Central Garden & Pet Announces Q3 Fiscal 2026 Financial Results

About this update from Central Garden & Pet Company

Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a leading consumer goods company in the pet and garden industries, today announced financial results for its fiscal 2026 third quarter ended June 27, 2026. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260805868011/en/ Central Garden & Pet raises fiscal 2026 outlook for non-GAAP diluted EPS from $2.70 or better to $2.85 or better "Third quarter results showed continued strength across the business with improvements in both organic sales and margins versus last year, reflecting sharp execution and favorable margins due primarily to the exit of the pet distribution business earlier this year. Following the quarter, we entered into a definitive agreement to acquire a majority interest in TRIXIE, the leading European pet supplies and pet snacks company, a significant step in expanding our presence in Europe," said Niko Lahanas, CEO of Central Garden & Pet. "As we enter the final phase of the garden season, and given the strength we've seen across the business, we're raising our fiscal year outlook." Fiscal 2026 Third Quarter Financial Results (All comparisons versus Q3 FY 2025) Net sales were $882 million compared with $961 million, a decrease of 8%. Organic net sales, which take into account the exit of the pet distribution business at the beginning of the quarter, were $862 million compared with $842 million, an increase of 2%. Gross profit was $317 million, compared with $332 million, a decrease of 5%, with gross margin expanding by 130 basis points to 35.9% from 34.6%. SG&A was $191 million, compared with $197 million, a decrease of 3%. Non-GAAP SG&A was $182 million, compared with $193 million, a decrease of 6%. Operating income totaled $126 million, compared with $135 million, a decrease of 7%, with operating margin expanding by 20 basis points to 14.3% from 14.1%. On a non-GAAP basis, operating income totaled $136 million, compared with $139 million, a decrease of only 2%, with operating margin expanding by 90 basis points to 15.4% from 14.5%. Other income was $2 million, slightly above the prior year. Net interest expense was $8 million, lower than a year ago. Net income was $90 million, compared with $95 million, a decrease of 5%, or $1.45 per diluted share compared with $1.52, a decrease of $0.07. On a non-GAAP basis, net income was $96 million, compared with $98 million, a decrease of 2%, or $1.54 per diluted share compared with $1.56, a decrease of $0.02. Adjusted EBITDA was $162 million, compared with $167 million, a decrease of $5 million, with margin expanding by 100 basis points to 18.3% from 17.3%. Pet Segment Third Quarter Fiscal 2026 Results (All comparisons versus Q3 FY 2025) Net sales in the Pet segment were $400 million, compared with $493 million, a decrease of 19% reflecting the exit of the pet distribution business. Organic net sales in the Pet segment were $380 million, an increase of 2%. Operating income was $67 million, compared with $76 million, a decrease of 12%, with margin of 16.7% versus 15.5%, up 120 basis points. Non-GAAP operating income was $76 million, compared with $78 million, a decrease of 2%, with margin of 19.0% versus 15.8%, up 320 basis points. Adjusted EBITDA was $86 million, compared with $88 million, a decrease of $2 million, with margin of 21.4% versus 17.9%, up 350 basis points. Garden Segment Third Quarter Fiscal 2026 Results (All comparisons versus Q3 FY 2025) Net sales in the Garden segment were $482 million, compared with $468 million, an increase of 3%. The increase was primarily driven by Wild Bird, Fertilizer and Controls, and Grass Seeds. Operating income was $90 million, compared with $83 million, an increase of 9%, with margin expanding by 100 basis points to 18.7% from 17.7%. Non-GAAP operating income was $91 million, compared with $85 million, an increase of 7%, with margin of 18.9% versus 18.2%, up 70 basis points. Adjusted EBITDA was $101 million, compared with $96 million, an increase of $5 million, with margin of 20.9% versus 20.4%, up 50 basis points. Liquidity and Debt (All comparisons versus Q3 FY 2025) Cash provided by operations was $327 million, compared with $265 million, primarily reflecting seasonal changes in working capital. Cash and cash equivalents at June 27, 2026, totaled $997 million, compared with $713 million. Total debt was $1.2 billion, consistent with the prior year period, with strong liquidity supporting continued investment capacity and financial flexibility. Gross leverage, calculated using the definitions for Indebtedness and EBITDA in Central's credit agreement, ended the third quarter at 2.8x, compared with 2.9x in the prior year and below the target range of 3.0 to 3.5x. Net leverage was 0.5x. As of June 27, 2026, $128 million remained available for future stock repurchases. Acquisition of TRIXIE Following the close of the quarter, Central entered into a definitive agreement to acquire an 80% interest in TRIXIE Heimtierbedarf GmbH & Co. KG (“TRIXIE”), the leading European pet supplies and pet snacks company, for €340 million in cash at closing plus up to €60 million in additional earn-out payments, for total consideration of up to €400 million. Together, Central and TRIXIE will create the leading global player in pet supplies. TRIXIE serves over 30,000 pet retail stores internationally with a broad portfolio of pet products, approximately 90% of which are own-brand. The transaction will give Central a differentiated presence with approximately 10% of net sales generated outside of the United States and establish a scaled platform to consolidate the fragmented European pet specialty market. Members of TRIXIE's leadership team will retain a minority stake and continue in key roles. The transaction is expected to close in the first half of fiscal 2027. Fiscal 2026 Guidance Reflecting year-to-date results and improved visibility into the balance of the year, Central raises its outlook for fiscal 2026 non-GAAP diluted EPS from $2.70 or better to $2.85 or better, driven by continued margin discipline, ongoing investment in growth initiatives, and portfolio optimization. The outlook incorporates current assumptions regarding a competitive and promotional retail environment, a value-oriented consumer, existing tariffs, and inflation in select commodities. It also assumes continued stability across key commodities despite a dynamic macroeconomic and geopolitical backdrop. Capital expenditures for fiscal 2026 are projected to be approximately $50 million, focused on maintenance, productivity initiatives, and targeted growth investments across both segments. This outlook excludes any potential impacts from further acquisitions, divestitures, or restructuring activities that may occur during the remainder of fiscal 2026, including projects under Central's Cost and Simplicity agenda, as well as further tariff refunds. Conference Call Central will hold a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time), hosted by CEO Niko Lahanas and CFO Brad Smith, to discuss these results and to provide a general business update. The conference call and related materials can be accessed at http://ir.central.com . Alternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international) using confirmation #13760653. About Central Garden & Pet Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) is a leading consumer goods company in the pet and garden industries. Guided by the belief that home is central to life, the company's purpose is to proudly nurture happy and healthy homes. For over 45 years, its innovative and trusted solutions have helped lawns grow greener, gardens bloom bigger, pets live healthier, and communities grow stronger. Central is home to a diversified portfolio of market-leading brands including Amdro ® , Aqueon ® , Best Bully Sticks ® , Cadet ® , C&S ® , Farnam ® , Ferry-Morse ® , Kaytee ® , Nylabone ® , Pennington ® , Sevin ® and Zoёcon ® . With fiscal 2025 net sales of $3.1 billion, the company has strong manufacturing and logistics capabilities supported by a passionate, entrepreneurial growth culture that incorporates sustainability. Central is headquartered in Walnut Creek, California, and employs more than 6,000 people, primarily across North America. Visit www.central.com to learn more. Safe Harbor Statement “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, including statements concerning evolving consumer demand and unfavorable retailer dynamics, productivity initiatives, estimated capital spending, earnings guidance for fiscal 2026, the expected timing of the closing of the acquisition of TRIXIE, and our ability to successfully manage and grow TRIXIE’s business, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. All forward-looking statements are based upon Central's current expectations and various assumptions. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release including, but not limited to, the following factors: economic uncertainty and other adverse macroeconomic conditions, including a potential recession or inflationary pressure; impacts of further tariffs or a trade war and our ability to receive tariff refunds; risks associated with international sourcing; the failure to obtain certain required regulatory approvals or the failure to satisfy any of the other closing conditions to the completion of the TRIXIE transaction; our ability to close the TRIXIE acquisition in a timely basis or at all; our ability to integrate the acquired company and realize the potential benefits of the TRIXIE transaction to Central and our customers; fluctuations in energy prices, fuel and related petrochemical costs; the impact of the new pet distribution partnership on our financial results and ability to distribute and promote our pet branded products; declines in consumer spending and the associated increased inventory risk; seasonality and fluctuations in our operating results and cash flow; adverse weather conditions and climate change; the success of our Central to Home strategy and our Cost and Simplicity agenda; fluctuations in market prices for seeds and grains and other raw materials, including the impact of significant declines in grass seed market prices on our inventory valuation; risks associated with new product introductions, including the risk that our new products will not produce sufficient sales to recoup our investment; dependence on a small number of customers for a significant portion of our business; consolidation trends in the retail industry; supply shortages in pet birds, small animals and fish; potential credit risk associated with certain brick and mortar retailers in the pet specialty segment; reductions in demand for our product categories; competition in our industries; continuing implementation of an enterprise resource planning information technology system; regulatory issues; potential environmental liabilities; access to and cost of additional capital; the impact of product recalls; risks associated with our acquisition strategy, including our ability to successfully integrate acquisitions and the impact of purchase accounting on our financial results; potential goodwill or intangible asset impairment; the potential for significant deficiencies or material weaknesses in internal control over financial reporting, particularly of acquired companies; our dependence upon our key executives; our ability to recruit and retain members of our management team and employees to support our businesses; potential costs and risks associated with actual or potential cyberattacks; our ability to protect our trademarks and other proprietary rights; litigation and product liability claims; the impact of new accounting regulations and the possibility our effective tax rate will increase as a result of future changes in the corporate tax rate or other tax law changes; potential dilution from issuance of authorized shares; and the voting power associated with our Class B stock. These and other risks are described in greater detail in Central’s Annual Report on Form 10-K for the fiscal year ended September 27, 2025, filed with the Securities and Exchange Commission on November 26, 2025. Central has not filed its Form 10-Q for the fiscal quarter ended June 27, 2026. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time the Company files the Form 10-Q. Central assumes no obligation to publicly update these forward-looking statements to reflect new information, future events, or any other development. CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts, unaudited)     June 27, 2026   June 28, 2025   September 27, 2025 ASSETS           Current assets:           Cash and cash equivalents $ 996,710     $ 713,049     $ 882,488   Restricted cash   15,504       14,690       15,945   Accounts receivable (less allowance for credit losses of $8,884, $8,585 and $8,011)   460,243       522,712       325,297   Inventories, net   631,649       718,267       722,106   Prepaid expenses and other   30,593       31,497       30,294   Total current assets   2,134,699       2,000,215       1,976,130   Plant, property and equipment, net   349,324       366,362       363,188   Goodwill   545,841       554,692       554,692   Other intangible assets, net   426,901       455,100       447,643   Operating lease right-of-use assets   189,559       220,182       222,863   Other assets   143,629       60,771       61,127   Total $ 3,789,953     $ 3,657,322     $ 3,625,643   LIABILITIES AND EQUITY           Current liabilities:           Accounts payable $ 217,277     $ 210,926     $ 234,618   Accrued expenses   295,689       294,395       247,213   Current lease liabilities   50,686       56,779       56,865   Current portion of long-term debt   55       81       62   Total current liabilities   563,707       562,181       538,758   Long-term debt   1,193,003       1,191,179       1,191,641   Long-term lease liabilities   164,849       188,307       191,739   Deferred income taxes and other long-term obligations   121,493       125,125       118,572   Equity:           Common stock ($0.01 par value; 9,650,221 shares outstanding at June 27, 2026, June 28, 2025 and September 27, 2025)   97       97       97   Class A common stock ($0.01 par value: 51,290,706, 51,556,941 and 51,618,682 shares outstanding at June 27, 2026, June 28, 2025 and September 27, 2025, respectively)   513       516       516   Class B stock ($0.01 par value: 1,602,374 shares outstanding at June 27, 2026, June 28, 2025 and September 27, 2025)   16       16       16   Additional paid-in capital   573,770       566,236       571,392   Retained earnings   1,175,716       1,024,902       1,015,096   Accumulated other comprehensive loss   (4,442 )     (3,532 )     (3,849 ) Total Central Garden & Pet Company shareholders’ equity   1,745,670       1,588,235       1,583,268   Noncontrolling interest   1,231       2,295       1,665   Total equity   1,746,901       1,590,530       1,584,933   Total $ 3,789,953     $ 3,657,322     $ 3,625,643   CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited)     Three Months Ended   Nine Months Ended   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 Net sales $ 882,362     $ 960,913     $ 2,405,887     $ 2,450,886   Cost of goods sold   565,444       628,903       1,598,797       1,650,094   Gross profit   316,918       332,010       807,090       800,792   Selling, general and administrative expenses   191,074       196,884       550,777       544,350   Operating income   125,844       135,126       256,313       256,442   Interest expense   (14,279 )     (14,360 )     (42,858 )     (43,340 ) Interest income   6,512       5,517       18,240       17,409   Other income   1,511       1,069       1,342       96   Income before income taxes and noncontrolling interest   119,588       127,352       233,037       230,607   Income tax expense   29,596       31,941       56,214       56,208   Income including noncontrolling interest   89,992       95,411       176,823       174,399   Net income attributable to noncontrolling interest   136       404       705       1,750   Net income attributable to Central Garden & Pet Company $ 89,856     $ 95,007     $ 176,118     $ 172,649   Net income per share attributable to Central Garden & Pet Company:               Basic $ 1.46     $ 1.53     $ 2.87     $ 2.72   Diluted $ 1.45     $ 1.52     $ 2.84     $ 2.69   Weighted average shares used in the computation of net income per share:               Basic   61,452       61,980       61,409       63,557   Diluted   61,947       62,610       61,925       64,283   CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)     Nine Months Ended   June 27, 2026   June 28, 2025 Cash flows from operating activities:       Net income $ 176,823     $ 174,399   Adjustments to reconcile net income to net cash used in operating activities:       Depreciation and amortization   60,977       64,063   Amortization of deferred financing costs   1,879       2,021   Non-cash lease expense   43,725       45,118   Stock-based compensation   15,699       15,572   Gain on divestiture   (2,479 )     —   Deferred income taxes   4,481       4,587   Other operating activities   1,898       (1,851 ) Changes in assets and liabilities (excluding businesses acquired):       Accounts receivable   (130,770 )     (195,704 ) Inventories   22,268       39,800   Prepaid expenses and other assets   2,522       (3,992 ) Accounts payable   8,189       (1,471 ) Accrued expenses   47,630       48,390   Other long-term obligations   (1,548 )     2,831   Operating lease liabilities   (43,699 )     (43,983 ) Net cash provided by operating activities   207,595       149,780   Cash flows from investing activities:       Additions to property, plant and equipment   (33,851 )     (30,580 ) Payments to acquire companies, net of cash acquired   (57,720 )     (3,318 ) Proceeds from divestiture   30,644       —   Other investing activities   (50 )     (150 ) Net cash used in investing activities   (60,977 )     (34,048 ) Cash flows from financing activities:       Repayments of long-term debt   (53 )     (202 ) Repurchase of common stock, including shares surrendered for tax withholding   (28,822 )     (154,734 ) Distribution to noncontrolling interest   (1,139 )     (1,346 ) Payment of financing costs   (2,329 )     —   Net cash used in financing activities   (32,343 )     (156,282 ) Effect of exchange rate changes on cash and equivalents   (494 )     (114 ) Net increase/(decrease) in cash, cash equivalents and restricted cash   113,781       (40,664 ) Cash, cash equivalents and restricted cash at beginning of year   898,433       768,403   Cash, cash equivalents and restricted cash at end of period $ 1,012,214     $ 727,739   Supplemental information:       Cash paid for interest $ 48,291     $ 48,778   Cash paid for income taxes – net of refunds $ 35,295     $ 44,281   Lease liabilities arising from obtaining right-of-use assets $ 9,519     $ 56,833   Use of Non-GAAP Financial Measures We report our financial results in accordance with GAAP. However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, non-GAAP operating income, organic net sales and adjusted EBITDA. Management uses these non-GAAP financial measures that exclude the impact of specific items (described below) in making financial, operating and planning decisions and in evaluating our performance. Also, management believes that these non-GAAP financial measures may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods. While management believes that non-GAAP measures are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results. We have also provided organic net sales, a non-GAAP measure that excludes the impact of businesses purchased or exited in the prior 12 months, because we believe it permits investors to better understand the performance of our historical business without the impact of recent acquisitions or dispositions. Adjusted EBITDA is defined by us as income before income tax, net other expense, net interest expense and depreciation and amortization and stock-based compensation expense (or operating income plus depreciation and amortization expense and stock-based compensation expense). Adjusted EBITDA further excludes charges related to facility closures. We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplemental measure in evaluating the cash flows and performance of our business and provides greater transparency into our results of operations. Adjusted EBITDA is used by our management to perform such evaluations. Adjusted EBITDA should not be considered in isolation or as a substitute for cash flow from operations, income from operations or other income statement measures prepared in accordance with GAAP. We believe that adjusted EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present adjusted EBITDA when reporting their results. Other companies may calculate adjusted EBITDA differently and it may not be comparable. The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. Non-GAAP financial measures reflect adjustments based on the following items: Facility closures and business exit: we have excluded charges related to the closure of distribution and manufacturing facilities and our decisions to exit businesses as they represent infrequent transactions that impact the comparability between operating periods. Tariff refunds: we have excluded the impact of tariff refunds received for certain tariffs previously imposed under the International Emergency Economic Powers Act which were deemed unconstitutional. We believe the tariff refund amounts we have received represent infrequent transactions that impact the comparability between operating periods. Business contribution to new pet distribution partnership formation: we have excluded the gain related to the divestiture of the pet distribution business and its contribution to the formation of a partnership as it represents an infrequent transaction that impacts the comparability between operating periods. From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful supplemental information to investors and management. We have not provided a reconciliation of non-GAAP measures to the corresponding GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts due to the potential variability and limited visibility of excluded items; these excluded items may include facility closures and exit costs, impairment charges and restructuring costs, among others. During the third quarter of fiscal 2026, we recognized incremental expense of $13.8 million in the consolidated statement of operations, of which $13.0 million in our Pet segment related to the exit of a minor business and the closure of two facilities, and $0.8 million in our Garden segment related to the closure of three distribution centers in fiscal 2025 and 2024. During the third quarter of fiscal 2026, we recognized incremental income in our Pet segment of $3.6 million for tariff refunds received. During the third quarter of fiscal 2026, we recognized incremental income of $2.5 million in Other Income from the contribution of our pet distribution business to the formation of a new new partnership. During the first six months of fiscal 2026, we recognized incremental expense of $8.0 million in the condensed consolidated statement of operations, of which $7.3 million in our Garden segment related to the closure of three distribution centers in fiscal 2025 and 2024 and $0.7 million in our Pet segment related to the closure of a sales and logistics facility in Pennsylvania. During the third quarter of fiscal 2025, we recognized incremental expense of $3.9 million in the consolidated statement of operations, $2.2 million in our Garden segment related to closing a distribution facility in Ontario, California and beginning the consolidation of our Western distribution network and an incremental $1.7 million in our Pet segment related to the decision to winddown our operations in the U.K. During the second quarter of fiscal 2025, we recognized incremental expense of $5.3 million in the condensed consolidated statement of operations, related to the decision to wind-down our operations in the U.K. and the related facility there as we move to a direct-export model. Net Income and Diluted Net Income Per Share   GAAP to Non-GAAP Reconciliation   Three Months Ended   Nine Months Ended     June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025     (in thousands, except per share amounts) GAAP net income attributable to Central Garden & Pet Company   $ 89,856     $ 95,007     $ 176,118     $ 172,649   Facility closures (1) (4) (5) (6)   13,757       3,915       21,729       9,254   Tariff refunds (2)   (3,606 )     —       (3,606 )     —   Pet distribution business divestiture (3)   (2,479 )     —       (2,479 )     —   Tax effect of adjustments     (1,900 )     (1,003 )     (3,770 )     (2,258 ) Non-GAAP net income attributable to Central Garden & Pet Company   $ 95,628     $ 97,919     $ 187,992     $ 179,645   GAAP diluted net income per share   $ 1.45     $ 1.52     $ 2.84     $ 2.69   Non-GAAP diluted net income per share   $ 1.54     $ 1.56     $ 3.04     $ 2.79   Shares used in GAAP and non-GAAP diluted net earnings per share calculation     61,947       62,610       61,925       64,283   Operating Income GAAP to Non-GAAP Reconciliation   Three Months Ended June 27, 2026   Nine Months Ended June 27, 2026     GAAP Non-GAAP adjustments Non-GAAP   GAAP Non-GAAP adjustments Non-GAAP     (in thousands) Net sales   $ 882,362   $ 1,354   $ 883,716     $ 2,405,887   $ 1,354   $ 2,407,241   Cost of goods sold     565,444     129     565,573       1,598,797     646     1,599,443   Gross profit   $ 316,918   $ 1,225   $ 318,143     $ 807,090   $ 708   $ 807,798   Selling, general and administrative expenses     191,074     (8,926 )   182,148       550,777     (17,415 )   533,362   Income from operations (1) (2) (4) $ 125,844   $ 10,151   $ 135,995     $ 256,313   $ 18,123   $ 274,436                     Gross margin     35.9 %     36.0 %     33.5 %     33.6 % Operating margin   14.3 %   15.4 %   10.7 %   11.4 % Operating Income GAAP to Non-GAAP Reconciliation   Three Months Ended June 28, 2025   Nine Months Ended June 28, 2025     GAAP Non-GAAP adjustments Non-GAAP   GAAP Non-GAAP adjustments Non-GAAP     (in thousands) Net sales   $ 960,913   $ —   $ 960,913     $ 2,450,886   $ —   $ 2,450,886   Cost of goods sold     628,903     (248 )   628,655       1,650,094     (4,661 )   1,645,433   Gross profit   $ 332,010   $ 248   $ 332,258     $ 800,792   $ 4,661   $ 805,453   Selling, general and administrative expenses     196,884     (3,667 )   193,217       544,350     (4,593 )   539,757   Income from operations (5) (6) $ 135,126   $ 3,915   $ 139,041     $ 256,442   $ 9,254   $ 265,696                     Gross margin     34.6 %     34.6 %     32.7 %     32.9 % Operating margin     14.1 %     14.5 %     10.5 %     10.8 % Pet Segment Operating Income GAAP to Non-GAAP Reconciliation   Three Months Ended   Nine Months Ended     June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025     (in thousands) GAAP operating income   $ 66,818     $ 76,199     $ 194,440     $ 188,070   Facility closures (1) (4) (5) (6)   12,963       1,671       13,696       7,010   Tariff refunds received (2)   (3,606 )     —       (3,606 )     —   Non-GAAP operating income   $ 76,175     $ 77,870     $ 204,530     $ 195,080                     GAAP operating margin     16.7 %     15.5 %     15.0 %     13.7 % Non-GAAP operating margin     19.0 %     15.8 %     15.8 %     14.2 % Garden Segment Operating Income GAAP to Non-GAAP Reconciliation   Three Months Ended   Nine Months Ended     June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025     (in thousands) GAAP operating income   $ 90,051     $ 82,989     $ 146,340     $ 144,143   Facility closures (1) (4) (5)   794       2,244       8,033       2,244   Non-GAAP operating income   $ 90,845     $ 85,233     $ 154,373     $ 146,387                     GAAP operating margin     18.7 %     17.7 %     13.2 %     13.4 % Non-GAAP operating margin     18.9 %     18.2 %     13.9 %     13.6 % Organic Net Sales GAAP to Non-GAAP Reconciliation   Three Months Ended June 27, 2026   Nine Months Ended June 27, 2026     Net sales (GAAP)   Effect of acquisitions & divestitures on net sales   Net sales organic   Net sales (GAAP)   Effect of acquisitions & divestitures on net sales   Net sales organic     (in millions) Q3 FY 26   $ 882.4     $ 20.2   $ 862.2     $ 2,405.9     $ 237.2   $ 2,168.7   Q3 FY 25     960.9       118.7     842.2       2,450.9       351.7     2,099.2   $ increase (decrease)   $ (78.5 )       $ 20.0     $ (45.0 )       $ 69.5   % increase (decrease)     (8.2 )%         2.4 %     (1.8 )%         3.3 % Organic Pet Segment Net Sales GAAP to Non-GAAP Reconciliation   Three Months Ended June 27, 2026   Nine Months Ended June 27, 2026     Net sales (GAAP)   Effect of acquisitions & divestitures on net sales   Net sales organic   Net sales (GAAP)   Effect of acquisitions & divestitures on net sales   Net sales organic     (in millions) Q3 FY 26   $ 400.5     $ 20.2   $ 380.3     $ 1,293.1     $ 237.2   $ 1,055.9   Q3 FY 25     492.5       118.7     373.8       1,373.7       351.7     1,022.0   $ increase (decrease)   $ (92.0 )       $ 6.5     $ (80.6 )       $ 33.9   % increase (decrease)     (18.7 )%         1.7 %     (5.9 )%         3.3 % Adjusted EBITDA GAAP to Non-GAAP Reconciliation   Three Months Ended June 27, 2026     Pet   Garden   Corporate   Total     (in thousands) Net income attributable to Central Garden & Pet Company   $ —   $ —   $ —     $ 89,856   Interest expense, net     —     —     —       7,767   Other income     —     —     —       (1,511 ) Income tax expense     —     —     —       29,596   Net income attributable to noncontrolling interest     —     —     —       136   Income (loss) from operations     66,818     90,051     (31,025 )   $ 125,844   Depreciation & amortization     9,418     9,987     229       19,634   Noncash stock-based compensation     —     —     6,245       6,245   Facility closures and tariff refunds received (1) (2)   9,357     794     —       10,151   Adjusted EBITDA   $ 85,593   $ 100,832   $ (24,551 )   $ 161,874   Adjusted EBITDA GAAP to Non-GAAP Reconciliation   Three Months Ended June 28, 2025     Pet   Garden   Corporate   Total     (in thousands) Net income attributable to Central Garden & Pet Company   $ —   $ —   $ —     $ 95,007   Interest expense, net     —     —     —       8,843   Other income     —     —     —       (1,069 ) Income tax expense     —     —     —       31,941   Net income attributable to noncontrolling interest     —     —     —       404   Income (loss) from operations     76,199     82,989     (24,062 )   $ 135,126   Depreciation & amortization     10,391     10,383     709       21,483   Noncash stock-based compensation     —     —     6,044       6,044   Facility closures & business exit (5)   1,671     2,244     —       3,915   Adjusted EBITDA   $ 88,261   $ 95,616   $ (17,309 )   $ 166,568   Adjusted EBITDA GAAP to Non-GAAP Reconciliation   Nine Months Ended June 27, 2026     Pet   Garden   Corporate   Total     (in thousands) Net income attributable to Central Garden & Pet Company   $ —   $ —   $ —     $ 176,118   Interest expense, net     —     —     —       24,618   Other income     —     —     —       (1,342 ) Income tax expense     —     —     —       56,214   Net income attributable to noncontrolling interest     —     —     —       705   Income (loss) from operations     194,440     146,340     (84,467 )   $ 256,313   Depreciation & amortization     30,017     30,252     708       60,977   Noncash stock-based compensation     —     —     15,699       15,699   Facility closures and tariff refunds received (1) (2) (4)   10,090     8,033     —       18,123   Adjusted EBITDA   $ 234,547   $ 184,625   $ (68,060 )   $ 351,112   Adjusted EBITDA GAAP to Non-GAAP Reconciliation   Nine Months Ended June 28, 2025     Pet   Garden   Corporate   Total     (in thousands) Net income attributable to Central Garden & Pet Company   $ —   $ —   $ —     $ 172,649   Interest expense, net     —     —     —       25,931   Other income     —     —     —       (96 ) Income tax expense     —     —     —       56,208   Net income attributable to noncontrolling interest     —     —     —       1,750   Income (loss) from operations     188,070     144,144     (75,772 )   $ 256,442   Depreciation & amortization     29,969     31,957     2,137       64,063   Noncash stock-based compensation     —     —     15,572       15,572   Facility closures and business exit (5) (6)   7,010     2,244     —       9,254   Adjusted EBITDA   $ 225,049   $ 178,345   $ (58,063 )   $ 345,331     View source version on businesswire.com: https://www.businesswire.com/news/home/20260805868011/en/

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