SGI NYSE Russell 1000 Earnings call
Somnigroup International (SGI) · Q2 2026 results and valuation
Share price: $62.49 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net income up 6.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+6.4%
Net income vs Q1 2026
Outlook given
Net income 110.9M vs 104.2M
Revenue +1.2%
2 · How management spoke
Typical
Less upbeat than 64% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Full-year adjusted earnings per share guidance is $2.85 to $3.15.
Valuation
Is Somnigroup International undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 15.0% growth a year (3-year revenue growth), the model's fair value is $81.98 a share — the stock trades 24% below it. Today's price assumes 12.1% growth a year.
Current price
$62.49
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.1% for 10 yrs
Fair value / share
$81.98
Buy below
$61.48
Price vs fair value
Undervalued 24%
Price vs buy-below price
Overvalued 2%
Read between the lines
-
Guidance
Revenue guidance excludes sales between Tempur Sealy and Mattress Firm, expected to represent roughly 24% of global Tempur Sealy revenue.
Source quote
“As a reminder, our guidance considers the elimination of intercompany sales between Tempur Sealy and Mattress Firm, which we expect to represent approximately 24% of global Tempur Sealy...”
-
Figure
Despite a cautious consumer background and macroeconomic uncertainty, SGI generated net sales of $1.8 billion and adjusted EBITDA of $297 for the quarter.
Source quote
“Against a cautious consumer background and ongoing macroeconomic uncertainty, we generated net sales of $1.8 billion, adjusted EBITDA of $297...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“North American adjusted gross margins increased a robust 680 basis points to 61.8%, driven by the achievement of synergies, operational efficiencies, and mix, partially offset by commodity cost inflation for...”
“Our investments in high-quality advertising, disciplined cost management, and increased balance of share at Mattress Firm each contributed to another quarter of solid performance.”
“Our legacy Tempur-Pedic international business again outperformed the broader industry, benefiting from the strength of the Tempur-Pedic brand, ongoing marketing investments, and strong local execution.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.82B | 1.80B | +1.2% | 1.88B | −3.0% |
| Gross profit | 817.2M | 776.9M | +5.2% | 827.2M | −1.2% |
| Operating income | 201.7M | 187.1M | +7.8% | 179.9M | +12.1% |
| Net income | 110.9M | 104.2M | +6.4% | 99.0M | +12.0% |
| EPS | 0.52 | 0.49 | +6.1% | 0.47 | +10.6% |
| P/E today 24.6 | 31.0 | 29.6 | +1.4 | 46.6 | −15.6 |
Topics
Most discussed now
- New I'd like to give a brief update on Somnigroup International's proposed combination of Leggett & Platt, a leading diversified component...
- New It's pretty easy strategically to look at companies and for the target and for it to see the benefits, the...
- Following very encouraging results from a three-month pilot program of Kingsdown's products in 200 Mattress Firm stores, which demonstrated…
- Turning to Somnigroup International's first highlight, Mattress Firm delivered results ahead of the broader US market, supported by its…
- Mattress Firm adjusted gross margin decreased 240 basis points to 33.3%, driven by product mix, consumer financing costs, investments in...
Faded since Q1 2026
- Fading Adjusted EBITDA increased 20% [indiscernible] $297 million, and adjusted EPS increased a robust 20%, [indiscernible] per share.
- Fading In the first quarter of 2026, net sales increased a healthy 12% to $1.8 billion.
- Fading Tempur Sealy North America delivered mid-single-digit wholesale sales growth year-over-year on a like-for-like basis, driven by investments…
- Fading The combination continues Somnigroup International's vertical integration strategy and enables us to closer collaborate between component…
Latest announcements
Official filings, newest first.
- Acquisition or disposal; New financial obligation; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Material agreement; New financial obligation; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Regulation FD disclosure · SEC 8-K