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McCormick10-K: Margin pressure

Gross margin fell 60 basis points in 2025 due to rising commodity and conversion costs

What happened

Despite pricing actions, gross profit margin declined from 38.5% to 37.9% due to increased commodity costs, tariffs, unfavorable product mix, and higher manufacturing conversion costs. This indicates a significant profitability challenge and a need for efficiency solutions.

Source

SEC EDGARJan 22, 2026

Annual report (Form 10-K)

McCormick 10-K

Filing excerpt

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.

sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htmRead the full source

Other signals in this filing (11)

Extracted by Autobound

From the Signal API record
Signal
10-K: Margin pressure

What this signalsFilings often name leadership changes, deals and spending plans.

Filed
Jan 22, 2026

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The full record

From the Signal API record

Numbers

Percent
-0.6% (Basis point decrease in gross profit margin (60 bps))

Details

CIK
63754
Accession number
0000063754-26-000037
Timeframe
Current year
Filing year
2026
Why it matters
Efficiency tools needed
Signal category
Financial

Extraction

Confidence
High
Relevance
90%
Sentiment
Negative
Detected
Feb 3, 2026
signal_type
sec-10k
signal_subtype
marginPressure

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This page shows a preview. The full sec-10k record in the Signal API and MCP can also have these 8 fields. Some fields are empty for some signals.

Company

  • linkedin_urlValue in the API
  • industriesValue in the API
  • employee_count_lowValue in the API
  • employee_count_highValue in the API
  • revenueValue in the API
  • descriptionValue in the API

Signal

  • signal_nameValue in the API
  • associationValue in the API
Show the full JSONThe record on this page and the API request

GET /v1/signals/1ac0f97e-b6bb-425a-8059-bc870343df09 returns this record as JSON. POST /v1/companies/enrich returns every signal for mccormickcorporation.com.

{
  "signal_id": "1ac0f97e-b6bb-425a-8059-bc870343df09",
  "signal_type": "sec-10k",
  "signal_subtype": "marginPressure",
  "detected_at": "2026-02-03T08:24:23.916+00:00",
  "company": {
    "name": "McCormick",
    "domain": "mccormickcorporation.com"
  },
  "data": {
    "detail": "Despite pricing actions, gross profit margin declined from 38.5% to 37.9% due to increased commodity costs, tariffs, unfavorable product mix, and higher manufacturing conversion costs. This indicates a significant profitability challenge and a need for efficiency solutions.",
    "metrics": {
      "pct": -0.006,
      "timeframe": "current_year",
      "pct_context": "Basis point decrease in gross profit margin (60 bps)"
    },
    "summary": "Gross margin fell 60 basis points in 2025 due to rising commodity and conversion costs",
    "excerpts": "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.",
    "relevance": 0.9,
    "sentiment": "negative",
    "confidence": "high",
    "source_url": "https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm",
    "filing_date": "2026-01-22",
    "filing_year": 2026,
    "sales_relevance": "Efficiency tools needed",
    "signal_category": "financial"
  }
}

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