08:52 AM EDT, 06/26/2025 (MT Newswires) -- McCormick ( MKC ) reiterated its full-year outlook on Thursday amid plans to offset costs related to tariffs, while the company's fiscal second-quarter earnings were unchanged annually, but defied market expectations for a decline.

The spices and seasonings producer continues to project adjusted earnings to be between $3.03 and $3.08 per share for fiscal 2025 and sales to be in a range of flat to up 2%. The current consensus on FactSet is for non-GAAP EPS of $3.02 and sales of $6.81 billion. The stock rose 4.5% in premarket activity.

The guidance stems from investments to sustain volume trends and plans such as cost savings initiatives and revenue growth management that are meant to counter the impact of tariffs currently in place, the company said.

McCormick ( MKC ) said most of its US imports from Canada and Mexico "are currently compliant with the United States-Mexico-Canada Agreement." The outlook doesn't take into account any potential changes in tariffs that may take place during the year, it added.

"For this fiscal year, we are well positioned with our robust plans to mitigate current tariff related costs, fuel growth investments, and expand operating margins," Chief Executive Brendan Foley said in a statement. "We remain confident in the sustained trajectory of our business and in our ability to achieve our 2025 outlook as well as our long-term objectives, and to drive shareholder value."

McCormick ( MKC ) posted adjusted EPS of $0.69 for the quarter ended May, unchanged from the year before, but beating the Street's view for a decline to $0.65. Sales ticked up 1 to $1.66 billion, largely meeting the average analyst estimate on FactSet. The topline was aided by volume and mix growth of 1.3%, while foreign currency was a 1% headwind.

Sales in the consumer segment increased 2.9% to $931 million. Flavor solutions revenue moved down 1.3% to $729 million, weighed down by declines in the Americas and Europe, the Middle East and Africa. On an organic basis, consumer sales advanced 3% while flavor was flat.

Gross profit margin retreated by 20 basis points year over year to 37.5%, due to increased capacity and commodity costs. Selling, general and administrative expenses narrowed to $364.2 million from $383.7 million in the prior-year quarter.

"We are pleased with our strong results for the first half of the year, as we are managing in a dynamic environment," Foley said. "Our continued volume-driven performance and share gains across core categories reflect the success of our prioritized investments in the areas that are driving the greatest value and will sustain our momentum for the remainder of 2025 and beyond."