Edgewell Personal Care Company (EPC) Canaccord Genuity’s 45th Annual Growth Conference summary

Transformation progress and business strengths

• International business drives 40% of revenue, growing 4-5% annually, with strong brands and local innovation focus.

• Productivity savings are embedded, delivering 250-300 basis points annually, supporting future margin expansion.

• Free cash flow averages $150M-$180M, with a low CapEx profile and strong profit conversion.

• U.S. business undergoing transformation with new leadership, strategic review, and commercial reorganization.

• Innovation structure replatformed, with successful new product launches in international markets.

Financial outlook and performance

• Long-term top-line growth target remains 2-3%, with international outpacing U.S. growth.

• Q3 was challenging due to weak sun care season, but productivity savings and international share gains were highlights.

• Q4 expected to show organic growth of 2-2.5%, with 8% growth in international and sequential improvement in North America.

• Gross margin expansion is a focus, with 2025 impacted by tariffs, currency, and mix, but long-term levers remain strong.

• Free cash flow for 2025 estimated at $80M due to transitory headwinds, but long-term range of $150M-$200M expected.

Tariffs, pricing, and capital allocation

• Tariff exposure estimated at $40M-$50M annually (3-4% of COGS), with mitigation through cost and pricing actions.

• Pricing already initiated in international markets; U.S. to follow market leaders.

• Capital allocation has prioritized debt paydown and share repurchases; near-term focus likely on reducing leverage.