Revenue: As of FY2026 Q2, the actual value is USD 906.15 M.EPS: As of FY2026 Q2, the actual value is USD 1.28.EBIT: As of FY2026 Q2, the actual value is USD 123.02 M.<h4>Net Sales</h4><ul><li>Three Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Total net sales increased by $72.6 million, or 8.7%, to $906.1 million from $833.5 million.</li><li>Pet segment net sales increased by $23.1 million, or 5.1%, to $476.8 million from $453.7 million, primarily due to increased sales in the Dog &amp; Cat business (treats &amp; toys) and outdoor cushion business due to shipment timing.</li><li>Garden segment net sales increased by $49.5 million, or 13.0%, to $429.3 million from $379.8 million, driven by increased sales in controls and grass seed businesses, new private label business, and new listings, partially offset by lower sales in packet seed and live plants.</li></ul></li><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Total net sales increased by $33.5 million, or 2.3%, to $1,523.5 million from $1,490.0 million.</li><li>Pet segment net sales increased by $11.4 million, or 1.3%, to $892.6 million, primarily due to higher sales in Dog &amp; Cat and Animal Health businesses, partially offset by lower sales of other manufacturers’ products and the closure of UK operations.</li><li>Garden segment net sales increased by $22.1 million, or 3.6%, to $630.9 million, due to increased sales in controls and grass seed businesses, new private label business, and new listings, partially offset by lower sales in live plants and packet seed.</li></ul></li></ul><h4>Gross Profit and Gross Margin</h4><ul><li>Three Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Gross profit increased by $26.5 million, or 9.7%, to $299.6 million from $273.1 million.</li><li>Gross margin increased by 30 basis points to 33.1% from 32.8%.</li><li>Excluding facility closure charges in the prior year, gross margin decreased by 20 basis points from 33.3% to 33.1%.</li><li>Pet segment gross profit and gross margin improved due to increased net sales, improved product mix, and productivity improvements.</li><li>Garden segment gross profit increased due to higher net sales, but gross margin declined due to higher manufacturing costs and a shift to private label sales.</li></ul></li><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Gross profit increased by $21.4 million, or 4.6%, to $490.2 million from $468.8 million.</li><li>Gross margin improved by 70 basis points to 32.2% from 31.5%.</li><li>Both Pet and Garden segments contributed to improved gross profit, with Pet being the larger contributor due to productivity gains and a mix shift in sales.</li></ul></li></ul><h4>Selling, General and Administrative (SG&amp;A) Expenses</h4><ul><li>Three Months Ended March 28, 2026 vs. March 29, 2025<ul><li>SG&amp;A expenses increased by $5.9 million, or 3.3%, to $185.6 million from $179.8 million.</li><li>As a percentage of net sales, SG&amp;A decreased to 20.5% from 21.6%.</li><li>Corporate expenses increased by $3.8 million, primarily due to higher third-party provider expense driven by M&amp;A activity expenditures.</li></ul></li><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>SG&amp;A expenses increased by $12.2 million, or 3.5%, to $359.7 million from $347.5 million.</li><li>As a percentage of net sales, SG&amp;A increased to 23.6% from 23.3%.</li><li>Garden segment expenses increased due to $7.8 million in facility closure costs in Q1 FY2026.</li><li>Corporate expenses increased by $1.7 million, primarily due to higher third-party provider expense related to M&amp;A activity.</li></ul></li></ul><h4>Operating Income</h4><ul><li>Three Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Total operating income increased by $20.6 million, or 22.1%, to $113.9 million from $93.3 million.</li><li>Operating margin improved to 12.6% from 11.2%.</li><li>Pet segment operating income increased by $17.2 million, or 28.4%, to $77.8 million from $60.6 million.</li><li>Garden segment operating income increased by $7.2 million to $66.0 million from $58.7 million.</li><li>Corporate operating expense increased by $3.8 million to $29.9 million.</li></ul></li><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Total operating income increased by $9.2 million, or 7.5%, to $130.5 million from $121.3 million.</li><li>Operating margin increased to 8.6% from 8.1%.</li><li>Pet segment operating income increased by $15.8 million, or 14.1%, to $127.6 million from $111.9 million.</li><li>Garden segment operating income decreased by $4.9 million to $56.3 million from $61.2 million, but increased by $2.4 million on a non-GAAP basis (excluding facility charges).</li><li>Corporate operating expense increased by $1.7 million to $53.4 million.</li></ul></li></ul><h4>Net Income Attributable to Central Garden &amp; Pet Company</h4><ul><li>Three Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Net income was $79.4 million, compared to $63.6 million in the prior year.</li><li>Non-GAAP net income was $79.6 million, compared to $67.7 million in the prior year.</li></ul></li><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Net income was $86.3 million, compared to $77.6 million in the prior year.</li><li>Non-GAAP net income was $92.4 million, compared to $81.7 million in the prior year.</li></ul></li></ul><h4>Depreciation and Amortization</h4><ul><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Total depreciation and amortization was $41.3 million for 2026, compared to $42.6 million for 2025.</li><li>Pet segment depreciation and amortization was $20.6 million (2026) vs $19.6 million (2025).</li><li>Garden segment depreciation and amortization was $20.3 million (2026) vs $21.6 million (2025).</li></ul></li></ul><h4>Cash Flow</h4><ul><li>Six Months Ended March 28, 2026 vs. March 29, 2025<ul><li>Net cash used in operating activities was - $119.9 million, an increase of $4.2 million from - $115.7 million in the prior year, primarily due to changes in working capital, notably an increase in accounts receivable.</li><li>Net cash used in investing activities was - $78.3 million, an increase of $58.1 million from - $20.2 million in the prior year, mainly due to more significant acquisition activity.</li><li>Net cash used in financing activities was - $31.4 million, a decrease of $68.3 million from - $99.7 million in the prior year, primarily due to decreased open market purchases of common stock.</li><li>Capital Expenditures were approximately $21 million invested through March 28, 2026, with an anticipated total of $50 million for fiscal 2026.</li></ul></li></ul><h4>Debt and Liquidity</h4><ul><li>Total debt outstanding was $1,192.6 million at March 28, 2026, compared to $1,190.8 million at March 29, 2025.</li><li>Central Garden &amp; Pet Company has a $600 million asset-based revolving credit facility, with net availability of approximately $600 million as of March 28, 2026.</li><li>The company expects cash generated from operations and the Credit Facility to be adequate to meet working capital, capital spending, and other cash needs for at least the next 12 months.</li></ul><h4>Strategic Summary and Outlook</h4><ul><li>Pet Distribution Divestiture: On April 13, 2026, Central Garden &amp; Pet Company formed a strategic partnership with Phillips Pet Food &amp; Supplies, contributing its pet distribution business to a new entity in exchange for cash proceeds and a 20% ownership stake. This aims to create a more efficient distribution network, increase scale, and allow Central Garden &amp; Pet Company to benefit from a more focused portfolio and reduced operational complexity.</li><li>Growth Strategy: Central Garden &amp; Pet Company plans to continue evaluating potential acquisition candidates and may require additional external capital for material acquisitions.</li><li>Operational Efficiency: The company has benefited from lower cost inventory and productivity gains and is focused on its “Central to Home strategy” and “Cost and Simplicity agenda.”</li></ul>

Central Garden & Pet | 10-Q: FY2026 Q2 Revenue: USD 906.15 M