Spectrum Brands Holdings — Fiscal 2026 Earnings Summary

Financial Performance:

• Full Year Net Sales increased 1.5% to $2,852.4 million; Organic Net Sales decreased 0.3%.
• Full Year Net Income from Continuing Operations was $58.0 million, down from $100.2 million in the prior year.
• Full Year Adjusted EBITDA was $374.8 million, up from $289.1 million; excluding $57.4 million in Net IEEPA Tariff Refunds, Adjusted EBITDA was $317.4 million (up 9.8%).
• Full Year Operating Cash Flow from Continuing Operations was $291.0 million.
• Full Year Adjusted Free Cash Flow was $247.3 million.
• Fourth Quarter Net Sales decreased 2.8% to $713.2 million; Organic Net Sales decreased 3.1% (excluding $2.7 million favorable foreign exchange).
• Fourth Quarter Net Income from Continuing Operations was $26.4 million, a decrease of $26.9 million from the prior year.
• Fourth Quarter Adjusted EBITDA was $69.9 million, up 10.3% from $63.4 million; excluding $3.2 million in tariff refund costs, Adjusted EBITDA was $73.1 million (up 15.3%).
• Fourth Quarter Gross Profit margin increased 260 basis points to 37.6% (from 35.0%).
• Fourth Quarter Adjusted EBITDA margin increased 120 basis points to 9.8% (from 8.6%).
• Ended the year with Net Debt Leverage of 0.77x Adjusted EBITDA.
• Cash balance was $339.9 million with total liquidity of $836.2 million (including $496.3 million undrawn revolver capacity).
• Total debt outstanding was $629.8 million, resulting in Net Debt of $289.9 million.

Guidance and Future Outlook:

• Fiscal 2027 Net Sales expected to be flat to low single-digit growth.
• Fiscal 2027 Adjusted EBITDA expected to be flat to low single-digit growth, normalizing for the one-time tariff refund benefit in Fiscal 2026.
• Fiscal 2027 Adjusted Free Cash Flow expected to be approximately 50% of Adjusted EBITDA.
• Long-term target net leverage ratio remains 2.0 - 2.5 times.

Business Segments and Product Lines:

• Global Pet Care (GPC): Full Year Net Sales increased 5.1% to $1,138.1 million; Fourth Quarter Net Sales decreased 1.5% to $293.5 million. North American sales increased low single digits driven by market share gains; EMEA organic sales decreased.
• Home & Garden (H&G): Full Year Net Sales increased 3.9% to $594.9 million; Fourth Quarter Net Sales decreased 9.3% to $126.3 million. Q4 decline driven by unfavorable weather and elevated retailer inventory levels.
• Home & Personal Care (HPC): Full Year Net Sales decreased 3.0% to $1,119.4 million; Fourth Quarter Net Sales decreased 0.9% to $293.4 million. Q4 Personal Care sales were flat; Home Appliances sales down low single digits. Performance impacted by e-commerce competition and distribution losses in North America.
• ERP transformation: Completed S/4 HANA ERP deployment across the entire organization to a single unified platform.

Market and Competitive Landscape:

• Key brands in Global Pet Care and Home & Garden continued to outperform the market.
• Home & Personal Care faced persistent top-line pressures and increased competition in the e-commerce channel.
• Retailer inventory levels and weather conditions negatively impacted replenishment orders in Home & Garden.

Risks and Challenges:

• Tariff refunds (IEEPA) provided a one-time benefit in Fiscal 2026; future results normalize without this benefit.
• Ongoing litigation costs associated with the Tristar Business acquisition.
• ERP transformation costs expected to continue through calendar year 2026.
• Potential impacts from macroeconomic conditions, foreign currency fluctuations, supply chain disruptions, and competitive pricing.

Management Commentary and Tone:

• Chairman and CEO David Maura expressed pleasure with Fiscal 2026 results, citing the return to top-line growth in Global Pet Care and Home & Garden.
• Management highlighted strong margin expansion in Home & Personal Care due to disciplined execution and focus on profitability.
• Maura noted the completion of the S/4 HANA deployment as a pivotal milestone for efficiency and long-term competitive positioning.
• Regarding the strategic front, Maura expressed disappointment over the rejection of the Empower Brands subsidiary's offer to acquire Helen of Troy but remains optimistic about the Board and shareholders considering the value.

Other Key Points:

• Empower Brands (jointly owned by Spectrum Brands and Oaktree Capital Management) announced an interest to acquire Helen of Troy, which was rejected by Helen of Troy.
• The company targets ~50% conversion of Adjusted EBITDA to Adjusted Free Cash Flow.
• Share count reduction contributed to diluted EPS performance in the fourth quarter.
• Conference call and webcast scheduled for November 12, 2026, at 9:00 a.m. Eastern Time.