Somnigroup International Announces Financial Results for Second Quarter

August 6, 2026  by Karen Parrish in Business Strategy, Industry   

SECOND QUARTER 2026 FINANCIAL SUMMARY

- Total net sales decreased 3.0% to $1,823.5 million as compared to $1,880.8 million in the second quarter of 2025.

- Gross margin was 44.8% as compared to 44.0% in the second quarter of 2025. Adjusted gross margin⁽¹⁾ was 45.1% as compared to 44.2% in the second quarter of 2025.

- Operating income increased 12.1% to $201.7 million as compared to $179.9 million in the second quarter of 2025. Adjusted operating income⁽¹⁾ decreased 3.5% to $216.6 million as compared to $224.4 million in the second quarter of 2025.

- Net income increased 12.0% to $110.9 million as compared to $99.0 million in the second quarter of 2025. Adjusted net income⁽¹⁾ increased 8.4% to $122.6 million as compared to $113.1 million in the second quarter of 2025.

- Earnings per diluted share ("EPS") increased 10.6% to $0.52 as compared to $0.47 in the second quarter of 2025. Adjusted EPS⁽¹⁾ increased 9.4% to $0.58 as compared to $0.53 in the second quarter of 2025.

- Leverage based on the ratio of consolidated indebtedness less netted cash⁽¹⁾ to adjusted EBITDA⁽¹⁾ was 2.99 times for the trailing twelve months ended June 30, 2026 compared to 3.56 times for the trailing twelve months ended June 30, 2025.

Company Chairman and CEO Scott Thompson commented, "Our second-quarter performance demonstrates our global team's ability to execute in a dynamic environment. We delivered solid results while continuing to fully invest in our iconic brands, advancing our international growth strategy, preparing for the North American launch of our new Stearns & Foster collection and strengthening our multiple distribution platforms. The progress we are making across the business reinforces our confidence in our long-term strategy and our ability to create sustainable value."

Consolidated Financial Position

Consolidated net income increased 12.0% to $110.9 million as compared to $99.0 million in the second quarter of 2025. Adjusted net income⁽¹⁾ increased 8.4% to $122.6 million as compared to $113.1 million in the second quarter of 2025. EPS increased 10.6% to $0.52 as compared to $0.47 in the second quarter of 2025. Adjusted EPS⁽¹⁾ increased 9.4% to $0.58 as compared to $0.53 in the second quarter of 2025.

The Company ended the second quarter of 2026 with total debt of $4.4 billion and consolidated indebtedness less netted cash⁽¹⁾ of $4.3 billion. Leverage based on the ratio of consolidated indebtedness less netted cash⁽¹⁾ to adjusted EBITDA⁽¹⁾ was 2.99 times for the trailing twelve months ended June 30, 2026.

Financial Guidance
For the full year 2026, the Company revised its expectations for adjusted EPS⁽¹⁾ to a range of $2.85 to $3.15, which represents an approximate 11% increase from 2025 adjusted EPS⁽¹⁾ at the mid-point of the range. The Company noted that its expectations are based on information available at the time of this release, and are subject to changing conditions and risks, many of which are outside the Company's control, including the possible imposition of new tariffs or retaliatory tariffs, uncertainties arising from global and geo-political events (including the war in Ukraine and the war in the Middle East) and any related effect on pricing, sales and supply of materials, labor costs and other employment-related costs, increases in existing tariffs and other changes in trade policy and regulations and the resulting uncertainty of the macroeconomic environment. The Company is unable to reconcile forward–looking adjusted EPS, a non–GAAP financial measure, to EPS, its most directly comparable forward–looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact EPS in 2026.

Proposed Acquisition of Leggett & Platt
On April 13, 2026, the Company announced it has signed a definitive agreement to acquire Leggett & Platt, Incorporated ("Leggett & Platt"), a diversified component manufacturer, in an all-stock transaction valued at approximately $2.5 billion based on the closing price of Somnigroup International's common stock as of April 10, 2026 and inclusive of Leggett & Platt's existing indebtedness. The Company expects the transaction to close by the end of the third quarter of 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt's shareholders and receipt of applicable regulatory approvals. A separate press release related to the announcement of this transaction can be found on the Company's investor relations website at investor.somnigroup.com.

Dividend Declared
The Company announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share, payable on September 3, 2026 to shareholders of record at the close of business on August 20, 2026.

Conference Call Information
Somnigroup International Inc. will host a live conference call to discuss financial results today, Aug. 6. After the conference call, a webcast replay will remain available on the investor relations section of the Company's website for 30 days.