Spectrum Brands Reports Q4 Adjusted EPS of $1.39 as Revenue Declines 2.8% to $713.2 Million

Spectrum Brands Holdings, Inc. (NYSE:SPB) reported fourth-quarter fiscal 2026 adjusted earnings above analyst expectations on Thursday, although revenue fell short of forecasts as sales declined across several product categories.

For the quarter, adjusted earnings per share reached $1.39, exceeding the analyst consensus estimate of $0.93. Net sales declined 2.8% year over year to $713.2 million from $733.5 million, compared with market expectations of $720.91 million.

Organic net sales decreased 3.1%, excluding a $2.7 million benefit from foreign currency movements. The company attributed the decline primarily to unfavorable weather conditions and elevated retailer inventories in its Home & Garden business, alongside reduced demand in Aquatics and Home Appliances.

Spectrum Brands Reports 10.3% Increase in Adjusted EBITDA

Fourth-quarter adjusted EBITDA increased 10.3% to $69.9 million from $63.4 million in the previous year.

Excluding $3.2 million in costs associated with tariff refunds, adjusted EBITDA reached $73.1 million, representing an increase of 15.3%, or $9.7 million, year over year.

The improvement reflected higher gross margins, partially offset by lower sales volumes and increased operating expenses.

“We are pleased with our fiscal 2026 results, with Global Pet Care and Home & Garden both returning to top-line growth, and our key brands continuing to outperform the market across both businesses,” said Chairman and Chief Executive David Maura.

Full-Year Revenue Increases 1.5% to $2.85 Billion

For fiscal 2026, Spectrum Brands reported net sales of $2.85 billion, an increase of 1.5% from the previous year. Organic net sales declined 0.3%.

Global Pet Care recorded annual revenue growth of 5.1%, while Home & Garden sales increased 3.9%.

The company indicated that growth in these businesses contributed to its full-year performance despite lower sales in certain other product categories.

Spectrum Brands Forecasts Flat to Low Single-Digit Growth in FY2027

For fiscal 2027, Spectrum Brands expects net sales and adjusted EBITDA to remain broadly unchanged or increase at a low single-digit rate, after adjusting for the non-recurring benefit of tariff refunds received during fiscal 2026.

The company also anticipates converting approximately 50% of adjusted EBITDA into adjusted free cash flow.

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