Somnigroup International Inc. · NYSE:SGI
Somnigroup International — Q4 2025 Earnings Presentation
47 slides from Somnigroup International's earnings presentation, Feb 17, 2026
Slide 1: Somnigroup Q4 2025 Earnings Presentation
NYSE: SGI February 2026
Slide 2: Somnigroup Investment Thesis
SOMNIGROUP INVESTMENT THESIS Global Scale, Vertical Integration: World’s largest bedding company with leading, end-to-end capabilities from design and manufacturing to retail. Omnichannel Reach & Iconic Brands: Portfolio of trusted brands and products, reaching consumers wherever they shop – online,
Slide 3: Somnigroup's Structure
SOMNIGROUP’S STRUCTURE High-level strategic direction • Corporate governance • Capital allocation Tactical go-to-market strategy • Operational excellence • Passionate customer service 3
Slide 4: Somnigroup
SOMNIGROUP The world’s largest bedding company, dedicated to enriching people’s lives through the power of a great night’s sleep. CONSUMER-CENTRIC DIVERSIFIED MANUFACTURING OMNI-CHANNEL INNOVATION PORTFOLIO & LOGISTICS RETAIL • Advanced R&D • Diverse brand • Global • Leading bedding capabilities dri
Slide 5: Uniquely positioned to optimize consumer experience
SOMNIGROUP Uniquely positioned to optimize consumer experience Optimize investments in sleep technology Improve targeted innovation Drive advertising share of voice Enhance consumer outcomes Accelerate continuous feedback loop 5
Slide 6: Somnigroup's Vertically Integrated Strategy
SOMNIGROUP’S VERTICALLY INTEGRATED STRATEGY 20,000 160+ associates E-commerce Manufacturing platforms and R&D facilities OPERATIONS FACILITIES SOMNIGROUP Tempur® ECOSYSTEM Distribution WITH retail stores centers 2,800+ RETAIL STORES Dreams retail stores Logistics fleet Mattress Firm retail stores 6
Slide 7: Somnigroup's Journey to Vertical Retailer
SOMNIGROUP’S JOURNEY TO VERTICAL RETAILER DIRECT TO CONSUMER as a percentage of 70% TOTAL SALES 65% 60% 50% 40% 30% 23% 24% 25% 18% 20% 13% 13% 9% 10% 7% 4% 4% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q4 '25 7
Slide 8: Somnigroup Executive Team
SOMNIGROUP EXECUTIVE TEAM SCOTT THOMPSON CHAIRMAN, CEO CLIFF STEVE JONATHAN BHASKAR DAVID KINDEL KINDRA TOM BUSTER RUSING HIRST RAO MONTGOMERY NUÑO BELLIS MURRAY CEO CEO CEO EVP, CFO EVP, GLOBAL EVP, CHRO, EVP, CIO EVP, CMO BUSINESS GC DEVELOPMENT 8
Slide 9: Somnigroup's Robust Capital Allocation
SOMNIGROUP’S ROBUST CAPITAL ALLOCATION 5-year track record INVESTMENTS IN GROWTH CAPITAL RETURNED INITIATIVES TO SHAREHOLDERS $800M+ $5.7B3 $1.9B $300M+ 2x-3x invested in our invested in invested in invested in target leverage2 plants and accretive M&A share quarterly range supported processes to ac
Slide 10: Mattress Firm
@ MATTRESSFIRM
Slide 11: Overview – Mattress Firm
OVERVIEW – MATTRESS FIRM LEADING OMNICHANNEL U.S. RETAILER 2,100+4 brick-and-mortar retail stores integrated with e- commerce and sleep education platforms to enable a seamless consumer purchase journey STRONG CONSUMER ENGAGEMENT Robust consumer touchpoints with deep insight into evolving preference
Slide 12: Retail Footprint
RETAIL FOOTPRINT • 2,1004+ owned retail stores across 45 states • Integrated e-commerce capabilities with 75M+ website visitors5 annually Geographic Footprint WA ND MT MN ME ID SD WI VT OR MI NH WY NY IA NE MA PA RI OH CT IL IN NJ NV UT CO WV KS MO DE HI KY VA MD CA DC OK TN NC AR AZ NM SC MS AL GA
Slide 13: Mattress Firm's Diversified Product Offerings
MATTRESS FIRM’S DIVERSIFIED PRODUCT OFFERINGS • A leading retailer of Tempur-Pedic®, Sealy®, and Stearns & Foster® branded Somnigroup products Brands and SOMNIGROUP BRANDS Private Label • Retails Sleepy’s® private label bedding manufactured by Tempur Sealy AND PRIVATE LABELS ARE EXPECTED TO REPRESEN
Slide 14: Competitive Differentiators
COMPETITIVE DIFFERENTIATORS SCALE PRODUCT CONVENIENCE RETAIL EXPERTISE SELECTION Seamless experience Highly trained Diverse and curated nationwide on and offline Sleep Experts assortment EXPERIENCE CONSUMER LOGISTICS Personalized to TOUCHPOINTS Accelerated each consumer Data driven tools order-to-de
Slide 15: Sales Growth Outlook
SALES GROWTH OUTLOOK Leverage improving U.S. industry and drive sales growth Continuously align brick-and-mortar footprint to consumer demand Invest in stores and products to improve consumer shopping experience Drive conversion and AOV through enhanced RSA training Drive e-commerce traffic via stra
Slide 16: Tempur Sealy
TEMPUR*SEALY
Slide 17: Overview – Tempur Sealy
OVERVIEW – TEMPUR SEALY CORE GEOGRAPHICAL COMPETENCIES CONCENTRATION Consumer-Centric Innovation Leading Product Brands ~70% Domestic PRODUCTS SOLD IN 100+ World-Class Manufacturing COUNTRIES Integrated WORLDWIDE Marketing Extensive Logistics ~30% International Capabilities 17
Slide 18: Competitive Differentiators
COMPETITIVE DIFFERENTIATORS SCALE ICONIC BRANDS DIVERSE MANUFACTURING Consumer preferred PORTFOLIO Extensive capabilities supported by advertising Wide range of price across 70+ plants points and technologies LOGISTICS R&D MARKETING Global integrated Advanced in-house Fully integrated logistics oper
Slide 19: Brand Portfolio
BRAND PORTFOLIO TEMPUR-PEDIC®: LEADING WORLDWIDE PREMIUM BEDDING BRAND Tempur-Pedic® uniquely adapts, supports, and aligns to you to deliver truly life- changing sleep. $2,200-$10,300* STEARNS & FOSTER®: HIGH-END-TARGETED BRAND The world’s finest beds that are made with exceptional materials, time-h
Slide 20: Global Manufacturing Footprint
GLOBAL MANUFACTURING FOOTPRINT 73 manufacturing facilities 4 state-of-the-art product testing locations 20 million sq. ft. of manufacturing and distribution operations 110k sq. ft. R&D innovation Wholly owned (31) Tempur-Pedic® Facility (4) Joint Venture (9) Licensee (29) 20
Slide 21: Successful Omni-Distribution Platform
SUCCESSFUL OMNI-DISTRIBUTION PLATFORM • Third-party retailers are our largest distribution channel TTM 4Q’25 Sales Wholesale • Significant private label opportunity • Valued win-win relationships with retailers INTERNATIONAL DIRECT-TO-CONSUMER 20% • Significant worldwide sales growth INTERNATIONAL E
Slide 22: Key Markets
KEY MARKETS NORTH AMERICA • $45B1 bedding market • Historically strong bedding industry growth, emerging from a prolonged downturn* • Market share leader with continued opportunities to expand through higher slot velocity, expansion into non-traditional channels, and growing DTC presence INTERNATION
Slide 23: Sales Growth Outlook
SALES GROWTH OUTLOOK Invest in innovation to meet customer demand. Grow wholesale through existing and new retail relationships. Expand into OEM market. Invest in U.S. Sealy and Stearns & Foster® products and marketing. Expand direct-to-consumer through e-commerce and company-owned stores. 23
Slide 24: Dreams
Dreams
Slide 25: Overview – Dreams
OVERVIEW – DREAMS LEADING UK BEDDING RETAILER 225+ brick-and-mortar retail stores, 2,000+ colleagues, and an integrated e-commerce platform attracting over 18M visitors5 annually VERTICALLY INTEGRATED In-house manufacturing, distribution and logistics operations result in Dreams producing and delive
Slide 26: Financials
FINANCIALS 26
Slide 27: Fourth Quarter Performance
FOURTH QUARTER PERFORMANCE Three Months Ended Year Ended Q4 ‘25 Sales by Channel* (in millions, except December December December December percentages and per % Change % Change 31, 2025 31, 2024 31, 2025 31, 2024 common share amounts) Net Sales $1,868 $1,208 54.7% $7,477 $4,931 51.6% 35% Net Income
Slide 28: 2026 Outlook
2026 OUTLOOK 6 Expect full-year adjusted EPS2 between $3.00 and $3.40 Adjusted EPS • We expect sales of approximately $7.9B at the midpoint • The global bedding industry to grow slightly versus the $4.00 prior year, driven by low single digit growth in the first half of year $3.19 $3.20 • Consolidat
Slide 29: Mattress Firm Acquisition Net Synergies
MATTRESS FIRM ACQUISITION NET SYNERGIES 6 Adjusted EBITDA2,3 Impact 2025 Actual 2026 Target 2027 Target Total Sales Synergies $60 $40 - $100 Cost Synergies $20 $55 $50 $125 Total $80 $95 $50 $225 SALES SYNERGIES COST SYNERGIES • Mattress Firm is further aligning their • Expanded scale and vertical i
Slide 30: Long Term Perspective
LONG TERM PERSPECTIVE 6 2026-2028 Adjusted EPS2 SALES TARGETS1 $6.00 • We are targeting sales to grow at a compound $5.15 annual rate of mid single digits between 2025 and 2028. $4.00 • This indicates adjusted EPS2 would increase $3.20* from $2.70 in 2025 to approximately $5.15 by $2.68 2028, a comp
Slide 31: Capital Structure
CAPITAL STRUCTURE Debt Maturities 2500 • Leverage2 was 3.21x and liquidity was ~$774M as of 12/31/25 2000 • We expect to return to our target leverage range of 2.0x to 3.0x • In 2026, we intend to begin to allocate 1500 $15 approximately 50 percent of free cash $1,160 flow in 2026 to capital returns
Slide 32: Thank you for your interest in Somnigroup
Thank you for your interest in For more information, please email: investor.relations@somnigroup.com 32
Slide 33: Appendix
APPENDIX 33
Slide 34: U.S. Historical Industry Volumes
U.S. HISTORICAL INDUSTRY VOLUMES1 U.S. Produced Mattress Units 25.0 24.3 24.7 7.5% 24.1 24.0 23.6 23.5 23.5 7.0% 23.0 22.5 22.0 6.5% U.S. Produced Units / U.S. Population 20.9 U.S. Produced Units (Millions) 21.0 20.4 20.1 20.0 6.0% 19.0 18.1 18.0 5.5% 18.0 17.0 16.7 5.0% 15.9 16.0 15.0 4.5% 2009 201
Slide 35: U.S. Mattress Industry Analysis
U.S. MATTRESS INDUSTRY ANALYSIS1 Total U.S. Produced Consumption in Units 30 Trend Line (Based on 2011–2021 CAGR) 25 20 15 10 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: ISPA, U.S. ITC, management estimates 1 Management estimates, informed by equity research no
Slide 36: Sustainability Initiatives
SUSTAINABILITY INITIATIVES 2025 Updates Environmental • Progressed towards our goal of achieving carbon neutrality by 2040 through reducing greenhouse gas emissions at our wholly owned manufacturing and logistics operations by 2% compared to the prior year* • Maintained zero waste to landfill status
Slide 37: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This investor presentation contains statements regarding the Company’s expectations of future performances, integration of acquired companies with our business (including Mattress Firm), the Company’s quarterly cash dividend, the Company’s expectations regarding geopolitic
Slide 38: Use of Non-GAAP Financial Measures Information
USE OF NON-GAAP FINANCIAL MEASURES INFORMATION In this investor presentation and certain of its press releases and SEC filings, the Company provides information regarding adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, free cash flow, consolidated indebtedness less netted cash, and lever
Slide 39: QTD Adjusted Net Income and Adjusted EPS
QTD ADJUSTED NET INCOME2 AND ADJUSTED EPS2 Three Months Ended (in millions, except per share amounts) December 31, 2025 December 31, 2024 Net income $ 140.8 $ 71.9 Business combination charges (1) 4.0 — Cloud-based computing arrangements impairment (2) 6.2 — Transaction costs (3) 0.1 12.0 Customer-r
Slide 40: QTD Adjusted Net Income and Adjusted EPS Footnotes
QTD ADJUSTED NET INCOME2 AND ADJUSTED EPS2 (1) In the fourth quarter of 2025, the Company recorded $4.0 million of business combination charges primarily related to the floor model transition associated with the refinement of Mattress Firm's multi-branded merchandising plan. (2) In the fourth quarte
Slide 41: TTM Adjusted Net Income and Adjusted EPS
TTM ADJUSTED NET INCOME2 AND ADJUSTED EPS2 Trailing Twelve Months Ended (in millions, except per common share amounts) December 31, 2025 Net income $ 384.1 Acquisition-related costs (1) 114.2 Transaction costs (2) 56.0 Business combination charges (3) 53.8 Loss on disposal of business (4) 13.9 Suppl
Slide 42: QTD Adjusted EBITDA
QTD ADJUSTED EBITDA2 Three Months Ended (in millions) December 31, 2025 December 31, 2024 Net income $ 140.8 $ 71.9 Interest expense, net 64.2 26.5 Transaction-related interest expense, net (1) — 9.8 Income taxes 52.8 23.1 Depreciation and amortization 80.4 53.0 EBITDA $ 338.2 $ 184.3 Adjustments: B
Slide 43: QTD Adjusted EBITDA Footnotes
QTD ADJUSTED EBITDA2 (1) In the fourth quarter of 2024, the Company incurred $9.8 million of transaction-related interest expense, net of interest income, related to the Term B Loan drawn and held in escrow. The proceeds of the Term B Loan were released upon the closing of the acquisition of Mattres
Slide 44: TTM Adjusted EBITDA
TTM ADJUSTED EBITDA2 Trailing Twelve Months Ended (in millions) December 31, 2025 Net income $ 384.1 Interest expense, net 261.1 Transaction related interest expense, net (1) 6.8 Income tax provision 95.7 Depreciation and amortization 291.6 EBITDA $ 1,039.3 Adjustments for financial covenant purpose
Slide 45: TTM Adjusted EBITDA Footnotes
TTM ADJUSTED EBITDA2 (1) In the year ended 2025, the Company incurred $6.8 million of transaction related interest expense, net of interest income, related to the Term B Loan drawn and held in escrow. The proceeds of the Term B Loan were released upon the closing of the acquisition of Mattress Firm
Slide 46: Leverage Reconciliation
LEVERAGE2 RECONCILIATION (in millions) December 31, 2025 Total debt, net $ 4,685.7 Plus: Deferred financing costs (1) 31.6 Total debt 4,717.3 Less: Netted cash (2) 134.9 Consolidated indebtedness less netted cash $ 4,582.4 (1) The Company presents deferred financing costs as a direct reduction from
Slide 47: Footnotes
FOOTNOTES 1 Management estimates, informed by equity research notes and other industry reports 2 Adjusted net income, EBITDA, adjusted EBITDA, adjusted EBITDA per credit facility, adjusted EPS, leverage, and free cash flow are non-GAAP financial measures. Please refer to the “Use of Non-GAAP Financi
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