Somnigroup International Inc. reported third‑quarter revenue of $2.12 billion, a 63.3% year‑over‑year increase that exceeded the consensus estimate of $2.07 billion by 2.71%. Diluted earnings per share were $0.83, slightly below the $0.85 estimate, but adjusted EPS rose to $0.95, beating the $0.85 consensus by 11.8%. The adjusted figure reflects the company’s exclusion of one‑time items and provides a clearer view of operating performance.
Revenue growth was largely driven by the integration of Mattress Firm, which contributed $1.07 billion in sales and a gross margin of 34.4%. Tempur Sealy International added $315.7 million, while Tempur Sealy North America generated $736.1 million, a decline from the prior year due to accounting eliminations and divestitures. The combined effect of higher‑margin Mattress Firm sales and improved operational efficiency lifted the consolidated gross margin to 44.9% from 42.4% year‑earlier.
Gross margin expansion was supported by a shift toward higher‑margin Mattress Firm products and better supply‑chain execution. Adjusted gross margin for Mattress Firm reached 35.6%, indicating that the acquisition is delivering the expected cost synergies. Operating income increased to $177.4 million, up 36.5% from $130.0 million in Q3 2024, reflecting both revenue growth and margin improvement.
Management raised its full‑year 2025 adjusted EPS guidance to $2.60–$2.75 from the prior $2.40–$2.70 range, signaling confidence in continued integration gains and a resilient demand outlook. The guidance lift follows the strong Q3 performance and the company’s focus on cost discipline and strategic investments in high‑return verticals.
CEO Scott Thompson highlighted the quarter as a record for sales, profits, and operating cash flow, attributing the results to “strong operational execution across all business units” and progress on acquisition‑related synergies. He noted that the company is well positioned to leverage its omni‑channel distribution and trusted brands, while acknowledging headwinds such as tariffs and a choppy economy that could temper growth in the near term.
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