The earnings call presented a mix of optimism and caution. The company highlighted strong financial performance, successful merger completion, and international growth, but also faced challenges from declining U.S. market demand and economic uncertainties. Despite these challenges, the company anticipates market normalization and growth, driven by new product launches and strategic initiatives.

Company Guidance -

Q4 2024

During the Somnigroup Fourth Quarter 2024 Earnings Call, the company provided guidance for 2025, anticipating adjusted earnings per share (EPS) between $2.60 and $3.00, which represents a 10% growth over 2024. The projected sales for 2025, after intercompany eliminations, are expected to range from $7.5 billion to $7.8 billion. The company forecasts a stable global bedding industry with slight headwinds in the first half and recovery in the second half of 2025. Somnigroup plans to maintain its historical segments with the addition of a new segment for the Mattress Firm business, acquired in February 2025. They expect to realize at least $100 million in annual run-rate synergies by 2028, with first-year synergies benefiting approximately $10 million primarily in the latter half of the year. The expected capital expenditures for 2025 are approximately $250 million, including $50 million for refreshing Mattress Firm stores, with a normalized run-rate CapEx of $200 million in the long term.

Strong Financial Performance in 2024

Net sales were approximately $1.2 billion in Q4 2024 and adjusted EPS was $0.60, outperforming expectations. Full-year free cash flow was $569 million, the strongest since 2021.

Successful Merger and New Branding

Completed the merger of Mattress Firm and Tempur Sealy, forming Somnigroup International (SGI). SGI is poised to become a global provider of sleep solutions.

International Business Growth

International net sales increased 14% on a reported basis in Q4 2024, with strong performance in key markets such as the U.K., Germany, China, and Australia.

Significant Gross Margin Expansion

Achieved a year-over-year improvement of 130 basis points in consolidated gross margin in 2024.

Debt Reduction

Reduced debt-to-adjusted EBITDA leverage ratio from 2.9 times to 2.3 times over the year, demonstrating disciplined cash management.

Tempur Sealy (TPX) Earnings, Revenues Date & History

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TPX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 20, 2025	2024 (Q4)	0.56 / 0.60	0.53	13.21% (+0.07)	―	―
Nov 07, 2024	2024 (Q3)	0.81 / 0.82	0.77	6.49% (+0.05)	―
Aug 06, 2024	2024 (Q2)	0.64 / 0.63	0.58	8.62% (+0.05)	―
May 07, 2024	2024 (Q1)	0.48 / 0.50	0.53	-5.66% (-0.03)	―
Feb 08, 2024	2023 (Q4)	0.54 / 0.53	0.54	-1.85% (-0.01)	―
Nov 02, 2023	2023 (Q3)	0.81 / 0.77	0.78	-1.28% (-0.01)	―
Aug 03, 2023	2023 (Q2)	0.57 / 0.58	0.58	0.00% (0.00)	―
May 09, 2023	2023 (Q1)	0.51 / 0.53	0.69	-23.19% (-0.16)	―
Feb 09, 2023	2022 (Q4)	0.52 / 0.54	0.88	-38.64% (-0.34)	―
Nov 03, 2022	2022 (Q3)	0.75 / 0.78	0.88	-11.36% (-0.10)	―

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

TPX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$66.80	$65.23	-2.35%
Nov 07, 2024	$49.75	$53.87	+8.28%
Aug 06, 2024	$48.36	$47.99	-0.77%
May 07, 2024	$49.76	$51.68	+3.86%

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.