Central Garden & Pet Company announced that its Board of Directors has authorized an additional $100 million for its stock repurchase program, raising the total buyback authorization to $230 million. The decision was made on February 17, 2026 and expands the company’s ability to repurchase shares through both open‑market and private transactions.
Prior to this increase, the company had raised its repurchase authorization by $100 million in December 2024, bringing the total to approximately $130 million. The February 2026 increase represents the second major expansion of the program in less than two years, underscoring management’s commitment to returning capital to shareholders while maintaining a robust balance sheet.
Management cited that the shares are undervalued and that the additional capital will enhance shareholder value. The company’s cash position of $721 million and the absence of credit‑facility borrowings provide the liquidity needed to execute the buyback program without compromising investment or operational priorities.
The repurchase authorization comes after a strong first quarter of fiscal 2026, in which the company reported non‑GAAP diluted earnings per share of $0.21—an $0.10 beat over the consensus estimate of $0.11. Revenue of $617 million fell 6% year‑over‑year, largely due to shipment timing in the garden and pet segments, but gross margin expanded by 110 basis points to 30.9% as a result of improved productivity and cost control.
Management reaffirmed its fiscal 2026 non‑GAAP diluted EPS guidance of $2.70 or better, signaling confidence in the company’s ability to maintain profitability amid headwinds such as tariff pressures and low consumer confidence. The strong margin performance and cash generation support the company’s ability to fund the expanded buyback program while pursuing selective acquisitions, such as the recent purchase of Champion USA’s U.S. assets for approximately $57 million.
The company’s strategy of disciplined execution, cost and simplicity initiatives, and a focus on growth and innovation—particularly in its Central to Home strategy—provides a foundation for continued shareholder returns through the expanded repurchase authorization.
The expanded authorization gives Central Garden & Pet greater flexibility to deploy capital in a manner that aligns with shareholder interests, while its solid financial position and ongoing operational improvements position the company to navigate short‑term headwinds and pursue long‑term value creation.
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