Q2 revenue +9.9% to $875.5M; net income -48.3% to $54.8M on spin-off tax costs

Filed August 13, 2026 · Period ending July 4, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Net income fell 48.3% to $54.8M ($1.21 diluted EPS, -39.2%) despite 9.9% revenue growth, driven by a 34.2% effective tax rate (vs 20.0% prior year) from discrete tax items related to the Midera spin-off and foreign restructurings.

  MD&A: Tax Rate verify on EDGAR →
• high

  Gross margin compressed 140bp to 38.3% from 39.7%, driven by tariffs, input cost inflation, and product mix. Commercial Foodservice margin fell 100bp; Food Processing margin fell 200bp.

  MD&A: Gross Margin verify on EDGAR →
• high

  Equity-method losses from the 49% Composition Brands stake (sold Residential business) totaled $28.9M, including $17.0M of purchase accounting adjustments, $6.2M of interest expense, and $5.0M of transaction costs.

  MD&A: Equity in Losses of Affiliate verify on EDGAR →