Somnigroup International Inc.

How Somnigroup makes money

Somnigroup International makes and sells bedding, including Tempur-Pedic, Sealy and Stearns & Foster mattresses. It also owns retailer Mattress Firm and the Leggett & Platt components and materials business. Its shares trade on the New York Stock Exchange as SGI.

Latest quarterly results

Leggett contributed $372.6 million of external sales from August 26 through September 30, 2026. Reported sales at Mattress Firm and Tempur Sealy North America each fell 5.8%; Tempur Sealy International fell 12.3%. Dreams was disrupted by a new business-management system, while International sales excluding Dreams grew by a high single-digit percentage.

Forecast and cash generation

On November 9, Somnigroup revised its 2026 adjusted EPS range to $2.85 to $2.95 from August's $2.85 to $3.15. The new $2.90 midpoint includes about 10 cents of partial-year Leggett earnings. Adjusted EPS removes selected transaction, acquisition, financing and other charges, with tax effects.

Operating cash flow was $349 million in the third quarter and $831.9 million in the first nine months. Cash and equivalents were $612.1 million at September 30, compared with $134.9 million at the end of 2025.

Completed acquisition and leverage

The Leggett & Platt acquisition closed on August 26, 2026. The enlarged business brings together mattress brands, retail distribution and components manufacturing. Leggett's results enter the consolidated accounts from the closing date.

Somnigroup reported approximately $5.6 billion in total debt and $5.01 billion in covenant net debt at September 30. Its 2.69-times covenant leverage ratio uses adjusted EBITDA of $1.86 billion for the preceding twelve months. That earnings denominator includes $330.5 million from Leggett before the acquisition and $145 million of expected future cost savings: $75 million from Leggett and $70 million from Mattress Firm.

Our analysis of acquisition growth and the older businesses compares the reported sales increase with the performance outside Leggett and the earlier earnings forecast.