McCormick & Company (MKC) Q3 2025 Financial Results Summary
HUNT VALLEY, Md., Oct. 7, 2025 – McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, reported financial results for the third quarter ended August 31, 2025. Below is a summarized breakdown of the key financial metrics and highlights from the report.
Financial Highlights
- Net Sales:
- Increased by 3% year-over-year, reaching $1.725 billion.
- Included a 1% favorable impact from currency.
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Organic sales growth of 2%, volume-led with more than 1% from volume and 1% from price.
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Operating Income:
- Reported at $289 million, up 0.8% from $287 million in Q3 2024.
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Adjusted operating income was $294 million, compared to $288 million the previous year, reflecting an increase of 2%.
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Gross Profit:
- Gross profit decreased to $645.1 million, a decline of 0.7% from $649.9 million in Q3 2024.
- Gross profit margin contracted 130 basis points year-over-year to 37.4%.
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Adjusted gross profit margin was 37.5%, down 120 basis points.
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Earnings Per Share (EPS):
- Diluted EPS rose to $0.84, a 1.2% increase from $0.83 in Q3 2024.
- Adjusted EPS was $0.85, up 2.4% from $0.83 above.
Segment Performance
- Consumer Segment:
- Net sales increased by 4% to $973 million.
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Organic sales growth of 3%, driven by volume and product mix.
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Flavor Solutions Segment:
- Net sales rose by 1% to $752 million.
- Organic sales growth was 1%, driven primarily by price changes.
Cost and Margin Insights
- Commodity Costs:
- Rising commodity costs and tariffs pressured gross margin.
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Continued cost savings initiatives partially mitigated margin decline.
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SG&A Expenses:
- Selling, general and administrative expenses were reduced to $352.5 million, down from $361.5 million year-over-year.
Shareholder Returns
- Dividends:
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McCormick announced a dividend payment of $362.2 million, compared to $338.3 million in Q3 2024, reflecting a commitment to return cash to shareholders.
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Share Repurchases:
- Common stock acquired by purchase amounted to $29.2 million.
Fiscal Year 2025 Guidance
- Net Sales Growth:
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Projected between 0% to 2%, with constant currency net sales growth expected to be 1% to 3%.
-
Operating Income:
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Expected to grow between 1% to 3%, with adjusted operating income growth projected at 2% to 4%.
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Earnings Per Share:
- Full-year diluted EPS anticipated in the range of $2.95 to $3.00.
Conclusion
McCormick’s Q3 2025 results demonstrate a continued commitment to driving growth while navigating challenges presented by rising costs and a dynamic economic environment. The company remains focused on its strategic initiatives, aiming to enhance shareholder value while reinforcing its position as a leader in the flavor industry.
Consolidated Income Statement (Unaudited) (In millions except per-share data)
| Three months ended August 31, 2025 | Three months ended August 31, 2024 | Nine months ended August 31, 2025 | Nine months ended August 31, 2024 | |
|---|---|---|---|---|
| Net sales | $ 1,724.9 | $ 1,679.8 | $ 4,989.9 | $ 4,925.7 |
| Cost of goods sold | 1,079.8 | 1,029.9 | 3,118.0 | 3,056.9 |
| Gross profit | 645.1 | 649.9 | 1,871.9 | 1,868.8 |
| Gross profit margin | 37.4 % | 38.7 % | 37.5 % | 37.9 % |
| Selling, general and administrative expense | 352.5 | 361.5 | 1,095.5 | 1,106.8 |
| Special charges | 3.9 | 1.9 | 16.7 | 7.9 |
| Operating income | 288.7 | 286.5 | 759.7 | 754.1 |
| Interest expense | 50.2 | 53.5 | 149.7 | 156.7 |
| Other income, net | 9.4 | 13.2 | 29.0 | 36.7 |
| Income from consolidated operations before income taxes | 247.9 | 246.2 | 639.0 | 634.1 |
| Income tax expense | 39.3 | 41.0 | 130.2 | 116.8 |
| Net income from consolidated operations | 208.6 | 205.2 | 508.8 | 517.3 |
| Income from unconsolidated operations | 16.9 | 17.9 | 54.0 | 56.0 |
| Net income | $ 225.5 | $ 223.1 | $ 562.8 | $ 573.3 |
| Earnings per share – basic | 0.84 | 0.83 | 2.10 | 2.13 |
| Earnings per share – diluted | 0.84 | 0.83 | 2.09 | 2.13 |
| Average shares outstanding – basic | 268.6 | 268.6 | 268.5 | 268.5 |
| Average shares outstanding – diluted | 269.3 | 269.7 | 269.4 | 269.6 |
Consolidated Balance Sheet (Unaudited) (In millions)
| August 31, 2025 | November 30, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 94.9 | $ 186.1 |
| Trade accounts receivable, net | 668.7 | 587.4 |
| Inventories, net | 1,323.6 | 1,239.9 |
| Prepaid expenses and other current assets | 136.8 | 125.6 |
| Total current assets | 2,224.0 | 2,139.0 |
| Property, plant and equipment, net | 1,419.8 | 1,413.0 |
| Goodwill | 5,314.2 | 5,227.5 |
| Intangible assets, net | 3,302.5 | 3,318.9 |
| Other long-term assets | 986.5 | 971.9 |
| Total assets | $ 13,247.0 | $ 13,070.3 |
| Liabilities | ||
| Short-term borrowings and current portion of long-term debt | 1,253.4 | 748.3 |
| Trade accounts payable | 1,196.8 | 1,238.1 |
| Other accrued liabilities | 669.8 | 896.4 |
| Total current liabilities | 3,120.0 | 2,882.8 |
| Long-term debt | 3,104.9 | 3,593.6 |
| Deferred taxes | 822.1 | 840.5 |
| Other long-term liabilities | 416.4 | 436.6 |
| Total liabilities | 7,463.4 | 7,753.5 |
| Shareholders’ equity | ||
| Common stock | 2,272.0 | 2,237.2 |
| Retained earnings | 3,841.9 | 3,545.0 |
| Accumulated other comprehensive loss | (361.1) | (491.2) |
| Total McCormick shareholders’ equity | 5,752.8 | 5,291.0 |
| Non-controlling interests | 30.8 | 25.8 |
| Total shareholders’ equity | 5,783.6 | 5,316.8 |
| Total liabilities and shareholders’ equity | $ 13,247.0 | $ 13,070.3 |
