Hello, everyone. Thank you for joining us and welcome to the Somnigroup business update call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the call over to Lauren Avritt, Director of Investor Relations. Lauren, please go ahead. Good morning, and welcome to the Somnigroup International business update call regarding the closing of our acquisition of Leggett & Platt. Joining me today are Scott Thompson, our Chairman, President, and CEO, and Bhaskar Rao, our Executive Vice President and CFO. Before we begin, I would like to remind you that this call contains forward-looking statements within the meaning of federal security laws, including statements about expected synergies, accretion, future financial performance, and capital allocations. These statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied. Please refer to our SEC filings for a full description of the risks and factors that could cause results to differ. With that, I will turn the call over to Scott. Thank you, Lauren, and good morning, everyone. Today is a significant day. We have officially closed the Leggett & Platt transaction, and I am pleased to welcome the Leggett & Platt team to the Somnigroup family. This milestone marks the next chapter in our strategic journey, and one we believe strengthens Somnigroup's competitive position around the world. A few facts on Somnigroup post-closing: o ver $11 billion in trailing 12-month sales; o ver $750 million trailing 12-month net income; $20 billion enterprise value; $15 billion market cap; o ver 170 manufacturing plants around the world; 2,800+ retail stores with various formats customized for each international market; o ver 40 e-commerce websites selling direct-to-consumer with aggregate sales of over $500 million per year; 36,000 talented associates led by a very experienced management team; and c ustomers, both retail and wholesale, in over 100 countries. We are building a special vertically integrated company with numerous competitive advantages, outstanding cash flow generation attributes, a diversified customer base, and a passionate workforce dedicated to customers in various markets and industries. What we see in Leggett & Platt is a company with 143-year-long legacy of exceptional people, world-class manufacturing, strong commitment to customer service, and best-in-class expertise in bedding components. They also have a long track record as one of our most important suppliers. We know them well, and they know us well. That familiarity is an asset as we move forward as a combined company. First and foremost, the combination deepens our vertical integration, and it adds significant scale, expanding sourcing opportunities, enhancing operational flexibility to a portfolio of assets that is already industry-leading. It also extends our reach across industries beyond bedding, which will provide the company solid free cash flow and growth as markets normalize and new strategies are implemented. Strategically and economically, this is the right deal at the right time with the right partner. Let me take you through how this transaction advanced the strategic pillars we outlined at our Investor Day last March: g lobal scale and vertical integration, relentless consumer-centric innovation, relentless cash generation, disciplined capital allocation, and a uniquely favorable position in the $120 billion global bedding market's recovery. The Leggett & Platt acquisition checks every one of these boxes. Most directly, it strengthened our vertical integration advantages. Leggett & Platt is a primary supplier of important components to the bedding industry, and particularly to our own manufacturing operations. They supply innerspring units, specialty foam, and other key components to producers around the world. Bringing their capabilities in-house further fortifies our supply chain in an uncertain world and allows us to optimize cost and drive quality end-to-end in the supply chain. The combination brings component engineering closer to mattress design and closer to the consumer insights we generate every day across our retail platform. That proximity supports accelerated innovation cycles and means we can develop more cost-effective and consumer-centric products. In addition to expanding our addressable market in bedding, Leggett & Platt's product portfolio includes automotive seating systems, furniture components, geo components, and hydraulic cylinders, a lso allow us to participate in industries beyond global bedding. These diversified sales streams, as well as Leggett & Platt's geographic footprint, broadens our earning space and mitigates reliance on any single category, product, or geographic market. I'm going to say a word about how we intend to operate Leggett & Platt within the Somnigroup portfolio. Leggett & Platt will operate as a standalone business unit within Somnigroup, consistent with our approach with Tempur Sealy, Mattress Firm, and Dreams. We believe this decentralized operating model is one of our structural advantages. It allows each business unit to stay close to its customers and markets, and quickly respond and develop strategies in an ever-changing world, while also benefiting from Somnigroup's expertise, scale, strong balance sheet, and operational leverage. A word on leadership. First, we're very fortunate that Leggett & Platt has an experienced workforce dedicated to quality and customer service, which is led by a strong, committed executive team with depth and a passion to succeed. To enhance their leadership structure, you most likely saw we announced the appointment of Tyson Hagale as President of Leggett & Platt. Tyson is a 25-year Leggett & Platt veteran with a broad expertise across all corners of the business, including strategic planning, operational leadership, and M&A. Most recently, he served as President of the Bedding Products segment, delivering results and operational improvements through some of the most dynamic conditions the industry's ever seen. He knows Leggett & Platt well, including the non-bedding components. Karl Glassman will continue to lead Leggett & Platt as the CEO over the near term, working closely with Tyson and Somnigroup executives as we bring the companies together. I'm looking forward to working with Karl and Tyson. Moving to near-term strategic initiatives, we expect some early wins. We have long believed that high-quality innerspring systems represent a meaningful point of differentiation, an important feature for customers. While the mattress category has traditionally emphasized finished product branding, we see the opportunity to elevate awareness of underlying technologies and components that contribute to comfort, support, durability, and overnight sleep quality. Simply put, what is in your mattress matters. As a result, we're working to amplify the differentiated innovation by incorporating Leggett & Platt innerspring branding on the exterior of selected mattress products. We believe this approach helps highlight the value of the technology inside the mattress while creating greater transparency and confidence for customers at the point of purchase. This initiative will initially roll out with our launch of the all-new Stearns & Foster collection this fall and represents an important step in our broader strategy to increase consumers' recognition of the premium components and engineering that differentiates our products. We believe stronger visibility of the Leggett & Platt innerspring technology can enhance the consumer shopping experience, support our retail partners' merchandising efforts, and further reinforce the value proposition of mattresses that incorporate our technology. Ultimately, we view this as much more than a branding initiative. It is a reflection of a strategic vision behind the acquisition of Leggett & Platt's bedding business and the unique capabilities that the transaction creates. By bringing ownership of innersprings, the heart of the bed, into the portfolio, we are now able to more closely integrate component innovation and mattress design, driving consumer engagement. We believe that position enables us to set higher standards for innovation, durability, quality, and transparency across the industry while creating connection between the technology inside the mattress and the magic consumers experience every night. We should also note that Mattress Firm, as it continues to focus on customer first, recently communicated to its supplier base new and more stringent merchandising criteria, including the qualification of key component inputs. Both Leggett & Platt's innerspring systems and the foams produced by ECS, their specialty foam operations, have been qualified under these enhanced standards. This is direct validation of the quality and consistency that Leggett & Platt brings to our supply chain. I'll say it again, what is inside your mattress matters. In closing, I want to leave you with a few key thoughts. We are the leading vertically integrated bedding company in the world. We now forge our own steel, create our own springs and foam. We design and build our own products. We develop and market our brands and sell our products, which cover all price points in a balanced omni-channel format across the world. We believe that the $120 billion global bedding market remains structurally intact and positioned to normalize from its historically depressed levels. Let's be clear, the bedding market has experienced an extended period of weakness, and we have used that time deliberately to build the platform you see today, while also growing adjusted EPS and deleveraging. We're investing ahead of the recovery in building our brands, driving upper funnel advertising, and strengthening our infrastructure. It is not a question of if the bedding market is going to turn around. It's a question of when, and whether you are positioned to lead when it does, and we are positioned to win and win big. With that, I'll turn the call over to Bhaskar. Thank you, Scott. Let me start with some housekeeping items on our reporting structure going forward. Leggett & Platt will be reported as a single consolidated reportable segment within Somnigroup, consistent with our other reporting segments, Tempur Sealy North America, Tempur Sealy International, and Mattress Firm. Now, moving to synergies. When we announced this transaction, we identified approximately $50 million in synergy opportunities on an annual run rate basis, focused on sourcing, operations, and product innovation. That figure was based primarily on our internal diligence work at that time. Since then, we have worked with Leggett to refine our expectations. As a result of the team's combined efforts, we are increasing that synergy estimate by 50% to $75 million on an annual run rate basis, with additional opportunities in our synergy funnel that will be evaluated over the next year. Within sourcing, we see opportunities to expand profitability by bringing select components in-house and/or improving purchasing economics across our supplier base. To date, we have included $35 million of sourcing-related synergies in our target. One of the most immediate and tangible examples is innersprings. Beginning on January 1st, 2027, we expect to manufacture over 90% of our total U.S. spring needs internally, creating a meaningful cost savings opportunity and further strengthening integration across the business. We are reviewing additional supply chain opportunities and expect our combined sourcing efforts to support greater cost efficiency, particularly in chemicals. In addition, we expect the broader platform to create savings across third-party professional services. Beyond procurement, we also see opportunity in how the combined company operates. Leggett's global manufacturing and logistics capability, together with global manufacturing and logistics networks of the legacy Somnigroup business, create opportunities to improve the combined cost structure. To date, we have included $30 million of operations-related operating opportunity in our synergy target. This includes projects to optimize manufacturing and capture efficiencies across logistics, including chemical storage, warehousing, and ocean freight, as well as the elimination of duplicative public company costs. Finally, turning to our innovation pipeline. Th e acquisition brings component engineering, mattress design, and consumer insights closer together, supporting more cost-effective and consumer-centric product development. Our current synergy target contemplates a $10 million EBITDA benefit from these opportunities. Taken together, these initiatives reinforce our confidence in the transaction's value creation potential. We believe they will enhance operational efficiency, support sustainable cost savings, and drive long-term value creation. In terms of timing, we expect to realize approximately $25 million of synergy benefit to the calendar year 2027, with full realization over a three-year period. In addition, over time, we expect to identify more benefits of this combination. Turning to the financial impact of Somnigroup, the transaction is expected to be approximately $0.35-$0.40 accretive on an annualized run rate basis before synergies based on the current operating environment. We expect approximately $0.10 of EPS accretion for the partial year 2026 on sales from Leggett of approximately $1.2 billion after intercompany sales elimination. We are revising our annual guidance up by $0.10 as a result. We expect approximately 6.5% of Leggett sales in the period will be to other Somnigroup segments, and therefore, will be eliminated for financial reporting purposes. Consistent with prior expectations in accordance with GAAP, Somnigroup expects to incur approximately $50 million of annualized non-cash expense from the adjustment to fair value of the acquired Leggett business, which will primarily impact cost of goods, and w e expect to incur approximately $10 million of annualized non-cash expense from the adjustment to fair value of acquired Leggett bonds, which will impact interest expense. We anticipate these non-cash items will be pro forma financial adjustments in accordance with the terms of our credit facility. The transaction has reduced Somnigroup's net financial leverage by approximately 0.2x, and Somnigroup expects to end the year towards the midpoint of a target leverage range of 2x-3x times adjusted EBITDA. The combination was an all-stock transaction valued at approximately $2.3 billion based on Somnigroup's closing share price on August 25th, 2026, and inclusive of Leggett's existing net debt. We have issued approximately 20.6 million shares in connection with the transaction. We expect our weighted average share count for Q3 to be 221 million shares, and for a full year to be 220 million shares. A few words on our long-term targets. At our March Investor Day, we set a 2028 EPS target of $5.15, representing a 24% compound annual growth rate from 2025. That target was set in the first quarter prior to the close of this transaction. Our plan is to incorporate the Leggett impact and updated industry conditions at that time into our long-term outlook when we report Q4 results. With that, let me turn the call back to the operator to open it up for questions. Thank you. We will now begin the question- and- answer session. Please limit yourself to one question. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Susan Maklari from Goldman Sachs. Your line is open. Please go ahead. Thank you. Good morning, everyone, and thank you for all the details. I wanted to ask a bit about the upside to the accretion as we get some of this volume that does flow into Leggett. I think you mentioned in your prepared remarks that over 90% of your innerspring production will now be internal. Leggett's done a lot of work on their cost structure in the last couple of years. Can you talk about what that means in terms of the margin profile of the business, and how we should think about the upside to that profitability if we do get an industry recovery or when we get an industry recovery? Sure. Thank you, Susan. I'll take the first part of that, then I'll pass it over to Bhaskar to work on the margin a little bit. First of all, the acquisition, we're getting great people, both associates and leadership, which obviously is our first filter on any acquisition or combination we're doing. I think what's interesting about this acquisition, and your question kind of points it out, is we think we invested in Leggett's restructuring before Wall Street did, and we're putting our chips with the Leggett team on what we believe was a very successful restructuring that just you couldn't see very well as the industry's been in decline here the last few quarters. We think we purchased the company during a trough, which is great, and the potential for the flow-through on the upswing, we think, is enormous, not even before you start talking about just the synergies. And we were able to deleverage the Somnigroup company a little bit, which, again, enhances the buybacks in 2027 and beyond. From our standpoint, we feel really good about it. What we're really doing, if you look at it, both with the Mattress Firm transaction and the Leggett transaction, we're not just making SGI more efficient, but we're quite frankly making the bedding industry more efficient through these acquisitions and restructurings. Bhaskar, you want to talk a little bit about the margin potential? Absolutely. When you think about the restructuring that Leggett has accomplished, really fantastic job by that management team, let's call it about $70 million on a run rate annualized basis that the team has been very successful at taking out. And when you think about the industry, when you think about it coming back, traditionally, I think about the flow through the contribution margin somewhere around 25%-30%. As you think about specifically the bedding industry coming back, typically it trends toward the higher end of that range, call it 35%. So, wi th the combination of the restructuring activities that Leggett has accomplished, and even before thinking about the synergies, and when you think about innersprings as an area where the volume can come back as the industry comes back, I always think of it something in excess of that 35%, would be a reasonable way to think about it. I think to be also clear, Bhaskar, you don't have any revenue synergies in your number that we're committed to at this point. I think it's interesting what we're doing with working on the branding of the Leggett & Platt spring technology, and also quite frankly, just having some influence and having some friends in the industry and helping them look at some of the components that Leggett & Platt produces in its bedding area. Your next question comes from the line of Pedro Gil with Morgan Stanley. Your line is open. Please go ahead, sir. Good morning. Thank you for taking my question. Congratulations on closing the acquisition in good timing, ahead of schedule. I wanted to ask you about the 2025 financial targets, realizing it's still early and we'll get more detail down the line. But how should we think about Leggett's contribution to the overall earnings power going into 2028, coupled with the potential for a longer or slower path to industry recovery that you alluded to on the last earnings call? Is $5 per share, is slightly above $5 per share still the right level to think about for Somnigroup's earnings power in 2028? And what are the levers that get you there in terms of share gains, synergies, capital returns, et cetera? Sure. Thank you. We talked a little bit about this on the second quarter earnings call. When we did the $ 5.15, obviously, we didn't have the Leggett acquisition. We had some capital allocation in the model, but not very much, and didn't have much benefit from the allocation of capital, which is, o bviously, it's important to note that that's internally generated capital as opposed to leverage. Clearly, the Leggett transaction, structurally, before any advantages from a synergy standpoint or any industry recovery, is structurally very accretive. I think, Bhaskar, you tagged that at like $0.35-$0.40, and I'm just going to call that structurally accretive. That is not included in that projection, we'll call it. At the same time, as you know, in that projection, we were looking for the industry to begin its turnaround a little earlier than we've currently experienced. So, you got one, we'll call it good guy in our terminology, and you got one bad guy that you will have to roll through in the $5.15. Having said that, what I said on the second quarter earnings call, which I certainly believe it probably even more now as we've gotten to know more and more about Leggett, is that the other $5.15 is certainly still in play. There's going to be some moving around of some of the assumptions, like in any long-term projection, b ut I would consider $5.15 certainly still in the game. And with the Leggett acquisition, the upside on those numbers in an industry recovery in the out years is higher. I guess do a little bit on the building blocks. Bhaskar, you can help me a little bit. But you open up a whole new funnel of synergies, which we didn't have before. Like Bhaskar said in his part, we've got a commitment of $75 million, but I think the whole group and the people working on it would be disappointed if that was all that ultimately came from a synergy standpoint. Your next question. Makes complete sense, Scott. Your next question comes from the line of Bobby Griffin at Raymond James. Your line is open. Please go ahead. Good morning, guys. Thanks for taking the question, and congrats on the deal and the time this morning. I guess, Scott, I wanted to touch on a comment you made in your remarks about an updated communication with Mattress Firm suppliers. I think that's kind of interesting just in the sense that there's been probably an expansion of suppliers, of components in this industry over the last three to five years. Can you maybe expand upon that aspect and the narrowing of their supplier kind of base or list? And then, how do we think about that potential upside in the context of your $75 million synergy target? If I'm hearing you correctly, it seems that that would not be included in the $75 million, and that seems like it could be a decent bit of upside, especially if it's driving business back into Leggett's facilities, which are now at a low utilization given where the industry is today and all the fixed costs they've taken out. Yeah. Let me do the easy part of the question first, which is it is not included in any of the synergy numbers, that initiative, and I think you framed it correctly. It is hopeful that that pushes volume into their organization, which has been right-sized. That part's the easy part of the question. To kind of go off on a tangent a little bit, I mean, one of the things that's been a little frustrating in the bedding industry is some people have been including components in their beds, sometimes even luxury beds, which I would consider to be less than optimal for the customer, and b ecause the components are in the bed, you can't see them. I think the quality of some luxury beds has deteriorated as they try to get a cost advantage. That is not something that Sealy and Tempur have done. It's something that strategically, shoot, I think seven years ago, we made a firm decision that we were not going to do. I think the neat thing about what we're doing is, look, Leggett is absolutely world-class in making springs, I think everybody in the bedding industry knows it, and b eing able to highlight their quality is important. And we have Mattress Firm leading the way as they've got a customer-first focus now, which is also part of their strategic initiative, c ertainly, aligns with them making sure they're giving their customer the best value. And so, we've talked to the suppliers of Mattress Firm. We have formally kind of put a program in place that we're going to qualify internal components to make sure that the customers in Mattress Firm are getting the best and getting what they're paying for. Of course, obviously, that plays right into Leggett and ECS, and I think will probably result in some incremental volume. But each of the suppliers to Mattress Firm will have to decide what they think, and then, hopefully, it influences other retailers and others to think about that, b ecause I think that's a big issue in the industry, to make sure that we have quality components. Your next question comes from the line of Rafe Jadrosich with Bank of America. Your line is open. Please go ahead. Hi. Good morning. Thanks for taking my questions. I just wanted to follow up on the sourcing synergies. The expectation that you will be 90% internal sourcing for your springs, can you talk about where that is today? Like what that delta is? How much you are getting from Leggett versus either other suppliers or internal right now, so like what that change is? And does that include anything with Elite Comfort Solutions and the foam side, or is that sourcing number all innersprings? Thank you. Yeah. We were under a long-term contract with Leggett, pre-combination, of 80% of our springs in the U.S. This is the U.S. discussion, c ame from Leggett. So, you should think about it as incrementally 10 percentage points, and we will probably be a little bit north of 90% over time, would be my guess. That number is in the synergies. There is nothing significant currently in the synergy number on the ECS side, as we work through the ECS side of the house. We have a great supplier currently, who I am going to call Base Foam, and they are doing a great job, and we are working with them and working with ECS and trying to find an optimal structure there. But we have got great suppliers on the Base Foam already. Your next question comes from Peter Keith with Piper Sandler. Your line is open. Please go ahead. Oh, thank you. Good morning, and congratulations on the combination. I wanted to just ask about Leggett's existing bedding customers, and if you or Leggett have had any interactions with them in recent months. Now that the two companies are combined, would some of the other third-party mattress manufacturers think of leaving Leggett, or are you trying to present a plan that might make it either difficult or too attractive for them to leave? Well, it is an interesting industry, and so, obviously, I know their customers, they know our customers. Of course, I have had conversations with our customers and their customers all the time. I am going to call, in general, your question is about channel conflict that the combination might bring. I am not feeling any channel conflict and do not expect any headwind from channel conflict related to the transaction based on conversations with customers. But probably more importantly, the quality of the products that Leggett produces is very high, and the way these products get produced in mass, from a competitive standpoint, it is hard to stand up an operation that can be as efficient on the components. So, there is an economic issue there. There is really no strategic reason why one of their customers would think the combination threatens them in any way. We are here to serve all customers in an omni-channel strategy, which is similar to how we go to retail. If you think about Mattress Firm, that was a more complicated, what I call channel conflict strategy we had to work through. This is much less complicated than the Mattress Firm channel conflict strategy was. Your next question comes from Brad Thomas with KeyBanc Capital Markets. Your line is open. Please go ahead. Good morning, and congrats as well on closing the deal here. Thank you. I was wondering, Scott and Bhaskar, if you could talk a little bit about the outlook for sales and for EBITDA for the underlying business over the back half of the year and next year. I know that they've been seeing some pressure from challenges in the industry but, obviously, going through some restructurings. Just, you know, kind of ex- synergies, what are you guys modeling, and what are some of the core assumptions in that? Thanks. If I didn't know better. When you think about the. I'd say, hold on, h e's trying to ask for 2027 guidance early, isn't he, Bhaskar? Would he be doing that? Yeah, we're very familiar with that concept. Okay. Well, just talk, but don't answer his question. Okay, go ahead. Got it. So, the way I would think about it, as it relates to 2027, as we get in and out of the fourth quarter, we will have lots more commentary about 2027. But just specifically on 2026, when I think about the rest of the year associated with Leggett, obviously, with the core synergies, think about it somewhere around, call it $1.25 billion. That is on an as-reported basis, so as-reported meaning with the elimination, and at about $90 million of intercompany associated with that. When I think about w hat does that look like from a shaping standpoint is the fourth quarter, one would expect, is that a bit of growth, and just think about what the industry was doing last year, so in the fourth quarter, a bit of growth. From a third-quarter standpoint, tough comp prior year, so perhaps a bit of decline. As I think about adjusted EBITDA is think about $120 million for the rest of the year and think about 2/3 of that being in the fourth quarter, with the balance of that being in the third quarter. When I think about the drivers of sales is a couple of items, specifically focusing on the fourth quarter, is a bit of volume as resulting from Leggett's continue to execute against their plan, as well as just from a comp from a prior year standpoint. When I think about the drivers of EBITDA, a couple of things. One is metal margins or just the price-cost relationship, and then continuing benefit from a restructuring standpoint. So, year-over-year, a bit of growth in the fourth quarter from an EBITDA standpoint, and then, as I think about the third quarter, revenue declines. As a reminder, if you wish to ask a question, press star one on your keypad. Your next question comes from Jonathan Matuszewski with Jefferies. Please go ahead. Oh, great. Good morning, and thanks for taking my question. You alluded to the Stearns & Foster launch as maybe the first example of embedding Leggett-branded marketing. My question is kind of beyond this, are there other ways you envision impressing the quality of componentry upon consumers directly? And how will the messaging of Mattress Firm RSAs change with prospective customers in store? Thanks. Yeah. Great question. Think about a retail bedding floor, which doesn't necessarily need to be the Mattress Firm. You'll have some visual badging on a Stearns & Foster bed that highlights American-made high-quality springs made by Leggett, and y ou're going to be sitting next to another bed, which is a luxury bed that does not have that badging and may or may not even be able to tell you where their springs came from. The RSAs will be trained that springs matter, which has historically been in the industry a long time ago, but it's lost a little bit of its energy over time, and I think it'll be a competitive advantage, which I think may have some people think about what springs they have in their bed. So, I think it's broader than Mattress Firm, but we'll see. Yes, to answer your question, the training on the RSAs will also be enhanced on the quality and durability of the Leggett springs. Your next question is with Keith Hughes with Truist Securities. Your line is open. Please go ahead. Thank you. Good news on adding Tyson. That will help long term. He does know the business very well. I guess on the non-bedding businesses, there has been a lot of speculation on investors. What is going to happen to those? It does not sound like you have anything new to announce, but what will be the evaluation period? How will you decide whether that is something you are going to keep or maybe even invest in moving forward or something that might not be part of the future. Sure. Of Somnigroup? Sure. We agree, we are thrilled about Tyson moving up from a leadership standpoint. We call that the other other business at Leggett, because we have to have names for these things so we can keep our heads straight. If you look at the other other business of Leggett, which is the non-bedding business, is what you are talking about, and if you say Leggett's, give or take round numbers there, EBITDA is maybe 20% of the consolidated Somnigroup, and then you look at Leggett and you say, "How much of the other other is in Leggett?" It is probably 60%. So, in our terminology, the other other business represents about 12% of consolidated Somnigroup EBITDA. So, we are talking about a relatively small piece of the consolidated group, just to get everybody on the same page. So, think 12%. Okay? If you then drill down into the other other, what you would determine is that they generally have got some tough headwinds they have been experiencing in those industries, and from a cyclicality standpoint, are generally at trough or close to trough from an industry standpoint, and w e purchase them at a reasonable multiple at their trough earnings. That is the way we think about them. If you look at those businesses as we did during due diligence and look at their attributes, you say, "Well, is this a business you want to be in? What do you think about it long term? What do you think about the management teams, return on invested capital, all of that kind of stuff?" We came to the conclusion that these are good businesses. There is not anything structurally wrong with them. Good people, solid operations. So, we are working with those management teams over time, looking at their strategies. They are putting together their long-term perspective, and we will study them. I suspect that we will come to the conclusion these are good businesses. No reason to sell, and we do not need the cash. We do not have financial pressure. So, if I sold them, I would get some cash. I do not know what I would do with it. I guess I would buy more stock back than I am going to be buying otherwise. Unless there is a reason to sell them, there is no reason for us not to keep those businesses and incubate them, grow them, continue to monitor them, like we would do any business, whether it be in Leggett or Tempur Sealy or Mattress Firm, anything else we do. I do not think we are going to have, w e are not talking to anybody about disposing of them. But like everybody, including myself, we have to earn our stripes every year. I think that is kind of the way we think about them. Your next question is with Jeff Lick with Stephens. Your line is open. Please go ahead. Good morning. Thanks for taking my question, and I will end my congratulations on getting this closed. Scott or Bhaskar, I was wondering, you guys are obviously very deliberate, very thoughtful, very strategic. I was wondering if you could share, as you were looking at this acquisition, what were some of the things that you worried about either going into the acquisition or going forward? What are some of the things that were investment considerations that you thought, well, this is what concerns us, this is what could go wrong? Sure. The first one's always the easy part of the question. It's people. I can't stress that enough. I think everybody knows that if you look at the history of business in combination, especially large ones, the success ratio is not great. There's a lot of hype usually going into them, and then you look back and the execution of the acquisitions generally don't meet expectations. I think if you go back and actually study them, it's like 80% of that has to do with people and culture merger. The first question I think we asked ourselves, are these partners, are these people we want to work with? Do we have confidence in them? It's all levels. It's not a one-person show at any company. That would be the first thing that we've quite frankly been thinking about for a long time and studying, and we feel very good about that. So, that would be the first filter. The second filter was, are these businesses we know something about, countries we do business in and can we "handle it?" Where are we, call it the mothership, are we ready for it? Because this is a significant combination. It has some complexity to it. Are we ready? And that again, gets to be a people issue. How are we doing with our Mattress Firm group and that leadership, which is doing a great job? How are we doing with Tempur Sealy and that leadership, and they're doing a great job? Is the organization ready for it? So, that would be the second item right off the table. We obviously concluded we were, and you can see the performance of those business units are strong. Then, I think you think, where are you in the cycle? Are we fixing to do something at the top of the market? Which is, no matter what, buying something at the top of the market is not good. So, how are we feeling about the underlying industries of each of the businesses? Where are they within their cycle? I think it's pretty clear that all of the businesses are at the lower part of the cycle, whether we're exactly at trough or not, I don't know. But we're damn near close to trough. If we're not already out of trough, I don't know. But it seemed like the right time from it. So, we worked through those. Then, you looked at structurally, how are you going to put this on the business? As you can tell by the structure, we mitigated the financial risk of the transaction by using stock, so that we were able to deleverage the company in an accretive transaction. So, from our standpoint, we got the businesses we wanted at the time we wanted in the financial structure we wanted. It looks like a great opportunity. We still have lots of work to do. We still have to execute, but it really did tick all the boxes from our standpoint. Your next question comes from the line of Michael Lasser with UBS. Your line is open. Please go ahead. Good morning. Thank you so much for taking my question. There are very few examples where one company, such as Somnigroup, control such a disproportionate amount of the profitability within a sector. The bedding industry is interesting in that, historically, it's relied heavily on pricing as a key contributor to the overall growth of the sector. My two-part question is, A, Scott, do you see any changes in the overall economics of the bedding industry as a result of Somnigroup's unique position? And B, how are you looking at the overall pricing architecture of the industry moving forward as a key contributor to the overall top-line results? Thank you very much. Thank you for the question, and there's probably some of my lawyers on the phone now that are going, "I hope he doesn't really say much on that particular question." Let me talk about, first of all, you're right. It's a couple of things that are really unique. It's really unique that a company was able to take a downturn, and the downturn has been on historical basis, the, you know, worst downturn ever and be able to build what we've built. I mean, it really is game-changing. You're right, I don't know what percentage of worldwide bedding profits Somnigroup now has, but it's large. We'll say it. As far as the pricing architecture, I think the profitability of the bedding industry is going to be enhanced as we take out redundant costs and we add synergies. I think the economists, and certainly the history would be the FTC, would look at that and expect that some of that would creep into the customer's pocket. Maybe it does, maybe it doesn't. But from a competitive advantage standpoint, it certainly should create a competitive advantage in the marketplace. Your next question comes from Bobby Griffin with Raymond James. Your line is open. Please go ahead. Thanks for letting me get back in for a quick follow-up. Bhaskar, I was just curious, given this combination as well, Mattress Firm, what is the updated fixed variable cost of the new kind of, call it Somnigroup enterprise? I guess I am thinking more in the context of you guys now owning Leggett's steel mill facility. Absolutely. On an adjusted basis, Leggett historically has been around 25/75 fixed variable. From a legacy standpoint, we have been a tick higher than that. As you blend those together, think about it around 30% fixed, 70% variable. What is nice about that is. Okay. Not much of material impact. Not really. When you think about the SGI on a standalone basis and you got adding Leggett, yes, we would tick a bit lower, but not materially. What I would say is that whether you look at the restructuring activities at Leggett or what SGI has been able to accomplish, as I've said many times, as we get units going through a plant, it spreads out the fix. So, it's very attractive from a flow-through standpoint. Thank you. Very helpful. Your next question comes from Pedro Gil with Morgan Stanley. Your line is open. Please go ahead. Good morning. Thank you for the follow-up. I also would like to ask you on capital returns. It looks like Somnigroup and Leggett combined are now delivering close to $1 billion in free cash flow trailing 12 months pro forma. How should we think about the timing and the amount of cash returns to shareholders, including share buybacks? There haven't been a lot in the first half of the year for the back half of the year and into 2027. Sure. I think nothing's really changed from our capital allocation strategy. I mean, we still have a target of 50% free cash flow to spend for 2026, and we will report on that activity whenever, I guess, probably file the Qs or the Ks. As I said, I think on the second quarter earnings call, we are being cautious, not because anything in the business that we see, but one, because a little bit because of the Middle East, and two, we have quite a few, very small, but quite a few little acquisition targets we have talked to over time. And as there is stress in the system, there might be some opportunities there. Again, on all of those, they are very small. There is nothing in the pipeline anywhere close to the size of a Leggett or a Mattress Firm, either in 2026 or probably 2027. So, with that statement and your understanding of our cash flows and potential earnings and all of that, you end up with a significant amount of free cash flow. We have told people that, think about our target leverage, maybe at the midpoint of 2.5x, just for thinking, and t hat would squeeze you to a significant amount of stock buyback, primarily focused in 2027, unless there is some kind of black swan or something that is out there that we bump into, that we see. So, we are expecting to be very robust in stock repurchase over the, call it next, probably foreseeable future, but for sure for the next 24 months. Your next question comes from Peter Keith with Piper Sandler. Your line is open. Please go ahead. Oh, thank you again. Big picture on the industry and potential rebound. So, it looks like we are now entering our fifth year of mattress industry sales declines. We do have positive GDP growth. There has been a tax refund cycle earlier in the year. When you guys are thinking about the industry rebounding and getting better, what do you think needs to happen in the economy looking forward? I understand housing would be an easy answer, but we would all agree that that is a minority of total mattress sales purchases. The real answer, housing is an incremental headwind or incremental tailwind, usually not hugely material, but you would rather have a tailwind than a headwind. It is consumer confidence, which I would point back into a little more stable environment. Because look, these are discretionary goods. They are expensive. So, when consumers are not confident and sentiment is really negative, they have some portion of the customers into postpone. It is interesting because it is in floor traffic. The customer who actually is in the funnel to purchase a bed, once in the funnel, gets through the funnel fairly quickly or in standard form, and gets into the store and the closing rates are very strong. You do not have an issue on pricing, you do not have an issue on quality of products. Quite frankly, the products, ours and others in the bedding industry are good. You have got a strong kind of health and wellness concept that goes through the industry. People do care about their bed, they do care about their health. And people with means are showing up and buying. Who is not showing up are more of the entry-level customers, if you want to say the K economy or whatever, or people who are a little unsettled by current events. The first thing I would tell you is we just need less drama in the world. We have had it a few times, where there is a period where there is a little less drama, and you can see it in the numbers. I mean, floor traffic picks up, sales pick up, but then we get some tariff drama, some Middle East drama, and people's hands go back into their pockets. That would be my first answer to that. The second answer is we need to continue to have the industry advertise, have effective advertising, make sure it is compelling, and get it placed in a way in the marketplace that consumers are seeing the ads and that it is influencing them to think about their bed to get into the purchase funnel. The issue is getting people triggered to think about their beds. If you look at the installed base, and this is not like the car business where you can look at a VIN and you know exactly what the average age of all the cars are on the road and how many miles they have driven, w e do not have that kind of data, but there is no question, if you look at the volume declines over what you are right into the fifth year, that the products that are in the marketplace are probably older than they have ever been. There is also no question that beds do wear out. There is no question that people are going to sleep on beds. The industry is structurally sound. There is nothing that is threatening the industry from a structural standpoint. That is why I go back to, I cannot tell you the exact turn, but everything points to what we just need is a little more stability in the way that consumers are thinking about the world. There are no further questions at this time, so I will now turn the call back to Scott Thompson, CEO, for closing remarks. Thank you, operator. Leggett & Platt makes Somnigroup a more vertically integrated and diversified company, better positioned to lead the bedding industry recovery and generate substantial value for customers over the long term. We look forward to updating you on our progress in the coming months. We appreciate your continued support. To our over 36,000 associates around the world, thank you for what you do every day to make the company successful. To our customers, thank you for your outstanding representation of our component and brands. And to our shareholders and lenders, thank you for your confidence in the company's leadership and its board of directors. Operator, this ends the call today. Thank you. This concludes today's call. Thank you all for attending. You may now disconnect.