Somnigroup International Inc (NYSE:SGI) on Tuesday delivered fourth-quarter adjusted earnings that met analyst projections, though revenue came in below market expectations.
Shares of the mattress maker declined 0.99% in pre-market trading following the release.
The company reported adjusted earnings per share of $0.72 for the quarter, matching Wall Street estimates.
Revenue totaled $1.87 billion, missing the $1.93 billion consensus forecast.
Even so, consolidated sales jumped 54.7% year over year, largely reflecting the addition of $892.1 million in revenue from Mattress Firm.
Operating income climbed 93.7% to $247.1 million, up from $127.6 million in the fourth quarter of 2024. Adjusted operating income rose 59.8% to $267.8 million.
Gross margin expanded to 44.0%, compared with 40.1% in the prior-year period.
“We are pleased to report record fourth quarter net sales and adjusted EBITDA, along with a 20% increase in adjusted EPS,” said Scott Thompson, Company Chairman and CEO. “These results mark a continuation of the strength we displayed throughout the year, as we enhanced our competitive position and executed a successful combination with Mattress Firm.”
For fiscal 2026, Somnigroup projected adjusted EPS between $3.00 and $3.40, implying roughly 19% growth at the midpoint compared with 2025. The company also raised its quarterly dividend by 13% to $0.17 per share.
Thompson added that the group expects adjusted EPS to rise from $2.70 in 2025 to about $5.15 by 2028, equating to a compound annual growth rate of 24%.