Flavoring products maker McCormick & Company ( MKC ) shares jumped nearly 6% in Thursday’s premarket session after the company topped fiscal second quarter 2025 earnings estimates and reaffirmed its full-year outlook, with management highlighting strong positioning to offset tariff-related pressures.

The company reported second-quarter adjusted earnings per share of 69 cents, beating the analyst consensus estimate of 66 cents. Quarterly sales of $1.659 billion outpaced the Street view of $1.658 billion.

Net sales increased 1% in the second quarter, driven by volume growth, and included a 1% unfavorable impact from currency. Organic sales growth of 2% was driven by volume.

Also Read: Cereal Giant General Mills’ Cautious Outlook Offers Little Crunch, Stock Falls

Consumer segment net sales increased by 3%, while Flavor Solutions segment net sales decreased by 1%.

Adjusted operating income was $258.6 million, 9.7% higher year over year. Adjusted operating margin jumped by 120 basis points year over year to 15.6%.

Adjusted gross profit in the quarter under review inched up by 0.5% to $622.8 million, while adjusted gross margin contracted by 20 basis points to 37.5%.

The company noted that most U.S. imports from Mexico and Canada already comply with the United States-Mexico-Canada Agreement. Its tariff mitigation strategy includes data-driven sourcing plans, cost-saving efforts, and revenue growth management.

“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,” said CEO Brendan M. Foley. 

The company exited the quarter with cash and equivalents worth $124.1 million, with inventories worth $1.307 billion.

Long-term debt contracted to $3.099 billion, down from $3.593 billion as of November 30, 2024.

For the fiscal year 2025, McCormick ( MKC ) reaffirmed its net sales, adjusted operating profit, and adjusted earnings per share outlook. The company projects net sales growth of 0% to 2%, with operating income of 2% to 4%.

The company reaffirmed its full-year 2025 adjusted earnings per share guidance of $3.03 to $3.08, compared to the consensus estimate of $3.04.

Price Action: MKC shares are trading higher by 5.92% to $78.00 premarket at last check Thursday.

Read Next:

US Stocks Likely To Open Higher Despite Powell’s Tariff-Induced Inflation Warning: Walgreens, Nike In Focus Ahead Of Earnings