McCormick Q3: Adjusted EPS $0.86, Reaffirms FY26 Outlook Amid $141.5M Special Charges
MKC is trading near its 52-week low of $43.935 (0.7% above the low) on elevated volume (2.8× avg).
Summary
McCormick reported Q3 adjusted EPS of $0.86 and reaffirmed FY2026 guidance, while absorbing $141.5M in special charges tied to the Unilever merger and a Malaysia project exit.
Key Events · Earnings and Guidance · MKC
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Q3 Adjusted EPS $0.86, Guidance Reaffirmed
Adjusted diluted EPS of $0.86, up 1.2% year-over-year; FY2026 adjusted EPS guidance reaffirmed at $3.05–$3.13 (2%–5% growth).
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$141.5M Special Charges Hit Operating Income
Q3 special charges of $141.5M included $95.3M in Unilever merger transaction/integration costs and a $43.1M non-cash impairment from exiting the Malaysia pepper sourcing project.
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$866.8M Non-Cash Gain from McCormick de Mexico
Nine-month net income includes an $866.8M pre-tax gain on remeasurement of the previously held 50% McCormick de Mexico equity interest upon consolidation.
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Unilever Merger Financing Stack Disclosed
Financing for the pending $15.7B Unilever Foods merger includes a $15.7B Bridge Facility, a $2.0B Term Loan Facility, and $500M of 4.15% notes due 2029.
Analysis · MKC · Manufacturing
McCormick's Q3 FY2026 10-Q confirms the solid adjusted results already previewed in today's 8-K — adjusted EPS of $0.86, up 1.2% year-over-year, with FY2026 guidance reaffirmed at $3.05–$3.13. The full filing adds material detail: $141.5M in special charges (including a $43.1M non-cash impairment from exiting the Malaysia pepper project and $95.3M in Unilever merger transaction costs), a $866.8M non-cash gain from remeasuring the McCormick de Mexico stake, and the financing stack for the pending $15.7B Unilever Foods merger. The stock trades near its 52-week low, so the reaffirmed guidance and underlying organic growth of 1.9% provide some reassurance, but the heavy special charges and merger-related debt load are the real story.
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At the time of this filing, MKC was trading at $44.24 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $43.94 to $72.41. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.