Somnigroup Third-Quarter Adjusted EPS Rises 9.5% to Record $1.04 as Leggett & Platt Deal Lifts Sales
Somnigroup International said Monday that third-quarter adjusted earnings per share rose 9.5% to a record $1.04, as its newly acquired Leggett & Platt business helped lift net sales 10.8% to a record $2.35 billion, according to its earnings release filed with an 8-K.
GAAP EPS fell 10.8% to $0.74 from $0.83. The Leggett & Platt acquisition closed Aug. 26, 2026, and the quarter includes Leggett & Platt's results from that date through Sept. 30, a stub period that contributed $372.6 million of net sales.
The company revised its full-year 2026 adjusted EPS guidance to a range of $2.85 to $2.95. At the midpoint, that represents an estimated 7% increase from 2025 adjusted EPS, the company said.
Net income fell 7.8% to $163.5 million, while adjusted net income rose 13.7% to a record $228.9 million. Operating income declined 5.5% to $297.4 million, primarily because of costs related to the Leggett & Platt acquisition, the company said, but adjusted operating income increased 6.0% to a record $364.2 million. Gross margin narrowed to 42.0% from 44.9%.
Chairman and CEO Scott Thompson said the company delivered "record adjusted EPS" while "executing our strategy in a challenging macroeconomic environment," and that the Leggett & Platt deal improved leverage and its supply chain.
Outside the acquisition, sales were softer. Mattress Firm net sales fell 5.8% to $1.01 billion, mainly on softer online sales, with same-store sales down slightly. Tempur Sealy North America net sales also dropped 5.8%, to $693.1 million, which the company attributed to market conditions.
Profitability in North America moved the other way. Tempur Sealy North America's adjusted gross margin improved 690 basis points to 65.5%, driven by tariff refunds and synergies from the Mattress Firm acquisition, and its adjusted operating margin rose 450 basis points to 34.0%.
Tempur Sealy International net sales fell 12.3% to $276.8 million, mainly because sales at Dreams dropped 34.7% after the implementation of a new ERP system caused operational disruption throughout the quarter. Excluding Dreams, the international business grew high single digits, the company said.
Somnigroup generated $349 million in cash flow from operations in the quarter and ended it with total debt of $5.6 billion. Its leverage ratio, consolidated indebtedness less netted cash to adjusted EBITDA, fell to 2.69 times from 3.28 times a year earlier.
The board declared a quarterly cash dividend of $0.17 per share, payable Dec. 7 to shareholders of record as of Nov. 23.
By the numbers
- Net sales: $2.35 billion, up 10.8%
- Adjusted EPS: $1.04, up 9.5%
- GAAP EPS: $0.74, down 10.8%
- Leggett & Platt stub-period sales: $372.6 million
- 2026 adjusted EPS guidance: $2.85 to $2.95
Sources
- Somnigroup International Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and dividend release (Exhibit 99.2), filed Nov. 9, 2026 (accession 0001206264-26-000129)
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