McCormick & Company reported fiscal 2025 fourth‑quarter results on January 22, 2026. Net sales rose 2.9 % year‑over‑year to $1.85 billion, driven by volume‑led growth in the Consumer segment and margin expansion in Flavor Solutions. Adjusted earnings per share were $0.86, falling $0.02 below the consensus estimate of $0.88 and marking an EPS miss of 2.3 %. The miss was largely attributable to a 130‑basis‑point contraction in gross margin, which the company said was caused by higher commodity costs, tariff pressures, and investments in capacity and technology.
Full‑year 2025 results showed net sales of $7.78 billion, up 1.7 % from $7.66 billion in 2024, and an adjusted EPS of $3.00, correcting the earlier misstatement of $2.93. The company’s gross margin contracted 130 bps YoY, reflecting the same cost pressures that weighed on the quarter. Management highlighted continued volume growth, cost‑control gains from its Comprehensive Continuous Improvement program, and a strong cash‑flow position that supports a 7 % increase in the quarterly dividend and ongoing share‑repurchase activity.
For fiscal 2026, McCormick guided adjusted EPS of $3.05 to $3.13 and constant‑currency net‑sales growth of 13 % to 17 %. The guidance reflects confidence in sustained volume momentum, margin resilience against commodity and tariff pressures, and the expected contribution from the recently completed acquisition of a 75 % stake in McCormick de Mexico for $750 million. Management expects the Mexican operation to add 11 % to 13 % of top‑line revenue in 2026 and to be accretive to margins and EPS.
The company also announced a 7 % increase in its quarterly dividend, marking the 40th consecutive year of dividend growth and a dividend yield of 2.88 %. Share repurchase activity continues, underscoring management’s commitment to returning capital to shareholders.
Investors reacted negatively to the earnings release, citing the EPS miss and margin contraction as key concerns. The market’s focus on these metrics underscores the importance of earnings precision and margin stability in a high‑cost environment.
Brendan M. Foley, Chairman, President, and CEO, said the company’s performance “demonstrated the strength and resilience of our business.” He added that the acquisition of McCormick de Mexico “further strengthens our track record of driving shareholder value through strategic acquisitions” and that the company is “navigating inflationary pressures with strategies designed to meet consumer needs and maximize category growth.”
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.