Spectrum Brands's (NYSE:SPB) Q4 CY2025 Sales Top Estimates

Household products company Spectrum Brands (NYSE:SPB) beat Wall Street’s revenue expectations in Q4 CY2025, but sales fell by 3.3% year on year to $677 million. Its non-GAAP profit of $1.40 per share was 84.7% above analysts’ consensus estimates.

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"We are pleased with our results this quarter, particularly that our most profitable and largest Adjusted EBITDA contributing business, Global Pet Care, returned to growth. Our Net Sales and Adjusted EBITDA exceeded expectations despite the ongoing macroeconomic challenges that continue to impact overall consumer demand. These results reinforce the effectiveness of our strategic initiatives and validate our belief that the difficult, but necessary, steps we implemented in fiscal 2025 were indeed the right course of action. Looking forward, we will continue to remain disciplined in the execution of our strategy, understanding that significant work still lies ahead,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

Company Overview

A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.

With $2.79 billion in revenue over the past 12 months, Spectrum Brands carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

As you can see below, Spectrum Brands’s demand was weak over the last three years. Its sales fell by 3.4% annually, a rough starting point for our analysis.

This quarter, Spectrum Brands’s revenue fell by 3.3% year on year to $677 million but beat Wall Street’s estimates by 1.2%.

Looking ahead, sell-side analysts expect revenue to grow 1.8% over the next 12 months. While this projection implies its newer products will fuel better top-line performance, it is still below the sector average.

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Organic Revenue Growth

When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.

Spectrum Brands’s demand has been falling over the last eight quarters, and on average, its organic sales have declined by 2% year on year.

In the latest quarter, Spectrum Brands’s organic sales fell by 6% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track.

Key Takeaways from Spectrum Brands’s Q4 Results

It was good to see Spectrum Brands beat analysts’ EPS expectations this quarter. We were also happy its EBITDA outperformed Wall Street’s estimates. On the other hand, its gross margin missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock remained flat at $68.45 immediately after reporting.

Spectrum Brands had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).