Somnigroup International (SGI) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 net sales of $1.9 billion, up 55% year-over-year, and full-year sales of $7.48 billion, up 51.6%, driven by the Mattress Firm acquisition and direct channel expansion.

• Q4 2025 adjusted EPS rose 20% to $0.72, with net income nearly doubling to $141 million; full-year adjusted EPS increased 5.9% to $2.70.

• Completed Mattress Firm combination, forming Somnigroup International, accelerating synergy realization and driving significant sales and cost synergies.

• Vertically integrated model, innovation, and omnichannel reach supported operational excellence, margin expansion, and share gains across all segments.

• International business delivered double-digit sales growth, outpacing the broader industry.

Financial highlights

• Q4 2025 adjusted EBITDA increased 59% to $349 million; full-year adjusted EBITDA reached $1.43 billion.

• Mattress Firm Q4 net sales were $892.1 million, with same-store sales flat and adjusted gross margin at 32.4%.

• North American adjusted gross margin rose to 59.5%, and operating margin improved to 27.6%, mainly due to intercompany sales elimination.

• International net sales grew 13% reported and 9% constant currency in Q4; gross margin increased to 51.1%.

• Q4 2025 direct sales accounted for 65.2% of net sales, up from 26.9% a year earlier.

Outlook and guidance

• 2026 adjusted EPS guidance set at $3.00–$3.40, with sales midpoint of $7.9 billion after intercompany eliminations.

• Long-term adjusted EPS CAGR targeted at 24%, reaching ~$5.15 by 2028.

• 2026 CapEx expected at $250 million, including $75 million for Mattress Firm store refreshes.

• 2026 gross margin expected slightly above 45%, with 100 bps expansion from operational efficiencies.

• Industry volumes and demand expected to grow at low single digits in 2026.