Central Garden & Pet Company (CENT) Q1 2026 earnings summary

Executive summary

• Entered Q1 FY26 with strong momentum, improved gross margins, and solid EPS, despite shipment timing and portfolio optimization impacting year-over-year comparisons.

• Continued execution of cost and simplicity initiatives, including supply chain modernization, facility consolidations, and integration of distribution centers.

• Innovation and growth initiatives underway, with a focus on embedding innovation and efficiency across the organization.

• Completed the acquisition of Champion USA, strengthening the professional and animal health portfolio.

• Gross margin improved by 100–110 basis points to 30.8–30.9% due to productivity gains and favorable sales mix.

Financial highlights

• Net sales were $617–$617.4 million, down 6% year-over-year, mainly due to shipment timing and portfolio optimization.

• Non-GAAP gross profit was $190–$190.6 million, with gross margin expanding to 30.8–30.9%.

• Non-GAAP operating income was $24–$24.3 million (vs. $28 million prior year); non-GAAP net income was $12.8–$13 million (vs. $14 million prior year).

• GAAP diluted EPS was $0.11 (down from $0.21); non-GAAP diluted EPS was $0.21, consistent with prior year.

• Adjusted EBITDA was $49.8–$50 million, down from $55–$55.4 million year-over-year.

Outlook and guidance

• Reaffirmed Fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better, excluding impacts from future M&A or restructuring.

• Capex expected at $50–$60 million, focused on maintenance, productivity, and growth.

• Anticipates incremental gross tariff exposure of ~$20 million for the year, mainly in the pet segment, to be mitigated by pricing and supply chain actions.

• Expects increased M&A activity as market conditions normalize, with continued focus on margin-accretive consumables.

• Guidance reflects margin discipline, cost efficiency, and portfolio optimization amid inflation and macro uncertainty.