Somnigroup International Inc.

Somnigroup International, called Tempur Sealy International until February 2025, makes and sells mattresses, pillows and other bedding. Its annual report calls it the world's largest bedding company, selling in more than 100 countries. It owns the Tempur-Pedic, Sealy and Stearns & Foster brands. It also sells a store-only brand called Sleepy's at Mattress Firm and makes unbranded products for other retailers.

It earns money through two channels. The direct channel sells to shoppers through more than 2,800 company-owned stores as of December 31, 2025, including Mattress Firm in the US and Dreams in the UK, plus about 30 e-commerce sites. The wholesale channel sells to other retailers and to hospitality and healthcare customers. On February 5, 2025, Somnigroup bought Mattress Firm, the largest US mattress specialty retailer, for about $5.1 billion. That raised direct sales to 63.5% of net sales in 2025, up from 24.9% in 2024.

Revenue was $7.48 billion in 2025, up 51.6% from 2024, mostly because of Mattress Firm. The company reports three segments. Mattress Firm supplied 46.9% of revenue. Tempur Sealy North America, which makes and sells bedding in the US, Canada and Mexico outside Mattress Firm, supplied 36.1%. Tempur Sealy International, covering Europe, Asia-Pacific and Latin America outside Mexico, supplied 17%. The United States accounted for 79.4% of sales.

• In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.82B, down 3% from a year earlier, and net income was $110.9M (+12.0%).
• For fiscal 2025, revenue was $7.48B (+51.6% year over year; +15.3% a year from FY2020 to FY2025) with a 5.1% net margin.

• Over FY2021–FY2025: $1.70B in buybacks and $431.4M in dividends.
• At least 4 consecutive annual increases: every fiscal year in the SEC data (FY2021–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +17.0% a year over 4 years (FY2021–FY2025).
• Dividends took 33.2% of earnings and 20.1% of free cash flow in the latest fiscal year.
• Shares outstanding changed +9.3% from Oct 28, 2021 to Aug 4, 2026.

Rank among 1514 US companies

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($1.9M) and 2 sales ($446K).

Large shareholders (13G filings)

ETFs with the most weight in SGI

1. Mattress Firm deal may disappoint. Somnigroup paid about $5.1 billion for Mattress Firm in February 2025, using $3.1 billion in cash and about 34.2 million new shares. The deal may not deliver the benefits management expects.
2. Heavy debt limits flexibility. As of June 30, 2026, debt was about $4.41 billion against $112 million of cash. Filings show new debt obligations in July and August 2026. High debt can limit dividends, buybacks and flexibility.
3. Foam and steel prices swing. Mattresses rely on polyurethane foam, polyester and steel springs, whose costs track petroleum and steel prices. If the company cannot pass higher costs on to buyers, its profit margins shrink.
4. Fierce competition, including online sellers. Mattress makers compete on price, quality, brand and availability. Online direct-to-consumer brands and retailers that make their own beds could take market share, key customers or profit margin.
5. Thin material stocks and supply disruptions. The company keeps relatively small supplies of materials at its plants and has faced supply disruptions before. Trade route problems, tariffs, labor shortages or severe weather could interrupt production or raise costs.
6. Tariffs, currencies and overseas risks. In 2025, 20.6% of sales came from outside the United States. Exchange rates, tariffs, trade wars and conflicts, such as Red Sea shipping disruptions, can raise costs and reduce reported results.

• Aug 26, 2026 Acquisition or sale of assets completed; New debt or financial obligation; Investor presentation or announcement
• Aug 25, 2026 Investor presentation or announcement
• Aug 6, 2026 Investor presentation or announcement
• Aug 6, 2026 Quarterly results released; Other company announcement
• Jul 27, 2026 Major agreement signed; New debt or financial obligation; Investor presentation or announcement
• Jun 4, 2026 Investor presentation or announcement
• May 15, 2026 Bylaws or fiscal year changed; Shareholder vote results
• May 7, 2026 Investor presentation or announcement
• May 7, 2026 Quarterly results released; Other company announcement
• Apr 13, 2026 Major agreement signed

Somnigroup pays a quarterly dividend, but the yield was a modest 1.06% as of October 28, 2026. Dividends per share rose each year from $0.32 in 2021 to $0.60 in 2025, about 17% a year. No dividend was paid in 2020. In 2025, dividends took 33.2% of earnings and 20.1% of free cash flow (the cash left after running and investing in the business). Buybacks were larger: about $1.7 billion from 2021 to 2025, compared with $431 million in dividends. Even so, the share count rose 9.3% between October 2021 and August 2026, mainly because about 34.2 million shares were issued to buy Mattress Firm.

Our price history for SGI covers only about 1.7 years, so it cannot show how the shares fared in the 2008, 2020 or 2022 market downturns. In the year to October 28, 2026, the stock fell 24.4%, and its largest peak-to-trough drop was 37.1%. Single stocks carry more risk than diversified funds.