EarningsQ2 2026 Earnings Report
MX:SGI Q2 2026 EPS Results
Actual EPS$9.94
Consensus EPS$9.86
Beat/MissBeat by +$0.09
One Year Ago EPS$9.09
MX:SGI Q2 2026 Revenue Results
Actual Revenue$31.26B
Expected Revenue$32.22B
Beat/MissMissed by -$955.44M
YoY Revenue Growth-3.05%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:SGI Upcoming Earnings
Somnigroup International's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:SGI Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Somnigroup reported record adjusted EPS, strong North American margin expansion, record cash flow, substantial debt reduction, continued international share gains, and progress toward closing the Leggett & Platt combination ahead of schedule. These strengths outweighed the weaker industry backdrop, Mattress Firm margin declines, commodity inflation, Dreams' ERP and U.K. challenges, and the weak July 4 promotional period.Company Guidance
Record Second-Quarter Earnings
Somnigroup delivered record second-quarter adjusted earnings per share of $0.58, up 9% from the prior year, with net sales of $1.8 billion and adjusted EBITDA of $297 million despite a cautious consumer backdrop, macroeconomic uncertainty, and an industry believed to be down mid to high single digits.
Mattress Firm Outperformed the U.S. Market
Mattress Firm delivered results ahead of the broader U.S. market, supported by its scale, marketing strategy, broad product assortment, sleep expert model, technology investments, and trained sales organization. Net sales were approximately $922 million and same-store sales grew slightly.
Kingsdown Expansion at Mattress Firm
Following an encouraging three-month pilot of Kingsdown products in 200 Mattress Firm stores, the company expanded its relationship with Kingsdown. The collection is expected to be available in nearly 800 stores nationwide over the next six months.
Mattress Firm Store and Brand-Wall Programs Progressing
The Mattress Firm store refresh program remains on track for completion in 2027, while the brand-wall program is expected to be completed this year. The programs are intended to improve the in-store shopping experience alongside enhanced product training and new technology.
International Business Gained Share
Somnigroup's international business delivered solid results and gained share across many key markets. International net sales grew 2% on a reported basis and 1% on a constant-currency basis, supported by continued execution and broader consumer reach.
Legacy International Business Outperformed
The legacy Tempur-Pedic international business again outperformed the broader industry, benefiting from the Tempur-Pedic brand, ongoing marketing investments, and strong local execution.
Stearns & Foster Product Launch On Track
The new Stearns & Foster collection remains on track for launch beginning at the end of the third quarter, with rollout continuing through early 2027. The collection includes an upgraded cooling system, a more robust micro-coil support layer, and a new hybrid technology approach.
Stearns & Foster Premium Positioning
The company is increasing the entry-level price of Stearns & Foster to reduce overlap with the high end of Sealy and has increased the number of high-end models by over 50%. The launch is designed to strengthen price architecture, increase average selling price, and expand the brand's premium footprint.
North American Gross-Margin Expansion
Tempur-Pedic Sealy North America's like-for-like sales were flat, while adjusted gross margin increased 680 basis points to 61.8%, driven by synergies, operational efficiencies, and mix, partially offset by commodity cost inflation before pricing actions.
North American Operating-Margin Improvement
Tempur-Pedic Sealy North America's adjusted operating margin improved 400 basis points to 26.7%, driven by gross-margin improvement and partially offset by investments in cooperative advertising.
North American Synergy and Productivity Delivery
The company achieved $30 million of net sales and cost synergies in the second quarter, including approximately $15 million of cost synergies. Management also cited continued productivity improvements across operations and the broader organization.
Relative Outperformance at Third-Party Retailers
Sales with third-party retailers decreased 5% after normalizing for floor models, representing continued outperformance relative to an industry believed to be down mid to high single digits. Management said the company incrementally took share among these retailers.
Strong Cash Flow and Debt Reduction
Somnigroup delivered record operating cash flow of $236 million and free cash flow of $182 million. Net debt was reduced by more than $500 million over the trailing 12 months while the company continued supporting growth initiatives and returned over $160 million to shareholders through dividends and buybacks.
Leverage Returned to Target Range
Consolidated debt less cash was $4.3 billion, and leverage under the senior credit facility was 2.99x, returning to the company's target range of 2x to 3x.
Credit Facility Refinancing Improved Liquidity
The company refinanced and upsized its credit facility, extending maturities to 2031, increasing liquidity, and allowing it to reduce higher-cost debt and lower future interest expense.
Leggett & Platt Combination Progressing Ahead of Schedule
Somnigroup has received nearly all regulatory approvals required for the proposed Leggett & Platt combination, with the required shareholder vote scheduled for August 20. Management expects to close before the end of the third quarter, considerably ahead of original expectations.
Expected Leggett & Platt Strategic and Financial Benefits
Management said the combination is expected to strengthen vertical integration, enhance consumer-centric innovation, expand the addressable market into bedding and non-bedding industries, reduce financial leverage, drive operating cash flow, and deliver immediate adjusted EPS accretion before synergies.
2026 Guidance Maintained With Earnings Growth Assumption
The company expects full-year 2026 adjusted EPS of $2.85 to $3.15, with approximately $7.6 billion of sales at the midpoint after intercompany eliminations and adjusted EBITDA of approximately $1.39 billion at the midpoint. The midpoint implies approximately 10% year-over-year EPS growth.
Operational Efficiency and Capital Allocation Outlook
The 2026 outlook assumes reported gross margins slightly above 45%, including 100 basis points of net margin expansion from operational efficiencies, synergies, and operating leverage. CapEx is expected to be approximately $225 million, including $75 million for Mattress Firm store refreshes and the brand-wall program, and at least 50% of 2026 free cash flow is expected to go toward dividends and share repurchases.
Mattress Firm Share Mix and Advertising Investment
The company expects Tempur Sealy brands and private labels to represent mid-60s% of Mattress Firm total sales in 2026, representing an incremental $65 million of adjusted EBITDA benefit versus 2025. The outlook also includes approximately $690 million of advertising investment.
Future Strategic Initiatives Remain Active
The Mattress Firm marketing strategy is well underway and management said share gains support its effectiveness. Logistics consolidation, real estate optimization, and additional Mattress Firm store growth remain active opportunities, with further quantification expected around year-end and net new stores expected as marketplace gaps are addressed.
MX:SGI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed