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Sep 30
Spectrum Brands Q4 2025 Earnings Report
Spectrum Brands reported lower revenue and EBITDA in Q4 2025 due to supply chain constraints and softness in key categories.
Key Takeaways
Spectrum Brands delivered solid cash flow despite a 5.2% drop in revenue and an 8% decline in adjusted EBITDA. Net income rose significantly due to tax benefits and lower operating expenses.
Net sales decreased by 5.2% to $733.5 million, with organic net sales declining by 6.6% due to supply chain issues and category softness.
Net income from continuing operations significantly increased to $53.3 million, up 316.4% from the prior year, driven by a one-time tax benefit and lower share count.
Adjusted EBITDA decreased by 8.0% to $63.4 million, and adjusted EBITDA margin decreased by 30 basis points to 8.6%.
The company generated $170.7 million in adjusted free cash flow for the full fiscal year, exceeding its target, and ended the year with a net debt leverage of 1.58x Adjusted EBITDA.
Spectrum Brands
Spectrum Brands
Spectrum Brands Revenue by Segment
Revenue by Segment
Global Pet Care Revenue
CapyFin.comHome & Garden Revenue
CapyFin.comHome & Personal Care Revenue
CapyFin.com Forward Guidance
Spectrum Brands expects low single-digit growth in net sales and adjusted EBITDA in FY26, with stronger performance from Global Pet Care and Home & Garden.
Positive Outlook
- Return to growth expected in Global Pet Care segment.
- Home & Garden business showing signs of stabilization.
- Targeting 50% conversion of adjusted EBITDA to free cash flow.
- Strong balance sheet with low leverage.
- Positioned for strategic M&A opportunities.
Challenges Ahead
- Home & Personal Care expected to remain challenged.
- Category softness to persist in personal care and appliances.
- Impact from halted imports from China continues.
- Lower investment spending due to macro uncertainty.
- Ongoing supply chain simplification may affect performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income