Somnigroup International Inc. (SGI)
NYSE:SGI
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Earnings Data
Report Date
Jul 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.57Last Year’s EPS
0.53Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call communicated a predominantly positive operational and financial performance: strong revenue growth (+12%), robust margin expansion and cash generation, meaningful synergy realization, international outperformance, and a clear plan to offset commodity inflation via pricing. Notable near-term headwinds include weaker industry demand (mid-single-digit decline), Mattress Firm margin pressure, a Q2 commodity-related profit headwind (~$10 million) and elevated leverage (3.1x) that management expects to remediate. The strategic combination with Leggett & Platt and reaffirmed 2026 guidance (EPS $3.00–$3.40) further support a constructive outlook despite cyclical and timing risks.Company Guidance
Strategic M&A: Leggett & Platt Combination
Announced definitive agreement to combine with Leggett & Platt (transaction value ~ $2.5 billion including assumption), expected to close by year-end, accretive to adjusted EPS in year one and to generate additional synergies and vertical-integration benefits.
Revenue Growth
Net sales rose 12% year-over-year to $1.8 billion in Q1 2026, reflecting solid topline growth across segments.
Strong Profitability Expansion
Adjusted EBITDA increased ~20% to $297 million and adjusted EPS grew ~20% to $0.59, demonstrating operating leverage on 12% sales growth.
Material Margin Improvement in North America
North America adjusted gross margin improved ~1,300 basis points to 58.3% (including 600 bp stub benefit); adjusted operating margin improved ~710 basis points to 24.3% on realized synergies and efficiencies.
International Outperformance
Tempur Sealy International delivered reported sales growth of 16% and 7% on a constant currency basis; international gross margin rose 140 basis points to 50.4% and operating margin rose 160 basis points to 18.4%.
Record Cash Generation and Debt Reduction
Record Q1 operating cash flow of $247 million and free cash flow of $186 million; net debt reduced by nearly $500 million over the trailing 12 months and ~$250 million returned to shareholders via dividends and buybacks.
Mattress Firm Scale and Execution
Mattress Firm net sales of ~$886 million with flat same-store sales (outperforming an industry down mid-single digits); on track with $150 million store refresh program (approximately $40 million spent to date).
Synergy Realization
Achieved $15 million of net benefit from sales synergies and $50 million from cost synergies in Q1, supporting margin and cash flow expansion.
Pricing Action to Offset Commodity Inflation
Company announced modest global pricing actions expected to be dollar-neutral to full-year '26 earnings: ~$50 million lift to back-half 2026 sales and ~$100 million annualized pricing benefit expected to offset inflation.
2026 Financial Outlook
Reaffirmed 2026 guidance: adjusted EPS $3.00–$3.40, sales midpoint ~ $7.8 billion (after intercompany eliminations), reported gross margin slightly above 45%, and midpoint adjusted EBITDA of ~ $1.45 billion; CapEx ~ $225 million.
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 |
|---|---|---|---|
May 07, 2026 | $78.42 | $70.49 | -10.11% |
Feb 17, 2026 | $95.60 | $87.38 | -8.60% |
Nov 06, 2025 | $79.10 | $88.42 | +11.78% |
Aug 07, 2025 | $73.04 | $73.36 | +0.43% |
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 Inc. (SGI) report earnings?
Somnigroup International Inc. (SGI) is schdueled to report earning on Jul 23, 2026, Before Open (Confirmed).
What is Somnigroup International Inc. (SGI) earnings time?
Somnigroup International Inc. (SGI) earnings time is at Jul 23, 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 (Q2) is 0.57.