Edgewell Personal Care Company (EPC) Q1 2026 earnings summary

Executive summary

• Q1 2026 results modestly exceeded expectations, driven by strong North America performance, especially in Sun Care and Grooming, and the completed $340 million divestiture of the Feminine Care business, sharpening focus on core categories and strengthening the balance sheet.

• Portfolio is now more focused and agile, positioned for sustainable growth and stronger margins, with a transition services agreement in place for the divested business.

• Net sales from continuing operations were $422.8 million, up 1.9% year-over-year, while organic net sales declined 0.5% due to lower Wet Shave and Skin Care volumes, partially offset by Sun Care and Grooming growth.

• Net loss from continuing operations was $(29.2) million, with adjusted net loss at $(7.6) million, mainly due to lower gross margin despite higher sales.

• Full-year outlook for continuing operations remains consistent with prior guidance after adjusting for the divestiture.

Financial highlights

• Organic net sales for continuing operations decreased 0.5% year-over-year; consolidated organic net sales declined 0.3%.

• Adjusted EPS was $(0.16) and adjusted EBITDA was $25.0 million, both ahead of outlook.

• Adjusted gross margin rate decreased 210 basis points to 39.5%, with productivity savings offset by inflation, tariffs, and unfavorable mix.

• GAAP diluted net loss per share from continuing operations was $(0.63).

• Net cash used by operating activities was $125.9 million, up from $115.6 million last year.

Outlook and guidance

• Fiscal 2026 outlook for continuing operations unchanged: organic net sales growth expected between -1% and +2%, reported net sales up 0.5% to 3.5%.

• Adjusted gross margin rate expected to expand by 60 bps year-over-year, with H2 driving margin growth.

• Adjusted EPS guidance is $1.70–$2.10, including a $0.44 headwind from the Fem Care divestiture.

• Adjusted EBITDA expected at $245–$265 million, with two-thirds generated in H2.

• Adjusted free cash flow (excluding divestiture impacts) expected at $80–$110 million.