SGI Research | Milton Maxwell

SGI

Somnigroup International Inc.

91.10

-1.86-2%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Strong early Q1 demand rebound

2/16/26Feb 16, 2026

Q&A delivered reassuring demand color: Scott detailed early Q1 weather headwinds (5,000 lost Mattress Firm store days pre-Presidents' Day) but robust double-digit sales afterward, flipping same-store sales positive. Management unpacked conservative guidance—flat industry plus share gains—flagging Q1 sales up 14%, EPS 20%, H1 sales headwind from no launches (~$20M, reversing H2), and 100bps gross margin expansion offsetting commodities. International growth from existing slot velocity sets up new doors. Mattress Firm merchandising resonates; no pricing elasticity hit. Demand poised for growth. Confident tone persists; investors eye industry inflection, Investor Day details.

Key Stats

Market Cap

19.12B

P/E (TTM)

57.66

Basic EPS (TTM)

1.58

Dividend Yield

0.01%

Recent Filings

8-K

Investor Day launches

3/4/26Mar 4, 2026

Somnigroup International kicked off Investor Day on March 4, 2026, with execs unveiling strategic vision, growth plans across units, multi-year financial targets, and capital allocation strategy. Live stream started at 8:00 a.m. ET; replay follows. Management fielded Q&A. Details safe-harbored under Reg FD.

10-K

FY2025 results

2/27/26Feb 27, 2026

Somnigroup's FY2025 net sales surged 51.6% to $7.5B, propelled by the February Mattress Firm acquisition adding $3.5B in stub-period revenue, while Tempur Sealy North America sales fell 28.7% due to eliminated intercompany sales. Gross margin expanded 150bps to 42.6%, with North America jumping 1,250bps to 51.2% from efficiencies offsetting acquisition adjustments. Operating income rose 19% to $755M despite 280bps margin contraction from integration costs; Q4 trends showed direct channel dominance at 63.5% of sales. Debt climbed to $4.7B post-deal, yet $774M remains for buybacks with no 2025 repurchases. No 2026 guidance disclosed. Supply disruptions threaten quarterly momentum.

8-K

Q4 sales +55%, dividend up

2/17/26Feb 17, 2026

Somnigroup crushed Q4 2025 with net sales up 54.7% to $1,868.4 million, driven by Mattress Firm's $892.1 million contribution post its February 5 acquisition, while operating income soared 93.7% to $247.1 million. Board hiked the quarterly dividend 13% to $0.17 per share, payable March 19. Guides 2026 adjusted EPS to $3.00-$3.40. Leverage sits at 3.21x amid integration.

8-K

Q4 sales soared 55%

2/17/26Feb 17, 2026

Somnigroup released its February 17, 2026 investor presentation under Reg FD, highlighting Q4 2025 results with net sales up 54.7% to $1,868M and adjusted EBITDA up 58.8% to $349M, fueled by Mattress Firm integration closed February 5, 2025. It guides 2026 sales to ~$7.9B, adjusted EPS $3.00-$3.40, and synergies of $80-$95M. Leverage sits at 3.21x.

8-K

Acquisition talks greenlit

1/20/26Jan 20, 2026

Somnigroup welcomes Leggett & Platt's board authorization to discuss its all-stock acquisition proposal at $12 per share, a 30% premium to the unaffected 30-day average as of December 1, 2025. The parties entered a customary NDA for due diligence. No deal is assured. Risks abound.

About

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows and other accessories under the Tempur-Pedic, Sealy, Stearns & Foster, and Sleep's brands. The company also operates a portfolio of retail brands, including Mattress Firm, Dreams, Tempur-Pedic retail stores, SOVA, and Sleep Outfitters; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. It sells its products through company-owned stores, online, and call centers; and third-party retailers, including third party distribution, hospitality, and healthcare. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. Somnigroup International Inc. was founded in 1846 and is based in Lexington, Kentucky.

CEO

Mr. Scott L. Thompson

IPO

12/18/2003

Website

https://somnigroup.com

Employees

12,000

Sector

Consumer Cyclical

Industry

Furnishings, Fixtures & Appliances