Somnigroup reports higher Q2 income, raises 2026 EPS outlook
Somnigroup International said second-quarter net income, earnings per share and cash flow rose, and it lifted its full-year adjusted EPS guidance.
Somnigroup International Inc. said Aug. 6 that second-quarter net income, earnings per share and cash flow rose, while it raised its full-year 2026 adjusted earnings outlook and declared a quarterly dividend.
Quarterly results
For the quarter ended June 30, 2026, consolidated net income rose 12.0% from a year earlier to $110.9 million, Somnigroup said in a release. Adjusted net income increased 8.4% to $122.6 million. Earnings per share rose 10.6% to $0.52, and adjusted EPS increased 9.4% to $0.58.
The company said it generated record second-quarter cash flows from operations of $236 million. At quarter end, total debt stood at $4.4 billion, while consolidated indebtedness less netted cash was $4.3 billion. Leverage was 2.99 times trailing-twelve-month adjusted EBITDA, the company said.
Segment performance
Somnigroup said Mattress Firm net sales fell 2.8% to $922.2 million. Same-store sales were slightly higher than a year earlier. Gross margin was 33.3%, and adjusted gross margin was also 33.3%. Operating margin was 6.4%, with adjusted operating margin at 6.5%.
In North America, reported net sales fell 5.7% to $601.8 million, though sales to Mattress Firm increased 11.6% to $294.0 million. Gross margin improved to 61.1%, and adjusted gross margin rose to 61.8%. Operating margin climbed to 25.9%, with adjusted operating margin at 26.7%.
Tempur Sealy International net sales rose 2.0% to $299.5 million, or 1.3% on a constant-currency basis. Gross margin was 47.4%, and operating margin was 12.4%.
North America margins improve
The company said corporate operating expense declined to $50.8 million from $53.2 million a year earlier. It also said North America margins improved year over year.
Somnigroup revised full-year 2026 adjusted EPS guidance to $2.85 to $3.15. At the midpoint, that implies about 11% growth from 2025 adjusted EPS, the company said.
The company said its outlook reflects uncertainty tied to possible new or retaliatory tariffs, geopolitical events including the wars in Ukraine and the Middle East, and other macroeconomic and trade-policy risks. It also said it raised prices after quarter end to reflect higher input costs.
Acquisition and dividend
Somnigroup repeated that on April 13 it signed a definitive agreement to acquire Leggett & Platt in an all-stock transaction valued at about $2.5 billion, including Leggett & Platt’s existing debt. The company said it expects the deal to close by the end of the third quarter of 2026, pending shareholder and regulatory approvals.
The board also declared a quarterly cash dividend of $0.17 per share. The dividend is payable Sept. 3, 2026, to shareholders of record at the close of business on Aug. 20, 2026.
What the company said next
Somnigroup said Chairman and Chief Executive Scott Thompson commented on the quarter and that the company would hold a conference call on Aug. 6 at 8:00 a.m. Eastern time. The call will be webcast on the company’s investor relations website.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
View the Web StoryA visual, tap-through version of this reportThis is the AMP version of the article. Read the full article on Atlas Watchline.