Somnigroup International Inc. reported strong first-quarter 2026 results, with net sales increasing 12.3% year-on-year to $1.8 billion, driven largely by the inclusion of a full quarter of sales from Mattress Firm following its acquisition in February 2025.
The company posted significant profitability improvements, with operating income rising to $187.1 million from $13.2 million a year earlier, while net income reached $104.2 million compared with a loss of $33.1 million in the same period last year. Adjusted earnings per share increased 20.4% to $0.59.
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Scott Thompson, Chairman and CEO of Somnigroup, said the results reflected the company's operational discipline and the strength of its omnichannel business model despite difficult market conditions. He noted that the group's scale, portfolio of established brands and retail capabilities continue to support long-term growth.
Mattress Firm delivered a 49.2% increase in sales to $885.9 million, supported by the inclusion of a full quarter of trading. However, adjusted operating margin declined to 4.9% due to promotional investments, product mix pressures and fixed-cost deleverage.
Within Tempur Sealy North America, sales declined 20.2% to $563.5 million, primarily because of accounting eliminations related to Mattress Firm. Despite lower sales, profitability improved substantially as synergies from the acquisition, operational efficiencies and lower launch costs boosted adjusted operating margin to 24.3%.
Internationally, Tempur Sealy International recorded sales growth of 15.5% to $352.1 million, supported by strong demand across key markets. On a constant currency basis, sales rose 7.2%, while operating margin improved to 18.4%.
The company generated record first-quarter operating cash flow of $246.5 million and ended the quarter with total debt of $4.6 billion. Its leverage ratio stood at 3.07 times adjusted EBITDA, remaining comfortably within covenant requirements.
Somnigroup reaffirmed its full-year guidance, expecting adjusted EPS between $3.00 and $3.40 for 2026, representing projected growth of approximately 19% at the midpoint.
The company also highlighted its proposed acquisition of Leggett & Platt in a deal valued at approximately $2.5 billion, expected to close by the end of 2026 subject to shareholder and regulatory approval.
More information:
Somnigroup International
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