Central Garden & Pet Announces Q1 Fiscal 2026 Financial Results

About this update from Central Garden & Pet Company

Delivers fiscal 2026 Q1 GAAP diluted EPS of $0.11 and non-GAAP diluted EPS of $0.21 compared with $0.21 a year ago Reaffirms outlook for fiscal 2026 non-GAAP diluted EPS of $2.70 or better WALNUT CREEK, Calif., February 04, 2026 --( BUSINESS WIRE )--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 first quarter ended December 27, 2025. "We delivered a solid start to the fiscal year, with disciplined execution across the business, particularly when measured against a strong prior-year first quarter," said Niko Lahanas, CEO of Central Garden & Pet. "First quarter results also reflected shipment timing, with volumes shifting into the second quarter. With Cost and Simplicity firmly embedded in our operations, we are sharpening our focus on growth and innovation across the portfolio, recognizing that results will build over time. We remain encouraged by the momentum in the business and confident in our outlook for the year as we advance our Central to Home strategy." Fiscal 2026 First Quarter Financial Results (All comparisons versus Q1 FY 2025) Net sales were $617 million compared with $656 million. Gross margin expanded by 110 basis points to 30.9%, compared with 29.8% driven by improved productivity. Non-GAAP gross margin was 30.8%. Operating income totaled $17 million, compared with $28 million. Non-GAAP operating income was $24 million. Operating margin moved to 2.7% from 4.3%, while non-GAAP operating margin was 3.9%. Other income was $0.2 million, compared with other expense of $2 million. Net interest expense of $8 million was fairly consistent with the prior year. Net income was $7 million compared with $14 million. Non-GAAP net income was $13 million. GAAP diluted earnings per share were $0.11 compared with $0.21, while non-GAAP diluted earnings per share were $0.21. Adjusted EBITDA was $50 million compared with $55 million. Pet Segment First Quarter Fiscal 2026 Results (All comparisons versus Q1 FY 2025) Net sales in the Pet segment were $416 million compared with $427 million, primarily reflecting portfolio optimization efforts, including the rationalization of lower-margin categories and the closure of Central's U.K. operations, as well as shipment timing. Operating income was $50 million compared with $51 million. Non-GAAP operating income was also $50 million. Operating margin was 12.0%, in line with the prior year, and non-GAAP operating margin was 12.1%. Adjusted EBITDA was $60 million compared with $61 million. Garden Segment First Quarter Fiscal 2026 Results (All comparisons versus Q1 FY 2025) Net sales in the Garden segment were $202 million, compared with $229 million, reflecting shipment timing, with volumes shifting into the second quarter, and portfolio optimization efforts, including the rationalization of select Live Plants categories. Operating loss was $10 million, compared with operating income of $2 million, and non-GAAP operating loss was $2 million. Operating margin moved to (4.8)% from 1.1%, while non-GAAP operating margin was (1.2)%. Adjusted EBITDA was $8 million compared with $14 million. Liquidity and Debt (All comparisons versus Q1 FY 2025) Cash and cash equivalents at December 27, 2025, totaled $721 million, compared with $618 million. Cash used by operations was $70 million, compared with $69 million. Total debt was $1.2 billion, consistent with the prior year. Gross leverage, calculated using the definitions for Indebtedness and EBITDA in Central's credit agreement, ended the first quarter at 2.9x, consistent with the prior year and below the target range of 3.0 to 3.5x. Central had no borrowings outstanding under its credit facility at quarter end. Central repurchased 660,000 shares for $18.5 million during the quarter. As of December 27, 2025, $28 million remained available for future stock repurchases. Cost and Simplicity Agenda Central made further progress in its multi-year Cost and Simplicity agenda, a broad-based effort spanning sourcing, manufacturing, distribution, portfolio optimization, and overhead efficiency. These actions are streamlining operations, reducing complexity, and driving margin improvement across the organization. During the quarter, non-GAAP adjustments totaled $8 million, primarily related to facility closures in the Garden segment, with costs largely associated with lease exit and severance expenses. Fiscal 2026 Guidance Central continues to expect fiscal 2026 non-GAAP diluted EPS of $2.70 or better, reflecting continued margin discipline, cost efficiency initiatives, and portfolio optimization. The outlook incorporates current assumptions regarding a competitive and promotional retail environment, value-oriented consumer behavior, current tariffs, and inflation in select commodity categories, within a dynamic macroeconomic and geopolitical environment. Capital expenditures are projected to be approximately $50 million to $60 million, focused on maintenance, productivity initiatives, and targeted growth investments across both segments. This outlook excludes any potential impacts from acquisitions, divestitures, or restructuring activities that may occur during fiscal 2026, including projects under Central's Cost and Simplicity agenda. 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 #13757410. 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, and earnings guidance for fiscal 2026, 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: 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 December 27, 2025. 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. 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, 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. 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: 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.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260204131823/en/ Contacts Investor & Media Contact Friederike Edelmann VP, Investor Relations & Corporate Sustainability (925) 412-6726 [email protected]

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