# MCCORMICK & CO INC (MKC)

Informational only - not investment advice.

CIK: 0000063754
SIC: 2090 Miscellaneous Food Preparations & Kindred Products
SIC breadcrumb: [Manufacturing](/division/D/) > [Food And Kindred Products](/major-group/20/) > [SIC 2090 Miscellaneous Food Preparations & Kindred Products](/industry/2090/)
Latest 10-K filed: 2026-01-22
SEC page: https://www.sec.gov/edgar/browse/?CIK=63754
Filing source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm

## At a glance

FY2025 · period end 2025-11-30 · filed 2026-01-22 · accession 0000063754-26-000037 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000063754.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 6,840,300,000 USD | 2025 | verified |
| Net income | 789,400,000 USD | 2025 | verified |
| Assets | 13,200,400,000 USD | 2025 | verified |
| Free cash flow | 740,400,000 USD | 2025 | computed |
| Net margin | 11.54% | 2025 | computed |
| Operating margin | 15.65% | 2025 | computed |
| Revenue YoY | +1.73% | 2025 | computed |
| ROE | 13.76% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MKC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.5% | 5.3% | 80 | 51 |
| Operating margin | 15.7% | 7.6% | 88 | 49 |
| Revenue growth | 1.7% | 3.0% | 36 | 51 |
| FCF margin | 10.8% | 7.6% | 69 | 50 |
| ROE | 13.8% | 9.1% | 62 | 49 |
| ROA | 6.0% | 4.0% | 56 | 51 |
| Liabilities / equity | 1.30 | 1.19 | 52 | 49 |
| Current ratio | 0.70 | 1.65 | 8 | 51 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 20 Food And Kindred Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 6840300000 | USD | 2025 | 2026-01-22 |
| Net income | 789400000 | USD | 2025 | 2026-01-22 |
| Assets | 13200400000 | USD | 2025 | 2026-01-22 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-01-22. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000063754.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 4,411,500,000 | 4,730,300,000 | 5,302,800,000 | 5,347,400,000 | 5,601,300,000 | 6,317,900,000 | 6,350,500,000 | 6,662,200,000 | 6,723,700,000 | 6,840,300,000 |
| Net income | 472,300,000 | 477,400,000 | 933,400,000 | 702,700,000 | 747,400,000 | 755,300,000 | 682,000,000 | 680,600,000 | 788,500,000 | 789,400,000 |
| Operating income | 641,000,000 | 699,800,000 | 891,100,000 | 957,700,000 | 999,500,000 | 1,015,100,000 | 863,600,000 | 963,000,000 | 1,060,300,000 | 1,070,800,000 |
| Gross profit | 1,831,700,000 | 1,794,000,000 | 2,093,300,000 | 2,145,300,000 | 2,300,400,000 | 2,494,600,000 | 2,274,500,000 | 2,502,500,000 | 2,591,000,000 | 2,592,200,000 |
| Diluted EPS | 3.69 | 3.72 | 3.50 | 2.62 | 2.78 | 2.80 | 2.52 | 2.52 | 2.92 | 2.93 |
| Operating cash flow | 658,100,000 | 815,300,000 | 821,200,000 | 946,800,000 | 1,041,300,000 | 828,300,000 | 651,500,000 | 1,237,300,000 | 921,900,000 | 962,200,000 |
| Capital expenditures |  |  |  |  |  | 278,000,000 | 262,000,000 | 263,900,000 | 274,900,000 | 221,800,000 |
| Dividends paid | 217,800,000 | 237,600,000 | 273,400,000 | 302,200,000 | 330,100,000 | 363,300,000 | 396,700,000 | 418,500,000 | 451,000,000 | 483,000,000 |
| Share buybacks | 242,700,000 | 137,800,000 | 62,300,000 | 95,100,000 | 47,300,000 | 8,600,000 | 38,800,000 | 35,700,000 | 53,100,000 | 34,800,000 |
| Assets | 4,635,900,000 | 10,385,800,000 | 10,256,400,000 | 10,362,100,000 | 12,089,700,000 | 12,905,800,000 | 13,124,900,000 | 12,862,300,000 | 13,070,300,000 | 13,200,400,000 |
| Liabilities | 2,997,800,000 | 7,814,900,000 | 7,074,200,000 | 6,905,400,000 | 8,149,700,000 | 8,480,300,000 | 8,425,700,000 | 7,778,800,000 | 7,753,500,000 | 7,432,300,000 |
| Stockholders' equity |  |  | 3,170,900,000 | 3,444,200,000 | 3,926,100,000 | 4,411,000,000 | 4,680,500,000 | 5,060,700,000 | 5,291,000,000 | 5,736,500,000 |
| Cash and cash equivalents | 118,400,000 | 186,800,000 | 96,600,000 | 155,400,000 | 423,600,000 | 351,700,000 | 334,000,000 | 166,600,000 | 186,100,000 | 95,900,000 |
| Free cash flow |  |  |  |  |  | 550,300,000 | 389,500,000 | 973,400,000 | 647,000,000 | 740,400,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 10.71% | 10.09% | 17.60% | 13.14% | 13.34% | 11.95% | 10.74% | 10.22% | 11.73% | 11.54% |
| Operating margin | 14.53% | 14.79% | 16.80% | 17.91% | 17.84% | 16.07% | 13.60% | 14.45% | 15.77% | 15.65% |
| Return on equity |  |  | 29.44% | 20.40% | 19.04% | 17.12% | 14.57% | 13.45% | 14.90% | 13.76% |
| Return on assets | 10.19% | 4.60% | 9.10% | 6.78% | 6.18% | 5.85% | 5.20% | 5.29% | 6.03% | 5.98% |
| Liabilities / equity |  |  | 2.23 | 2.00 | 2.08 | 1.92 | 1.80 | 1.54 | 1.47 | 1.30 |
| Current ratio | 1.00 | 0.83 | 0.74 | 0.72 | 0.68 | 0.68 | 0.70 | 0.65 | 0.74 | 0.70 |

## As-reported value updates

5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MKC/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000063754.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-08-31 |  |  | 0.82 | reported discrete quarter |
| 2023-Q1 | 2023-02-28 |  |  | 0.52 | reported discrete quarter |
| 2023-Q2 | 2023-05-31 |  |  | 0.56 | reported discrete quarter |
| 2023-Q3 | 2023-08-31 | 1,684,700,000 | 170,100,000 | 0.63 | reported discrete quarter |
| 2023-Q4 | 2023-11-30 | 1,752,800,000 | 219,300,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-02-29 | 1,602,700,000 | 166,000,000 | 0.62 | reported discrete quarter |
| 2024-Q2 | 2024-05-31 | 1,643,200,000 | 184,200,000 | 0.68 | reported discrete quarter |
| 2024-Q3 | 2024-08-31 | 1,679,800,000 | 223,100,000 | 0.83 | reported discrete quarter |
| 2024-Q4 | 2024-11-30 | 1,798,000,000 | 215,200,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-02-28 | 1,605,500,000 | 162,300,000 | 0.60 | reported discrete quarter |
| 2025-Q2 | 2025-05-31 | 1,659,500,000 | 175,000,000 | 0.65 | reported discrete quarter |
| 2025-Q3 | 2025-08-31 | 1,724,900,000 | 225,500,000 | 0.84 | reported discrete quarter |
| 2025-Q4 | 2025-11-30 | 1,850,400,000 | 226,600,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-02-28 | 1,873,900,000 | 1,016,200,000 | 3.77 | reported discrete quarter |
| 2026-Q2 | 2026-05-31 | 1,936,600,000 | 150,100,000 | 0.56 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MKC's latest 10-K: [/company/MKC/business/](/company/MKC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MKC's latest 10-K: [/company/MKC/risk-factors/](/company/MKC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000274/mkc-20260531.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-06-25
Report date: 2026-05-31

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand McCormick & Company, Incorporated, our operations, and our present business environment from the perspective of management. MD&A is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying notes thereto, included in Item 1 of this report. We use certain non-GAAP information – more fully described below under the caption Non-GAAP Financial Measures – that we believe is important for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends. Unless otherwise noted, the dollar and share information in the charts and tables in MD&A are in millions, except per share data.

Business profile

McCormick is a global leader in flavor. We manufacture, market, and distribute spices, seasoning mixes, condiments, and other flavorful products to the entire food and beverage industry – retailers, food manufacturers, and the foodservice business. In fiscal year 2025, approximately 39% of our sales were generated outside of the U.S. We also are partners in a number of joint ventures involved in the manufacture and sale of flavorful products. We manage our business in two business segments, Consumer and Flavor Solutions.

Recent Events

On January 2, 2026, we acquired an additional 25% ownership interest in McCormick de Mexico for a purchase price of $750.0 million, which increased our ownership to a 75% controlling interest. We believe the acquisition creates opportunities for further growth in the Mexican market and provides a strategic platform for further expansion in Latin America. McCormick de Mexico is a prominent food company in Mexico, with a broad portfolio, including mayonnaise, spices, marmalades, mustard, hot sauce, and tea, sold under McCormick brands. The acquisition is described in detail in Note 2 of the notes to our accompanying condensed consolidated financial statements.

On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under IEEPA by the executive branch are not lawful. On March 4, 2026, the CIT ordered CBP to begin the refund process for all importers who were subject to IEEPA tariffs. On April 20, 2026, CBP established an online portal through which companies can submit IEEPA tariff refund requests. We submitted our refund request on April 28, 2026, which is described in Note 1 of the notes to our accompanying condensed consolidated financial statements. The CIT order has been appealed and we will continue to monitor U.S. tariff-related developments for further updates and any associated impacts on our consolidated financial statements.

On March 31, 2026, we entered into the Merger Agreement with Unilever, pursuant to which Unilever will separate its Unilever Foods business, excluding its foods businesses in India, Nepal and Portugal, as well as its Lifestyle & Nutrition business, Buavita business and Lipton Ready-to-Drink business, and Unilever Foods will merge with a wholly owned subsidiary of McCormick in a transaction intended to qualify as a Reverse Morris Trust transaction. The transaction is generally expected to be tax-free to Unilever’s shareholders for U.S. federal income tax purposes, except to the extent that cash is paid to Unilever’s shareholders in lieu of fractional shares and provided that Unilever does not make the U.S. Asset Sale Election.

Under the terms of the Merger Agreement, we will issue voting and non-voting securities to Unilever shareholders and Unilever in the same proportion as is currently held by our shareholders. The transactions contemplated by the Merger Agreement are expected to result in current Unilever shareholders owning approximately 55.1% of the combined company, our current shareholders owning approximately 35.0% of the combined company, and Unilever retaining up to approximately 9.9% of the total outstanding equity of the combined company, assuming Unilever does not elect under the Merger Agreement to dispose of such interest. Unilever will also receive a one-time $15.7 billion cash payment, subject to certain adjustments. The pending transaction is subject to the satisfaction or waiver of certain customary closing conditions, including shareholder and regulatory approvals. For additional information regarding the pending transaction, see Note 2 of the notes to our accompanying condensed consolidated financial statements.

Executive Summary

In the second quarter of 2026, we achieved net sales growth of 16.7% as compared to the same quarter of 2025, due to the following factors:

•Volume and product mix unfavorably impacted net sales by 0.5%. The Consumer segment experienced unfavorable volume and product mix of 1.9% and the Flavor Solutions segment experienced favorable volume and product mix of 1.4%.

28

Table of Contents

•Pricing favorably impacted net sales by 2.2%. The Consumer segment experienced favorable pricing of 2.7% and the Flavor Solutions segment experienced favorable pricing of 1.5%.

•The impact of our acquisition of McCormick de Mexico contributed 12.3% of our net sales growth.

•Fluctuations in currency rates positively impacted net sales by 2.7%. Fluctuations in currency rates positively impacted our Consumer segment sales growth by 2.4% and our Flavor Solutions segment sales growth by 3.0%.

Operating income was $276.4 million in the second quarter of 2026, compared to $245.8 million in the same period of 2025, reflecting an increase of 12.4%. Our gross profit margin increased by 270 basis points driven by the impacts of the McCormick de Mexico acquisition, favorable pricing, the IEEPA tariff refund, and cost savings from the Company's Comprehensive Continuous Improvement (CCI) program, partially offset by increased commodity costs and higher freight costs due to the conflict in the Middle East. Selling, general, and administrative (SG&A) expense as a percentage of sales increased by 90 basis points, primarily driven by the impact of the McCormick de Mexico acquisition and increased investments in technology. Excluding special charges, adjusted operating income was $336.4 million in the second quarter of 2026, reflecting an increase of 30.1% compared to $258.6 million in the 2025 period, primarily driven by the impact of the McCormick de Mexico acquisition and the IEEPA tariff refund. In constant currency, adjusted operating income increased by 27.3%.

Diluted earnings per share was $0.56 and $0.65 in the second quarters of 2026 and 2025, respectively. Special charges, including transaction and integration costs, lowered diluted earnings per share by $0.24 and $0.04 in the second quarters of 2026 and 2025, respectively. Excluding the effects of special charges, adjusted diluted earnings per share was $0.80 and $0.69 in the second quarters of 2026 and 2025, respectively. The increase in adjusted diluted earnings per share was driven by favorable operating income and a decrease in the effective tax rate, partially offset by lower income from unconsolidated operations, higher income attributable to noncontrolling interests, an increase in interest expense, and a decrease in other income.

A detailed review of our second quarter 2026 performance compared to the second quarter of fiscal 2025 appears in the section titled “Results of Operations – Company” and “Results of Operations – Segments.” For a reconciliation of non-GAAP to reported amounts, see the subsequent discussion under the heading “Non-GAAP Financial Measures.”

2026 Outlook

Our fiscal 2026 outlook continues to reflect prioritized investments in key categories to sustain our volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies and the conflict in the Middle East. Our CCI program is continuing to fuel growth investments while also driving operating margin expansion. Our fiscal 2026 outlook also reflects meaningful contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2, 2026.

Our 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. We do not provide guidance on a GAAP basis as we cannot predict certain items included in GAAP results such as special charges, including transaction and integration expenses.

In 2026, we expect net sales to grow between 13% and 17% compared to 2025, including an 11% to 13% increase as a result of the acquisition of a controlling interest in McCormick de Mexico and a 1% favorable impact from foreign currency rates, or to grow from 1% to 3% on an organic basis. We anticipate that net sales will benefit from favorable volume and product mix and pricing.

In 2026, we expect an increase in adjusted operating income of 16% to 20% compared to 2025, including a 1% favorable impact from foreign currency rates, or to increase by 15% to 19% on a constant currency basis. This anticipated increase in adjusted operating income reflects adjusted gross margin expansion, accretion from the acquisition of the controlling interest in McCormick de Mexico and cost savings from our CCI program, partially offset by an increase in SG&A expense, including increased investments in technology, performance-based employee compensation expenses and investments aimed at driving volume growth, particularly in brand marketing. We project our brand marketing investments in 2026 to rise by low to mid-teens digits, including the impact from the acquisition of the controlling interest in McCormick de Mexico, compared to 2025. The benefit of the IEEPA tariff refund is expected to be offset by increased inflation, including costs related to the Middle East conflict, and continued investments in business growth.

We estimate that our 2026 adjusted effective tax rate, including the net favorable impact of anticipated discrete tax items, although at a lower amount than in 2025, will be 24.0% as compared to 21.5% in 2025.

Adjusted diluted earnings per share was $3.00 in 2025. Adjusted diluted earnings per share is projected to range from $3.05 to $3.13 in 2026. We expect adjusted diluted earnings per share to increase by 2% to 5%, which includes a 1% favorable impact from currency rates, or to increase by 1% to 4% on a constant currency basis.

29

Table of Contents

RESULTS OF OPERATIONS – COMPANY

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[[/GREPCENT_TABLE]]

Sales for the second quarter of 2026 increased by 16.7% from the same period in 2025 and increased by 1.7% on an organic basis (that is, excluding the impact of acquisitions and foreign currency exchange as more fully described under the caption, Non-GAAP Financial Measures). The acquisit

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm
Complete FY 2025 MD&A: /company/MKC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-01-22
Report date: 2025-11-30

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand McCormick & Company, Incorporated, our operations, and our present business environment from the perspective of management. MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying notes thereto contained in Item 8 of this report. We use certain non-GAAP information—more fully described below under the caption Non-GAAP Financial Measures—that we believe is important for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends. The dollar and share information in the charts and tables in MD&A are in millions, except per share data.

22

McCormick is a global leader in flavor. We manufacture, market, and distribute spices, seasoning mixes, condiments, and other flavorful products to the entire food and beverage industry–retailers, food manufacturers, and foodservice businesses. We manage our business in two operating segments, Consumer and Flavor Solutions, as described in Item 1 of this report.

Our long-term annual growth objectives in constant currency are to increase sales 4% to 6%, increase adjusted operating income 7% to 9%, and increase adjusted earnings per share 9% to 11%. Our actual annual results can vary from our long-term growth objectives.

Over time, we expect to grow sales with similar contributions from: 1) our base business – driven by brand marketing support, category management, and differentiated customer engagement; 2) new products; and 3) acquisitions.

Base Business – We expect to drive sales growth by optimizing our brand marketing investment through improved speed, quality, and effectiveness. We measure the return on our brand marketing investment and identify digital marketing as one of our highest return investments in brand marketing support. Through digital marketing, we are connecting with consumers in a personalized way to deliver recipes, provide cooking advice, and help them discover new products.

New Products – For our Consumer segment, we believe that scalable and differentiated innovation continues to be one of the best ways to distinguish our brands from our competition, including private label. We are introducing products for every type of cooking occasion, from gourmet, premium items to convenient and value-priced flavors.

For Flavor Solutions customers, we are developing seasonings for snacks and other food products, as well as flavors for new menu items. We have a strong pipeline of Flavor Solutions products aligned with our customers’ new product launch plans, many of which include clean-label, organic, natural, and “better-for-you” innovation. With over 20 product innovation centers around the world, we are supporting the growth of our brands and those of our Flavor Solutions customers with products that appeal to local consumers.

Acquisitions – Acquisitions are expected to approximate one-third of our sales growth over time. We focus on acquisition opportunities that meet the growing demand for flavor and health. Geographically, our focus is on acquisitions that build scale where we currently have presence in both developed and emerging markets.

Recent Event

On January 2, 2026 we acquired an additional 25% ownership interest in McCormick de Mexico for a purchase price of $750 million, which increased our ownership to a 75% controlling interest. We believe the acquisition creates opportunities for further growth in the Mexican market and provides a strategic platform for further expansion in Latin America. McCormick de Mexico is a prominent food company in Mexico, with a broad portfolio, including mayonnaise, spices, marmalades, mustard, hot sauce, and tea, sold under McCormick brands.

Executive Summary

In 2025, we achieved net sales growth of 1.7% as compared to 2024 due to the following factors:

•Volume and product mix favorably impacted net sales growth by 1.2%. The Consumer segment experienced favorable volume and product mix of 2.1% and the Flavor Solutions segment experienced unfavorable volume and product mix of 0.2%.

•Pricing favorably impacted net sales by 0.7%.

•Fluctuations in currency rates negatively impacted net sales by 0.2%, Fluctuations in currency rates positively impacted our Consumer segment sales growth by 0.2% and negatively impacted our Flavor Solutions segment sales growth by 0.6%.

Operating income was $1,070.8 million in 2025, compared to $1,060.3 million in 2024, reflecting an increase of 1.0%. Our gross profit margin decreased by 60 basis points primarily driven by increased commodity costs including the impact of tariffs, unfavorable product mix, and increased conversion costs including costs to support capacity for future growth, partially offset by pricing actions and CCI-led cost savings. Selling, general, and administrative (SG&A) expense as a percentage of sales decreased by 70 basis points, primarily driven by lower performance-based employee compensation expense, lower distribution expense, and CCI-led cost savings including SG&A streamlining initiatives, partially offset by increased brand marketing expense. Excluding special charges, adjusted operating income was $1,094.0 million in 2025, reflecting an increase of 2.3% compared to $1,069.8 million in 2024. In constant currency, adjusted operating income increased 2.8%. For further details and a reconciliation of non-GAAP to reported amounts, see the subsequent discussion under the heading "Non-GAAP Financial Measures".

23

Diluted earnings per share was $2.93 in 2025 and $2.92 in 2024, driven by higher operating income and decreased interest expense, partially offset by an increase in the effective tax rate, higher special charges, a decrease in other income, and a decrease in income from unconsolidated operations. Special charges lowered earnings per share by $0.07 and $0.03 in 2025 and 2024, respectively. Excluding the effects of special charges, adjusted diluted earnings per share was $3.00 in 2025, compared to $2.95 in 2024, representing an increase of 1.7%.

Net cash provided by operating activities was $962.2 million, $921.9 million, and $1,237.3 million in 2025, 2024, and 2023, respectively. In 2025, we continued to have a balanced use of cash for debt repayment, capital expenditures, and the return of cash to shareholders through dividends and share repurchases. We are using our cash to fund shareholder dividends, with annual increases in each of the past 40 years, and to fund capital expenditures and acquisitions. In 2025, the return of cash to our shareholders through dividends and share repurchases was $517.8 million.

A detailed review of our fiscal 2025 performance compared to fiscal 2024 appears in the section titled “Results of Operations – 2025 Compared to 2024.” A detailed review of our fiscal 2024 performance compared to our fiscal 2023 performance is set forth in Part II, Item 7 of our Form 10-K for the fiscal year ended November 30, 2024 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – 2024 Compared to 2023,” which is incorporated herein by reference.

2026 Outlook

Our fiscal 2026 outlook continues to reflect prioritized investments in key categories to sustain our volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies. Our CCI program is continuing to fuel growth investments while also driving operating margin expansion. Our fiscal 2026 outlook also reflects meaningful contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2, 2026. Amounts are rounded with percentages calculated from the underlying amounts.

Our 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. We are unable to reconcile projected adjusted operating income to projected reported operating income because we cannot reasonably predict the amount of special charges, including transaction and integration expenses, during this time period. We expect 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.

We are unable to reconcile projected adjusted earnings per share to projected reported earnings per share due to the same factors affecting reported operating income, and because we 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.

In 2026, we expect net sales to grow between 13% and 17% compared to 2025, including an 11% to 13% increase as a result of the acquisition of a controlling interest in McCormick de Mexico and a 1% favorable impact from foreign currency rates, or to grow from 1% to 3% on an organic basis. We anticipate that net sales will benefit from favorable volume and product mix and pricing.

In 2026, we expect an increase in adjusted operating income of 16% to 20% compared to 2025, including a 1% favorable impact from foreign currency rates, or to increase by 15% to 19% on a constant currency basis. This anticipated increase in adjusted operating income reflects recovery of adjusted gross margin, accretion from the acquisition of the controlling interest in McCormick de Mexico and cost savings from our CCI program, partially offset by increased commodity costs and an increase in SG&A expense, including performance-based employee compensation expenses and investments aimed at driving volume growth, particularly in brand marketing. We project our brand marketing investments in 2026 to rise by low to mid-teens digits, including the impact from the acquisition of the controlling interest in McCormick de Mexico, compared to 2025.

We estimate that our 2026 adjusted effective tax rate, including the net favorable impact of anticipated discrete tax items, although at a lower amount than in 2025, will be 24.0% as compared to 21.5% in 2025.

Excluding the per share impact of special charges, adjusted diluted earnings per share was $3.00 in 2025. Adjusted diluted earnings per share is projected to range from $3.05 to $3.13 in 2026. We expect adjusted diluted earnings

24

per share to increase by 2% to 5%, which includes a 1% favorable impact from currency rates, or to increase by 1% to 4% on a constant currency basis.

RESULTS OF OPERATIONS—2025 COMPARED TO 2024

[[GREPCENT_TABLE]]
[["","2025","2024"],["Net sales","$","6,840.3","","$","6,723.7"],["Percent growth","1.7","%","0.9","%"],["Components of percent change in net sales:"],["Volume and product mix","1.2","%","0.3","%"],["Pricing actions","0.7","%","0.5","%"],["Divestiture","\u2014","%","(0.2)","%"],["Foreign exchange","(0.2)","%","0.3","%"]]
[[/GREPCENT_TABLE]]

Sales for 2025 increased by 1.7% from 2024 and by 1.9% on an organic basis (that is, excluding the impact of foreign currency exchange as more fully described under the caption, Non-GAAP Financial Measures). Pricing actions favorably impacted sales by 0.7%. Favorable volume and product mix increased sales by 1.2% driven by favorable volume and product mix from our Consumer segment of 2.1% offset by unfavorable volume and product mix from our Flavor Solutions segment of 0.2%. Foreign currency rates decreased sales b

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MKC/mda/fy2025/
All MD&A years: /company/MKC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MKC/mda/fy2024/): filed 2025-01-23; accession 0000063754-25-000005 (https://www.sec.gov/Archives/edgar/data/63754/000006375425000005/mkc-20241130.htm)
- [FY 2023 MD&A](/company/MKC/mda/fy2023/): filed 2024-01-25; accession 0000063754-24-000027 (https://www.sec.gov/Archives/edgar/data/63754/000006375424000027/mkc-20231130.htm)
- [FY 2022 MD&A](/company/MKC/mda/fy2022/): filed 2023-01-26; accession 0000063754-23-000005 (https://www.sec.gov/Archives/edgar/data/63754/000006375423000005/mkc-20221130.htm)
- [FY 2021 MD&A](/company/MKC/mda/fy2021/): filed 2022-01-27; accession 0000063754-22-000005 (https://www.sec.gov/Archives/edgar/data/63754/000006375422000005/mkc-20211130.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2090 Miscellaneous Food Preparations & Kindred Products) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MKC.md · JSON record: /company/MKC.json · verified financials: /company/MKC/financials.json / /company/MKC/financials.csv · machine TOC for the whole site: /llms.txt