Mccormick & Company Stock Earnings Reports

Key investor takeaways: McCormick reported its fifth consecutive quarter of volume-led growth with total organic sales up 2% in Q3 (consumer +3%, flavor solutions +1%). Consumer demand was broad-based across Americas and EMEA, with China retail growth offset by softer China food‑service. Q3 adjusted gross margin declined ~120 bps due to higher commodity costs, tariffs, and some capacity investments; SG&A improved from CCI savings but the company kept brand and technology investments. Tariff exposure has increased: gross tariff costs for 2025 are now ~ $70M and total gross annualized exposure is ~ $140M; management expects to offset most of the 2025 tariff impact through productivity, alternative sourcing, surgical pricing and other mitigations, but updated guidance lowers operating-income growth and EPS slightly. Updated 2025 outlook: organic net sales +1% to +3% (expect at least midpoint), adjusted operating income growth 3%–5% (constant currency), adjusted EPS $3.00–$3.05 (reported), tax rate ~22%. Cash flow: operating cash flow YTD $420M; returned $362M to shareholders; capex $138M YTD. Strategic priorities remain volume-led growth via brand marketing, innovation, category management, digital transformation, and targeted M&A (bolt‑on and strategic flavor/condiment opportunities); the McCormick in Mexico transaction is expected to close early 2026. Management expects gross-margin improvement in Q4 as mitigation actions take effect, and will provide additional color on 2026 planning on the Q4 call.