Somnigroup profits surge on Mattress Firm integration

Somnigroup International (NYSE:SGI) reported explosive fourth-quarter growth as the first full year of its $5 billion Mattress Firm acquisition propelled the bedding titan to record sales and a significant expansion of its direct-to-consumer footprint.

The Lexington-based company, formerly known as Tempur Sealy, posted fourth-quarter net sales of $1.87 billion, a 54.7% increase year-over-year.

The bottom line saw even sharper acceleration, with net income surging 95.8% to $140.8 million, while earnings per share (EPS) grew 65% to $0.66.

The results reflect the massive scale gained from absorbing the largest mattress retailer in the U.S., which added $892 million in sales during the quarter alone.

The acquisition has fundamentally altered Somnigroup's business model.

Direct-to-consumer sales now account for 65.2% of total revenue, up from just 26.9% a year ago.

This vertical integration allows the company to capture higher margins and direct consumer data, insulating the manufacturer from the traditional volatility of third-party wholesale channels.

Looking ahead, management provided a bullish forecast for the upcoming fiscal year, reflecting confidence in the ongoing integration.

For 2026, the company initiated adjusted EPS guidance of $3 to $3.40, well above 2025 levels.