{"id":959101,"date":"2026-05-06T16:08:45","date_gmt":"2026-05-06T20:08:45","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/central-garden-pet-announces-record-q2-fiscal-2026-financial-results\/"},"modified":"2026-05-06T16:08:45","modified_gmt":"2026-05-06T20:08:45","slug":"central-garden-pet-announces-record-q2-fiscal-2026-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/central-garden-pet-announces-record-q2-fiscal-2026-financial-results\/","title":{"rendered":"Central Garden & Pet Announces Record Q2 Fiscal 2026 Financial Results"},"content":{"rendered":"

<\/p>\n

Central Garden & Pet Announces Record Q2 Fiscal 2026 Financial Results<\/b><\/p>\n

Reports fiscal 2026 Q2 net sales of $906 million, compared with $834 million a year ago<\/i><\/b><\/p>\n

Delivers fiscal 2026 Q2 GAAP diluted EPS of $1.28, compared with $0.98 in the prior year<\/i><\/b><\/p>\n

Reaffirms fiscal 2026 outlook for 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 second quarter ended March 28, 2026.<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20260506775709\/en\/<\/a><\/p>\n

\n\u201cWe continued to build on our solid start to the year, ending the quarter with higher sales, expanded operating margins, and increased earnings per share versus last year, driven by consistent execution and improving performance across the organization,\u201d said Niko Lahanas, CEO of Central Garden & Pet. \u201cFollowing the quarter, we entered into a pet distribution partnership with Phillips, which allows us to simplify our business and strengthen our focus on our branded portfolio. While much of the garden season remains ahead of us and the macroeconomic and geopolitical environment continues to evolve, we are reaffirming our fiscal year outlook. We expect the distribution partnership to have a minimal impact on earnings per share.\u201d<\/p>\n

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

(All comparisons versus Q2 FY 2025)<\/i><\/p>\n

\nNet sales were $906 million, compared with $834 million.<\/p>\n

\nGross margin expanded by 30 basis points to 33.1%, compared with 32.8%.<\/p>\n

\nOperating income totaled $114 million, compared with $93 million. Operating margin was 12.6%, compared with 11.2%.<\/p>\n

\nOther expense was $351 thousand, compared with other income of $744 thousand.<\/p>\n

\nNet interest expense of $9 million was consistent with the prior year.<\/p>\n

\nNet income was $79 million, compared with $64 million. Diluted earnings per share (EPS) were $1.28, compared with $0.98.<\/p>\n

\nAdjusted EBITDA was $139 million, compared with $123 million. Adjusted EBITDA margin was 15.4%, compared with 14.8%.<\/p>\n

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

(All comparisons versus Q2 FY 2025)<\/i><\/p>\n

\nNet sales in the Pet segment were $477 million, compared with $454 million, primarily driven by continued strength in Dog & Cat and Animal Health, as well as Outdoor Cushions shipments shifting from the first quarter into the second.<\/p>\n

\nOperating income was $78 million, compared with $61 million. Operating margin was 16.3%, compared with 13.4%.<\/p>\n

\nAdjusted EBITDA was $89 million, compared with $75 million. Adjusted EBITDA margin was 18.6%, compared with 16.6%.<\/p>\n

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

(All comparisons versus Q2 FY 2025)<\/i><\/p>\n

\nNet sales in the Garden segment were $429 million, compared with $380 million, primarily driven by shipments shifting from the first quarter into the second, and new listings in Grass and Fertilizer.<\/p>\n

\nOperating income was $66 million, compared with $59 million. Operating margin was 15.4%, compared with 15.5%.<\/p>\n

\nAdjusted EBITDA was $76 million, compared with $69 million. Adjusted EBITDA margin was 17.7%, compared with 18.2%.<\/p>\n

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

(All comparisons versus Q2 FY 2025)<\/i><\/p>\n

\nCash used in operations was $50 million, compared with $47 million, primarily reflecting seasonal working capital timing.<\/p>\n

\nCentral repurchased 110 thousand shares for $3.4 million during the quarter. As of March 28, 2026, $128 million remained available for future stock repurchases.<\/p>\n

\nCash and cash equivalents at March 28, 2026, totaled $653 million, compared with $517 million.<\/p>\n

\nTotal debt was $1.2 billion, consistent with the prior year period, with strong liquidity supporting continued investment capacity and financial flexibility.<\/p>\n

\nGross leverage, calculated using the definitions for Indebtedness and EBITDA in Central’s credit agreement, ended the second quarter at 2.8x, compared with 2.9x in the prior year and below the target range of 3.0 to 3.5x.<\/p>\n

\nCentral had no borrowings outstanding under its credit facility at quarter end.<\/p>\n

Pet Distribution Partnership<\/b><\/p>\n

\nFollowing the close of the quarter, Central entered into a strategic partnership with Phillips Pet Food & Supplies (\u201cPhillips\u201d) to establish a new pet distribution business. By combining two complementary platforms, the partnership creates a stronger, more agile, and more efficient nationwide distribution network. It also simplifies Central\u2019s operating model and enables greater focus on its branded portfolio and long-term growth opportunities. Central will retain a 20% ownership stake, while Phillips and its existing investors will hold the remaining 80%, with the business operating as an independent entity under the Phillips brand.<\/p>\n

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

\nCentral maintains its outlook for fiscal 2026 non-GAAP diluted EPS of $2.70 or better, reflecting continued margin discipline, ongoing investment in growth initiatives, and portfolio optimization. The Company does not expect the distribution joint venture to have a significant impact on EPS.<\/p>\n

\nThe outlook incorporates current assumptions regarding a competitive and promotional retail environment, a value-oriented consumer, existing tariffs, and inflation in select commodities, with continued stability across key categories despite 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 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 any tariff refunds.<\/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 #13758900.<\/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