Education
About Us
Working with TipRanks
Follow Us
Somnigroup International (SGI)
NYSE:SGI
Earnings Data
Report Date
May 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.6Last Year’s EPS
0.49Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong company-level execution: record 2025 sales, EBITDA and EPS growth, accelerated and upsized synergy realization from the Mattress Firm combination, robust international growth, margin expansion in North America, and an improved balance sheet trajectory with increased shareholder returns. These positives were delivered despite an industry that is at a multi-year low and near-term challenges including direct-channel softness, weather-related lost sales, intercompany elimination impacts to reported revenue and a still‑elevated debt balance. Given that the company showed multiple operational wins, raised synergy and long‑term EPS targets, and provided constructive 2026 guidance, the highlights meaningfully outweigh the lowlights.Company Guidance
Record Financial Performance
2025 consolidated net sales up ~55% to $1.90B; adjusted EBITDA up ~59% to $349M; adjusted EPS $0.72, up 20% year-over-year — achieved despite a weak industry backdrop.
Successful Mattress Firm Combination and Upsized Synergy Targets
Combination executed and integrated under a holding structure; total EBITDA synergies increased to $225M (cost synergies $125M; sales synergies $100M). Cost synergies: $20M realized in 2025, $55M expected in 2026, $50M in 2027. Sales synergies: $60M realized in 2025 with an incremental $40M expected in 2026 toward a $100M run-rate target. Company is now ~65% direct-to-consumer.
International Growth Momentum
International net sales grew ~13% reported and ~9% on a constant currency basis; international gross margin expanded ~40 bps to 51.1% and operating margin improved ~110 bps to 22.4%, driven by product lineup, distribution expansion and marketing.
North America Tempur‑Sealy Outperformance and Margin Expansion
Like-for-like Tempur‑Sealy wholesale net sales rose ~6% in Q4; North American like-for-like gross margin improved ~250 bps and adjusted operating margin expanded ~450 bps year-over-year (reported NA adjusted gross margin benefited from intercompany elimination and was reported at ~59.5%).
Mattress Firm Operational & Marketing Wins
Mattress Firm delivered stronger-than-market results with adjusted gross margin of 32.4% and adjusted operating margin of 5.4%; launched Sealy Posturepedic (largest launch in company history) with >65,000 additional samples shipped; new 'Sleep Easy' campaign achieved all-time high market research scores and attracted incremental advertising commitments from third-party vendors. Company plans $150M of Mattress Firm store refresh investments (2025–2027) and expanded Tempur brand wall rollout to drive higher retail ASP.
Capital Allocation Discipline and Shareholder Returns
Leverage improved to 3.2x (down nearly one-third of a turn vs acquisition date) with consolidated net debt (debt less cash) of $4.6B; target leverage of 2–3x expected within six months. Board increased quarterly dividend 13% to $0.17 (sixth consecutive year of increases).
2026 Guidance and Upgraded Long‑Term Targets
2026 adjusted EPS guidance of $3.00–$3.40 with a sales midpoint of ~$7.9B (after intercompany eliminations); adjusted EBITDA implied around $1.45B at midpoint. Raised 2028 EPS target to $5.15 (24% CAGR from 2025) with targets of mid-single digit annual sales growth and double-digit annual adjusted EBITDA growth.
Significant Marketing Investment to Drive Demand
Company plans substantial advertising support (~$720M referenced) to support launches, brand awareness and retail traffic as part of a demand-driving strategy tied to expected share gains.
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
SGI Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 17, 2026 | $96.04 | $87.78 | -8.60% |
Nov 06, 2025 | $79.46 | $88.82 | +11.78% |
Aug 07, 2025 | $73.37 | $73.69 | +0.44% |
May 08, 2025 | $60.23 | $59.64 | -0.98% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Somnigroup International (SGI) report earnings?
Somnigroup International (SGI) is schdueled to report earning on May 12, 2026, Before Open (Confirmed).
What is Somnigroup International (SGI) earnings time?
Somnigroup International (SGI) earnings time is at May 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SGI EPS forecast?
SGI EPS forecast for the fiscal quarter 2026 (Q1) is 0.6.