UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Central Garden & Pet Company Delaware 001-33268 68-0275553 (Commission File Number) (I.R.S. Employer Identification No.) of incorporation or organizatio ...

Central Garden (CENTA) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +85.35%. A quarter ago, it was expected that this pet and lawn products maker would post a loss of $0.2 per share when it actually produced a loss of $0.09, delivering a surprise of +55%.Over the last four quarters ...

Exhibit 99.1 CENTRAL GARDEN & PET ANNOUNCES Q1 FISCAL 2026 FINANCIAL RESULTS Delivers fiscal 2026 Q1 GAAP diluted EPS of $0.11 and non-GAAP diluted EPS of $0.21 compared with $0.21 a year ago Reaffirms outlook for fiscal 2026 non-GAAP diluted EPS of $2.70 or better WALNUT CREEK, Calif. – Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) ("Central"), a leading consumer goods company in the pet and garden industries, today announced financial results for its fiscal 2026 first quarter ended December ...

Mr. Patel holds a Juris Doctor degree from Washington and Lee University School of Law and a bachelor's degree from Colgate University. "We're grateful to George for stepping back into the role on an interim basis and helping ensure a smooth transition,†said Niko Lahanas. "As George returns to retirement, we're excited to welcome Apur to Central. Apur brings deep experience and a strong track record of aligning legal strategy with business priorities while effectively managing risk in complex, global organi ...

Core Viewpoint - Central Garden (CENTA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [3]. Company Performance and Outlook - The upgrade reflects an improvement in Central Garden's underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - Central Garden is projected to earn $2.76 per share for the fiscal year ending September 2026, with a 2% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - Central Garden's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Insights - Central Garden & Pet has acquired the U.S. assets of Champion USA, enhancing its position in the sustainable livestock fly control market [1][3] - Champion USA has over 15 years of experience in providing EPA-approved fly-control solutions, benefiting more than 300,000 cattle producers and treating over 50 million head of cattle [2][5] - The acquisition is expected to strengthen Central's portfolio and distribution capabilities in the animal health segment [3][4] Company Overview - Central Garden & Pet reported fiscal 2025 net sales of $3.1 billion and has been a leader in the pet and garden industries for over 45 years [6][7] - The company offers a diverse portfolio of over 60 brands, focusing on innovative products that promote healthier homes and communities [6][7] - Central is headquartered in Walnut Creek, California, and employs over 6,000 individuals primarily in North America [7]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2] - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing demand for electricity driven by AI [3][7] Investment Opportunity - The company in focus is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure, making it integral to America's future power strategy and capable of executing large-scale energy projects [7] - The company is noted for being debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization, positioning it favorably compared to other energy firms [8] Market Position - The company has an equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth engines in the AI sector without the associated premium costs [9] - It is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity in the AI and energy space [10] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it a solid investment choice amidst the AI revolution [11] Future Trends - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI [12] - The article emphasizes the urgency of investing in AI infrastructure, the onshoring boom, and the surge in U.S. LNG exports as key trends that will shape the future of energy and technology [14]

Core Insights - Central Garden & Pet Company will participate in the 2025 KeyBanc Capital Markets Consumer conferences on December 12, 2025 [1] - CFO Brad Smith will host a fireside chat at 12:55 p.m. Eastern Time during the conference [1] - Senior management will be available for one-on-one meetings with investors [1]

Financial Performance - Consolidated net sales for fiscal 2025 were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[220]. - Operating income increased by $64.7 million, or 34.9%, to $250 million in fiscal 2025, with an operating margin improvement to 8.0% from 5.8% in fiscal 2024[240]. - Gross profit rose by $53.6 million, or 5.7%, to $997.3 million, with gross margin improving 240 basis points to 31.9% in fiscal 2025[232]. - Net income for fiscal 2025 was $162.8 million, or $2.55 per diluted share, compared to $108.0 million, or $1.62 per diluted share for fiscal 2024, representing a 50.6% increase in net income[248]. - Non-GAAP net income for fiscal 2025 was $174.2 million, or $2.73 per diluted share, compared to $142.4 million, or $2.13 per diluted share for fiscal 2024, reflecting a 22.3% increase in non-GAAP net income[259]. - Total net sales for fiscal 2025 were $3,129.1 million, compared to $3,200.5 million for fiscal 2024, indicating a slight decrease of 2.2%[260]. Segment Performance - Pet net sales decreased by $30.8 million, or 1.7%, to $1.8 billion, primarily due to lower sales of durable items[230]. - Garden net sales decreased by $40.6 million, or 3.0%, to $1.3 billion, attributed to decreased sales of third-party products and the planned exit of the pottery business[231]. - The Garden segment's operating income for fiscal 2025 was $142.4 million, up from $81.9 million in fiscal 2024, showing a significant increase of 74.0%[262]. - The Pet segment's operating income for fiscal 2025 was $215.7 million, compared to $203.4 million in fiscal 2024, marking a 6.0% increase[261]. Expenses and Costs - Selling, general and administrative expenses decreased by $11.0 million, or 1.5%, to $747.3 million, but as a percentage of net sales, it increased to 23.9%[236]. - The effective income tax rate increased to 24.4% in fiscal 2025 from 23.2% in fiscal 2024, primarily due to non-deductible losses from the wind-down of U.K. operations[247]. - The company incurred approximately $10.0 million in one-time closure costs related to the wind-down of U.K. operations[222]. - Net interest expense decreased by $5.1 million, or 13.4%, to $32.8 million, due to increased interest income from higher cash balances[245]. Cash Flow and Financing - Net cash provided by operating activities decreased by $62.4 million, from $394.9 million in fiscal 2024 to $332.5 million in fiscal 2025[272]. - Net cash used in investing activities decreased by $60.3 million, from $105.2 million in fiscal 2024 to $44.9 million in fiscal 2025, primarily due to the acquisition of TDBBS, LLC in fiscal 2024[273]. - Net cash used in financing activities increased by $131.2 million, from $25.4 million in fiscal 2024 to $156.6 million in fiscal 2025, mainly due to higher stock repurchases[274]. - The company financed its growth through a combination of internally generated funds, bank borrowings, supplier credit, and sales of equity and debt securities[269]. Share Repurchase and Debt - During fiscal 2025, the company repurchased 3.2 million shares of non-voting common stock and 1.4 million shares of voting common stock at a total cost of $148.4 million[224]. - Total debt outstanding as of September 27, 2025, was $1,191.7 million, slightly up from $1,190.0 million at September 28, 2024[283]. - The company has a $600 million asset-backed loan facility, which is expected to be adequate for working capital and capital spending needs for at least the next 12 months[275]. - The company incurred approximately $6 million of debt issuance costs related to the issuance of $400 million 4.125% senior notes due 2031[285]. Assets and Liabilities - Total assets for the Parent/Issuer were $5.20 billion, while Guarantors had total assets of $4.46 billion as of September 27, 2025, compared to $4.81 billion and $4.23 billion respectively in the prior year[312]. - Long-term debt for the Parent/Issuer was $1.19 billion, with total liabilities amounting to $3.59 billion, while Guarantors had long-term debt of $100,000 and total liabilities of $580.9 million[312]. - The company has significant contractual cash obligations totaling $1.83 billion, with $204.8 million due in fiscal 2026[313]. Impairments and Risks - The company recognized a non-cash impairment charge of $12.8 million in the Pet segment during fiscal 2024 due to changing market conditions[256]. - The company recognized impairment losses on intangible assets of $1.0 million, $12.8 million, and $11.5 million in fiscal years 2025, 2024, and 2023 respectively[328]. - Interest expense could increase or decrease by approximately $1.9 million if interest rates changed by 25 basis points on the company's Amended Credit Facility[331]. Market and Operational Insights - Approximately 64% of the Garden segment's net sales occurred during the second and third fiscal quarters, highlighting the seasonality of the business[268]. - Inflation moderated in fiscal 2024 but increased in the second half of fiscal 2025, primarily due to tariffs, impacting margins and input costs[266]. - The company has minimal sales outside of the United States, indicating a strong domestic focus[333]. - Purchases by U.S. subsidiaries from foreign vendors are primarily made in U.S. dollars, reducing foreign currency risk exposure[333]. - The international subsidiary primarily transacts in British pounds and Canadian dollars, but overall foreign currency exchange risk is considered immaterial[333]. - The company does not hedge against foreign currency risks, reflecting confidence in current operations[333]. Growth Strategy - The company anticipates capital expenditures of approximately $50 to $60 million over the next 12 months for plant and equipment upgrades and IT platform implementation[276]. - The company is evaluating potential acquisition candidates as part of its growth strategy, which may require additional external capital[277].

Core Insights - Central Garden (CENTA) reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.20, and improved from a loss of $0.18 per share a year ago, resulting in an earnings surprise of +55.00% [1] - The company achieved revenues of $678.18 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.82% and showing an increase from $669.49 million year-over-year [2] - Central Garden shares have declined approximately 11.5% year-to-date, contrasting with the S&P 500's gain of 12.3% [3] Financial Performance - Over the last four quarters, Central Garden has exceeded consensus EPS estimates four times and topped consensus revenue estimates twice [2] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $661.29 million, while for the current fiscal year, it is $2.73 on revenues of $3.16 billion [7] Market Outlook - The company's stock performance in the near term will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The Zacks Rank for Central Garden is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Consumer Products - Discretionary industry, to which Central Garden belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Central Garden's stock performance [5]