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Achieved record net sales of $1,900,000,000 in 2025 despite a mid-single digit decline in the US bedding industry, driven by market share gains across all segments.
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Successfully transitioned to a holding company structure following the Mattress Firm acquisition, enabling unified management while maintaining business unit independence.
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Accelerated the pace of sales and cost synergies from the Mattress Firm combination, exceeding initial expectations due to logistics and supply chain efficiencies.
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Shifted to a 65% direct-to-consumer model, which management believes derisks distribution volatility and provides more control over the customer experience.
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Attributed US outperformance to the largest product launch in company history for Sealy Posturepedic and the first national advertising investment for the Sealy brand.
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International growth of 9% on a constant currency basis was driven by a refreshed Tempur lineup and increased velocity per slot in existing distribution channels.
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Maintained a disciplined capital allocation strategy, reducing the leverage ratio to 3.2 times while continuing to invest in store refreshes and brand wall installations.
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Guidance for 2026 assumes a flat global bedding market, with management opting not to forecast an industry turn despite recent robust holiday sales trends.
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Expects to deliver $225,000,000 in total EBITDA synergies by 2027, with $100,000,000 coming from sales and an increased target of $125,000,000 from cost savings.
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Anticipates 2026 adjusted EPS between $3.00 and $3.40, supported by approximately 100 basis points of net margin expansion from operational efficiencies.
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Plans to invest $150,000,000 through 2027 to refresh Mattress Firm stores and complete the nationwide rollout of Tempur brand walls to drive higher retail ASP.
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Raised 2028 target EPS to $5.15, representing a 24% compound annual growth rate, based on confidence in competitive positioning and logistics synergies.
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Reclassified store occupancy costs from operating expenses to cost of goods sold to align accounting across the newly combined Somnigroup International entities.
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Identified a 6% headwind in early Q1 2026 store operating days at Mattress Firm due to severe weather, resulting in 5,000 incremental lost days.
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Confirmed ongoing due diligence regarding the proposed acquisition of Leggett & Platt to further vertical integration and shareholder value.
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Noted that intercompany eliminations will represent approximately 23% of global Tempur Sealy sales in 2026, which is margin accretive but neutral to operating profit dollars.
