 -2.1% Adjusted EBITDA 24.1 19.6 23.0% Adjusted EBITDA as % of Net Sales 13.1% 10.4% Organic Adjusted EBITDA as % of Net Sales 13.2% REVENUE AND GROWTH U.S. and Canada 116.4 -1.4% International 68.7 -3.1% Results Commentary • Sequential revenue growth over Q3 ’24 • Profitability initiatives increased margins sequentially over Q3 ’24 and Q4 ’23 despite pressure from macroeconomic conditions on the housing market • On a year-to-date basis, outdoor products delivered double-digit revenue growth • Robust pipeline of new products, capital investments, and facility consolidations position the platform for growth in 2025
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7 www.middleby.com www.middleby.com FOOD PROCESSING Q4 2024 Financial Results (in millions, except percentages) Q4 ’24 Q4 ’23 Change Net Sales $219.4 $191.7 14.4% Adjusted EBITDA 65.0 52.9 22.9% Adjusted EBITDA as % of Net Sales 29.6% 27.6% Organic Adjusted EBITDA as % of Net Sales 30.3% REVENUE AND GROWTH U.S. and Canada 128.3 3.1% International 91.1 35.4% Results Commentary • Record revenue and profitability achieved with revenue growth year over year and sequentially over Q3 ’24 • Margin expansion driven by further acquisition integration and delivering value- creating full-line solution • Order pipeline remains robust, as product offerings address customer demands for sustainability and automation • Completed the acquisitions of JC Ford and Gorreri • Proforma full-year results, assuming acquisitions effective for the full year, are Net Sales of $804 million at approximately 24% Adjusted EBITDA
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8 www.middleby.com www.middleby.com DEBT AND LIQUIDITY *Proforma Free Cash Flow is $355 million, excluding the termination fee received, net of taxes and deal costs of approximately $68 million. Q4 2024 Leverage Ratio (in millions) Cash $689.5 Debt $2,395.1 Net Debt* $1,825.4 LTM EBITDA* $893.8 Total Leverage 2.0x Covenant Limit 5.5x * As defined in the credit agreement 10-YEAR OPERATING CASH FLOW GROWTH (in millions) $250 $294 $304 $369 $377 $525 $423* $333 $629 $687 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquidity Commentary • Record year-to-date free cash flows of $640 million, including a reduction in inventory of $95 million • Quarter-to-date free cash flows were $229 million • Repurchased common stock of $16 million in Q4 and $20 million to date in Q1 ’25; expected to continue on an ongoing basis • Quarter-end borrowing capacity was approximately $3.1 billion • 60% of debt is currently at fixed interest rates, including the effect of interest-rate swaps
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9 www.middleby.com www.middleby.com FOOD PROCESSING ACQUISITIONS • Leading manufacturer of tortilla production equipment systems • Annual revenues of approximately $70 million • Complements existing product offerings and strengthens presence in the fast-growing, snack- food category • Headquartered in Columbia, Tennessee www.jcford.com JC Ford Acquired 11/1/2024 • Leading manufacturer of equipment for the baked- goods industry • Annual revenues of approximately $20 million • Expands product offerings to include turbo mixers, dosing, injecting, decorating, enrobing, and ultrasonic-portioning solutions • Headquartered in Parma, Italy Gorreri Food Processing Technology Acquired 11/26/2024 www.gorreri.com
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1 2 3 4 5 6 7 82 1 3 4 Middleby Live Solutions 1.Burger Bar and Chicken Shack 2.Slice and Wing Shop 3.Ice Cream Production 4.Cold Beverage and Dispense 5.Middleby Bar Solutions 6.Ventless Nacho Bar 7.ImVection and INVOQ 8.Middleby Coffee Café Static Solutions 1.Range and Steam 2.Ice, Refrigeration, and Filtration 3.Open Kitchen IoT 4.Innovation Alley 2025 NAFEM SHOW You’re Invited! Come see us at NAFEM February 26–28, booths 5518, 5618, and 5718. Please contact John Joyner at jjoyner@middleby.com. 10
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11 www.middleby.com/magnificent-7 2025 NAFEM SHOW’S WHAT’S HOT! WHAT’S COOL!1 CERVIZI – Beer dispensing is transformed with Cervizi automated and precise dispense, which is 50% faster with 25% more keg yield, reducing product waste, improving service efficiency, and increasing operator revenue. M5 Bargun – Using CFV technology, the M5 bargun increases the dispense rate by 67%, pouring 2.5 oz per second with the standard being 1.5 oz. The unit is lighter, ergonomic, and no-drift with need for adjustment. PizzaBot – Automated four-topping pizza production in under 30 seconds from formed dough to sauce application and toppings to baking. The result is a better and more consistent pizza pie with less food waste and reduced labor needs. ERGO Series – A combination of innovation, efficiency, and top quality, the ERGO design greatly reduces heavy bowl moving for the user and includes a touch-screen display, customizable recipes, and waterproof ingress-protection rating. VISIT MIDDLEBY.COM/MAGNIFICENT-7 FOR MORE PRODUCT INFORMATION Dual Fuel Smoker Oven – Featuring dual heating technology, the unit uses 60% charcoal heat and 40% convection heat. This allows the preservation of an authentic flavor profile, while the convection heat ensures an even cook. Blodgett INVOQ – State-of-the-art combination oven, which reduces water and energy usage by 70% and provides 17% more capacity in a 32% smaller footprint. An intuitive and cloud-based interface improves training and connectivity, while the automated cleaning system saves time and resources. TorQ – High-efficiency continuous filtration and forced convection create effective heating and reduced recovery and cook times. A pivoting tank and arm make filter changes quick and effortless. 1Products chosen by NAFEM’s selection committee