Overview

• Bedding company Q4 revenue rose 55% but missed analyst expectations

• Adjusted EPS for Q4 met analyst expectations

• Company increased quarterly cash dividend by 13% to $0.17 per share

Outlook

• Somnigroup expects 2026 adjusted EPS between $3.00 and $3.40

• Somnigroup targeting sales to grow at a compound annual rate of mid single digits in long-term

Result Drivers

• MATTRESS FIRM ACQUISITION - The acquisition of Mattress Firm significantly contributed to sales and operating income growth

• GROSS MARGIN IMPROVEMENT - Gross margin improved due to operational efficiencies and favorable sales mix

• SALES IMPACT - Tempur Sealy North America sales were negatively impacted by the accounting elimination of sales to Mattress Firm and the divestiture of Sleep Outfitters

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Miss	$1.87 bln	$1.93 bln (10 Analysts)
Q4 Adjusted EPS	Meet	$0.72	$0.72 (10 Analysts)
Q4 EPS		$0.66
Q4 Adjusted Net Income	Slight Beat*	$153.70 mln	$152.88 mln (9 Analysts)
Q4 Net Income		$140.80 mln
Q4 Adjusted Operating Income	Slight Miss*	$267.80 mln	$269.48 mln (9 Analysts)
Q4 Adjusted Gross Margin		44.90%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home furnishings peer group is "buy"

• Wall Street's median 12-month price target for Somnigroup International Inc is $105.00, about 9.3% above its February 13 closing price of $96.04

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn7bCKlHa

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