Spectrum Brands (SPB) investor relations material

Executive summary

• Net sales rose 7.7% year-over-year to $753.3 million, with organic sales up 6.6% and all business units delivering growth; Home & Garden achieved a record quarter.

• Adjusted EBITDA more than doubled to $158.3 million, including $60.6 million in IEEPA tariff refunds; excluding refunds, Adjusted EBITDA increased 27.5% to $97.7 million.

• Net loss from continuing operations was $20.3 million, impacted by a $104 million non-cash impairment charge related to the HPC business and the Oaktree transaction.

• Strategic priorities include operational excellence, financial stewardship, talent investment, transformation, and disciplined capital allocation, with M&A and the Oaktree partnership highlighted.

• Major SAP S/4HANA ERP deployment completed across most business units, supporting operational transformation.

Financial highlights

• Gross profit increased 40.2% to $370.4 million, with gross margin expanding to 49.2%, primarily due to $60.6 million in tariff refunds.

• Operating income declined to $15.9 million, down from $31.3 million, due to higher operating expenses and impairment charges.

• Adjusted diluted EPS was $2.79, with $1.90 per share from tariff refunds; excluding refunds, adjusted EPS was $0.89.

• Cash and cash equivalents at quarter-end were $258.9 million, with total liquidity of $753.7 million and net leverage at 1.02x.

• Share repurchases totaled $58.2 million year-to-date, with over $300 million in board authorization remaining.

Outlook and guidance

• Fiscal 2026 net sales expected to be flat to up low single digits, with growth in Global Pet Care and Home & Garden offsetting a decline in Home & Personal Care.

• Adjusted EBITDA (excluding tariff refunds) now expected to grow mid-single digits versus prior year.

• Adjusted free cash flow expected to be approximately 50% of adjusted EBITDA.

• Capital expenditures forecasted at $50–$60 million; depreciation and amortization at $115–$125 million.

• Management expects sufficient liquidity to meet operating and capital needs for at least the next 12 months.