Spectrum Brands Holdings Reports Fiscal 2026 Fourth Quarter and Full Year Results
Spectrum Brands Holdings, Inc. (SPB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 3001 Deming Way Middleton, WI 53562-1431 P.O. Box 620992 Middleton, WI 53562-0992 (608) 275-3340 For Immediate Release Investor/Media Contact: Jen Schultz 314-253-5923 Spectrum Brands Holdings Reports Fiscal 2026 Fourth Quarter and Full Year Results • Full Year Net S
How this was made
The 30-second read
Why it matters
The earnings miss and modest FY2027 outlook provide a fresh catalyst for short‑term trading, while the ERP rollout and cash‑flow targets offer a longer‑term narrative.
Market read
Primary relevance is to Spectrum Brands (SPB) shareholders; limited spillover to the broader consumer staples sector.
What to watch
Tariff refund normalization and cash‑flow conversion targets may support the stock if achieved.
Fiscal 2026 net sales rose 1.5% to $2,852.4 million with organic net sales down 0.3%. Q4 net sales fell 2.8% and GAAP net income from continuing operations fell 50.5%, while Q4 adjusted EBITDA rose 10.3%. FY2027 framework: flat to low single digit net sales and adjusted EBITDA growth, excluding FY2026 tariff refunds.
Full-year reported net sales grew 1.5% and Global Pet Care and Home & Garden both returned to top-line growth for the year, and adjusted EBITDA rose to $374.8 million with a 13.1% margin. Against that, Q4 net sales declined 2.8% on an organic basis down 3.1%, Q4 GAAP net income from continuing operations fell 50.5% to $26.4 million, full-year GAAP net income from continuing operations fell to $58.0 million from $100.2 million, and the filing reports $104.0 million of full-year intangible asset impairments. Adjusted EBITDA includes $57.4 million of net IEEPA tariff refunds in FY2026, which the company says are a one-time benefit.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, Q4 FY2026 (three months ended Sep 30, 2026)GAAP | $713.2M | – | (2.8)% |
| Organic net sales, Q4 FY2026non-GAAP | $710.5M | – | (3.1)% |
| Gross profit, Q4 FY2026GAAP | $268.4M | – | 4.6% |
| Gross profit margin, Q4 FY2026GAAP | 37.6% | – | 260 bps |
| Cost of goods sold, Q4 FY2026GAAP | $444.8M | – | – |
| Selling, general and administrative expense, Q4 FY2026GAAP | $244M | – | – |
| Operating income, Q4 FY2026GAAP | $24.4M | – | (17.0)% |
| Interest expense, Q4 FY2026GAAP | $8.6M | – | – |
| Income tax (benefit) expense, Q4 FY2026GAAP | −$6.3M | – | – |
| Net income from continuing operations, Q4 FY2026GAAP | $26.4M | – | (50.5)% |
| Net income from continuing operations margin, Q4 FY2026GAAP | 3.7% | – | (360) bps |
| Diluted EPS from continuing operations, Q4 FY2026GAAP | $1.08 | – | (50.7)% |
| Adjusted EBITDA from continuing operations, Q4 FY2026non-GAAP | $69.9M | – | 10.3% |
| Adjusted EBITDA margin, Q4 FY2026non-GAAP | 9.8% | – | 120 bps |
| Adjusted EBITDA excluding tariff refund related impacts, Q4 FY2026non-GAAP | $73.1M | – | 15.3% |
| Adjusted diluted EPS from continuing operations, Q4 FY2026non-GAAP | $1.39 | – | (46.7)% |
| Net sales, FY2026 (year ended Sep 30, 2026)GAAP | $2.85B | – | 1.5% |
| Organic net sales, FY2026non-GAAP | $2.80B | – | (0.3)% |
| Gross profit, FY2026GAAP | $1.15B | – | – |
| Selling, general and administrative expense, FY2026GAAP | $935.3M | – | – |
| Impairment of intangible assets, FY2026GAAP | $104M | – | – |
| Operating income, FY2026GAAP | $110.9M | – | – |
| Net income from continuing operations, FY2026GAAP | $58M | – | – |
| Diluted EPS from continuing operations, FY2026GAAP | $2.20 | – | – |
| Adjusted EBITDA from continuing operations, FY2026non-GAAP | $374.8M | – | – |
| Adjusted EBITDA margin, FY2026non-GAAP | 13.1% | – | – |
| Adjusted EBITDA excluding net IEEPA tariff refunds, FY2026non-GAAP | $317.4M | – | +9.8% |
| Adjusted diluted EPS from continuing operations, FY2026non-GAAP | $6.80 | – | – |
| Net cash provided by operating activities from continuing operations, FY2026GAAP | $291M | – | – |
| Free cash flow, FY2026non-GAAP | $243.2M | – | – |
| Adjusted free cash flow, FY2026non-GAAP | $247.3M | – | – |
| Purchases of property, plant and equipment, FY2026GAAP | −$47.8M | – | – |
| Net debt leverage (net debt to adjusted EBITDA), at Sep 30, 2026non-GAAP | 0.77x | – | – |
| Net debt, at Sep 30, 2026non-GAAP | $289.9M | – | – |
| Total debt outstanding, at Sep 30, 2026GAAP | $629.8M | – | – |
| Cash and cash equivalents, at Sep 30, 2026GAAP | $339.9M | – | – |
| Total assets, at Sep 30, 2026GAAP | $3.49B | – | – |
| Shareholders' equity, at Sep 30, 2026GAAP | $1.87B | – | – |
| Treasury stock purchases, FY2026GAAP | −$58.2M | – | – |
| Dividends paid to shareholders, FY2026GAAP | −$43.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global Pet Care (GPC), Q4 FY2026 net salesCompany states reported net sales decreased 1.5% and organic net sales decreased 1.1%. Companion Animal reported net sales increased low single digits and Aquatics decreased low double digits. North American net sales increased low single digits. Organic net sales in EMEA decreased in both categories, which the company attributes to a difficult prior-year comparison in Companion Animal and category softness in Aquatics. Segment adjusted EBITDA excluding tariff refund related impacts was $48.2 million, with a margin of 16.4%. | $293.5M | – | (1.5)% |
| Home & Garden (H&G), Q4 FY2026 net salesCompany states net sales and organic net sales both decreased 9.3%, impacted by unfavorable weather conditions and elevated retailer inventory levels that led to lower replenishment orders in the quarter. Company attributes the adjusted EBITDA decline primarily to lower sales volume, partially offset by productivity improvements and general expense management. | $126.3M | – | (9.3)% |
| Home & Personal Care (HPC), Q4 FY2026 net salesCompany states organic net sales decreased 2.3%, with Personal Care reported net sales flat and Home Appliances down low single digits. Company cites retailer orders placed ahead of the S/4 HANA ERP go-live, increased e-commerce competition, and North American net sales declining in the low double digits after distribution losses in Home Appliances and competitive pressure in Personal Care. Segment adjusted EBITDA excluding tariff refund related impacts was $25.7 million, up $10.0 million, with a margin of 8.8%; the company attributes this to reduced tariff rates, operational efficiencies and favorable foreign exchange, partially offset by lower volume. | $293.4M | – | (0.9)% |
| Global Pet Care (GPC), FY2026 net salesCompany describes Global Pet Care as returning to top-line growth for the year. Organic net sales for the year are printed as $1,122.1 million, up 3.7%. | $1.14B | – | 5.1% |
| Home & Garden (H&G), FY2026 net salesCompany describes Home & Garden as returning to top-line growth for the year. Organic net sales for the year are printed as $594.8 million, up 3.8%. | $594.9M | – | 3.9% |
| Home & Personal Care (HPC), FY2026 net salesCompany states top-line pressures persisted as expected in Home & Personal Care while the team delivered strong margin expansion. Organic net sales for the year are printed as $1,083.9 million, down 6.1%. | $1.12B | – | (3.0)% |
Fiscal 2027 outlook
- RevenueFlat to low single digit growth in reported net sales
- NoteAdjusted EBITDA flat to up low single digits; the framework excludes the impact of tariff refunds in fiscal 2026
- NoteAdjusted free cash flow approximately 50% of adjusted EBITDA (headline: targeting approximately 50% conversion of adjusted EBITDA to adjusted free cash flow)
- NoteLong-term net leverage ratio target of 2.0 to 2.5 times
Capital returns
- Treasury stock purchases were $(58.2) million in FY2026 versus $(326.4) million in FY2025.
- Dividends paid to shareholders were $(43.4) million in FY2026 versus $(48.2) million in FY2025.
- Excise tax paid on net share repurchases was $(3.2) million in FY2026 versus $(9.7) million in FY2025.
- Weighted average diluted shares were 23.3 million for FY2026 versus 25.9 million for FY2025, and 23.2 million for Q4 FY2026 versus 24.3 million for Q4 FY2025. The company states diluted EPS benefited from a lower share count in Q4.
What drove it
- Company states Q4 gross profit and margin increased driven by pricing, lower trade spend, reduced tariff rates and cost improvement actions, partially offset by lower volume.
- Company states Q4 operating income decreased due to higher operating expenses, partially offset by the increase in gross profit.
- Company states Q4 net income from continuing operations and diluted EPS decreased driven by lower operating income and a reduced income tax benefit.
- Company states Q4 adjusted EBITDA increased driven by improved gross margins, partially offset by lower volumes and higher operating expenses. Excluding tariff refund related impacts, Q4 adjusted EBITDA increased 15.3%.
- Company attributes the Q4 net sales decline primarily to Home & Garden, where unfavorable weather and elevated retailer inventory levels reduced replenishment orders.
- Company states Q4 adjusted diluted EPS decreased driven by the reduced income tax benefit, partially offset by higher adjusted EBITDA and a lower share count.
- Company states FY2026 adjusted EBITDA included $57.4 million of net IEEPA tariff refunds, which the company describes as a one-time benefit in fiscal 2026. Excluding this, FY2026 adjusted EBITDA was $317.4 million.
- Company states Q4 costs directly related to tariff refunds were $3.2 million.
Concerns
- Q4 net sales fell 2.8% reported and 3.1% organic, with Home & Garden down 9.3% and HPC organic net sales down 2.3%.
- Q4 GAAP net income from continuing operations fell 50.5% to $26.4 million, and Q4 GAAP diluted EPS from continuing operations fell 50.7% to $1.08.
- FY2026 intangible asset impairments of $104.0 million, compared with $16.6 million in FY2025, and FY2026 GAAP net income from continuing operations of $58.0 million versus $100.2 million.
- FY2026 adjusted EBITDA growth relies on $57.4 million of tariff refunds. The company's FY2027 framework excludes this benefit, and FY2027 is guided to flat to up low single digits.
- Company states Q4 Home & Garden was affected by elevated retailer inventory, and HPC North American net sales declined in the low double digits after distribution losses in Home Appliances.
- Company notes that HPC sales in the quarter benefited from retailer orders placed ahead of the S/4 HANA ERP go-live, and that both HPC categories were affected by increased e-commerce competition.
What to watch
- Response of Helen of Troy's Board and shareholders to the proposal from Empower Brands, which the company says was rejected; the filing states that the proposal has been made public.
- Delivery against the FY2027 framework of flat to low single digit net sales growth and flat to up low single digit adjusted EBITDA growth, after normalizing for FY2026 tariff refunds.
- Conversion of adjusted EBITDA to adjusted free cash flow against the stated target of approximately 50%.
- Stabilization of the S/4 HANA ERP platform, which the company says is now deployed across the organization, and the costs the company expects to continue through calendar year 2026.
- Home & Garden volume recovery after weather and retailer inventory effects, and Global Pet Care EMEA organic sales trends.
- Movement toward the long-term net leverage target of 2.0 to 2.5 times from the current 0.77x adjusted EBITDA level.
- Timing and amount of the tariff refunds and related legal proceedings, as noted in the forward-looking statements.
Balance sheet and cash flow
- Cash balance of $339.9 million and total liquidity of $836.2 million at quarter end, including undrawn cash flow revolver capacity of $496.3 million.
- Debt outstanding of $629.8 million, with no outstanding revolver borrowings, senior unsecured notes of $496.1 million, a term loan of $60.0 million within the HPC business, and finance leases of $73.7 million.
- Net debt of $289.9 million at quarter end; net debt leverage of 0.77x adjusted EBITDA as stated in the headline.
- Proceeds from issuance of preferred shares in subsidiary to noncontrolling interest of $67.0 million in FY2026; payment of preferred share transaction costs of $(4.6) million.
- Proceeds from issuance of debt of $57.6 million in FY2026 versus none in FY2025; payment of debt and debt premium of $(12.4) million versus $(10.8) million.
- Contribution to equity method investment of $(16.3) million in FY2026.
- Redeemable noncontrolling interest on the balance sheet of $69.0 million at Sep 30, 2026, versus none at Sep 30, 2025.
- Net cash provided by operating activities from continuing operations of $291.0 million in FY2026 versus $204.1 million in FY2025. Adjusted free cash flow of $247.3 million compares with $170.7 million.
Analysis
Spectrum Brands reported fiscal 2026 net sales of $2,852.4 million, up 1.5% from $2,809.0 million, with organic net sales down 0.3% to $2,800.8 million. The difference between reported and organic growth is shown in the filing as a $51.6 million foreign currency effect. Growth was concentrated in Global Pet Care, with net sales of $1,138.1 million (up 5.1%), and Home & Garden, with $594.9 million (up 3.9%). Home & Personal Care declined 3.0% to $1,119.4 million, and organic HPC sales fell 6.1%. The company describes the HPC segment as one where top-line pressure persisted while margins expanded.
Fourth-quarter results were weaker at the top line. Net sales were $713.2 million, down 2.8%, with Home & Garden down 9.3% on weather and retailer inventory effects, and HPC down 0.9%. Gross profit rose 4.6% to $268.4 million and gross margin widened to 37.6% from 35.0%, which the company attributes to pricing, lower trade spend, reduced tariff rates and cost actions. Operating income fell 17.0% to $24.4 million because operating expenses rose, with SG&A of $244.0 million against $226.3 million in the prior-year quarter. GAAP net income from continuing operations fell 50.5% to $26.4 million, and the filing attributes this to lower operating income and a smaller income tax benefit, which was $(6.3) million in the quarter against $(35.9) million a year earlier.
Non-GAAP measures tell a different story. Adjusted EBITDA rose 10.3% to $69.9 million and the adjusted EBITDA margin widened 120 basis points to 9.8%. The company says this includes $3.2 million of tariff refund related costs and excluding the tariff refund impacts, Q4 adjusted EBITDA was $73.1 million, up 15.3%. For the full year, adjusted EBITDA was $374.8 million, a 13.1% margin, against $289.1 million. The company states that $57.4 million of net IEEPA tariff refunds were received in FY2026 and that excluding them, adjusted EBITDA was $317.4 million, an increase of $28.3 million or 9.8%. Adjusted diluted EPS for the quarter was $1.39, down from $2.61, and the company explains the decline as a smaller tax benefit partly offset by higher adjusted EBITDA and a lower share count. The gap between adjusted and GAAP results is large for the year: GAAP EPS from continuing operations was $2.20 against adjusted EPS of $6.80, mainly because of $104.0 million of intangible asset impairments.
Cash generation and capital allocation were active. Operating cash flow from continuing operations was $291.0 million, against $204.1 million, and adjusted free cash flow was $247.3 million. Treasury stock purchases fell to $(58.2) million from $(326.4) million, and dividends paid were $(43.4) million. The company also received $67.0 million from a preferred share issuance in a subsidiary and recorded a $69.0 million redeemable noncontrolling interest. Cash rose to $339.9 million from $123.6 million, and net debt was $289.9 million, or 0.77x adjusted EBITDA. Shareholders' equity declined to $1,871.7 million from $1,909.7 million. The FY2027 framework calls for flat to low single digit reported net sales growth and flat to up low single digit adjusted EBITDA growth, both measured after excluding FY2026 tariff refunds, with adjusted free cash flow around 50% of adjusted EBITDA. The filing does not give a numerical FY2027 range.
Management, verbatim
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.
David Maura, Chairman and Chief Executive Officer, Spectrum Brands
While we are disappointed by their rejection of our offer, we remain optimistic.
David Maura, Chairman and Chief Executive Officer, Spectrum Brands
Not in the filing
stated, not guessed- No previous period outlook was provided, so prior guidance comparison is not possible.
- No analyst consensus or expectations are in the filing. The headline says adjusted EBITDA was ahead of consensus, but the consensus figure is not printed.
- No share price reaction or market data is in the filing.
- Prior-year and percentage change for Q4 cost of goods sold, Q4 SG&A, Q4 interest expense and Q4 income tax are not printed on their own lines.
- Year-over-year percentage change for FY2026 gross profit, operating income, net income from continuing operations, GAAP diluted EPS, adjusted EBITDA and adjusted EPS are not printed.
- Prior-year figure for adjusted EBITDA excluding tariff refunds for the full year is not printed on that line, although the filing prints the $28.3 million increase and 9.8% change.
- Prior-year figure for Q4 adjusted EBITDA excluding tariff refund impacts is not printed on that line; the filing prints the $9.7 million increase and 15.3% change.
- Full-year and Q4 gross profit margin figures for FY2026 are not printed as a percentage.
- FY2027 numerical revenue, adjusted EBITDA, tax rate, gross margin and operating expense ranges are not given; only qualitative growth bands are printed.
- Prior-year figures for the Q4 and FY2026 organic net sales growth by segment in the segment table are printed, but Q4 segment adjusted EBITDA prior-quarter and sequential figures are not printed.
- Quarter-on-quarter figures are not printed anywhere in the filing.
- Net debt leverage for the prior year is not printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K earnings release for Spectrum Brands Holdings, a NYSE‑listed consumer products company.
Ticker impact
Spectrum Brands Holdings reported FY2026 Q4 and full-year results with a 50% drop in net income and flat-to-low single‑digit guidance for FY2027.
downward pressure as investors digest lower net income and flat guidance
The company posted a 50% decline in net income YoY and signaled only flat to low‑single‑digit growth, which typically triggers a sell‑off in the near term.
Market effects
Consumer staples peers may see similar pressure if broader demand weakness persists.
U.S. consumer‑goods sector could face slight downside in the short term.
Limited to the consumer products space; no broad market impact.
Counterpoint
If the ERP implementation drives efficiency gains, the stock could rebound on longer‑term upside.
Key entities
- ExecutiveDavid Maura
Chairman and CEO of Spectrum Brands, provided commentary on results and strategy.
- SubsidiaryEmpower Brands
Jointly owned entity that attempted to acquire Helen of Troy.
