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Sep 27, 2025
Central Garden & Pet Q4 2025 Earnings Report
Central Garden & Pet reported its fourth quarter and fiscal year 2025 financial results, highlighting a record year for the bottom line, continued margin expansion, and disciplined execution of its Cost and Simplicity agenda.
Key Takeaways
Central Garden & Pet delivered strong profits in both its Pet and Garden segments for fiscal year 2025, achieving a record year on the bottom line with significant margin expansion. Despite a dynamic external landscape, the company ended the year with a record cash position and provided an optimistic outlook for fiscal 2026, expecting non-GAAP EPS of $2.70 or better.
Fourth quarter net sales increased by 1% to $678 million, driven by strong consumer demand in the Garden segment.
Gross margin expanded significantly in Q4 to 29.0% (GAAP) and 29.1% (non-GAAP), primarily due to the impairment of grass seed inventory in the prior year and improved productivity.
The company reported a GAAP net loss of $10 million and a non-GAAP net loss of $5 million for Q4 2025, an improvement compared to the prior year's losses.
Fiscal year 2025 saw record bottom-line performance with GAAP EPS of $2.55 and non-GAAP EPS of $2.73, alongside strong cash generation and a record cash position of $882 million.
Revenue by Segment
Forward Guidance
Central Garden & Pet expects fiscal 2026 non-GAAP EPS to be $2.70 or better, driven by continued margin discipline, cost efficiencies, and portfolio optimization. Capital spending is projected at approximately $50 million to $60 million, focused on maintenance, productivity, and targeted growth initiatives.
Positive Outlook
- Expects non-GAAP EPS of $2.70 or better for fiscal 2026.
- Anticipates continued margin discipline and cost efficiencies.
- Focus on portfolio optimization to drive future performance.
- Projected capital spending of $50 million to $60 million for maintenance, productivity, and growth.
- Confidence in the 'Central to Home' strategy and exceptional team to build on momentum.
Challenges Ahead
- Outlook incorporates assumptions around a competitive and promotional retail environment.
- Expects a value-seeking consumer.
- Anticipates current tariffs to continue impacting operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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