Edgewell Personal Care — Fourth Quarter and Fiscal 2026 Earnings Summary

Financial Performance:

• Fourth quarter net sales were $484.1 million, a 3.0% increase year-over-year; organic net sales increased 3.1%.
• Full year fiscal 2026 net sales were $1,996.5 million, a 1.8% increase year-over-year; organic net sales increased 0.3%.
• GAAP diluted EPS for the fourth quarter was $0.23, compared to $0.26 in the prior year quarter; full year GAAP diluted EPS was $(0.05), compared to $0.93 in the prior year.
• Adjusted diluted EPS for the fourth quarter was $0.78, a 50.0% increase year-over-year; full year adjusted diluted EPS was $1.93, a 6.6% increase year-over-year.
• Fourth quarter gross margin was 43.3% (up 320 basis points year-over-year); adjusted gross margin was 45.7% (up 510 basis points year-over-year).
• Full year gross margin was 41.6% (down 160 basis points year-over-year); adjusted gross margin was 43.4% (down 10 basis points year-over-year).
• Fourth quarter adjusted operating income was $51.1 million (10.6% of net sales), compared to $27.7 million (5.9%) in the prior year quarter.
• Full year adjusted operating income was $161.6 million (8.1% of net sales), compared to $173.3 million (8.8%) in the prior year.
• Fourth quarter adjusted EBITDA was $76.8 million, compared to $43.0 million in the prior year quarter.
• Full year adjusted EBITDA was $254.5 million, compared to $239.7 million in the prior year.
• Net cash provided by operating activities for the full year was $49.6 million, compared to $118.4 million in the prior year.
• Ended the fourth quarter with $375.6 million in cash on hand and access to $418.8 million under the U.S. revolving credit facility.
• Adjusted net debt leverage ratio at the end of the fourth quarter was 3.4x.
• Fourth quarter restructuring and related costs were $29.9 million; full year restructuring and related costs were $101.8 million.
• Full year GAAP effective tax rate was (175.3)%; adjusted effective tax rate was 23.0%.

Guidance and Future Outlook:

• Fiscal 2027 reported net sales are expected to increase 0.4% to 2.4% (including an estimated 60-basis point negative impact from foreign currency).
• Fiscal 2027 organic net sales are expected to increase 1.0% to 3.0%.
• Fiscal 2027 GAAP EPS is expected to be $0.90 to $1.20.
• Fiscal 2027 adjusted EPS is expected to be $1.85 to $2.15.
• Fiscal 2027 adjusted operating margin is expected to increase approximately 70 basis points, driven by 60 basis points of adjusted gross margin expansion and 90 basis points of lower SG&A, partially offset by 80 basis points of higher A&P investment.
• Fiscal 2027 adjusted EBITDA is expected to be $250 million to $270 million.
• Fiscal 2027 other income, net is expected to be approximately $13 million.
• Fiscal 2027 interest expense associated with debt is expected to be approximately $67 million.
• Fiscal 2027 adjusted effective tax rate is expected to be approximately 24%.
• Fiscal 2027 capital expenditures are expected to be 2.75% to 3.25% of net sales.
• Fiscal 2027 adjusted free cash flow is expected to be $100 million to $120 million.
• The Company expects to incur pre-tax restructuring charges of approximately $55 million in fiscal 2027.

Business Segments and Product Lines:

• Wet Shave: Fourth quarter net sales increased 1.2% (organic +1.6%); segment profit increased 10.8% (organic +4.8%). Full year net sales increased 0.4%; segment profit decreased 13.5%.
• Sun and Skin Care: Fourth quarter net sales increased 7.0% (organic +6.5%); segment profit increased 294.0% (organic +278.0%). Full year net sales increased 4.0%; segment profit increased 11.0%.
• North America organic sales increased 3.3% in the fourth quarter, driven by Grooming and Wet Shave.
• International organic sales increased 3.0% in the fourth quarter, reflecting growth across all segments.
• Full year North America organic net sales increased 0.4%; full year International organic net sales increased 0.2%.

Market and Competitive Landscape:

• The Company operates in more than 50 markets with approximately 6,500 employees worldwide.
• Significant cost and competitive headwinds persist, including core inflation inclusive of tariffs.
• The Company faces temporary supply constraints affecting Private Label sales in North America and certain international markets.
• The broader transformation of the operating model is creating greater capacity to invest and supporting more consistent growth.

Risks and Challenges:

• Risks include intense competition in products, prices, and costs; loss of principal customers; inability to execute an omnichannel strategy; and difficulty attracting key personnel.
• Fluctuations in raw material prices, labor costs, warehousing, and transportation are potential risks.
• Seasonal volatility impacts sales, financial performance, working capital, and cash flow.
• Global financial risks include tariffs, foreign currency fluctuations, and localized volatility.
• Disruption risks include natural disasters, conflicts (e.g., Middle East), terrorism, and disease outbreaks.
• Risks related to brand reputation, consumer habits, packaging recyclability, and environmental attributes.
• Indebtedness levels, covenants, and ability to generate sufficient cash flow for share repurchases and dividends.
• Risks associated with international operations, third-party relationships, and supply chain efficiency.
• Regulatory and legal requirements involving product liability, intellectual property, data protection, and tax.

Management Commentary and Tone:

• Rod Little, President and CEO, described fiscal 2026 as a year of "meaningful progress and change," culminating in a strong fourth quarter.
• Management noted a return to growth in International and stronger performance across focus brands.
• The second-half performance enabled the delivery of the top- and bottom-line outlook established at the beginning of the year on an adjusted basis.
• Management expressed confidence in entering fiscal 2027 as a "more focused business" with plans to increase support behind brands and improve profitability.
• Investments in innovation, brand building, and commercial execution are gaining traction.

Other Key Points:

• The Board of Directors declared a cash dividend of $0.15 per common share for the fourth quarter of fiscal 2026, payable January 7, 2027.
• The Company returned $6.9 million to shareholders in dividends during the fourth quarter.
• As of September 30, 2026, the Company had approximately $85 million available for future share repurchases under the Board's 2025 authorization.
• The Feminine Care business is treated as discontinued operations and excluded from continuing operations results.
• Full year fiscal 2026 included $21.5 million of Transition Services Agreement (TSA) income.
• The Company announced global transformation actions to strengthen its operating model and support new growth strategies.
• Restructuring costs in fiscal 2026 included $80.0 million related to the consolidation of Mexico facilities and Wet Shave operations.