Loading...
•
Dec 28, 2025
Spectrum Brands Q1 2026 Earnings Report
Spectrum Brands Holdings reported mixed results for the first quarter of fiscal 2026, with net sales decreasing but net income from continuing operations increasing.
Key Takeaways
Spectrum Brands Holdings reported a 3.3% decrease in net sales and a 6.0% decrease in organic net sales for the first quarter of fiscal 2026. Despite macroeconomic challenges, the company's Adjusted EBITDA exceeded expectations, and Global Pet Care returned to growth. Net income from continuing operations increased by 19.5% to $29.4 million, and diluted EPS from continuing operations rose to $1.25.
Net sales decreased by 3.3% to $677.0 million, with organic net sales down 6.0% due to category demand softness and accelerated seasonal inventory build.
Net income from continuing operations increased by 19.5% to $29.4 million, driven by lower taxes and a reduced share count.
Adjusted EBITDA decreased by 19.5% to $62.6 million, with the margin declining by 190 basis points due to lower volume and reduced gross margins.
Global Pet Care returned to growth, with net sales increasing by 8.3% and organic net sales up 5.8%, outperforming the market.
Revenue by Segment
Forward Guidance
For fiscal 2026, Spectrum Brands expects flat to low single-digit growth in reported net sales and low single-digit growth in adjusted EBITDA, with approximately 50% conversion of adjusted EBITDA to adjusted free cash flow. The company continues to target a long-term net leverage ratio of 2.0 - 2.5 times.
Positive Outlook
- Expects flat to low single-digit growth in reported net sales for fiscal 2026.
- Anticipates low single-digit growth in adjusted EBITDA for fiscal 2026.
- Projects approximately 50% conversion of adjusted EBITDA to adjusted free cash flow.
- Maintains a strong balance sheet and positive cash flow, providing a competitive advantage for M&A.
- Confident in Global Pet Care and Home & Garden returning to growth this fiscal year.
Challenges Ahead
- Ongoing macroeconomic challenges continue to impact overall consumer demand.
- Difficult, but necessary, steps implemented in fiscal 2025 indicate continued work ahead.
- Higher tariff costs and inflation continue to impact profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...