SGI

Somnigroup International has rewarded patient holders over the past three years, yet recent price weakness now puts the spotlight squarely on one question: Are the cash flows that Somnigroup generates enough to justify where the stock trades today? - Somnigroup International has delivered a 62.2% share price gain over three years, which raises the stakes on whether that move is matched by its underlying cash generation. - The group is set to report its next set of financial results on 9 November 2026, an event that may reshape expectations around how quickly recent acquisitions and global mattress retail expansion turn into cash inflows. - What if you looked at Somnigroup International through its earnings instead? See why Somnigroup International's 24.8x P/E tells a different valuation story. The issue now is whether Somnigroup's current share price can be explained by the intrinsic value suggested by its cash flows. You can explore the same cash flow question you are asking about Somnigroup International across a wider set of companies by scanning 35 high quality undervalued stocks. The Discounted Cash Flow (DCF) model here looks at the cash Somnigroup International could return to shareholders over time and discounts it back to today. On the latest twelve month view, the group produced around $804.1 million of free cash flow, and the valuation work assumes this pool of cash grows rather than shrinks, with projected annual free cash flows stepping up from just over $1.0b into the mid $1.7b range over the coming decade. Those forecasts blend one analyst view through 2030 with a gentler estimated growth rate of roughly 3% to 4% thereafter. That stream of projected cash, when run through the DCF model, puts Somnigroup International's estimated intrinsic value substantially above the current share price of $62.80. The planned November 9, 2026 Q3 results update, including any commentary on how the Mattress Firm acquisition and broader retail footprint are affecting cash generation, helps explain why the market is still debating how fully those future flows should be reflected in the price. Find out what Somnigroup International could be worth using our Discounted Cash Flow (DCF) estimate. Simply Wall St Narratives pick up where the Somnigroup International valuation puzzle leaves off and explain which future paths for growth, margins and earnings would need to occur for the stock to appear meaningfully higher or lower than today's price, all housed on the Community page. Each narrative links a specific set of catalysts and risks for Somnigroup International to a single fair value view so you can track which storyline gains traction over time. One of the top community narratives on Somnigroup International: 33% undervalued "The Leggett & Platt deal is structured to give Somnigroup direct control over a larger part of its supply chain, which can affect costs..." Discover why this Narrative puts Somnigroup International at 33% undervalued. Before drawing your own line under Somnigroup International, it helps to know that independent checks have flagged specific concerns that sit alongside the valuation story and may change how you view the risk profile. Take a closer look at 1 warning sign before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SGI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ACCELERATES CUSTOMER COLLABORATION, INNOVATION & RESPONSIVENESS SHANGHAI, CHINA / ACCESS Newswire / September 22, 2026 / Leggett Dynamics today celebrated the grand opening of its expanded Asia Pacific headquarters in Shanghai, China marking the latest investment in the company's growth strategy for the region. The expanded facility includes 40 percent more office space, an innovation showroom and multifunctional space for training, events and enhanced collaboration among customers, suppliers and internal teams. "We're not simply expanding our Asia Pacific headquarters in Shanghai. We're expanding our capability to innovate faster, collaborate more closely and create greater value for our customers. This is critical in a hyper competitive market like China which is redefining the user experience in vehicles and turning comfort and motion into the new battleground globally for brand differentiation," said Marinela Cirstea, President of Leggett Dynamics. Today's grand opening in Shanghai reflects Leggett Dynamics' long-term commitment to Asia Pacific and is part of a broader strategy to expand regional capabilities, deepen customer partnerships and accelerate innovation. During today's ceremony, Zhou Li, Management Committee Director of Jinqiao Development Zone, said, "We are honored to celebrate this important milestone with Leggett Dynamics. The company's expanded regional headquarters and new technology showroom reflect not only its confidence in Shanghai, but also the strength of Jinqiao as a place where global companies can innovate and grow." Event attendees toured the new facility including an innovation showroom featuring Leggett Dynamics' full portfolio of latest generation comfort and motion systems. The showroom will serve not only as a product display venue, but also as a co-creation hub where customers, R&D teams and industry experts can jointly define next-generation mobility experiences. To support Leggett Dynamics growth plan in China, the company recently launched an official WeChat social media channel to strengthen engagement with customers, suppliers, employees and industry stakeholders. The channel features company news, product information, events, awards and more. About Leggett Dynamics Leggett Dynamics is the brand representing the automotive businesses of Leggett & Platt, Incorporated. Under the Leggett Dynamics brand, these businesses deliver eMotion and Comfort solutions for automotive seating, liftgates, doors, sunroofs and more. Leggett Dynamics businesses operate globally, with a footprint spanning 28 locations across 12 countries and employing more than 6,200 people, with key locations in Detroit, Nuremberg and Shanghai. As a strategic partner to more than 140 customers worldwide, Leggett Dynamics offers a Comfort Systems Platform (massage, lumbar, bolster and suspension), Motion Systems Platform (motors, actuators and cables), Software & Integration Platform and Innovation Services, including advanced engineering co-development and human factors studies. Leggett Dynamics is a brand within Leggett & Platt, Inc., a wholly owned subsidiary of Somnigroup International Inc. (NYSE:SGI) and a manufacturer of residential, industrial and furniture products that has been engineering comfort for over 140 years across the places where people sleep, work, live and move. ### Media Contacts Liwen TaoManager of AP Branding, Marketing & CommunicationsLeggett DynamicsEmail: [email protected] Allison VincentDirector of Global Branding, Marketing & CommunicationsLeggett DynamicsEmail: [email protected]: +1 313.847.6331 Press Kit: Click here SOURCE: Leggett Dynamics Related Documents: Marinela_Cirstea (3) Zhou Li, Mngmt Committee Dir_Jinqiao Development Zone_Shanghai Leggett Dynamics Logo View the original press release on ACCESS Newswire

It has been about a month since the last earnings report for Lowe's (LOW). Shares have lost about 10.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Lowe's due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Lowe's Companies, Inc. before we dive into how investors and analysts have reacted as of late. Lowe’s reported second-quarter fiscal 2026 adjusted earnings of $4.40 per share, up 1.6% year over year, surpassing the Zacks Consensus Estimate of $4.22. Revenues rose 8.3% to $25,956 million but missed the consensus estimate of $26,135 million.Results were supported by strength in Pro and home services, and a 15.7% increase in online sales, while persistent DIY macro pressure tempered demand. The quarter included a benefit of 11 cents per share from tariff refunds. Lowe’s also lowered its fiscal 2026 outlook, bringing its sales, comparable-sales, margin and earnings expectations down to the lower end of its previously issued ranges to reflect first-half performance and current demand trends. Reported earnings were $4.27 per share, unchanged from the year-ago quarter. Lowe’s recognized $96 million in pre-tax expenses tied to intangible asset amortization from the Artisan Design Group and Foundation Building Materials acquisitions.The non-GAAP reconciliation added back a net 13 cents per share related to those acquisition expenses. In the prior-year quarter, acquisition-related items reduced earnings by a net 6 cents per share. Pre-tax earnings increased to $3.18 billion from $3.16 billion, while net interest expense rose to $374 million from $313 million. Comparable sales increased 0.2% year over year and marked the fifth consecutive quarter of positive comps. Pro and home services were key contributors, while discretionary DIY spending remained pressured by the macro environment. Management highlighted continued execution of the company’s Total Home strategy. The online business remained another source of momentum during the quarter. Management said sustained growth across Pro, online and home services supported positive comparable sales. As of July 31, 2026, Lowe’s operated 1,761 stores representing 196.0 million square feet of retail selling space. Gross profit increased 5.9% year over year to $8.58 billion from $8.10 billion. Gross margin fell 80 basis points year over year to 33%.Selling, general and administrative expenses increased 6.7% to $4.46 billion, although SG&A as a percentage of sales improved to 17.2% from 17.4%.Depreciation and amortization rose to $572 million from $457 million. Operating income advanced 2.3% to $3.55 billion, but operating margin narrowed to 13.7% from 14.5%. Cash and cash equivalents stood at $3.17 billion at quarter-end compared with $4.86 billion a year earlier. Merchandise inventory increased to $17.7 billion from $16.3 billion, while long-term debt, excluding current maturities, rose to $35.2 billion from $30.6 billion. Total assets were $55.9 billion.For the first six months of fiscal 2026, net cash provided by operating activities was $7.01 billion compared with $7.61 billion in the prior-year period. Capital expenditures were $1.06 billion. Cash dividend payments totaled $1.35 billion, and common-stock repurchases were $366 million. Net cash used in financing activities reached $4.06 billion. Lowe’s expects fiscal 2026 total sales of $92 billion compared with its prior range of $92-$94 billion. Comparable sales are projected to be flat, versus the previous expectation of flat to up 2%. The revision reflects first-half operating results and current demand trends.The company projects an operating margin of 11.2%, versus the earlier 11.2-11.4% range and an adjusted operating margin of 11.6%, compared with 11.6-11.8% previously. Earnings are expected to be about $11.75 per share, compared with the prior expected range of $11.75 to $12.25 per share. Adjusted earnings are forecast at about $12.25 per share compared with the prior expected range of $12.25 to $12.75 per share. Capital expenditures remain targeted at up to $2.50 billion.The outlook includes tariff refunds recognized in the second quarter but excludes potential additional tariff refunds in the second half. Lowe’s also expects net interest expense of about $1.60 billion and an effective tax rate of roughly 24.5%. Adjusted guidance excludes an expected 40-basis-point operating-margin impact and an after-tax impact of 50 cents per share from acquisition-related intangible asset amortization. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -7.5% due to these changes. At this time, Lowe's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lowe's has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Lowe's is part of the Zacks Retail - Home Furnishings industry. Over the past month, Somnigroup International (SGI), a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2026 more than a month ago. Somnigroup International reported revenues of $1.82 billion in the last reported quarter, representing a year-over-year change of -3%. EPS of $0.58 for the same period compares with $0.53 a year ago. For the current quarter, Somnigroup International is expected to post earnings of $1.06 per share, indicating a change of +11.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.6% over the last 30 days. Somnigroup International has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Somnigroup International Inc. (SGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Somnigroup International stock has delivered a strong 61.6% gain over the past three years, yet current checks send a mixed message, with a Discounted Cash Flow (DCF) intrinsic value estimate pointing to upside while market based multiples lean the other way. Somnigroup International is up 61.6% over the past three years, which puts recent share price weakness in a different light for long term holders. Analyst optimism around the business, including recent leadership changes at Leggett & Platt that may support execution, sits against the ongoing risk that consumer cyclical demand and cash generation could underwhelm these expectations. The stock carries a mixed value profile, with a 3 out of 6 score that points to neither a clear bargain nor a clearly expensive stock on the broader checks. The issue now is whether the 22.6% discount implied by the DCF intrinsic value estimate offers enough appeal, given that earnings based multiples currently suggest Somnigroup International is priced on the rich side. Spot emerging opportunities that share Somnigroup International's mixed valuation profile by scanning our hand picked list of 47 high quality undervalued stocks, which highlights both solid quality and discounted pricing signals. The Discounted Cash Flow (DCF) approach here uses projected free cash flows to estimate what Somnigroup International could be worth today. The model takes the latest twelve month free cash flow of about $804.1 million and assumes that cash flows continue to grow from this base rather than reset lower. On that set of projections, the 2 Stage Free Cash Flow to Equity model arrives at an estimated intrinsic value of about $90 per share. Compared with the current share price, that intrinsic value suggests Somnigroup International screens as roughly 22.6% undervalued. Recent analyst price targets in the low to mid $90 range help explain why some investors may see the current discount as aligned with a cash flow based view rather than a clear outlier. On this cash flow view, Somnigroup International stock currently looks undervalued relative to the DCF derived intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Somnigroup International is undervalued by 22.6%. Track this in your watchlist or portfolio, or discover 47 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Somnigroup International. P/E is a useful lens for Somnigroup International because earnings are a key focus for investors comparing it with other Consumer Durables stocks. On this measure, the stock trades on about 27.6x earnings, which is well above the Consumer Durables industry average of roughly 14.0x and also above the peer group average of about 16.6x. That already puts Somnigroup in a premium zone relative to many similar businesses. The tailored fair P/E multiple for Somnigroup International is estimated at around 25.0x. The current 27.6x level therefore sits a few turns higher than what this framework suggests would be appropriate given the company’s profile and risks. Some investors may connect this richer multiple to positive analyst sentiment around Somnigroup’s business and leadership; however, the numbers indicate that the stock is pricing in a significant degree of optimism on earnings. On the P/E multiple, Somnigroup International stock currently screens as overvalued compared with its own fair ratio and the wider Consumer Durables group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Somnigroup International pick up where this valuation puzzle leaves off and spell out what growth, margin and earnings paths would need to hold for the stock to be worth materially more or less than today’s price, based on the community’s views. Rather than relying on a single multiple or model output, each Narrative lays out the assumptions that sit behind its fair value so you can compare them with Somnigroup International's actual results as they are reported. These sit on Simply Wall St’s Community page and are intended to give you a more explicit link between Somnigroup International's current pricing and the expectations that might be embedded in it. Community views on Somnigroup International split into two very different futures for the stock. Bull case: 23% undervalued Read the full Bull Case to see why Somnigroup International could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Somnigroup International could be overvalued Do you think there's more to the story for Somnigroup International? Head over to our Community to see what others are saying! Somnigroup International screens as undervalued on a Discounted Cash Flow (DCF) view, yet it looks overvalued on earnings based multiples relative to peers. That gap reflects a clash between what the intrinsic value model assumes on future cash generation and what the market is currently willing to pay for growth and sentiment. The broader checks point to a mixed valuation rather than a clear bargain. The key question now is whether Somnigroup can deliver the cash flows and execution needed to justify both the DCF upside and the premium P/E, or whether the current discount to intrinsic value is simply compensation for those risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SGI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Somnigroup International Inc. SGI lowered its 2026 earnings outlook after second-quarter results reflected weaker bedding demand, Mattress Firm profitability pressures and commodity cost inflation. While the company delivered adjusted earnings growth and continued to generate synergies from the Mattress Firm acquisition, softer industry trends have reduced near-term earnings visibility. Somnigroup reported second-quarter 2026 adjusted earnings of 58 cents per share, up 9.4% year over year and in line with the consensus estimate. Sales declined 3% to $1.82 billion and missed the consensus mark of $1.9 billion, with Mattress Firm weakness weighing on consolidated results. Somnigroup International Inc. price-consensus-eps-surprise-chart | Somnigroup International Inc. Quote The company’s gross margin expanded year over year, supported by acquisition synergies, operating efficiencies and product mix. Adjusted operating income, however, declined 3.5% to $216.6 million, highlighting the impact of ongoing cost pressures. Mattress Firm remains a key focus for investors following the quarter. The segment generated sales of $922.2 million, down 2.8% year over year, primarily due to store closures. Adjusted gross margin declined 240 basis points to 33.3%, while adjusted operating margin fell 130 basis points to 6.5%. The margin decline reflected higher consumer financing costs, store investments, deleverage and product mix changes. Somnigroup is continuing store refresh and brand wall initiatives, with $75 million of 2026 capital expenditures allocated toward those programs. While these investments could support future sales, they may weigh on near-term profitability if demand remains weak. Management lowered its 2026 adjusted EPS guidance to $2.85-$3.15 from the previous range of $3.00-$3.40. The company now expects the global bedding industry to decline by a mid-single-digit percentage in 2026 compared with its earlier expectation for a flat to slightly down market. Image Source: Zacks Investment Research The revised outlook assumes low-single-digit like-for-like sales growth in Tempur Sealy North America, low-single-digit international growth and a slight decline in Mattress Firm like-for-like sales. Adjusted EBITDA is expected at approximately $1.39 billion at the midpoint of the guidance range. Management cited weaker-than-expected industry trends and challenges in the U.K. Dreams business as factors behind the guidance revision. The company noted that the U.S. bedding market was weaker than anticipated during the second quarter, although Mattress Firm same-store sales returned near the prior trend after the July 4 holiday period. Investors evaluating Somnigroup can also compare the company with other players in the home furnishings and bedding industry, including Floor & Decor Holdings, Inc. FND and Leggett & Platt, Incorporated LEG. Commodity costs affected profitability as input and freight inflation increased before pricing actions took effect. Management estimated roughly $90 million of annualized commodity inflation and said the timing gap created an approximately $10 million one-time headwind to Tempur Sealy profits in the second quarter. Somnigroup implemented pricing actions after the July 4 promotional period and expects those increases to offset the inflation impact in the second half of 2026. Still, management noted that pricing actions designed to neutralize commodity inflation can be margin dilutive. Somnigroup currently carries a Zacks Rank of 5 (Strong Sell). The stock has a VGM Score of C, with a Value Score of D, Growth Score of B and Momentum Score of C. Zacks Style Scores provide investors with separate measures of value, growth and momentum characteristics that complement the Zacks Rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company’s growth profile remains a relative strength, supported by Mattress Firm synergies, international expansion and improving cash generation. Tempur Sealy North America generated approximately $30 million of net sales and cost synergy benefits in the second quarter, while management expects Tempur Sealy brands and private labels to represent a mid-60s percentage of Mattress Firm sales and contribute an incremental $65 million of adjusted EBITDA benefit in 2026 versus 2025. However, weaker bedding demand, Mattress Firm margin pressures and commodity-related uncertainty remain key factors shaping SGI’s near-term earnings outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Somnigroup International Inc. (SGI) : Free Stock Analysis Report Leggett & Platt, Incorporated (LEG) : Free Stock Analysis Report Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Somnigroup International Inc.? Here are five stocks we like better. Somnigroup reported record Q2 adjusted EPS of $0.58, up 9% year over year, on $1.8 billion in sales and $297 million in adjusted EBITDA despite a bedding-market decline and uneven consumer demand. North American adjusted operating margin expanded to 26.7% as acquisition synergies and operational efficiencies offset commodity inflation, while Mattress Firm sales were steady but margins weakened due to product mix, financing costs and store investments. The company reaffirmed 2026 adjusted EPS guidance of $2.85–$3.15 and expects its Leggett & Platt transaction to close by the end of Q3, pending shareholder approval; management expects the deal to improve vertical integration, cash flow and adjusted EPS. Somnigroup International (NYSE:SGI) reported record second-quarter adjusted earnings per share as the bedding company navigated a softer industry backdrop, commodity-cost pressure and uneven consumer demand across price points. For the second quarter of 2026, Somnigroup recorded net sales of $1.8 billion, adjusted EBITDA of $297 million and adjusted EPS of $0.58, up 9% from the prior year. Chairman, President and CEO Scott Thompson said the results reflected the company’s brands, global diversification and execution in a bedding market that management believes declined by the mid- to high-single digits compared with the prior year. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Mattress Firm generated approximately $922 million in second-quarter net sales, while same-store sales grew slightly. Thompson said the retailer outperformed the broader U.S. market through its scale, marketing, product assortment and sleep-expert sales model. Mattress Firm adjusted gross margin declined 240 basis points to 33.3%, while adjusted operating margin fell 130 basis points to 6.5%. Chief Financial Officer Bhaskar Rao cited product mix, consumer financing costs, investments in stores and deleveraging as contributors. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Rao said a greater share of Tempur Sealy products at Mattress Firm lowered the retailer’s reported product gross-margin percentage because Somnigroup’s supply agreement provides some Mattress Firm economics through cooperative advertising credits. He said the mix change did not have a material impact on operating margin when viewed on a conforming basis. The company is continuing a Mattress Firm store-refresh initiative that is expected to be completed in 2027, while its brand-wall program is expected to conclude this year. Thompson also said Somnigroup plans to expand Kingsdown products to nearly 800 Mattress Firm stores over the next six months following a three-month pilot in 200 locations. → No Hangover: Revisiting Microsoft One Week After Earnings Tempur-Pedic Sealy North America sales were flat on a like-for-like basis, including flat like-for-like wholesale sales. Sales with third-party retailers declined 5% after normalizing for floor models, though management said that represented outperformance against the broader bedding industry. Like-for-like direct-channel sales declined 1%. North American adjusted gross margin increased 680 basis points to 61.8%, and adjusted operating margin rose 400 basis points to 26.7%. Rao attributed the gains to acquisition-related synergies, operational efficiencies and mix, partly offset by commodity-cost inflation before pricing actions. Somnigroup realized $30 million in net sales and cost synergies during the quarter. Rao said the company achieved roughly $15 million of cost synergies and exceeded its expectations for sales synergies through a higher balance of Tempur Sealy brands and private-label products at Mattress Firm. Management said modest price increases implemented after the July 4 promotional period were intended to offset higher input and freight costs. The timing created an approximately $10 million one-time headwind to second-quarter profit, according to Rao, but the company expects pricing to offset that impact in the second half. Somnigroup International sales increased 2% on a reported basis and 1% in constant currency. The company’s legacy Tempur-Pedic international operations outperformed the broader industry, supported by brand strength, marketing investment and local execution, management said. Its Dreams business in the United Kingdom continued to operate in what Thompson described as a difficult and highly promotional market. The business also experienced transitory challenges related to an enterprise resource planning system implementation. Rao said the system is functioning and that Dreams is taking orders and shipping products, though the rollout created some disruption. International gross margin declined 80 basis points to 47.4%, while operating margin fell 120 basis points to 12.4%, primarily due to commodity inflation. Thompson said the company continues to build its international retail presence through company-operated Tempur-Pedic stores and acquisitions, including Dreams, SOVA in Sweden and the recently announced acquisition of Danish retailer SENG. Somnigroup reaffirmed full-year adjusted EPS guidance of $2.85 to $3.15 and projected approximately $7.6 billion in sales at the midpoint after intercompany eliminations. The outlook assumes the global bedding industry declines by the mid-single digits for 2026, Tempur-Pedic Sealy North America like-for-like sales grow by the low single digits, international sales rise by the low single digits and Mattress Firm like-for-like sales decline slightly. During the question-and-answer session, Thompson said industry trends in the second quarter were weaker than management had expected. He also cited tougher-than-anticipated U.K. conditions, disruptions from the Dreams ERP implementation and added uncertainty tied to Middle East activity. The guidance assumes Tempur Sealy brands and private-label products will represent the mid-60% range of Mattress Firm sales, producing an incremental $65 million adjusted EBITDA benefit in 2026 versus 2025. The company expects adjusted EBITDA of approximately $1.39 billion at the guidance midpoint and reported gross margin slightly above 45%. Management expects 2026 capital expenditures of about $225 million, including $75 million related to Mattress Firm store-refresh and brand-wall programs. It also expects at least 50% of free cash flow to be directed toward dividends and share repurchases. Somnigroup ended the quarter with consolidated debt less cash of $4.3 billion and a leverage ratio of 2.99 times under its senior credit facility, within its stated target range of two to three times. The company generated record operating cash flow of $236 million and free cash flow of $182 million, while reducing net debt by more than $500 million over the trailing 12 months. Thompson said the proposed combination with Leggett & Platt has received nearly all required regulatory approvals. Leggett & Platt shareholders are scheduled to vote on Aug. 20, and Somnigroup expects the transaction to close before the end of the third quarter. The company said Leggett & Platt will be incorporated into guidance after closing. Thompson said the transaction is expected to strengthen Somnigroup’s vertical integration, expand its addressable markets, reduce financial leverage, increase operating cash flow and provide immediate adjusted EPS accretion before synergies. Somnigroup International Inc, together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Somnigroup International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Somnigroup International Inc. SGI reported second-quarter 2026 adjusted earnings of 58 cents per share, up 9.4% year over year and in line with the consensus estimate. Net sales declined 3% to $1.8 billion and missed the consensus mark of $1.9 billion.Mattress Firm’s sales decline pressured the top line, although same-store sales increased slightly. Companywide adjusted gross margin expanded, while Tempur Sealy North America delivered substantial margin improvement on acquisition synergies, operating efficiencies and mix. Image Source: Zacks Investment Research Somnigroup’s shares have lost more than 6% during the trading session yesterday, thanks to soft quarterly results. In the past three months, the stock has dipped 6.2% against the industry’s 8.9% growth. Gross margin expanded 80 basis points (bps) year over year to 44.8%, while the adjusted gross margin increased 90 bps to 45.1%.Adjusted operating income, however, declined 3.5% to $216.6 million. However, adjusted operating margin remained flat year over year at 11.9%. Somnigroup International Inc. price-consensus-eps-surprise-chart | Somnigroup International Inc. Quote Mattress Firm generated net sales of $922.2 million, down 2.8% from $948.8 million a year earlier, primarily because of store closures. The retailer continued investing in store refreshes, merchandising and customer experience.Adjusted gross margin fell 240 bps year over year to 33.3%, reflecting product mix, higher consumer financing costs, store investments and deleverage. Adjusted operating margin contracted 130 bps to 6.5%, with lower gross margin partly offset by favorable cooperative advertising expenses. Tempur Sealy North America reported sales of $601.8 million, down 5.7% year over year. The segment’s sales lagged the Zacks Consensus Estimate of $613 million.Wholesale sales declined 5.5% to $504.4 million, while direct sales decreased 6.7% to $97.4 million. On a like-for-like basis, management said North American sales were flat. Wholesale sales came below the Zacks Consensus Estimate of $519 million, whereas direct sales exceeded the consensus mark of $94 million.Sales to Mattress Firm, which are eliminated from consolidated results, climbed 11.6% to $294 million. Tempur Sealy International sales increased 2% to $299.5 million and rose 1.3% on a constant-currency basis. The segment’s sales lagged the Zacks Consensus Estimate of $311 million.Wholesale sales grew 7.5% to $116.8 million, whereas direct sales dipped 1.2% to $182.7 million. Wholesale sales came above the Zacks Consensus Estimate of $115 million, whereas direct sales missed the consensus mark of $195 million. International gross margin fell 80 bps to 47.4%, primarily due to commodity cost inflation before pricing actions, partly offset by operating efficiencies. Operating margin declined 120 bps to 12.4% on lower gross margin. This Zacks Rank #3 (Hold) company generated operating cash flow of $482.8 million in the six months ended June 30. It ended the quarter with total debt of $4.4 billion and consolidated indebtedness less netted cash of $4.3 billion. The company exited the quarter with $112 million of cash and cash equivalents.Leverage was 2.99 times for the trailing 12 months ended June 30, 2026, returning to Somnigroup’s 2-3 times target range. Management expects nearly 50% of 2026 free cash flow to fund dividends and share repurchases. The proposed Leggett & Platt acquisition remains targeted to close before the end of the third quarter.Somnigroup has announced a third-quarter cash dividend of 17 cents per share, payable Sept. 3, 2026, to shareholders of record as of Aug. 20, 2026. Somnigroup lowered its 2026 adjusted earnings guidance to $2.85-$3.15 per share from the prior $3.00-$3.40 range. The midpoint implies approximately 11% growth from 2025. Management now expects roughly $7.6 billion in sales after intercompany eliminations and adjusted EBITDA of about $1.39 billion at the midpoint. The outlook assumes the global bedding industry declines by a mid-single-digit percentage on a year-over-year basis. Tempur Sealy North America like-for-like sales are expected to grow at a low-single-digit rate, International sales are projected to rise low single digits and Mattress Firm like-for-like sales are expected to decline slightly. Reported gross margin is projected to be slightly above 45%, thanks to 100 bps of net margin expansion from operational efficiencies, with synergies and operating leverage, somewhat offset by the impact of Tempur Sealy's pricing efforts. This outlook contemplates the company’s assumption for Tempur Sealy brands and private labels to be in the mid-60s percent of Mattress Firm total sales. This highlights an incremental $65 million of adjusted EBITDA benefit for 2026 from 2025, and roughly $690 million of advertising investments.CapEx is expected to be approximately $225 million for 2026, including CapEx of $75 million under the Mattress Firm store refreshes and brand wall program. Abercrombie & Fitch Co. ANF is a specialty retailer of premium, high-quality casual apparel for men, women and kids. At present, ANF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for ANF’s current fiscal-year sales and EPS indicates growth of 4.9% and 6.1%, respectively, from the year-ago figures. ANF delivered a trailing four-quarter earnings surprise of 8.1%, on average. American Eagle Outfitters, Inc. AEO operates as a specialty retailer of casual apparel, accessories and footwear for men and women. At present, AEO carries a Zacks Rank of 2. The Zacks Consensus Estimate for AEO’s current fiscal-year sales and EPS indicates growth of 8.8% and 17.3%, respectively, from the year-ago figures. American Eagle delivered a trailing four-quarter earnings surprise of 48.5%, on average.Designer Brands Inc. DBI, a designer and retailer of footwear and accessories, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 112.8%, on average.The Zacks Consensus Estimate for DBI’s current fiscal-year sales and EPS indicates growth of 0.5% and 137.5%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Somnigroup International Inc. (SGI) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $1.8 billion in the second quarter of 2026. Adjusted EPS: $0.58, a 9% increase from the prior year. Adjusted EBITDA: $297 million in the second quarter. Mattress Firm Net Sales: Approximately $922 million in the second quarter, with same-store sales growing slightly. Mattress Firm Adjusted Gross Margin: Decreased 240 basis points to 33.3%. Mattress Firm Adjusted Operating Margin: Declined 130 basis points to 6.5%. Tempur Sealy North America Sales: Flat on a like-for-like basis, with like-for-like net sales to the wholesale channel also flat. North America Adjusted Gross Margin: Increased 680 basis points to 61.8%. North America Adjusted Operating Margin: Improved 400 basis points to 26.7%. International Net Sales: Grew 2% on a reported basis and 1% on a constant currency basis. International Gross Margin: Declined 80 basis points to 47.4%. International Operating Margin: Declined 120 basis points to 12.4%. Operating Cash Flow: Record $236 million in the second quarter. Free Cash Flow: Record $182 million in the second quarter. Net Debt: $4.3 billion at the end of the second quarter, with a leverage ratio of 2.99 times. 2026 Adjusted EPS Guidance: Expected to be between $2.85 and $3.15 for the full year. 2026 Sales Guidance: Approximately $7.6 billion at the midpoint after intercompany elimination. 2026 Adjusted EBITDA Guidance: Approximately $1.39 billion at the midpoint. 2026 CapEx Guidance: Approximately $225 million, including $75 million for Mattress Firm store refreshes and brand wall program. Warning! GuruFocus has detected 6 Warning Signs with SGI. Is SGI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record second quarter adjusted EPS of $0.58, up 9% year-over-year, despite a challenging market. Mattress Firm delivered same-store sales growth and outperformed the broader U.S. market. International business continued to gain share, with legacy international outperforming the industry. North American adjusted gross margins expanded 680 basis points to 61.8%, driven by synergies and operational efficiencies. Strong cash flow generation with record operating cash flow of $236 million and free cash flow of $182 million. Leverage ratio returned to target range at 2.99x, and net debt reduced by over $500 million in trailing twelve months. Proposed Leggett & Platt combination is ahead of schedule, expected to close before end of Q3, with immediate EPS accretion and synergy opportunities. Industry trends were weaker than expected, with the U.S. market down mid-to-high single digits. Dreams UK business faced a tough market and transitory challenges from ERP implementation. July 4th holiday period was weak, negatively impacting Q2 results. Commodity cost inflation created a $10 million one-time headwind in Q2, with pricing actions only offsetting in the second half. Mattress Firm adjusted gross margin decreased 240 basis points due to product mix and consumer financing costs. International operating margin declined 120 basis points, driven by gross margin pressure. Full-year guidance was lowered, reflecting expectations for the industry to be down mid-single digits. Q: Can you talk about what changed in the quarter that drove the decision to lower the full-year guidance, and how you set the new range of $2.85 to $3.15? A: Scott Thompson (Chairman, President, and CEO) explained that the primary negative factors were weaker-than-expected industry trends in Q2, a rougher-than-expected ERP implementation at the UK's Dreams business, and additional uncertainty from Middle East activity. Baskar Rao (CFO) added that the guidance now assumes the industry will be down mid-single-digits for the full year, rather than the low single-digits previously expected. He noted that the July 4th holiday period was particularly weak, though the market has rebounded to trend lines since mid-July. The guidance implies about a 10% year-on-year EPS increase for the back half, consistent with the first half's performance. Q: Can you expand on what's driving the remarkable margin expansion in Tempur Sealy North America and how you're thinking about that in your guidance for the second half with additional pricing coming into the mix? A: Baskar Rao (CFO) attributed the margin expansion to continued execution against cost synergy targets (realizing about $15 million in Q2), exceeding expectations on sales synergies due to a higher balance of share at Mattress Firm, and strong operational productivity. He noted that the company's performance was actually adversely impacted by commodity costs ahead of pricing actions, making the margin performance even more impressive. The company continues to invest in advertising and supporting the new Stearns & Foster line launch in the back half. Q: What should we be thinking for the cadence of EPS in Q3 versus Q4, especially in light of the July 4th comments? A: Baskar Rao (CFO) stated that at the midpoint of guidance, the company expects about a 10% year-on-year EPS increase, consistent with the first half. He cautioned that Q3 2025 was relatively strong, so while they expect growth in both quarters, more of the growth will be weighted toward Q4 versus Q3. He also noted that while the July 4th period was weak, things have stabilized since then. Q: Can you provide more color on the demand environment in the US industry, given that you're calling the quarter slower than Q1 while other related products are stabilizing? A: Scott Thompson (Chairman, President, and CEO) noted that Leggett & Platt's data shows springs down low double-digits, confirming the industry weakness. He attributed the softness to some key advertisers undergoing restructuring, which limited their advertising. He dismissed concerns about systemic issues, suggesting that bedding and furniture often alternate in performance cycles. He highlighted that large retailers are clearly taking share from smaller ones, and there's a notable shift from web-based sales to brick-and-mortar, with their own Tempur stores comping up almost 3% in Q2. Q: Can you discuss the $10 million commodity cost impact and what you expect to face in the second half of the year? A: Baskar Rao (CFO) clarified that the $10 million is a transitory impact from the Middle Eastern crisis and supply disruptions, which created an inflationary environment. The company implemented pricing actions after the July 4th promotional period, which are expected to offset the $10 million headwind in the back half. He confirmed that the annualized inflation expectation remains around $90 million, with some puts and takes within the commodity portfolio, but largely consistent with prior expectations. Q: Do you think there are dynamics from a K-shaped economy, with strength at the high end and weakness at the low end? A: Scott Thompson (Chairman, President, and CEO) confirmed there is a clear K-shaped dynamic. Entry-level bedding has been the hardest hit, while luxury bedding has been very resilient and at times strong. He noted that financing costs at Mattress Firm have increased because they're selling more higher-end beds and interest rates have ticked up. The upper-end customer is showing up, not being particularly price sensitive, with strong closing rates, but the entry-level segment is definitely challenged. Q: Are you seeing more risk from third-party sellers of Tempur-Sealy products pulling back, and from the increased complexity of managing the business, as evidenced by the UK ERP issues? A: Scott Thompson (Chairman, President, and CEO) stated they are not seeing any significant pullback from third-party retailers, noting their sales were down 5%, which is slightly less than the industry decline, indicating incremental share gains. On complexity, he acknowledged the business is more complex and everyone is working harder, but emphasized the significant opportunities from synergies and innovation. He downplayed the ERP issue as a transitory problem that should be resolved within another quarter, and expressed confidence that the Leggett & Platt acquisition will more than offset any added complexity. Q: Can you share your latest thoughts on the multi-year financial outlook, and should the underlying growth rate get better once the Leggett deal closes? A: Scott Thompson (Chairman, President, and CEO) declined to update the 2028 outlook but provided context on the assumptions. He noted that the industry growth rate assumption will likely be lowered, which means more pent-up demand for outer years. However, he highlighted that current margin profiles are significantly better than what was in the original plan, which is a positive. He also noted the plan didn't include significant EPS growth from capital allocation, and recent activities like the Leggett deal and European acquisitions show enormous upside from deploying capital at high rates of return. He concluded they are "still in the game" on the plan and will update at year-end. Q: Can you provide an update on the initiatives not included in your synergy targets, such as logistics consolidation, real estate optimization, and revamping Mattress Firm marketing? A: Scott Thompson (Chairman, President, and CEO) reported that the Mattress Firm marketing strategy is well underway and has been successful based on share gains, with more leverage expected in 2027. Logistics is being worked on, with numbers potentially shared at the year-end call, and Leggett will be additive to that process. Real estate optimization will take longer and is somewhat dependent on the logistics plan. He also mentioned they continue to study Mattress Firm's real estate strategy and expect to return to net new store growth soon, as the economics are more compelling now that the balance of share has normalized. Q: Can you drill down on the weakness during the July 4th period and whether For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Bedding manufacturer Somnigroup (NYSE:SGI) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 3% year on year to $1.82 billion. Its non-GAAP profit of $0.58 per share was in line with analysts’ consensus estimates. Is now the time to buy Somnigroup? Find out in our full research report. Revenue: $1.82 billion vs analyst estimates of $1.88 billion (3% year-on-year decline, 3.1% miss) Adjusted EPS: $0.58 vs analyst estimates of $0.58 (in line) Adjusted EBITDA: $296.5 million vs analyst estimates of $300.2 million (16.3% margin, 1.2% miss) Management lowered its full-year Adjusted EPS guidance to $3 at the midpoint, a 6.3% decrease Operating Margin: 11.1%, up from 9.6% in the same quarter last year Free Cash Flow Margin: 10%, up from 7.9% in the same quarter last year Market Capitalization: $14.64 billion Company Chairman and CEO Scott Thompson commented, "Our second-quarter performance demonstrates our global team's ability to execute in a dynamic environment. We delivered solid results while continuing to fully invest in our iconic brands, advancing our international growth strategy, preparing for the North American launch of our new Stearns & Foster collection and strengthening our multiple distribution platforms. The progress we are making across the business reinforces our confidence in our long-term strategy and our ability to create sustainable value." Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE:SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Somnigroup grew its sales at a 11.6% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Somnigroup’s annualized revenue growth of 25% over the last two years is above its five-year trend, which is encouraging. We can better understand the company’s revenue dynamics by analyzing its most important segments, Wholesale and Direct, which are 65.9% and 34.1% of revenue. Over the last two years, Somnigroup’s Wholesale revenue (sales to retailers) averaged 3.6% year-on-year declines. On the other hand, its Direct revenue (sales made directly to consumers) averaged 143% growth. This quarter, Somnigroup missed Wall Street’s estimates and reported a rather uninspiring 3% year-on-year revenue decline, generating $1.82 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Somnigroup’s operating margin has been trending up over the last 12 months and averaged 10.8% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business. In Q2, Somnigroup generated an operating margin profit margin of 11.1%, up 1.5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Somnigroup’s flat EPS over the last five years was below its 11.6% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. In Q2, Somnigroup reported adjusted EPS of $0.58, up from $0.53 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Somnigroup’s full-year EPS to grow 21.8% from $2.84 to $3.46. We struggled to find many positives in these results. Its revenue missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $69.74 immediately after reporting. Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

CARTHAGE, Mo., Aug. 6, 2026 /PRNewswire/ -- 2Q sales of $1.0 billion, a 6% decrease vs 2Q25, including a 5% decrease from divestitures 2Q EPS of $.33, 2Q adjusted1 EPS of $.39, a $.09 increase vs adjusted1 2Q25 EPS President and CEO Karl Glassman commented, "We are pleased with how our teams managed through a challenging environment in the second quarter. Our employees remained focused on disciplined execution and cost management which, along with favorable items that we do not expect to repeat in future quarters, contributed to improved adjusted earnings. "Bedding industry conditions remain challenged both by sluggish consumer activity and continued consolidations and bankruptcies across the value chain. We estimate that U.S. mattress market units declined by low double digits in the second quarter, similar to the declines we saw in the first quarter. In our Bedding Products segment, continued strong performance of our trade rod and wire business partially offset the decline from lower mattress demand. "Across our other segments, demand remained soft in markets tied to housing and broader consumer spending as consumers were faced with additional uncertainty resulting from the war in the Middle East and higher gas prices. In Specialized Products, Automotive performed slightly below the market, which saw lower consumer demand across all regions. In Furniture, Flooring & Textile Products, growth in Textiles offset lower demand in the remaining businesses, which are more directly exposed to U.S. residential spending, leading to a slight improvement in trade sales. "As we look forward, we remain focused on executing our strategic priorities while expecting ongoing macroeconomic headwinds to temper consumer demand across most of our businesses for the remainder of the year. "Finally, we continue to progress towards the planned merger with Somnigroup. As previously announced, the waiting period under the HSR Antitrust Improvements Act expired in June. We anticipate the transaction to close upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the special meeting planned for August 20th and the remaining required regulatory approvals. As previously stated, we believe this combination with a valued long–standing customer will create a leading global company - providing compelling strategic and financial value for our customers, employees, and the Leggett & Platt shareholders." SECOND QUARTER RESULTSSecond quarter sales were $1.0 billion, a 6% decrease versus second quarter last year 2025 divestitures decreased sales 5% Organic sales2 were down 1% Second quarter EBIT was $80 million, down from $90 million in second quarter 2025. Adjusted1 EBIT was $89 million, up from second quarter 2025 adjusted1 EBIT of $76 million. Adjusted1 EBIT increased primarily from metal margin expansion, restructuring benefit, and other favorable items, most of which are not expected to repeat in future quarters. EBIT margin was 8.0%, down from 8.5% in the second quarter of 2025, and adjusted1 EBIT margin was 8.9%, up from 7.1%. Second quarter EPS was $.33, a $.05 decrease versus second quarter 2025 EPS of $.38. Second quarter adjusted1 EPS was $.39, up $.09 versus second quarter 2025 adjusted1 EPS of $.30. DEBT AND CASH FLOW Net Debt1 was 2.6x trailing 12-month adjusted EBITDA1 Total Debt at June 30 was $1.5 billion in three tranches of long-term bonds at $500 million each Operating cash flow was $46 million in the second quarter, a decrease of $38 million versus second quarter 2025, reflecting an expected larger investment in working capital and lower earnings Capital expenditures were $21 million Dividends were $7 million SEGMENT RESULTS – Second Quarter 2026 (versus 2Q 2025) Bedding Products – Trade sales decreased 1% EBIT increased $15 million and adjusted1 EBIT increased $24 million Adjusted1 EBIT increased primarily from metal margin expansion, favorable sales mix, temporary price-cost timing benefit in Specialty Foam, and restructuring benefit. These increases were partially offset by lower volume. We believe U.S. mattress market units were down low double digits in the second quarter Specialized Products – Trade sales decreased 19% EBIT decreased $20 million and adjusted1 EBIT decreased $15 million Adjusted1 EBIT decreased primarily from earnings associated with the divested Aerospace business, currency impact, and lower volume Automotive volume was slightly below major market production in the quarter, driven by underperformance in Asia partially offset by outperformance in Europe and North America Furniture, Flooring & Textile Products – Trade sales increased 1% EBIT and adjusted1 EBIT increased $5 million Adjusted1 EBIT benefited from refunds of IEEPA tariffs that were paid during the eleven-month period they were in force. During that period, competitive pressures led to margin compression as cost increases, including tariffs, were not fully recovered through increased selling prices. 2026 GUIDANCE AND CONFERENCE CALLOn April 13, 2026, the Company entered into an agreement to be acquired by Somnigroup International Inc. (NYSE: SGI). The transaction is anticipated to close upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the August 20, 2026 meeting and remaining required regulatory approvals. As is customary while a transaction is pending, Leggett & Platt's 2026 guidance issued in February was withdrawn last quarter and should no longer be relied upon. Additionally, Leggett & Platt will not host a conference call. For further details on quarterly performance, please refer to Leggett & Platt's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is expected to be filed today with the Securities and Exchange Commission. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com. COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old Company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications. FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements," identified by words such as "expect," "anticipate," "estimate," "believe," or by the context in which they appear, including, but not limited to, the anticipated closing of the Somnigroup transaction upon satisfaction of the remaining closing conditions, including Leggett & Platt shareholder approval at the August 20, 2026 meeting and required regulatory approvals, the filing date of the Company's Form 10-Q as well as the delivery of compelling strategic and financial value for customers, employees and shareholders associated with the Somnigroup Merger, and certain favorable items not expected to improve adjusted earnings in future quarters. Such statements are expressly qualified by cautionary statements described in this provision and reflect only the beliefs, expectations, and assumptions of Leggett at the time the statement is made. Because all forward-looking statements deal with the future, they are subject to risks, uncertainties and developments which might cause actual events or results to differ materially from those envisioned or reflected in any forward-looking statement. Moreover, we do not have, and do not undertake, any duty to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement was made, whether as a result of new information, future events or otherwise, except as required by law. Some of these risks include: risks associated with the Agreement and Plan of Merger, dated April 13, 2026 (as may be amended from time to time, the "Somnigroup Merger Agreement"), by and among Somnigroup International Inc. ("Somnigroup"), Sparrow Unity Corporation, a Missouri corporation and a direct, wholly owned subsidiary of Somnigroup ("Merger Sub") and Leggett, pursuant to which, subject to the terms and conditions of the Somnigroup Merger Agreement, Merger Sub will merge with and into Leggett (the "Somnigroup Merger"), with Leggett surviving the Somnigroup Merger as a direct, wholly owned subsidiary of Somnigroup, including (i) Leggett's shareholders inability to determine the value of consideration to be received in a completed Somnigroup Merger because the exchange ratio is fixed and the market price of Somnigroup common stock will fluctuate; (ii) the completion of the Somnigroup Merger is subject to certain conditions that may not be satisfied or waived, including Leggett shareholder approval and certain governmental and regulatory approvals; (iii) an event, change or other circumstance could give rise to delays in completing the Somnigroup Merger or the termination of the Somnigroup Merger Agreement; (iv) Leggett's business relationships (including with Somnigroup and its affiliates) may be subject to disruption due to uncertainty associated with the Somnigroup Merger; (v) the diversion of management time from ongoing business operations and opportunities as a result of the Somnigroup Merger; (vi) failure to complete the Somnigroup Merger could negatively impact the share price and the future business and financial results of Leggett; (vii) litigation against the Company could result in substantial costs, an injunction preventing the completion of the Somnigroup Merger and/or a judgment resulting in the payment of damages; (viii) the Company will incur significant transaction and merger-related costs in connection with the Somnigroup Merger; and (ix) the possibility that the expected benefits of the Somnigroup Merger are not realized when expected or at all. In addition, risks include: impacts of the Iranian war; increased trade costs, including tariffs; regarding the 2024 and 2026 Restructuring Plans, our ability to timely receive anticipated EBIT benefits, and expected net cash from real estate sales; our ability to accurately forecast sales and earnings; the adverse impact on our sales, earnings, liquidity, margins, cash flow, costs, and financial condition caused by: global inflationary and deflationary impacts; the demand for our products and our customers' products; our manufacturing facilities' ability to obtain necessary raw materials, parts, and labor, and to ship finished products; the impairment of goodwill and long-lived assets; our ability to access the commercial paper market or borrow under our credit facility; supply chain shortages and disruptions; our ability to manage working capital; our ability to collect receivables; price and product competition; cost of raw materials, labor and energy; cash generation sufficient to pay our debts or the dividend; cash repatriation from foreign accounts; our ability to pass along cost increases through increased selling prices; conflict between China and Taiwan; our ability to maintain profit margins if customers change the quantity or mix of our products; political risks; tax audits and rates; foreign operating risks; cybersecurity incidents; customer losses and insolvencies; disruption to our steel rod mill and wire mills and other operations because of severe weather-related events, natural disaster, fire, explosion, terrorism, or governmental action; ability to develop innovative products; foreign currency fluctuation; anti-dumping duties on innersprings, steel wire rod and mattresses; data privacy; sustainability obligations; litigation risks; and risk factors in the "Forward-Looking Statements" and "Risk Factors" sections in Leggett's Form 10-K and subsequent Form 10-Qs. There may be other factors that may cause Leggett's actual results to differ materially from the forward-looking statements. INVESTOR CONTACT: Investor RelationsRyan M. Kleiboeker, Executive Vice President(417) 358-8131 or [email protected] 1.0 0.91.21.0Gain on sale of real estate———(3.2)Adjusted EBIT 329.925.318 %34.547.0(27) %Adjusted EBIT margin 38.2 %7.0 % 120 bps 5.1 %6.8 % (170) bps Depreciation and amortization3.74.68.09.5Adjusted EBITDA33.629.912 %42.556.5(25) %Adjusted EBITDA margin9.2 %8.2 % 100 bps 6.3 %8.1 % (180) bps Total CompanyTrade sales$ 999.7$ 1,058.0(6) %$ 1,917.9$ 2,080.1(8) %EBIT - segments90.290.3— %138.0153.1(10) %Intersegment eliminations and other(10.1)0.1(13.4)0.2EBIT80.190.4(11) %124.6153.3(19) %EBIT margin8.0 %8.5 %(50) bps6.5 %7.4 %(90) bpsRestructuring, restructuring-related, and impairment charges10.33.615.210.5Gain on sale of real estate(11.5)(18.4)(21.0)(21.6)Somnigroup merger costs10.1—13.6—Adjusted EBIT 389.075.618 %132.4142.2(7) %Adjusted EBIT margin 38.9 %7.1 % 180 bps 6.9 %6.8 % 10 bps Depreciation and amortization - segments25.626.150.454.4Depreciation and amortization - unallocated 42.93.66.36.9Adjusted EBITDA$ 117.5$ 105.312 %$ 189.1$ 203.5(7) %Adjusted EBITDA margin11.8 %10.0 % 180 bps 9.9 %9.8 % 10 bps LAST SIX QUARTERS 20252026Selected Figures (In millions)1Q2Q3Q4Q1Q2QTrade sales1,022.11,058.01,036.4938.6918.2999.7Sales growth (vs. prior year)(7) %(6) %(6) %(11) %(10) %(6) %Volume growth (same locations vs. prior year)(5) %(7) %(6) %(9) %(9) %(4) %Adjusted EBIT 366.675.672.847.943.489.0Cash from operations6.884.0125.9121.5(56.1)45.8Adjusted EBITDA (trailing twelve months) 3404.1405.6395.4385.3358.7370.9(Long-term debt + current maturities - cash and equivalents) / adj. EBITDA 3,53.773.512.622.362.752.57Organic Sales (Vs. Prior Year) 61Q2Q3Q4Q1Q2QBedding Products(12) %(10) %(9) %(10) %(6) %(1) %Specialized Products(5) %(5) %(2) %(4) %(2) %(3) %Furniture, Flooring & Textile Products(1) %(2) %— %(2) %(6) %1 % Overall (7) %(6) %(4) %(6) %(5) %(1) %1 Segment and overall company margins calculated on net trade sales.2 bps = basis points; a unit of measure equal to 1/100th of 1%.3 Refer to next page for non-GAAP reconciliations.4 Consists primarily of depreciation of non-operating assets.5 EBITDA based on trailing twelve months. 6 Trade sales excluding sales attributable to acquisitions and divestitures consummated in the last 12 months.LEGGETT & PLATTPage 7 of 7August 6, 2026RECONCILIATION OF REPORTED (GAAP) TO ADJUSTED (Non-GAAP) FINANCIAL MEASURES 10Non-GAAP Adjustments 720252026(In millions, except per share data)1Q2Q3Q4Q1Q2QGain on sale of Aerospace Products Group——(86.8)(4.1)——Restructuring, restructuring-related, and impairment charges6.93.64.121.64.910.3Gain on sale of real estate(3.2)(18.4)(2.5)(5.0)(9.5)(11.5)Net gain from insurance proceeds——(13.1)(21.6)——Pension settlement———22.0——Somnigroup merger costs———3.43.510.1Non-GAAP Adjustments (Pretax) 83.7(14.8)(98.3)16.3(1.1)8.9Income tax impact(1.3)3.69.0(10.0)1.90.1Special tax item 9——2.3———Non-GAAP Adjustments (After Tax)2.4(11.2)(87.0)6.30.89.0Diluted shares outstanding138.6139.6140.2140.4141.0141.6EPS Impact of Non-GAAP Adjustments0.02(0.08)(0.62)0.040.010.06Adjusted EBIT, EBITDA, Margin, and EPS 720252026(In millions, except per share data)1Q2Q3Q4Q1Q2QTrade sales1,022.11,058.01,036.4938.6918.2999.7EBIT (earnings before interest and taxes)62.990.4171.131.644.580.1Non-GAAP adjustments (pretax)3.7(14.8)(98.3)16.3(1.1)8.9Adjusted EBIT66.675.672.847.943.489.0EBIT margin6.2 %8.5 %16.5 %3.4 %4.8 %8.0 %Adjusted EBIT Margin6.5 %7.1 %7.0 %5.1 %4.7 %8.9 %EBIT62.990.4171.131.644.580.1Depreciation and amortization31.629.729.431.728.228.5EBITDA94.5120.1200.563.372.7108.6Non-GAAP adjustments (pretax)3.7(14.8)(98.3)16.3(1.1)8.9Adjusted EBITDA98.2105.3102.279.671.6117.5EBITDA margin9.2 %11.4 %19.3 %6.7 %7.9 %10.9 %Adjusted EBITDA Margin9.6 %10.0 %9.9 %8.5 %7.8 %11.8 %Diluted EPS0.220.380.910.180.140.33EPS impact of non-GAAP adjustments0.02(0.08)(0.62)0.040.010.06Adjusted EPS0.240.300.290.220.150.39Net Debt to Adjusted EBITDA 1120252026(In millions, except ratios)1Q2Q3Q4Q1Q2QTotal debt1,936.41,793.51,497.21,497.71,498.21,498.3Less: cash and equivalents(412.6)(368.8)(460.7)(587.4)(510.5)(545.8)Net debt1,523.81,424.71,036.5910.3987.7952.5Adjusted EBITDA, trailing 12 months404.1405.6395.4385.3358.7370.9Net Debt / 12-month Adjusted EBITDA3.773.512.622.362.752.57Aerospace Products Group20252026(In millions)1Q2Q3Q4Q1Q2QNet trade sales53.050.628.6———EBIT7.29.33.2———Depreciation and amortization2.5—————Net earnings (assuming a 25% tax rate)5.47.02.4———7 Management and investors use these measures as supplemental information to assess operational performance.8 The non-GAAP adjustments are included in the following lines of the income statement:202520261Q2Q3Q4Q1Q2QCost of goods sold0.5—1.71.41.23.4Selling & administrative expenses 1.7——3.63.5—Other (income) expense, net1.5(14.8)(100.0)11.3(5.8)5.5Total Non-GAAP Adjustments (Pretax)3.7(14.8)(98.3)16.3(1.1)8.99 The special tax item of $2.3 in Q3 2025 is related to U.S. corporate income tax law changes.10 Calculations impacted by rounding.11 Management and investors use this ratio as supplemental information to assess ability to pay off debt. These ratios are calculated differently than the Company's credit facility covenant ratio. View original content to download multimedia:https://www.prnewswire.com/news-releases/leggett--platt-reports-2q-2026-results-302844358.html