Edgewell Personal Care Company (EPC) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 2026 were $570.1 million, up 1.7% year-over-year, with organic net sales increasing 1.1%.

• Adjusted EPS was $0.72, matching the prior year, while adjusted EBITDA was $78.9 million, slightly below last year.

• North America organic sales increased 3%, offsetting a 1.4% decline in international organic sales due to Middle East conflict and supply disruptions.

• Completed the divestiture of the Feminine Care segment, receiving $340 million in proceeds and entering a transition services agreement.

• Strategic investments in brands, technology, and operational transformation are driving improved execution and positioning for sustainable growth.

Financial highlights

• Gross margin for Q3 2026 was 42.5%, down 210 bps; adjusted gross margin declined 30 bps to 44.5%.

• Adjusted operating income was $53.0 million (9.3% of sales), down from $63.6 million (11.3%) last year.

• Adjusted EPS was $0.72, flat year-over-year; adjusted net earnings were $33.5 million.

• Net cash from operating activities was $47.1 million for the first nine months, up from $44.3 million last year.

• Interest expense dropped to $16.7 million from $19.4 million due to lower borrowing.

Outlook and guidance

• Full-year reported net sales growth expected at 1.3%–1.8%; organic net sales flat to up 0.5%.

• Adjusted EPS guidance narrowed to $1.80–$2.00; adjusted EBITDA expected at $250–$260 million.

• Adjusted free cash flow (ex-FemCare) expected at $80–$110 million; adjusted net debt leverage to end at 3.3–3.4x.

• Gross margin expansion anticipated in Q4 and for the full year, driven by productivity, cycling of one-time costs, and FX.

• Capital expenditures projected at 3.0%–3.5% of net sales; investment levels in A&P and strategic priorities to be maintained.