HUNT VALLEY, Md., Jan. 22, 2026 /PRNewswire/ — McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the fourth quarter and fiscal year ended November 30, 2025 and provided its financial outlook for fiscal year 2026.
- Net sales increased 3% in the fourth quarter from the year-ago period and included a 1% favorable impact from currency. Organic sales grew 2% compared to the year-ago period. Earnings per share was $0.84 in the fourth quarter compared to $0.80 in the year-ago period. Adjusted earnings per share was $0.86 compared to $0.80 in the year-ago period.
- Operating income was $311 million in the fourth quarter compared to $306 million in the year-ago period. Adjusted operating income was $317 million compared to $308 million in the year-ago period.
- For fiscal year 2025, sales increased 2% from the prior year. As there was minimal impact from currency, organic sales were the same as reported sales. The sales increase was driven by volume and pricing. Earnings per share of $2.93 compared to $2.92 in 2024. Adjusted earnings per share was $3.00 in 2025 compared to $2.95 in 2024.
- Operating income was $1,071 million in 2025 compared to $1,060 million in 2024. Adjusted operating income was $1,094 million compared to $1,070 million in the year-ago period.
- Cash flow from operations was $962 million for fiscal year 2025 compared to $922 million in 2024. In November, the Board authorized a 7% increase to the quarterly dividend, marking the 40th consecutive year of dividend increases.
- The Company’s 2026 outlook reflects continued investment in core categories to sustain its differentiated net sales and volume trends, expand operating margins, and drive shareholder value.
Chairman, President, and CEO’s Remarks
Brendan M. Foley, Chairman, President, and CEO, stated, “McCormick’s performance in 2025 demonstrated the strength and resilience of our business. We achieved differentiated, volume-led organic growth and share gains powered by continued investment in our brands, expanded distribution, and innovation across our portfolio. Despite inflationary pressures and rising costs from a shifting global trade environment, we achieved operating profit growth and operating margin expansion while continuing to invest for future growth. Additionally, we generated strong cash flow, strengthened our balance sheet, and advanced our flavor leadership through the McCormick de Mexico transaction.”
“As we move into 2026, McCormick is operating from a position of strength, a solid foundation, and a clear focus on sustainable, profitable growth. Our outlook reflects continued top-line momentum, gross margin recovery, and strong operating profit performance, supported by executing on our strategic priorities, efficiency gains, and the strategic acquisition of a controlling interest in McCormick de Mexico. While global trade dynamics continue to create headwinds and we are facing elevated costs for the year, we are leveraging our competitive advantages, productivity initiatives, and cost management discipline to help mitigate these pressures, sustain volume growth, and fund investments that drive long-term value creation.”
“Lastly, I am proud of and grateful to McCormick employees worldwide. Their dedication, agility, and commitment to excellence continue to propel our success. Together, we are executing with discipline, advancing our leadership in flavor, and delivering differentiated results for consumers, customers, and shareholders.”
Fourth Quarter and Fiscal Year 2025 Results
Sales Metrics
|
Fourth Quarter 2025 |
|||||
|
As |
Organic1 |
||||
|
% Change |
Volume/ |
Price |
% Change |
||
|
Total Net Sales |
2.9 % |
0.2 % |
1.9 % |
2.1 % |
|
|
Total Consumer |
3.9 % |
1.0 % |
2.1 % |
3.1 % |
|
|
Americas |
3.1 % |
1.0 % |
2.2 % |
3.2 % |
|
|
EMEA |
8.5 % |
0.8 % |
2.3 % |
3.1 % |
|
|
APAC |
0.7 % |
1.8 % |
— % |
1.8 % |
|
|
Total Flavor Solutions |
1.4 % |
(0.9) % |
1.6 % |
0.7 % |
|
|
Americas |
2.1 % |
(1.6) % |
3.1 % |
1.5 % |
|
|
EMEA |
(1.1) % |
(1.3) % |
(1.8) % |
(3.1) % |
|
|
APAC |
1.7 % |
4.5 % |
(2.0) % |
2.5 % |
|
|
Fiscal Year 2025 |
|||||
|
As |
Organic1 |
||||
|
% Change |
Volume/ |
Price |
% Change |
||
|
Total Net Sales |
1.7 % |
1.2 % |
0.7 % |
1.9 % |
|
|
Total Consumer |
2.6 % |
2.1 % |
0.3 % |
2.4 % |
|
|
Americas |
2.0 % |
2.4 % |
(0.1) % |
2.3 % |
|
|
EMEA |
6.0 % |
1.4 % |
2.1 % |
3.5 % |
|
|
APAC |
1.0 % |
1.7 % |
0.2 % |
1.9 % |
|
|
Total Flavor Solutions |
0.5 % |
(0.2) % |
1.3 % |
1.1 % |
|
|
Americas |
0.5 % |
(0.7) % |
2.6 % |
1.9 % |
|
|
EMEA |
(2.2) % |
(2.2) % |
(2.1) % |
(4.3) % |
|
|
APAC |
6.2 % |
8.6 % |
(1.9) % |
6.7 % |
|
|
1 Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. For the fourth quarter and fiscal year 2025, organic sales are equal to constant currency sales |
Profitability Metrics
($ in millions except per share data)
|
Fourth Quarter 2025 |
|||||
|
As Reported |
Adjusted |
||||
|
Q4 2025 |
vs. 2024 |
Q4 2025 |
vs. 2024 |
||
|
Gross profit |
$ 720.3 |
(0.3) % |
$ 721.4 |
(0.1) % |
|
|
Gross profit margin |
38.9 % |
(130) bps |
39.0 % |
(120) bps |
|
|
Operating income |
$ 311.1 |
1.6 % |
$ 316.6 |
2.9 % |
|
|
Operating income margin |
16.8 % |
(20) bps |
17.1 % |
0 bps |
|
|
Net income |
$ 226.6 |
5.3 % |
$ 230.9 |
6.7 % |
|
|
Earnings per share – diluted |
$ 0.84 |
5.0 % |
$ 0.86 |
7.5 % |
|
|
Fiscal Year 2025 |
|||||
|
As Reported |
Adjusted |
||||
|
FY 2025 |
vs. 2024 |
FY 2025 |
vs. 2024 |
||
|
Gross profit |
$ 2,592.2 |
— % |
$ 2,594.3 |
0.1 % |
|
|
Gross profit margin |
37.9 % |
(60) bps |
37.9 % |
(60) bps |
|
|
Operating income |
$ 1,070.8 |
1.0 % |
$ 1,094.0 |
2.3 % |
|
|
Operating income margin |
15.7 % |
(10) bps |
16.0 % |
10 bps |
|
|
Net income |
$ 789.4 |
0.1 % |
$ 807.1 |
1.4 % |
|
|
Earnings per share – diluted |
$ 2.93 |
0.3 % |
$ 3.00 |
1.7 % |
|
Fourth Quarter 2025 Results
Net sales in the fourth quarter increased 3% from the year-ago period and included a 1% favorable impact from currency. Organic sales increased 2%, driven by growth in both segments.
- Consumer segment net sales increased 4% from the fourth quarter of 2024 to $1,127 million, including a 1% favorable impact from currency. Organic sales increased 3%, driven by a 2% increase in price, reflecting tariff and inflation related pricing actions, and 1% increase in volume and product mix.
- Flavor Solutions segment sales increased 2% from the fourth quarter of 2024 to $723 million, with a 1% impact from currency. Organic sales increased 1% driven by a 2% contribution from price, partially offset by a 1% decline in volume and product mix.
Gross profit for the fourth quarter decreased by $2 million from the comparable period in 2024. Gross profit margin contracted 130 basis points versus the fourth quarter of last year. Excluding special charges, adjusted gross profit contracted 120 basis points versus the year-ago period. This contraction was primarily driven by higher commodity costs, tariffs, and costs to support increased capacity for future growth, partially offset by cost savings led by the Company’s Comprehensive Continuous Improvement (CCI) program.
Operating income was $311 million in the fourth quarter of 2025 compared to $306 million in the fourth quarter of 2024. Excluding special charges, adjusted operating income was $317 million compared to $308 million in the year-ago period. Adjusted operating income increased 3% from the year-ago period, and included a 1% impact from currency. In constant currency, adjusted operating income increased 2%, driven by decreased selling, general and administrative (SG&A) expenses, due to lower employee-related benefit expense and cost savings led by the CCI program, including SG&A streamlining initiatives, partially offset by lower gross profit, sustained brand marketing investments, and increased technology investments.
- Consumer segment operating income, excluding special charges, increased 1% to $231 million in the fourth quarter of 2025 compared to the year-ago period, with minimal impact from currency. The increase was driven by higher sales and decreased SG&A expenses, partially offset by increased commodity costs and tariffs.
- Flavor Solutions segment operating income, excluding special charges, increased 7% to $86 million in the fourth quarter of 2025 compared to the year-ago period, or 6% in constant currency. This increase was driven by higher sales and decreased SG&A expenses, partially offset by increased commodity costs and tariffs.
Earnings per share was $0.84 in the fourth quarter of 2025 compared to $0.80 in the fourth quarter of 2024. Special charges lowered earnings per share by $0.02 per share in the fourth quarter of 2025. Excluding the impact of special charges, adjusted earnings per share was $0.86 in the fourth quarter of 2025 compared to $0.80 in the fourth quarter of 2024. The increase was attributable to the impact of higher operating income, lower adjusted effective tax rate and lower interest expense.
Fiscal Year 2025 Results
Net sales increased 2% in 2025 as compared to 2024 with minimal impact from currency. Organic sales increased 2%, driven by volume and product mix growth of 1%, and a 1% contribution from price.
- Consumer segment net sales increased 2% from 2024 to $3,950 million, with minimal impact from currency. Organic sales increased 2%, driven by volume growth.
- Flavor Solutions segment net sales were comparable to 2024 at $2,890 million, which included a 1% unfavorable impact from currency. Organic sales increased 1%, driven by price.
Gross profit increased by $1 million as compared to 2024, representing a gross profit margin contraction of 60 basis points. Excluding special charges, adjusted gross profit increased $3 million from the previous period, reflecting a gross profit margin contraction of 60 basis points. This contraction was primarily driven by higher commodity costs, tariffs, and costs to support increased capacity for future growth, partially offset by cost savings led by the Company’s CCI program.
Operating income was $1,071 million in 2025 compared to $1,060 million in 2024. Excluding special charges, adjusted operating income was $1,094 million compared to $1,070 million in the year-ago period. Adjusted operating income increased 2% from the year-ago period, including a 1% unfavorable impact from currency. In constant currency, adjusted operating income increased 3%, driven by decreased selling, general and administrative (SG&A) expenses, due to lower employee-related benefit expense and cost savings led by the CCI program, including SG&A streamlining initiatives, partially offset by sustained brand marketing investments, and increased technology investments.
- Consumer segment operating income, excluding special charges, decreased 1% to $735 million in 2025 compared to the year-ago period, with minimal impact from currency. The decrease was primarily due to increased commodity costs and tariffs, as well as investments for future growth, partially offset by decreased SG&A expenses, driven by the Company’s CCI program, including SG&A streamlining initiatives.
- Flavor Solutions segment operating income, excluding special charges, grew 9% to $359 million in 2025 compared to the year-ago period, or 11% in constant currency. The increase was driven by pricing and decreased SG&A expenses, partially offset by higher commodity costs and tariffs.
Earnings per share was $2.93 in 2025 compared to $2.92 in the prior year. The unfavorable impact of special charges lowered earnings per share by $0.07 in 2025 and $0.03 in 2024. Excluding these impacts, adjusted earnings per share was $3.00 in 2025 compared to $2.95 in 2024. This increase was driven primarily by higher operating income and lower interest expense, partially offset by a higher adjusted effective tax rate and lower income from unconsolidated operations related to McCormick de Mexico. This decline was driven by the unfavorable impacts of foreign exchange rates, partially offset by improved operating performance from McCormick de Mexico.
Net cash provided by operating activities was $962 million in 2025 compared to $922 million in 2024.
Fiscal Year 2026 Financial Outlook
McCormick’s fiscal 2026 outlook continues to reflect the Company’s prioritized investments in key categories to sustain its volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies. The Company’s CCI program is continuing to fuel growth investments while also driving operating margin expansion. Lastly, the outlook reflects meaningful contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2, 2026.
|
Fiscal Year 2026 Guide (1) |
||
|
Reported |
Constant |
|
|
Net sales growth |
13% to 17% |
12% to 16% |
|
Contribution from acquisition of McCormick de Mexico |
11% to 13% |
11% to 13% |
|
Organic sales growth (2) |
— |
1% to 3% |
|
Adjusted operating income |
16% to 20% |
15% to 19% |
|
Adjusted earnings per share |
$3.05 to $3.13 2% to 5% |
1% to 4% |
|
(1) Amounts are rounded with percentages calculated from the underlying amounts. |
|
(2) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Fiscal Year 2026 Guide – Expectations:
Net Sales:
- Sustained volume growth and increased pricing benefits relative to the prior year.
Adjusted Operating Income:
- Adjusted gross margin expansion to reflect recovery from 2025. Favorable impacts from organic sales growth, McCormick de Mexico accretion, and the Company’s CCI program, partially offset by increased commodity costs.
- SG&A expenses impacted by cost headwinds including digital transformation and build back of incentive compensation, as well as growth investments. In addition, SG&A is expected to benefit from the Company’s CCI program, inclusive of streamlining initiatives.
Adjusted Earnings per Share:
- Adjusted operating income growth partially offset by:
- Tax rate of approximately 24% vs. 21.5% in 2025.
- Higher net interest expense, primarily associated with the McCormick de Mexico transaction.
- Unconsolidated operations expense, reflects elimination of the 25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez.
The Company expects foreign currency rates to favorably impact net sales by 1%, adjusted operating income by 1%, and adjusted earnings per share by 1%.
For fiscal 2026, the Company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
The Company’s outlook for 2026 adjusted operating income and adjusted earnings per share are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results. The Company is unable to reconcile its projected adjusted operating income to its projected reported operating income for 2026 because it cannot reasonably predict the amount of special charges, including transaction and integration expenses during this time period.
The Company expects 2026 transaction and integration expenses to include a step-up in inventory to fair value related to the recent acquisition of an additional 25% ownership interest in McCormick de Mexico. This step-up will be recognized in cost of goods sold as the related inventory is sold.
Similarly, the Company is unable to reconcile its projected adjusted earnings per share to projected reported earnings per share for 2026 due to the same factors affecting reported operating income, and because the Company cannot reasonably predict the amount of the anticipated non-cash gain from remeasuring the previously held equity interest in McCormick de Mexico to fair value.
Non-GAAP Financial Measures
The tables below include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared …