Central Garden & Pet Reports Q2 Sales Jump to $906M and EPS of $1.28
Central Garden & Pet reported Q2 sales of $906 million, up from $834 million last year, with gross margin rising to 33.1% and EPS increasing to $1.28 from $0.98. Operating income reached $114 million and adjusted EBITDA hit $139 million, while leverage fell to 2.8x and cash climbed to $653 million.
1. Q2 Fiscal 2026 Financial Results
Central Garden & Pet delivered record Q2 results with net sales of $906 million versus $834 million a year ago. Gross margin expanded by 30 basis points to 33.1%, operating income rose to $114 million from $93 million, net income reached $79 million, and diluted EPS climbed to $1.28 compared with $0.98.
2. Pet and Garden Segment Performance
The Pet segment achieved net sales of $477 million, up from $454 million, with operating income increasing to $78 million and adjusted EBITDA margin improving to 18.6%. The Garden segment posted net sales of $429 million versus $380 million, driving operating income to $66 million and adjusted EBITDA of $76 million.
3. Liquidity, Leverage and Share Repurchases
Cash and cash equivalents totaled $653 million, up from $517 million, while total debt remained at $1.2 billion, resulting in gross leverage of 2.8x below the 3.0–3.5x target range. The company repurchased 110,000 shares for $3.4 million and retains $128 million in buyback authorization.
4. Phillips Distribution Partnership and Fiscal 2026 Guidance
Post-quarter, Central formed a pet distribution joint venture under the Phillips brand, retaining a 20% stake and minimal EPS impact. The company reaffirmed its fiscal 2026 outlook of non-GAAP EPS of $2.70 or better and capex of $50–60 million.
