Central Garden Pet 2025 Q4 Earnings Narrowed Losses 69.3% EPS Improvement

Central Garden & Pet (CENT) reported fiscal 2025 Q4 earnings on Nov 26, 2025, with results beating expectations. The company narrowed losses to $0.16 per share and reduced its net loss by 69.7% year-over-year. Revenue rose 1.3% to $678.18 million, while 2026 guidance of $2.70+ non-GAAP EPS reflects margin expansion and operational discipline.

Revenue

Central Garden & Pet’s total revenue increased by 1.3% to $678.18 million in 2025 Q4, driven by the Garden segment’s strong performance, which saw sales rise to $250 million. The Pet segment, however, declined to $428 million due to the closure of UK operations and reduced durable sales.

Earnings/Net Income

The company narrowed its losses to $0.16 per share in 2025 Q4, a 69.3% improvement from $0.52 in 2024 Q4. Net losses also dropped to $10.44 million, a 69.7% reduction from $34.40 million. The earnings progress reflects margin expansion and disciplined cost management.

Price Action

CENT’s stock edged up 0.18% during the latest trading day, surged 12.27% in the past week, and climbed 6.01% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CENT when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. With a 35.09% return versus 83.07% for the benchmark, the strategy posted an excess return of -47.98%. A Sharpe ratio of 0.19 indicated modest risk-adjusted returns, while limited volatility and zero maximum drawdowns highlighted its conservative profile.

CEO Commentary

CEO Nicholas Lahanas emphasized fiscal 2025 achievements, including record EBITDA and EPS, driven by margin expansion and operational rigor. Strategic priorities for 2026 include advancing the “Cost and Simplicity” agenda, modernizing logistics, and leveraging the Central to Home strategy to boost e-commerce growth.

Guidance

Central Garden & Pet guided to fiscal 2026 non-GAAP EPS of $2.70 or better, supported by margin expansion and operational discipline. CapEx is projected at $50–60 million for productivity projects, while first-quarter 2026 non-GAAP EPS is expected to range between $0.10–$0.15.

Additional News

Recent developments include a $18 million stock buyback post-Q4, signaling management’s confidence in the company’s future. Canaccord Genuity reiterated a Buy rating with a $50 price target, citing improved profitability and operational execution. Additionally, the company plans to pursue margin-accretive M&A opportunities in 2026, with management expressing optimism about finding deals in the current fiscal year.

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