Midera Food Processing (NASDAQ:MFP) reported second-quarter results above its prior guidance range in its first earnings call as an independent public company, citing growth in orders, a record backlog and continued demand for food-processing projects with measurable returns on investment.
The company completed its separation from The Middleby Corporation on July 6, after the close of the second quarter, and began trading on Nasdaq under the MFP ticker. Because the separation occurred after quarter-end, the historical results discussed on the call were presented on a carve-out basis. Management also used an “estimated standalone adjusted EBITDA” measure that includes an estimated $8 million of quarterly public-company costs not fully reflected in historical carve-out reporting.
Orders and backlog reach new highs
Orders totaled $275 million in the quarter, up about 16% from the prior year, including approximately 11% organic growth. The company ended the period with a record $446 million backlog, up roughly 51% year over year. Its book-to-bill ratio was 1.12x, compared with 1.02x in the first quarter.
CFO Amy Campbell said the backlog provided visibility to more than 80% of the second-half equipment sales assumed in the company’s updated outlook. She said the company expects a seasonally softer third quarter because of fewer working hours across European operations, while the fourth quarter is expected to be the strongest period for sales and adjusted EBITDA.
For the first six months of 2026, net sales rose 22% to $470 million, including 12% organic growth. Estimated standalone adjusted EBITDA increased 26% to $75 million, while margin expanded about 40 basis points to 16%.
Campbell said second-quarter organic growth was supported by aftermarket parts and service, though delayed equipment shipments resulting from late deliveries by a third-party vendor weighed on the snack category. Aftermarket parts and service represented 38% of second-quarter sales and 40% of sales over the trailing 12 months.
Total-line strategy and aftermarket growth
Chief Executive Officer Mark Salman said the company’s strategy centers on total-line solutions, market penetration, aftermarket services and acquisitions. Midera operates more than 30 brands across protein, bakery and snack processing, with 29 manufacturing plants and sales across six continents.
Salman said total-line solutions combine equipment from multiple brands to design, integrate and support complete production lines rather than individual machines. The company offers such solutions across more than 20 product lines. He said service-level-agreement attachment rates exceed 90% at the point of sale for total-line solutions.
During the quarter, Midera completed a large charcuterie project at acquired business Frigomeccanica earlier than expected. Campbell said the project had been expected to generate revenue in the second half but was recognized in the second quarter, contributing to inorganic growth under the company’s reporting convention.
While management did not provide a dollar figure for total-line sales, Salman told analysts that total-line solutions posted double-digit growth across protein, bakery and snack categories. He also cited order growth in Europe, the Middle East and Africa of more than 30% to 35%.
Management described aftermarket as a recurring opportunity tied to an installed base of more than 100,000 units and systems. COO Mark Bowie said the company’s network includes more than 300 service technicians and 20 offices worldwide. He said the company aims to expand services ranging from break-fix support to modernization and predictive maintenance, particularly as customers seek to keep equipment operating with fewer technical resources at their own facilities.
Margins, tariffs and capital allocation
The year-over-year EBITDA-margin decline in the second quarter reflected delayed snack-equipment shipments and inflationary costs, particularly transportation costs and tariffs, Campbell said. However, margin increased 220 basis points sequentially as the backlog improved.
Bowie said the effects of tariff changes were “relatively flat” for Midera’s business, and that most tariff-related headwinds had been passed through to customers. The company continues to pursue potential tariff refunds, though management said the timing and size of any refunds cannot be predicted and some proceeds would need to be passed on to customers.
Campbell said Midera raised aftermarket parts prices at midyear to offset inflation. For equipment projects, the company incorporates expected costs into bids and seeks to lock supplier pricing on larger orders.
At quarter-end, Midera held $51 million in cash and $259 million of total debt, resulting in net debt of $208 million. Net leverage was 1.3x trailing-12-month estimated standalone adjusted EBITDA. Total liquidity was $823 million, including $772 million of revolver availability.
The board authorized a $50 million share-repurchase program that expires three years from approval, primarily to offset dilution from equity grants. The company’s capital-allocation priorities are organic investment, return-driven acquisitions and maintaining net leverage below 3x adjusted EBITDA.
2026 outlook increased
Midera raised the midpoint of its full-year outlook by $20 million for net sales and $3 million for estimated standalone adjusted EBITDA. The company now expects 2026 net sales of $935 million to $965 million and estimated standalone adjusted EBITDA of $160 million to $176 million, both figures incorporating estimated annual standalone public-company costs of $32 million.
At the midpoint, management expects approximately 130 basis points of EBITDA-margin expansion versus 2025. Campbell attributed the expected improvement to a healthier backlog, aftermarket growth, favorable mix, pricing, higher fixed-cost absorption and benefits from the company’s operating system.
Salman said Midera is evaluating more than 35 active acquisition opportunities from a pipeline of more than 100 companies and is targeting three to five acquisitions annually on average. The company has completed more than 30 acquisitions since 2005 and said it targets double-digit return on invested capital by the third year for acquired businesses.
About Midera Food Processing (NASDAQ:MFP)
Midera Food Processing Inc provides food processing solutions. The Company specializes in the processing of raw material preparation and production and product packaging for retail and food service applications. Midera Food Processing Inc, formerly known as MINERA FOOD PRC, is based in Rosemont, Illinois.
