SOMNIGROUP INTERNATIONAL (SGI) Company Report

Somnigroup International Inc. (SGI) announced on January 20, 2026, that it will engage in discussions and due diligence with Leggett & Platt Inc. (LEG) regarding a potential acquisition.
Somnigroup's proposed all-stock transaction values Leggett & Platt at $12 per share, as previously announced on December 1, 2025.
This offer represents a 30% premium to Leggett & Platt's unaffected 30-day average share price as of December 1, 2025.
The completion of the contemplated transaction is contingent upon reaching a definitive agreement and would be subject to Leggett & Platt shareholder approval and required regulatory approvals, but not Somnigroup shareholder approval or financing contingencies.

Jan 20, 2026, 11:38 AM

8-K

Somnigroup to Engage in Acquisition Discussions with Leggett & Platt

SGI

M&A

Takeover Bid

Somnigroup International (SGI) has confirmed that Leggett & Platt (LEG) has authorized discussions and entered into a non-disclosure agreement to facilitate due diligence regarding Somnigroup's acquisition proposal.
Somnigroup's proposed all-stock transaction values Leggett & Platt at $12 per share, representing a 30% premium to Leggett & Platt's unaffected 30-day average price as of December 1, 2025.
The completion of the contemplated transaction is contingent upon reaching a definitive agreement, Leggett & Platt shareholder approval, and required regulatory approvals, but it is not subject to any financing contingencies or approval by Somnigroup's shareholders.

Jan 20, 2026, 11:31 AM

Press Release

Somnigroup Proposes Acquisition of Leggett & Platt

SGI

M&A

Takeover Bid

Somnigroup International Inc. (SGI) has submitted a proposal to acquire all outstanding common shares of Leggett & Platt Inc. (LEG) in an all-stock transaction.
Under the terms of the Proposal, Leggett & Platt shareholders would receive shares of Somnigroup common stock with a market value of $12.00 for every one share of Leggett & Platt common stock.
This offer represents a 30.3% premium to the average closing price of Leggett & Platt's shares during the last 30 trading days, and a 17.0% premium to its closing price on November 28, 2025.
The proposal was delivered on December 1, 2025, and Somnigroup expects a response by December 22, 2025.
The transaction would be subject to customary closing conditions, including Leggett & Platt shareholder approval and required regulatory approvals, but would not be subject to any financing contingency or approval by Somnigroup's shareholders.

Dec 1, 2025, 11:30 AM

Press Release

Somnigroup International Inc. Reports Strong Q3 2025 Results and Provides Upbeat 2025 Outlook and Long-Term EPS Targets

SGI

Earnings

M&A

Guidance Update

Somnigroup International Inc. was founded in February 2025 following the transformative Mattress Firm acquisition, which is expected to generate $200 million in total net synergies by 2027 and drive adjusted EPS accretion.
For Q3 2025, the company reported Net Sales of $2,123 million, a 63.3% increase year-over-year, and Adjusted EPS of $0.95, up 15.9% from Q3 2024.
The company provided a 2025 outlook, expecting full-year adjusted EPS between $2.60 and $2.75 on sales of approximately $7.5 billion, with adjusted EBITDA of $1.3 billion.
Somnigroup targets adjusted EPS to increase from the $2.68 midpoint for 2025 to approximately $4.85 by 2028, representing a compound annual growth rate of 22%.

Nov 6, 2025, 9:03 PM

8-K

Somnigroup International Reports Record Q3 2025 Results and Raises Full-Year Guidance

SGI

Earnings

Guidance Update

M&A

Somnigroup International (SGI) delivered a record Q3 2025, with net sales increasing 63% to $2.1 billion, adjusted EBITDA up 52% to $419 million, and adjusted EPS rising 16% to $0.95 per share.
The company raised its full-year 2025 adjusted EPS guidance to between $2.60 and $2.75 and projects adjusted EBITDA of approximately $1.3 billion at the midpoint on sales of approximately $7.5 billion.
SGI is ahead of synergy expectations from the Mattress Firm combination, forecasting a $60 million benefit to adjusted EBITDA from sales synergies in 2025 and $15 million in cost synergies for 2025, targeting $100 million in run-rate sales synergies and $100 million in annual run-rate net cost synergies.
The company achieved record operating cash flow of $408 million and free cash flow of $360 million in Q3 2025, reducing consolidated debt less cash to $4.6 billion. SGI plans to begin allocating approximately 50% of free cash flow to capital returns (dividends and share repurchase) starting in Q1 2026.

Nov 6, 2025, 1:00 PM

Transcript

Somnigroup Reports Strong Q3 2025 Results and Raises Full-Year Guidance

SGI

Earnings

Guidance Update

Share Buyback

Somnigroup reported Q3 2025 consolidated sales of $2.1 billion and record adjusted earnings per share of $0.95, representing a 16% increase year-over-year.
The company raised its full-year 2025 adjusted EPS guidance to between $2.60 and $2.75, with a sales midpoint of approximately $7.5 billion and adjusted EBITDA of approximately $1.3 billion.
Sales synergies from the Mattress Firm acquisition are now expected to provide a $60 million benefit to adjusted EBITDA in 2025, with cost synergies projected at $15 million for 2025, both on track for $100 million annual run-rate targets.
Starting in Q1 2026, Somnigroup intends to allocate approximately 50% of free cash flow to capital returns for shareholders, including dividends and share repurchases, while continuing to deleverage.
Management noted that a 100 basis point change in interest rates could impact EPS by $0.18-$0.20 per share, or about a 7% lift based on the guidance midpoint.

Nov 6, 2025, 1:00 PM

Transcript

SGI Reports Strong Q3 2025 Results and Raises Full-Year Guidance

SGI

Earnings

Guidance Update

M&A

Somnigroup International (SGI) achieved record Q3 2025 results, with net sales up 63% to $2.1 billion, adjusted EBITDA up 52% to $419 million, and adjusted EPS up 16% to $0.95 per share.
The company raised its full-year 2025 guidance, projecting adjusted EPS between $2.60 and $2.75 and adjusted EBITDA of approximately $1.3 billion at the midpoint, on sales of about $7.5 billion after intercompany eliminations.
SGI is ahead of expectations on synergy realization from the Mattress Firm combination, with Tempur-Chili now expected to represent mid-50% of Mattress Firm's total sales in 2025, contributing $60 million in sales synergies to adjusted EBITDA for the year.
SGI plans to allocate approximately 50% of free cash flow to capital returns (dividends and share repurchases) starting in Q1 2026, after expecting to return to its target leverage ratio of 2-3 times adjusted EBITDA early in 2026.
The company also made a strategic investment, acquiring a 25% passive interest in Kingsdown, a North American luxury mattress manufacturer.

Nov 6, 2025, 1:00 PM

Transcript

Somnigroup Reports Strong Q3 2025 Financial Performance and Updated Outlook

SGI

Earnings

Guidance Update

M&A

Somnigroup reported Net Sales of $2,123 million and Adjusted EPS of $0.95 for Q3 2025, marking increases of 63.3% and 15.9% respectively compared to Q3 2024.
The acquisition of Mattress Firm was completed on February 5, 2025, with expected net synergies of $75 million in 2025, contributing to a total projected $200 million in synergies.
The company projects full-year 2025 adjusted EPS between $2.60 and $2.75, with sales slightly ahead of $7.5 billion, and anticipates adjusted EPS to reach approximately $4.85 by 2028.
Direct-to-Consumer (DTC) sales as a percentage of total sales significantly increased to 65% in Q3 2025, up from 25% in 2024, reflecting a strategic shift towards vertical retail.

Nov 6, 2025, 1:00 PM

Presentation

Somnigroup International Inc. Reports Record Q3 2025 Results and Raises Full-Year Guidance

SGI

Earnings

Guidance Update

Dividends

Somnigroup International Inc. reported record third quarter 2025 results, with total net sales increasing 63.3% to $2,122.6 million, primarily driven by the inclusion of $1,070.8 million of Mattress Firm sales.
Diluted Earnings Per Share (EPS) increased 13.7% to $0.83, and Adjusted EPS grew 15.9% to $0.95 for Q3 2025.
The company achieved record cash flow from operations of $408 million in the third quarter of 2025.
Somnigroup raised its financial guidance for full-year 2025, expecting adjusted EPS to be in the range of $2.60 to $2.75, and declared a quarterly cash dividend of $0.15 per share.

Nov 6, 2025, 11:37 AM

8-K

Somnigroup International Inc. Reports Record Third Quarter 2025 Results and Raises Full-Year Guidance

SGI

Earnings

Guidance Update

M&A

Somnigroup International Inc. reported a 63.3% increase in total net sales, reaching $2,122.6 million for the third quarter ended September 30, 2025, primarily driven by the inclusion of $1,070.8 million in Mattress Firm sales.
The company achieved $0.83 in diluted earnings per share (EPS) and $0.95 in adjusted EPS for the third quarter of 2025, representing increases of 13.7% and 15.9% respectively, compared to the third quarter of 2024.
Somnigroup generated record cash flow from operations of $408 million in the third quarter of 2025 and raised its financial guidance for the full year 2025, expecting adjusted EPS in the range of $2.60 to $2.75.
The Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on December 4, 2025.
As of September 30, 2025, the company reported total debt of $4.7 billion and a leverage ratio of 3.28 times (consolidated indebtedness less netted cash to adjusted EBITDA) for the trailing twelve months.