Overview

• US flavor products maker's Q2 sales rose 17%, beating analyst expectations

• Adjusted EPS for Q2 was up yr/yr and beat analyst expectations

• Company reaffirmed its 2026 outlook and highlighted integration progress for Unilever Foods deal

Outlook

• McCormick reaffirms fiscal 2026 net sales growth outlook of 13% to 17%

• Company expects fiscal 2026 adjusted EPS of $3.05 to $3.13

• Company anticipates sustaining Flavor Solutions momentum and increasing reinvestment to improve Consumer volume trends

Result Drivers

• MCCORMICK DE MEXICO ACQUISITION - Acquisition contributed 12% to Q2 net sales growth and supported gross profit margin expansion

• PRICING ACTIONS - Organic sales growth was driven by higher pricing, though Consumer segment volume/mix declined

• COST SAVINGS AND TARIFF REFUND - Gross profit margin benefited from cost savings initiatives and a one-time IEEPA tariff refund, partly offset by higher commodity and conflict-related costs

Company press release: ID:nPn4C6KGRa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Beat	$1.94 bln	$1.91 bln (10 Analysts)
Q2 Adjusted EPS	Beat	$0.80	$0.69 (10 Analysts)
Q2 EPS		$0.56
Q2 Adjusted Net Income	Beat	$215.9 mln	$187.52 mln (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold."

• Wall Street's median 12-month price target for McCormick & Company Inc is $60.50, about 27.1% above its June 24 closing price of $47.60

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 22 three months ago

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