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Mar 30, 2025
Spectrum Brands Q2 2025 Earnings Report
Reported fiscal 2025 second quarter results with decreases in net sales, net income, and adjusted EBITDA
Key Takeaways
Spectrum Brands Holdings reported a challenging second quarter for fiscal 2025, with net sales decreasing by 6.0%. The decline was primarily attributed to softening North American demand in Global Pet Care and Home and Personal Care, as well as the timing of seasonal inventory purchases in Home & Garden. Net income from continuing operations significantly decreased by 96.4% to $1.8 million, and Adjusted EBITDA fell by 36.5% to $71.3 million.
Net sales decreased 6.0% year-over-year, largely due to weaker North American consumer demand and shifts in retailer inventory purchases.
Net income from continuing operations plummeted by 96.4% to $1.8 million.
Adjusted EBITDA decreased by 36.5% to $71.3 million, impacted by lower operating income and investment income.
The company repurchased 2.0 million shares for $159.9 million during the quarter and a total of 16.3 million shares for $1.28 billion since the HHI divestiture.
Revenue by Segment
Forward Guidance
Spectrum Brands suspended its fiscal 2025 earnings framework due to uncertainty from global trade conditions, tariffs, and softening consumer demand. The company expects to generate approximately $160 million of free cash flow in fiscal 2025 and continues to target a long-term net leverage ratio of 2.0 - 2.5 times.
Positive Outlook
- Expects to generate approximately $160 million of free cash flow in fiscal 2025.
- Continues to target a long-term net leverage ratio of 2.0 - 2.5 times.
- Strong balance sheet, diverse business mix, and robust liquidity position to navigate uncertainty and fund growth.
- Investing in talent and new leadership, including for the Global Pet Segment.
- Strategically utilizing the remaining approximately $140 million authorization under its stock buyback plan.
Challenges Ahead
- Suspended fiscal 2025 earnings framework due to uncertainty.
- Challenged by macroeconomic and tariff pressures.
- Softening U.S. and European consumer demand impacting categories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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