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

Central Garden & Pet (CENT) reported fiscal 2025 Q4 earnings on Nov 26, 2025, with results exceeding expectations. Revenue rose 1.3% to $678.18 million, while the company narrowed its net loss by 69.7% year-over-year. Guidance for fiscal 2026 was optimistic, with non-GAAP EPS projected at $2.70 or better.

Revenue

Revenue increased to $678.18 million in Q4 2025, a 1.3% rise from $669.49 million in Q4 2024. The Garden segment drove the growth, while the Pet segment faced challenges due to strategic exits and operational shifts.

Earnings/Net Income

The company reduced its net loss to $-10.44 million in Q4 2025, a 69.7% improvement from $-34.40 million in Q4 2024. Earnings per share improved to a loss of $0.16, up from $0.52, reflecting operational efficiencies and cost discipline. This significant reduction in losses underscores the company’s progress in margin expansion and portfolio optimization.

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 fiscal 2025 achievements, including record EBITDA and EPS driven by operational rigor and margin expansion. He emphasized initiatives like supply chain modernization and facility consolidation. For 2026, Lahanas expressed cautious optimism, citing the Central to Home strategy and innovation in e-commerce. Challenges like tariffs and macroeconomic conditions were acknowledged, but confidence in margin expansion and M&A opportunities remained strong.

Guidance

CFO Brad Smith guided to fiscal 2026 non-GAAP EPS of $2.70 or better, supported by margin expansion and operational efficiency. The company expects $50–60 million in CapEx and projects Q1 2026 non-GAAP EPS at $0.10–$0.15. Tariff exposure is estimated at $20 million, with offsets through pricing and supply chain actions.

Additional News

Central Garden & Pet announced a $18 million post-Q4 share buyback, signaling management’s confidence in the stock’s value. Canaccord Genuity reiterated its Buy rating with a $50.00 price target, citing the company’s structural profitability and disciplined execution. Additionally, the CEO highlighted strategic M&A opportunities, emphasizing the potential for margin-accretive acquisitions in consumable businesses.