{"id":934192,"date":"2026-02-04T16:05:11","date_gmt":"2026-02-04T21:05:11","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/central-garden-pet-announces-q1-fiscal-2026-financial-results\/"},"modified":"2026-02-04T16:05:11","modified_gmt":"2026-02-04T21:05:11","slug":"central-garden-pet-announces-q1-fiscal-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/central-garden-pet-announces-q1-fiscal-2026-financial-results\/","title":{"rendered":"Central Garden & Pet Announces Q1 Fiscal 2026 Financial Results"},"content":{"rendered":"

<\/p>\n

Central Garden & Pet Announces Q1 Fiscal 2026 Financial Results<\/b><\/p>\n

Delivers fiscal 2026 Q1 GAAP diluted EPS of $0.11 and non-GAAP diluted EPS of $0.21 <\/i>compared with $0.21 a year ago<\/i><\/b><\/p>\n

Reaffirms outlook for fiscal 2026 non-GAAP diluted EPS of $2.70 or better<\/i><\/b><\/p>\n

WALNUT CREEK, Calif.–(BUSINESS WIRE<\/a>)–
\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (\u201cCentral\u201d), 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.<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20260204131823\/en\/<\/a><\/p>\n

\n\u201cWe delivered a solid start to the fiscal year, with disciplined execution across the business, particularly when measured against a strong prior-year first quarter,\u201d said Niko Lahanas, CEO of Central Garden & Pet. \u201cFirst 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.\u201d<\/p>\n

Fiscal 2026 First Quarter Financial Results<\/b><\/p>\n

(All comparisons versus Q1 FY 2025)<\/i><\/p>\n

\nNet sales were $617 million compared with $656 million.<\/p>\n

\nGross margin expanded by 110 basis points to 30.9%, compared with 29.8% driven by improved productivity. Non-GAAP gross margin was 30.8%.<\/p>\n

\nOperating 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%.<\/p>\n

\nOther income was $0.2 million, compared with other expense of $2 million.<\/p>\n

\nNet interest expense of $8 million was fairly consistent with the prior year.<\/p>\n

\nNet 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.<\/p>\n

\nAdjusted EBITDA was $50 million compared with $55 million.<\/p>\n

Pet Segment First Quarter Fiscal 2026 Results<\/b><\/p>\n

(All comparisons versus Q1 FY 2025)<\/i><\/p>\n

\nNet 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.<\/p>\n

\nOperating 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%.<\/p>\n

\nAdjusted EBITDA was $60 million compared with $61 million.<\/p>\n

Garden Segment First Quarter Fiscal 2026 Results<\/b><\/p>\n

(All comparisons versus Q1 FY 2025)<\/i><\/p>\n

\nNet 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.<\/p>\n

\nOperating 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)%.<\/p>\n

\nAdjusted EBITDA was $8 million compared with $14 million.<\/p>\n

Liquidity and Debt<\/b><\/p>\n

(All comparisons versus Q1 FY 2025)<\/i><\/p>\n

\nCash and cash equivalents at December 27, 2025, totaled $721 million, compared with $618 million.<\/p>\n

\nCash used by operations was $70 million, compared with $69 million.<\/p>\n

\nTotal 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.<\/p>\n

\nCentral repurchased 660,000 shares for $18.5 million during the quarter. As of December 27, 2025, $28 million remained available for future stock repurchases.<\/p>\n

Cost and Simplicity Agenda<\/b><\/p>\n

\nCentral 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.<\/p>\n

\nDuring 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.<\/p>\n

Fiscal 2026 Guidance<\/b><\/p>\n

\nCentral continues to expect fiscal 2026 non-GAAP diluted EPS of $2.70 or better, reflecting continued margin discipline, cost efficiency initiatives, and portfolio optimization.<\/p>\n

\nThe 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.<\/p>\n

\nCapital expenditures are projected to be approximately $50 million to $60 million, focused on maintenance, productivity initiatives, and targeted growth investments across both segments.<\/p>\n

\nThis 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.<\/p>\n

Conference Call<\/b><\/p>\n

\nCentral 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<\/a><\/span>.<\/p>\n

\nAlternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international) using confirmation #13757410.<\/p>\n

About Central Garden & Pet<\/b><\/p>\n

\nCentral 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\u00ae<\/sup>, Aqueon\u00ae<\/sup>, Best Bully Sticks\u00ae<\/sup>, Cadet\u00ae<\/sup>, C&S\u00ae<\/sup>, Farnam\u00ae<\/sup>, Ferry-Morse\u00ae<\/sup>, Kaytee\u00ae<\/sup>, Nylabone\u00ae<\/sup>, Pennington\u00ae<\/sup>, Sevin\u00ae<\/sup> and Zo\u0451con\u00ae<\/sup>. 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<\/a> to learn more.<\/p>\n

Safe Harbor Statement<\/b><\/p>\n

\n\u201cSafe Harbor\u201d 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:<\/p>\n