SGI SOMNIGROUP INTERNATIONAL INC.

Overview and Growth

In fiscal 2025, SOMNIGROUP INTERNATIONAL INC. recorded $7.48B of revenue, net income of $384.10M, and an operating cash inflow of $800.10M. The $7.48B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 51.6% above fiscal 2024 revenue of $4.93B, marking a year-over-year increase. Diluted earnings per share were $1.84, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $2.16 in fiscal 2024, the current result was 14.8% lower. Revenue equaled 0.64x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $3.18B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 42.6%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $754.90M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 10.1%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $384.10M for the fiscal year. Measured against reported revenue, net income produced a 5.1% margin after operating costs and the remaining recognized items. The earnings statement records $481.00M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 6.4%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $95.70M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 19.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

Total assets were $11.60B, supported by $8.48B of liabilities and $3.11B of shareholder equity. Current assets were $1.29B against $1.57B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 0.83x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Cash and equivalents totaled $134.90M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 8.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $4.61B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 1.48x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 39.7%, showing how much of the asset base was matched by borrowing. Liabilities represented 73.1% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 1.2%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 94.0% higher than fiscal 2024 assets of $5.98B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $800.10M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 2.08x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $166.90M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 20.9% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $633.20M, leaving a positive amount after capital expenditures. Free cash flow represented 8.5% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 5.5%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.