McCormick (MKC) Q4 2025 Earnings Call Transcript

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Thu, January 22, 2026 astatine 8:44 AM CST 60 min read

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Thursday, January 22, 2026 astatine 8 a.m. ET

• President and Chief Executive Officer — Brendan Foley

• Executive Vice President and Chief Financial Officer — Marcos Gabriel

• Vice President, Investor Relations — Faten Freiha

Brendan Foley: McCormick & Company, Incorporated's show successful 2025 demonstrated the spot and resilience of our business. We delivered differentiated volume-led integrated maturation and stock gains, powered by sustained momentum from investing successful our brands, expanding distribution, and driving innovation crossed our business. We achieved coagulated profitability gains successful the archetypal fractional of the year. However, rising costs successful the 2nd fractional related to the dynamic planetary commercialized situation pressured gross margins. Despite these headwinds, our disciplined outgo absorption and ratio initiatives kept america connected track. As a result, we realized operating income maturation and borderline enlargement for the afloat year, each portion continuing to put to thrust aboriginal growth.

We are executing with absorption and subject connected what we tin power and staying agile arsenic we navigate outer challenges. Our strategy continues to presumption McCormick & Company, Incorporated for sustainable semipermanent worth creation. Turning present to our results connected descent four. In the 4th quarter, full integrated income accrued by 2%, supported by maturation successful some user and spirit solutions. In planetary consumer, integrated income maturation was driven by volume, which grew for the seventh consecutive quarter, arsenic good arsenic terms contributions. In The Americas region, we delivered measurement maturation adjacent arsenic pricing actions took effect, with elasticities coming successful broadly successful enactment with our expectations. Volume show successful EMEA remained coagulated with continued benefits from price.

In Asia Pacific, integrated maturation was supported by beardown continued momentum successful Australia and our China retail business. Importantly, we achieved the gradual full-year betterment successful China user for the twelvemonth arsenic planned. Moving to spirit solutions, volumes declined for the planetary segment. Our show was impacted by customers' reset of inventory levels successful Latin America, which we expect to beryllium down america successful 2026. Volumes crossed the remainder of the concern were astir level and reflected softness successful ample CPG and branded nutrient work lawsuit volumes. These headwinds were mostly offset with maturation from high-growth innovators, backstage statement customers, and QSRs crossed The Americas and Asia Pacific.

Turning to profitability, fourth-quarter gross borderline was pressured by higher-than-expected ostentation crossed our divers handbasket of commodities, and we recognized much tariff costs than antecedently planned. It's important to enactment that pricing actions and CCI-driven productivity savings were delivered arsenic planned. In addition, arsenic expected, we continued to put successful the business, advancing our proviso concatenation capabilities, innovation, and maturation platforms. These investments proceed to fortify our instauration and reenforce our resilience, positioning america good for semipermanent success. Let's determination to descent five, and fto maine item for the 4th immoderate of the cardinal areas of success. Across the planetary user segment, we person held oregon improved stock crossed galore halfway categories successful cardinal markets for the past six quarters.