Central Garden Pet 2025 Q4 Earnings Beats Expectations with 69.7% Reduced Net Loss

Central Garden & Pet (CENT) reported fiscal 2025 Q4 earnings on Nov 26, 2025, with revenue rising 1.3% to $678.18 million and a narrowed net loss of $-10.44 million, a 69.7% improvement from $-34.40 million in 2024 Q4. The company guided to non-GAAP EPS of $2.70 or better for fiscal 2026, aligning with its performance.

Revenue

The Garden segment drove growth with $250 million in sales, up from $234 million in the prior year, while the Pet segment declined to $428 million due to the closure of UK operations and reduced durable product sales.

Earnings/Net Income

Central Garden & Pet reduced its net loss by 69.7%, with EPS narrowing to $-0.16 from $-0.52 per share. This marked a significant improvement in profitability despite strategic cost-cutting measures.

Post-Earnings Price Action Review

The strategy of buying CENT when earnings beat and holding for 30 days delivered moderate performance but underperformed the benchmark. The strategy achieved a 35.09% return, while the benchmark returned 83.07%, resulting in an excess return of -47.98%. The Sharpe ratio was 0.19, indicating modest risk-adjusted returns. With a maximum drawdown of 0% and a volatility of 33.04%, the strategy had limited downside risk but lacked the potential for significant gains compared to the benchmark.

CEO Commentary

CEO Nicholas Lahanas highlighted record EBITDA and earnings per share in fiscal 2025, driven by margin expansion and operational rigor. Strategic priorities for 2026 include advancing the “Central to Home” strategy, leveraging AI-ready data, and accelerating e-commerce innovation.

Guidance

Central Garden & Pet expects non-GAAP EPS of $2.70 or better for fiscal 2026, supported by margin expansion and operational efficiency. Q1 2026 guidance projects $0.10–$0.15 EPS, reflecting seasonal trends and a temporary shipment hold with a major retailer.

Additional News

Central Garden & Pet remains optimistic about M&A opportunities, with management actively pursuing margin-accretive consumable businesses. Recent share repurchases totaled $18 million post-Q4, reflecting confidence in the stock’s valuation. The company also emphasized its “Central to Home” strategy, including AI-driven innovations and e-commerce expansion.